Some of these indicators are part of thematic or regional SDG frameworks and others have been recently developed by non-governmental and inter-governmental constituencies. Washington: International Monetary Fund. In our main analysis, we use a composite index for gender inequality (GII). 73% of the wealth generated in 2017 went to the richest 1%, while *670 million Indians who comprise the poorest half of the population saw only a 1% increase in their wealth. The first is reported through carbon dioxide emissions by income category. International Monetary Fund, 2018b. Washington. Additional robustness checks are provided in Table 10. 2022 International Monetary Fund. The highest coverage rate is in the Europe and North America region (100%). Thus, we do not study the developed economies, as these have high levels of gender inequality comparable to our benchmark countries, but we focus our analysis on the emerging-market and developing economies10. ; We use the ISIC 2-digit industry-level dataset from UNIDO (Revision 3), which restricts our analysis to manufacturing sectors (ISIC 1537)11. Economic theory and economic policy have long seen income and its distribution as a central concern. Specifically, we exploit within-country variation across industries to test whether those that typically employ more women grow relatively faster in countries with ex-ante lower gender inequality. Some of the research findings have been operationalised into a small number of Article IV surveillance reports. Unlocking the Full Potential of Women at Work. McKinsey & Company. This includes tracking of legal frameworks that address gender equality (e.g., laws related to equality in the workplace, abortion rights, sexual orientation, etc. Known as "Umodzi" ("United") for short, the program was a game-changer for Stone and Rose's home and lives. London School of Economics and Political Science. This dataset includes gender inequality and development indices. What distinguishes WID.world's national accounts data from the UN, the IMF, the World Bank, or other national accounts data providers? The roadmap to gender equality has to rely on legal framework reforms, policies to promote equal access, and efforts to tackle entrenched social norms. We use industry-level value-added data in current US dollars. Towards a Better Future for Women and Work: Voices of Women and Men. /* tracker methods like "setCustomDimension" should be called before "trackPageView" */ The Gini coefficient is a number between 0 and 1, where 0 corresponds with perfect equality (where everyone has the same income) and 1 corresponds with perfect inequality (where one person has all the incomeand everyone else has no income). See all. In less population-dense areas, gender inequality may pose a stronger obstacle to female employment, as women have to commute (alone) farther distances in order to work, which may be an issue due to social norms and/or safety. As opposed to aggregate-level cross-country studies on the gender inequality-growth nexus, this strategy enables us to analyze within-country differences across industries based on the interactions between industries female shares and a countrys gender inequality. Trends in Gender Equality and Womens Advancement, IMF Working Paper 16/21. The ratio of the number of teachers to the number of students in secondary education in a country in 1990. We thus provide empirical support to the argument that gender equality is macrocritical, and should be assigned a high priority on the policymakers agenda. As economic growth also lowers gender inequality, although we use GII from 1990 and relate it to growth outcomes in the following decade, using lagged GII may still expose us to reverse causality concerns if GII is highly persistent over time (as shown in Figure 3, GII indeed varies little throughout our period). Tzannatos, Z., 1999. Our findings show that gender inequality affects real economic outcomes. 6 Gender equality and women's empowerment matter for economic development, too. The Index is on a scale of 0-100, a high value indicates a more egalitarian society - and a low value suggests a lot of the national income is in the hands of very few depending upon the unit of measurement. Free Download. The results reassure us that our conclusions are robust to using these narrower measures of gender inequality, while showing that inequality in both opportunities (as measured by womens rights law, education, and health) and outcomes (employment) plays a role for growth. What is unique about the SDG Gender Index? We also do not rule out potential complementarities between female and male labor as a relevant determinant of industry growth, as proposed by IMF 2018b. Many of the core determinants of growth, such as differences in capital accumulation of different industries, will be captured by industry fixed effects, while factors such as institutional differences will be captured by country fixed effects. Gender parity will not be attained for 99.5 years - that's the sobering finding of the Global Gender Gap Report 2020. These cookies ensure basic functionalities