Gender equality and macroeconomic outcomes: evidence and policy implications

Abstract

A large and growing literature has associated gender equality with better macroeconomic outcomes. However, understanding the channels through which gender equality impacts the economy requires a deeper dive in the main constraints within an economy. Using theoretical and empirical evidence, we explore how gender equality in education feeds into higher human capital levels and thus better macroeconomic outcomes. We also analyse the impact of inequities in the labour market, focusing also on the role of the informal sector. Finally, we provide an overview on policy options to address various gender gaps.

Gender economics: an assessment

“…Here I argue that efficiency considerations can take us a long way to understanding why, as Christine Lagarde put it while Managing Director of the IMF, 'excluding women simply makes no economic sense-and including women can be a tremendous boon to the 21st century global economy '. 3 At the macro level, a growing literature directly associates women's participation in the labour force with economic growth and development, as well as with other outcomes that indirectly increase economic productivity, such as an increase in competitiveness (see the review by Lisa Kolovich et al (2020), the opening paper in this issue). 4 An immediate channel through which levelling the playing field to include more women in economic decision-making can improve economic outcomes is through a more efficient allocation of scarce resources (namely, human talent).…”