The Impact of Gender Wage Gap on Sectoral Economic Growth ? Cross-country Approach
DOI:
https://doi.org/10.12775/EQUIL.2013.022Keywords:
gender wage gap, economic growth, manufacturing sectorsAbstract
We propose an empirical analysis of testing the relationship between gender wage gap and economic growth. The study takes into account 12 manufacturing sectors in 18 OECD countries for the period between 1970 and 2005.We use industrial statistics (EU KLEMS, 2008) on female and male wages that distinguish between wages paid to different groups of workers classified according to skill level: high, medium and low. We estimate augmented production function where the malefemale wage differentials constitute a potential channel influencing growth (positively or negatively). Our research is motivated by the ambiguous results of previous empirical studies (e.g.: Seguiono 2000; Busse, Spielmann 2006; Seguino 2011; Schober, Winter-Ebmer 2011). Our main findings indicate that gender wage gap for high, medium and low-skilled workers is negatively correlated with sectoral growth. This results are confirmed in a number of robustness checks.
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References
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Barro R., Lee J-W. (2013), A New Data Set of Educational Attainment in the World 1950-2010, ?Journal of Development Economics?, Vol. 104, http://dx.doi.org/10.1016/j.jdeveco.2012.10.001.
Becker G.S. (1971), The Economics of Discrimination, Chicago: University of Chicago Press.
Berik G., van der Meulen Rodgers Y., Seguino S. (2009), Feminist economics of inequality, development and growth, ?Feminist Economics?, Vol. 15, No. 3, http://dx.doi.org/10.1080/13545700903093524.
Busse M., Spielmann Ch. (2006), Gender Inequality and Trade, ?Review of International Economics?, Vol. 14, No. 3, http://dx.doi.org/10.1111/j.1467- 9396.2006.00589.x.
Caselli F. (2005), Accounting for Cross-Country Income Differences [in:] Aghion P, Durlauf S. (ed), Handbook of Economic Growth, Elsevier, Amsterdam.
Djankov S., Murrell P. (2002), Enterprise Restructuring in Transition: A Quantitative Survey, ?Journal of Economic Literature?, Vol. XL, http://dx.doi.org/10.1257/002205102760273788.
Dominguez-Villalobos L., Brown-Grossman F. (2010), Trade Liberalization and Gender Wage Inequality in Mexico, ? Feminist Economics?, Vol. 16, No. 4, http://dx.doi.org/10.1080/13545701.2010.530582.
Field-Hendrey E. (1998), The Role of Gender in Biased Technical Change: U.S. Manufacturing, 1850-1919, ?The Journal of Economic History?, Vol. 58, No. 4, http://dx.doi.org/10.1017/S0022050700021744.
Klasen S. (2002), Low schooling for girls, slower growth for all? Cross-country evidence on the effect of gender inequality in education on economic development. ?World Bank Economic Review,? Vol. 16, http://dx.doi.org/10.1093/wber/lhf004.
Klasen S., Lamanna F. (2009), The impact of gender inequality in education and employment on economic growth: New evidence for a panel of countries, ?Feminist Economics?, Vol. 15, No. 3, http://dx.doi.org/10.1080/13545700902893106.
Knowles S., Lorgelly P., Owen D. (2002), Are educational gender gaps a break on economic development?, ?Oxford Economic Papers?, Vol. 54.
Oostendorp R.H. (2009), Globalization and the Gender Wage Gap, ?World Bank Economic Review?, Vol. 23, No. 1, http://dx.doi.org/10.1093/wber/lhn022.
Pervaiz Z., Irfan Ch.M., Ahmad J.S., Amatul R. (2011), Gender inequality and economic growth: a time series analysis for Pakistan, MPRA Paper 37176, University Library of Munich, Germany.
Schober, T., Winter-Ebmer R. (2011), Gender Wage Inequality and Economic Growth: Is There Really a Puzzle? ? A Comment, ?World Development?, Vol. 39, No. 8, http://dx.doi.org/10.1016/j.worlddev.2011.05.001.
Seguino, S. (2000), Gender inequality and economic growth: A cross-country Analysis, ?World Development?, Vol. 28, No. 7, http://dx.doi.org/10.1016/S0305- 750X(00)00018-8.
Seguino, S. (2011), Gender Inequality and Economic Growth: A Reply to Schober and Winter-Ebmer, ?World Development?, Vol. 39, No. 8.
Wagner J. (2007), Exports and Productivity: A Survey of the Evidence from Firmlevel Data, ?The World Economy?, Vol. 30, No. 1, http://dx.doi.org/10.1111/j.1467-9701.2007.00872.x.
Weichselbaumer D., Winter-Ebmer R. (2005), A meta-analysis of the international gender wage gap, ?Journal of Economic Surveys?, Vol. 19, No. 3, http://dx.doi.org/10.1111/j.0950-0804.2005.00256.x.
Wolszczak-Derlacz J. (2013), Mind the Gender Wage Gap ? the Impact of Trade and Competition on Sectoral Wage Differences, ?The World Economy?, Vol. 36, No. 4, http://dx.doi.org/10.1111/twec.12026.
World Bank (2011), World Development Report 2012:.Gender Equality and Development, Washington DC.
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Published
2013-09-30
How to Cite
Wolszczak-Derlacz, J. (2013). The Impact of Gender Wage Gap on Sectoral Economic Growth ? Cross-country Approach. Equilibrium. Quarterly Journal of Economics and Economic Policy, 8(3), 103–122. https://doi.org/10.12775/EQUIL.2013.022
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Section
Labour Markets Economics
