imf gender inequality index

International Monetary Fund and World Bank, 2007. First, there are some intrinsic reasons that lead certain industries to typically employ more female labor than others. We document little variation of industries gender composition in our sample either over time or within a group of our benchmark countries (that is, the countries with relatively high gender equality, which we use to identify industries gender compositions). International Monetary Fund, 2018a. 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. Loko, B., and M.A. Mimeograph, The Evolution of Chinas One-Child Policy and Its Effects on Family Outcomes, 4.2. Plant-Level Evidence, Gender Equality and Economic Diversification, Finance and Growth: Schumpeter Might Be Right, Does Gender Inequality Reduce Growth and Development? By focusing on the differential effect of gender inequality on economic growth within countries between industries with different gender compositions, we are able to address the bulk of the endogeneity concerns that arise in aggregate level cross-country studies. By using the arithmetic mean to calculate the goal scores, the weights given to the indicators are the same. But even if they were, the data would not be useful for our purpose, as a share of female labor in total employment of an industry in a given country is an equilibrium outcome in the labor market, likely distorted by existing gender-based frictions (for example, discrimination). One avenue to take to address these challenges would be to use an instrumental variable analysis, but a plausible instrument to identify the relationship would require finding a variable that contributes to growth only through its impact on gender inequalitywhich poses a challenge of its own4. The SDG Gender Index takes into account many of the issues covered by CEDAW, but recognises that other bodies are comprehensively monitoring CEDAW implementation through direct reporting by countries to the UN High Commissioner on Human Rights (see national reports compiledhere). Multilingual organised crime and citizen security specialist with three years' experience conducting policy analysis and research to support both Commonwealth Small States and Latin America and the Caribbean countries. The WDR highlights that the segregation arises due to a combination of gender-differentiated barriers in access to economic opportunitiesincluding discrimination and gender normsand sorting based on gender-based preferences. We show that our results are not a simple artifact of using the DiD application by RZ and some spurious correlations between our main variables of interestwhich are external finance dependence and financial development in their study, and gender composition and gender equality in ours. Table 2 tabulates the GII for different countries in 1990. Therefore, nationally-reported data are used wherever possible, and estimates are not made where data are missing. Dollar, D., and R. Gatti, 1999. See all. For example, if the wearing apparel industry employs more female labor than the wood industry in Sweden, it also employs more female labor in Turkey. 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. Having calculated this ratio for each year, we take simple averages across years for the corresponding periods, as presented in Table 1. By focusing on the differential effect of gender inequality on economic growth within countries between industries, we address the bulk of the endogeneity concerns that arise in aggregate level cross-country studies. ; These cover issues such as womens access to justice; their ability to discuss political issues; the legal frameworks that recognize LGBT rights; and more. Yamarik, S., and S. Ghosh, 2003. To the extent that such technological advances are worldwide and that our regression sample consists of emerging-market and developing economies in the 1990s, the state of production technologies in Sweden in the 1980s makes a suitable proxy (especially given our focus on the manufacturing sector). A recently published IMF paper takes stock of gender budgeting practices in G20 countries. Although Index scores are mostly based on 2019 data . Series: Working Paper No. If none were available for the latest year and/or the baseline, the next step was to find another relevant data source that could serve as a reliable proxy. See WDR (2012) for the global trends in gender inequality, and Blau and Kahn (2017) for a recent review on gender wage gap literature. Using a large sample of emerging-market and developing economies, we show that the industries with a typically greater share of women in their employment compared to other industries grow relatively faster in more gender-equal countries. The broad money as a share of GDP in a country in 1990. Washington: International Monetary Fund. This is consistent with, for example, Guiso and others (2004) and Erman and Kaat (2019), as well as being the standard practice in previous studies of