and security features of the website, anonymously. These cookies track visitors across websites and collect information to provide customized ads. In 1990, Sweden had by far the lowest GII in the IMF country ranking. Sources of Economic Growth, Carnegie-Rochester Conference Series on Public Policy, 40, 146. The trade as a share of GDP in a country in 1990. Men, Women, and Machines: How Trade Impacts Gender Inequality, Journal of Development Economics, 106, 17993. Lorgelly, and P.D. Gender Equality: Which Policies Have the Biggest Bang for the Buck? The Role of Political Institutions, Journal of Macroeconomics, 32 (3), 83857. These factors. Our baseline results show fintech could improve female employment and reduce gender inequality. Recent empirical evidence, using an extended version of the UN's Gender Inequality Index (GII), shows that several dimensions of gender inequality (health, empowerment, education attainment, and labor force participation) are strongly associated with lower growth, in particular in low-income countries ( Gonzales et al. In order to smooth temporal fluctuations in gender composition, we aggregate this measure over time. The poorest half get just 8.5 percent. Environmental Conservation and Protection, Ethiopia, The Federal Democratic Republic of, Hong Kong Special Administrative Region, People's Republic of China, Macao Special Administrative Region, People's Republic of China, High-Level Summary Technical Assistance Reports, Selected Legal and Institutional Papers Series, Annual Report on Exchange Arrangements and Exchange Restrictions, The Costs of Missing the Millennium Development Goal on Gender Equity, Economic Growth in a Cross-Section of Countries, International Comparisons of Educational Attainment, International Measures of Schooling Years and Schooling Quality, Unlocking the Full Potential of Women at Work, The Gender Wage Gap: Extent, Trends, and Explanations, People Skills and the Labor-Market Outcomes of Underrepresented Groups, Is Technology Widening the Gender Gap? Sign up to receive free e-mail notices when new series and/or country items are posted on the IMF website. Indicators that we were not able to carry forward into the 2022 Index include those in critical areas such as social protection, womens representation in judicial posts, and womens views of social norms related to intimate partner violence. See, for example, the UN 2030 Agenda for Sustainable Development (UN 2015). World Development Report, 2012. In economics, income distribution covers how a country's total GDP is distributed amongst its population. Gender and Finance: A Case for Closing Gaps, IMF Staff Discussion Note 18/05. Asel Isakova IMF Members' Quotas and Voting Power, and Board of Governors, IMF Regional Office for Asia and the Pacific, IMF Capacity Development Office in Thailand (CDOT), IMF Regional Office in Central America, Panama, and the Dominican Republic, High-Level Summary Technical Assistance Reports, Financial Sector Assessment Program (FSAP), Currency Composition of Official Foreign Exchange Reserves. The figures included in the Index, for all indicators, are usually the most recent available and the closest to the baseline and latest reference years. Knowing that gender equality in Malawi is one of the keys to eliminating poverty at scale, Concern launched "Mutu Umodzi Susenza Denga" (in the local Chichewa language, "One Head Cannot Hold Up the Roof"). 14-redistribution-inequality-and-growth-imf 2/14 map index pdf distributional issues and inequality has grown among the membership, increasing the demand for the Fund to work in these areas. c. achieve gender equality and empower all women and girls d. ensure sustainable consumption and production patterns e. end hunger, achieve food security and improved nutrition, and promote sustainable agriculture b. promote economic growth and industrialization through urban development Durdu, C. B., Martin, A., and I. Zer, 2019. The export as a share of GDP in a country in 1990. New York: UN. As we focus on the differential effects, a potential concern is that, given an increase in female labor participation underlying lower GII, our results may be driven by a disproportionate increase in labor supply of one industry over the other, without real productivity gains. Worldwide, productivity growth and the pace of human development are slowing (ILO 2017), and womens full and effective participation in the workforce and decent work for all are critical to inclusive and sustainable economic growth1. Specifically, we exploit within-country variation across industries to test whether those that typically employ more women grow relatively faster in countries with ex-ante lower gender. Download or read book Gender Budgeting in G20 Countries written by Virginia Alonso-Albarran and published by International Monetary Fund. The SDG Gender Index represents the most comprehensive tool to measure overall progress towards gender equality that is aligned to the SDGs. (Togo First) - Togo adopted during its latest council of ministers, on March 15, a new decree that will support the country's efforts to