Question

could you explain how gender inequality impacts on economic development?

Answer 1

Gender inequaltiy is a common phenomenon in many developing countries. There are multi-dimensional differences between male and female results and opportunities: schooling, wages, occupation, access to formal jobs, access to managerial roles, access to competitive resources, political participation, or bargaining power within the household. Those inequalities in developed countries are especially dramatic.

On the other hand, gender differences in education are unfavorable to long-term development, owing to the large positive externalities created by female education, increased distribution of parental human capital and reduced fertility. Health and life expectancy gender inequalities impede long-term growth and efficiency due to reduced working lives and lower productivity levels. Such impacts on health and education are the barriers to social progress created by gender inequality.

Gender disparities in health and life expectancy threaten the long-term growth and competitiveness of a nation and adversely affect aggregate demand and short-term production of jobs. Furthermore, it has been shown that female capital per worker has a higher return than male capital per worker, and the realistic implementation of neoclassical theory shows that a higher steady-state production and growth rate correlates to capital investment that is biased towards female capital.

Although gender inequality and poverty are closely linked, ample evidence exists to show that reducing gender inequality alone is not enough to reduce poverty. Just as economic growth, education, investment, aid or any other single variable does not suffice to tackle poverty, so does gender equality not improve. Reduction of poverty through gender equality will be achieved through a variety of means-including health, education and economic growth.