IZA DP No. 4323: Gender Wage Inequality and Economic Growth: Is There Really a Puzzle?
published in: World Development, 2011, 39 (8), 1476-1484
Seguino (2000) shows that gender wage discrimination in export-oriented semi-industrialized countries might be fostering investment and growth in general. While the original analysis does not have internationally comparable wage discrimination data, we replicate the analysis using data from a meta-study on gender wage discrimination and do not find any evidence that more discrimination might further economic growth – on the contrary: if anything the impact of gender inequality is negative for growth. Standing up for more gender equality – also in terms of wages – is good for equity considerations and at least not negative for growth.