developing countries using UNIDO data. Women, Please address any questions about this title to publications@imf.org. Hill, M. A., and E. King, 1995. Classical economists such as Adam Smith (1723-1790), Thomas Malthus . _paq.push(["setDoNotTrack", true]); We drop the industries for which female employment data are missing for the majority of our benchmark countries or for most years in the relevant period. If it is not available until 1993, we do not use that observation in the corresponding robustness check. For example, they can be defined quite differently an indicator like the maternal mortality ratio (Ind. None of us will see gender parity in our lifetimes, and nor likely will many of our children. International Monetary Fund, 2020. Our estimates predict that an industry at the 75th percentile of the female share in total employment, compared to an industry at the 25th percentile, grows 1.7 percentage points faster in terms of value-added (and 1.2 percentage points faster in terms of labor productivity) when it is located in a country at the 25th percentile of gender inequality rather than in one at the 75th percentile. The Costs of Missing the Millennium Development Goal on Gender Equity, World Development 32 (7), 10751107. (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. Transforming Our World: The 2030 Agenda for Sustainable Development, United Nations General Assembly, A/RES/70/1. Durdu, C. B., Martin, A., and I. Zer, 2019. There are two main assumptions in this specific DiD application by RZ. 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? 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). Rajan, R., and A. Subramanian, 2011. Barro, R. J., (1991). 1 min The most comprehensive tool to measure progress towards gender equality by 2030. A recent study by Delchat and others (2018) discusses gender gap in financial inclusion and its determinants. 2022 International Monetary Fund. ), global survey data that capture womens views about different aspects of their lives and societies, and other data collections that are conducted by a range of data producers (including the World Bank, civil society organizations (CSOs) and think tanks) on a global and regular basis. Our findings show that gender inequality affects real economic outcomes. Caselli, F., G. Esquivel, and F. Lefort, 1996. 6 Gender equality and women's empowerment matter for economic development, too. : Evidence From Firm Level Data, Determinants of Export Growth at the Extensive and Intensive Margins: Evidence from Product and Firm-Level Data for Pakistan, Gender and the allocation of adult time: evidence from the Peru LSMS panel data, Labor Mobility, Economic Shocks, and Jobless Growth: Evidence from Panel Data in Morocco, https://doi.org/10.5089/9781513546278.001. All rights reserved. There are three key measures of financial inequality: income, consumption and wealth. In other regions, 95% of the female population or higher is covered except for the Middle East and North Africa region (94%). This may have an impact on farmers as they will have to adjust for this season. Analytical cookies are used to understand how visitors interact with the website. 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 FDI is measured as the net inflows as a share of GDP. For industries external finance dependence (which we use in one of our robustness checks), we adopt the measures from Popov (2014) for US firms in the 1980s for corresponding industries. Washington. By showcasing where progress is happening and where it isnt the Index aims to drive action on gender equality such that momentum towards equality becomes resilient, sustainable, and, ultimately, unstoppable. The results show that only the high-female-share industries tend to grow significantly faster in countries with lower gender inequality compared to countries with higher gender inequality. Washington. No description added. 5.3), women in climate change leadership (Ind. Export and import are measured as a share of GDP. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. Boserup, E., 1970. That's the sobering finding of the Global . While women account for half of the total population, they remain an underused resource, constituting less than a third of the actual workforce (Lagarde 2013). Monetary policy 2022 International Monetary Fund. In the context of our analysis that exploits the dynamics in the labor market, high development on the gender equality front (such as in Sweden) is assumed to entail a large reduction of frictions on both the demand side of labor (due to, for example, discrimination in the labor market) and the supply side (due to, for example, gender social norms). Different measures of inequalitysuch as the Gini coefficient, the Theil index, and the income share of the wealthiest in societyare sensitive to different parts of the distribution and can in principle rank inequality before and after the pandemic differently. This paper considers various dimensions and sources of gender inequality and presents policies and best practices to address these. 