reduce its greenhouse gas emissions (GHG) and make populations more resilient to climate change. Namely, the higher the womens relative MPL, the higher the incentive for an industry to employ them. However, such artificial barriers are lower in countries with lower GII. The effects on both margins would be more evident for high-female-share industries as, on the extensive margin, a larger share of newly hired women join these industries and, on the intensive margin, unlocking womens potential at work is more beneficial to industries that have a greater share of female labor in their total employment5. We study whether gender inequality inhibits economic growth by constraining the use of female labor potential. Extensive literature documents the importance of finance for growth (see, for example, Levine 2005) and equality (see IMF 2020 for a recent discussion), which may bias our results. International Monetary Fund, 2013. We calculate the value-added share of an industry in a countrys total manufacturing value-added in 1990. Klasen, S., and F. Lamanna, 2009. Gonzales, C., S. Jain-Chandra, K. Kochhar, M. Newiak, and T. Zeinullayev, 2015. The average growth in value-added in an industry over the 1990s. Gender inequality in economic participation restricts the pool of talent in the labor market and can thus lead to a less efficient allocation of resources and, hence, lower GDP growth. Kazandjian, R., L. Kolovich, K. Kochhar, and M. Newiak, 2016. Instead, we exploit this heterogeneity of gender compositions across industries as an exogenous source of variation that facilitates identifying the causal effect of gender inequality on real economic outcomes. For instance, Hill and King (1995), Dollar and Gatti (1999), Lorgelly and Owen (1999), Tzannatos (1999), Forbes (2000), Seguino (2000), Klasen (1999, 2002), Knowles, Lorgelly, and Owen (2002), Yamarik and Ghosh (2003), Abu-Ghaida and Klasen (2004), Klasen and Lamanna (2009), and Loko and Diouf (2009) all find that a higher degree of gender inequality in education and/or employment is detrimental to economic growth. The first step was to check for earlier data. Figure 2: Wealth inequality in Africa by sub-region (2022) Any such complementarities could provide an additional boost to productivity beyond the direct effect of hiring (or promoting) a more talented woman over a less talented man. In Table 4, we summarize the residual growth rate obtained after partialling out industry and country fixed effects for the top and bottom quartiles of industriesranked based on their female employment. Is Female Education Productive? In column (3), in a related robustness check, we use a categorical variable to classify industries female shares in four categories based on quartiles of the distribution. There are two main assumptions in this specific DiD application by RZ. A smaller family sizewhether desired by parents or imposed by the governmentis found to be among the main causes (see, for example, Jayachandran (2017) for a description of cultural and religious traditions that lead parents in India and China to fervently desire at least one son, and Zhang (2017) on the evolution of Chinas one-child policy and its effects on family outcomes). "Volume 2021 (2021): Issue 059 (Mar 2021): Gender Equality and Inclusive Growth" published on 04 Mar 2021 by International Monetary Fund. There are 119 billionaires in India. 2015b; Hakura et al. Table 9 reports the results controlling for external finance dependence of an industry and financial development, which are the focus of RZ. Alternative measures of gender inequality, Center for Advanced Human Resource Studies (CAHRS) 2011, Fiscal Stabilization and Growth: Evidence from Industry-level Data for Advanced and Developing Economies, Legal Gender Equality as a Catalyst for Convergence, Foreign Direct Investment and Women Empowerment: New Evidence on Developing Countries, Demographic Dividends, Gender Equality, and Economic Growth: The Case of Cabo Verde, Trends in Gender Equality and Women's Advancement, Gender and its Relevance to Macroeconomic Policy: A Survey, Middle East and Central Asia: A Survey of Gender Budgeting Efforts, Economic Gains From Gender Inclusion: New Mechanisms, New Evidence, Chapter 9. Firm-Level Evidence from Colombia, Financial Development and TFP Growth: Cross-Country and Industry-Level Evidence, Gender Gaps and Scientific Productivity in Middle-Income Countries: Evidence from Mexico, Impact of Subsidies for Researchers on the Gender Scientific Productivity Gap: Evidence from Paraguay, Gender Earnings Gaps in the Caribbean: Evidence from Barbados and Jamaica, Information and Exports: Firm-Level Evidence from an Online Platform, Work inequalities in the crisis: Evidence from Europe, Does Gender Inequality Hinder Development and Economic Growth? An extensive body of work documents gender inequality in both opportunities (for example, education, health, and finance) and outcomes (for example, employment and earnings), with a particularly rich literature studying the determinants of gender wage gap2. 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