Gender equality matters for economic development and growth: Lessons for MENA

Gender equality matters for economic development and growth: Lessons for

MENA

Stephanie Seguino

University of VermontSOAS, University of London

October 2015

Enlarged framework in development economics

Gender now a key analytical element in inquiry into economic development;

Requires a shift in exclusive focus on markets to how humans provision for selves and family;

Considers totality of economic contributions –market work and unpaid work.

Two-way Causality Gender inequality affects macroeconomy

and vice versa

Gender Relations/Inequality

Economic Growth &

Development

Gender equality is multidimensional

• Capabilities• Gender gaps in education, health, and nutritional status.

• Opportunities• Gender differences in access to and control over resources;• Wages and employment, access to credit, land ownership.

• Empowerment and agency• Female economic and political representation in deliberative

bodies, e.g., women's share of parliamentary seats, share of managerial jobs.

A statistical regularity: Gender inequality in material well-being

Hierarchical gender systems influence the distribution of material resources and opportunities (masculinized occupations pay more);

Economic outcomes (income, wealth, access to education, etc) differ systematically by gender;

Norms and stereotypes legitimate unequal access to the preferred jobs, wealth, and power. World Values Survey

0.890.98 0.96

0.32

0.60

0.35

0.15

0.00

0.20

0.40

0.60

0.80

1.00

1.20

Gender Ratios in Well-Being: MENA Region

0.790.89

0.98

0.820.76

0.54

0.18

0.00

0.20

0.40

0.60

0.80

1.00

1.20

Gender Ratios in Well-Being: Africa Region

Macrostructure influences the degree of gender inequality

Inequality and conflict over distribution of resources exacerbated by the nature of the economic system.

Unequal, unstable systems provoke the emergence of hierarchies.

Macrostructure: structure of production; macroeconomic policies, social safety net, public expenditure, legal system, financial system, labor market policies.

Other sources of gender inequality? At the household level: Gender norms and

stereotypes that give women primary responsibility for unpaid caring labor limit female bargaining power.

In the cash economy and labor markets: Male as “breadwinner” in market economies, and “family head” in agric. economies gives men best jobs and access to and control over critical resources.

Norms & stereotypes can change

Strong + effect of women’s share of employment.

Structure of economy. Women & men’s actual economic roles

influence children’s behavior and attitudes. Programs to change men’s norms of

masculinity at micro-level show success. Political quotas lead to more acceptance of

women as leaders.

MENA World Values Survey:Men more right to job and University

more important for boys

0

10

20

30

40

50

60

70

80

90

Perc

enta

ge t

jat a

gree

Men more right to job University education more important for boys

Unemployment rate and men’s greater right to job in MENA

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

0 10 20 30 40 50 60 70 80 90

Une

mpl

oym

ent r

ate,

201

2

Percent who agree when jobs are scarce, men have more right to job

YemenIraq

Bahrain

Lebanon

Kuwait

Morocco

Algeria

TunisiaEgypt

Jordan

How does gender equality affect economic growth?

Gender equality affects economic growth in: Short-run: through effects on investment, exports,

imports, and saving; Long-run: productivity effects.

Relationship between gender equality and growth depends on: Structure of economy; Gender division of labor; Macro-level policies.

Gender Inequality as impetus to export-led growth

Gender inequality and growth in SIEs

Gender job segregation with women in export industries

Low female wages Lowers unit labor costs on export goods

Lowers export prices relative to competition Stimulates export growth

Generates foreign exchange and lending Provides access to imported technologies and capital goods

Promotes technological advance Stimulates economic growth

Tunisia, Morocco, Jordan

The production of labor by means of labor: Care Work

But gender inequality has negative effects on long-run growth, especially on labor productivity

Indirect Effects of Gender Inequality and Children Inadequately nourished mothers -> children suffer in

utero, and once born, from low birth weight, stunted growth, intellectual impairment.

Mothers with higher levels of education -> have healthier children (education of mothers has a much stronger effect on children's health than does the education of fathers).

Greater gender equality in education reduces fertility rate. This leads to improved outcomes for children’s well-being: quality vs quantity of children.

Nutritional status

• Mothers’ education, health, and income are key determinants of child nutrition in developing countries– Study that observed child malnutrition pattern from 63

countries between 1970 and 1995 – In Brazil, the positive impact on children’s nutritional

indicators of additional income in mother’ hands is 4-8 times larger than the impact of additional income in fathers’ hands.

The Long Run: Gender equality in capabilities, wages, and employment

Raise women’s bargaining power in the HH Reduce fertility Reduce dependency ratio Increase:

F labor force participation; Investments in children’s health and education, affecting

long-run productivity of labor force.

GDP Growth differences between East Asia – MENA

0.53

1.48

2.71

1.55

0.180.29 0.27 0.24

0.750.86

0.961.06

0.00

0.50

1.00

1.50

2.00

2.50

3.00

1960s 1970s 1980s 1990s

Growth difference East Asia - MENA Education Effect Employment Effect

Gender equality, growth, and Islam Braunstein (2014) finds no evidence that

Islam is not a good proxy for patriarchal institutions in explaining growth.

Seguino (2011) finds that Islam is no more likely to contribute to gender inequity in attitudes than other dominant religions.

Bandara (2012)

Closing gap in effective labor (education and labor force participation):Could raise output per worker 0.3 – 0.5

percent per year 1970-2010 in SSAAmounts to loss of $60b per year in SSAAnd $255b a year in all of Africa.

Gender equality in MENA

Key is increased access to employmentStimulates growth and development

Requires macroeconomic policies to stimulate full employment and growth.

And public investment to reduce women’s care burden.

Fiscal Space

Gender-equitable public spending creates fiscal spacePhysical infrastructure spending crowds in

private spending and reduces care burdenSocial infrastructure spending raises

productivity.

A Cautionary Tale: Trends in F/M Employment, 1991-

2010

-0.10

-0.05

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

-0.30 -0.20 -0.10 0.00 0.10 0.20 0.30

Cha

nge

in F

/M E

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oym

ent R

atio

Change in Male Employment Ratio