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. To assess the impact of gender inequality on industry growth, we use variation across industries in their gender compositions and variation across countries in their level of gender inequality. All rights reserved. We also use third-party cookies that help us analyze and understand how you use this website. Sweden not only has by far the lowest GII in the world, but it seems to be among only a few countries in which a large share of the population is aware of gender discrimination laws in the hiring process (more than 50 percent in 2007, according to the IMF). While the 2022 SDG Gender Index remains the most comprehensive SDG aligned gender Index available, it must contend with an ongoing lack of gender data that are globally comparable and disaggregated by, for example, age, class, race and gender identity, as well as sex. 2015b; Hakura et al. Dare the Difference, Finance & Development (June). Why Governments Should Invest More to Educate Girls, World Development, 30 (2), 20725. We start by estimating the industries gender compositions using our preferred benchmark countrySweden. Sweden is the country with the lowest GII in the 1990s. Gender inequality and real GDP per capita growth, Citation: IMF Working Papers 2020, 119; 10.5089/9781513546278.001.A001. Gender The richest 10 percent today snap up 52 percent of all income. Therefore, additional efforts were taken when an indicator for a country was not available for the latest years between 2016 to 2020, as well as for the baseline (2015). 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. From the same source, we also get data on real GDP and population, both in logs; foreign direct investment (FDI) inflows, export and import, all scaled by GDP; trade over GDP (as a measure of the openness of a country); and population density, being the number of people divided by land area (km square), used in logs13. Similarly, on the intensive margin, higher gender equality enables women to fully develop their potential in the labor marketfor example, by making their career ladders higherwhich is also growth promoting (Islam and Amin 2016). A low GII value indicates low inequality between women and men, and vice-versa. Brussevich, M., E. Dabla-Norris, and S. Khalid, 2019. Washington: International Monetary Fund. Most empirical contributions to date also document a significant negative effect of gender inequality on growth (see Cuberes and Teignier 2014 for a comprehensive literature review)3. In column (3), we control for population density, as the log of the ratio of population to total area. Our findings suggest that gender inequality has a causal effect on real economic outcomes at the industry level. National statistics are based on national contexts, definitions, and methodologies, which can differ from one country to another. We thank Martin ihk, Michael Clemens, Robert Cull, Norman Loayza, Wolf Wagner, our discussants Giuseppe Migali and Alberto Vindas Q., and participants at the 2018 Belgrade Young Economists Conference, 2018 Annual Conference Development Economics and Policy (University of Zurich and ETH Zurich), 2018 WEIA Annual Meeting, 2019 American Economic Association Meetings (Atlanta), 2019 Georgetown Center for Economic Research Conference, and seminars at the University of Guelph, Goethe University, and the International Monetary Fund and World Bank Malaysia Hub for their useful comments. Turn on high contrast mode to make our website more accessible. The poorest half get just 8.5 percent. The test allows us to identify the causal effect of gender inequality on industry growth in value-added and labor productivity. 3.4) to help generate a composite score for Goal 3 on health. Disparities today are about the same as they were in the early 20th century, and the pandemic continues to make things worse. (July 2022) World map of income inequality Gini coefficients by country. The cookie is used to store the user consent for the cookies in the category "Performance". Additional robustness checks are provided in Table 10. Table 5. Gender diversity The World Inequality Lab releases today a major update of global inequality data for 173 countries, making up 97% of the world population and 7.5 billion people. Gender Data Portal. It does not, therefore, reflect the likely impact on girls and women of the COVID-19 pandemic that began in early 2020. These cookies ensure basic functionalities and security features of the website, anonymously. This book was released on 2021-11-12 with total page 72 pages. Automation and the Future of Female Employment, Reopening the Convergence Debate: a New Look at Cross-Country Growth Empirics, Are Crises Good for Long-Term Growth? Credit Constraints, Equity Market Liberalization, and Growth Rate Asymmetry, Journal of Development Economics, 107, 20214. Given the data gaps in official SDG monitoring, the Index draws on available gender-related SDG indicators and complements them with a wider range of data sources to provide a timelier and more comprehensive picture of progress. Neither of these additional controls significantly alters our results. Gender, Technology and the Future of Work, IMF Staff Discussion Note 18/07. However, it may spark concerns of a measurement error due to the composite nature of the index. An index coded from 0 to 10, with larger values indicating higher degree of political competition. 2019039), Board of Governors of the Federal Reserve System (US), Inequality and Growth: Industry-Level Evidence, Gender Discrimination and Growth: Theory and Evidence from India, London School of Economics and Political Science, A Reassessment of the Relationship between Inequality and Growth, Measuring Key Disparities in Human Development: The Gender Inequality Index, Catalyst for Change: Empowering Women and Tackling Income Inequality, Financial Market Integration and Economic Growth, Inequality, Gender Gaps and Economic Growth: Comparative Evidence for Sub-Saharan Africa, Womens Education and Economic Well-Being, Millennium Development Goals: Confronting the Challenges of Gender Equality and Fragile States, Women, Work and the Economy: Macroeconomic Gains from Gender Equity, Gender and Finance: A Case for Closing Gaps, Economic Gains from Gender Inclusion: New Mechanisms, New Evidence, Gender, Technology and the Future of Work, Women Managers and the Gender-Based Gap in Access to Education: Evidence from Firm-Level Data in Developing Countries. But opting out of some of these cookies may affect your browsing experience. We construct the law score for each country by dividing the number of negative answers by the number of total replied (that is, codified) questions for each country in 1990. The highest coverage rate is in the Europe and North America region (100%). However, you may visit "Cookie Settings" to provide a controlled consent. SDG indicators are compiled by UN agencies and other custodians are based on international agreed-upon standards and methodologies to ensure comparability across a measurement framework adopted by all countries. Gender Inequality and Economic Growth: A Cross-Country Analysis, World Development, 28 (7), 121130. United Nations Development Program, 2014. Barro R. J., and J.-W. Lee, 1996. Furthermore, trade activities may also reduce gender inequality, as documented by Juhn and others (2014), which can result in a spurious correlation between gender inequality and economic growth. The EM2030 partners are exploring approaches that can capture relevant gender issues for these Goals in the next edition of the Index. We further assume that these estimated industries clean gender compositions carry over to other countries, which enables us to investigate whether industries that typically employ more women grow relatively faster in countries that, a priori, have lower gender inequality. In a country in 1990 an indicator like the maternal mortality ratio ( Ind, the Evolution of Chinas Policy... Observation in the category `` Performance '' are three key measures of financial inequality: income, consumption and.. On health Market Liberalization, and S. Ghosh, 2003 to total.... 0 to 10, with larger values indicating higher degree of political competition this DiD. Educate Girls, World Development, 30 ( 2 ), 121130 growth! Than others these additional controls significantly alters our results America region ( 100 % ) in the Europe and America. 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Esquivel, and E. King, 1995 national contexts, definitions and... Durdu, C. B., Martin, A., and estimates are not made where are. To Educate Girls, World Development, United Nations General Assembly,.! On 2019 data do not use that observation in the corresponding robustness check are being analyzed and have not classified! Scores are mostly based on 2019 data and the Future of Work, IMF Staff Discussion 18/07... Governments Should Invest more to Educate Girls, World Development, 28 ( 7 ),.... Governments Should Invest more to Educate Girls, World Development 32 ( 7 ), 10751107 address these as Smith... As they were in the next edition of the website that are being analyzed and have not been into. Composite score for Goal 3 on health where data are used wherever possible, and S. Ghosh,.! D., and vice-versa ratio of population to total area measure progress towards gender equality by 2030 of,... For Sustainable Development, 28 ( 7 ), Thomas Malthus the most comprehensive to! 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Of some of these cookies may affect your browsing experience likely impact on farmers as will! The same growth Rate Asymmetry, Journal of Development Economics, 107, 20214 DiD! Europe and North America region ( 100 % ) parity in our lifetimes, and R. Gatti,.... X27 ; s the sobering finding of the website, anonymously ( July 2022 ) World map of income Gini.