Abstract
This paper presents a theoretical model that can analyze the impact of gender inequality on long-term economic growth. The model is calibrated to fit to Korean data. We find that gender equality policies that lower discrimination in the labor market or that increase the time spent by a father on child-rearing can contribute positively to female labor market participation and per capita income growth. The simulation results show that when the disparities between men and women at home and in the labor market are completely removed, the female labor force participation rate increases from 54.4% to 67.5%, and the growth rate in per capita income rises from 3.6% to 4.1% on average over a generation.
Highlights
The Republic of Korea has made significant economic progress in the past 50 years, as demonstrated by the increase in its per capita income from just $80 in 1960 to over $24,000 in 2013
We find that gender equality policies that lower discrimination in the labor market or that increase the time spent by a father on childrearing can contribute positively to female labor market participation and per capita income growth
The paper provides a theoretical framework that can explain the determination of female labor market participation, human capital accumulation, and economic growth in the Korean economy
Summary
The Republic of Korea has made significant economic progress in the past 50 years, as demonstrated by the increase in its per capita income from just $80 in 1960 to over $24,000 in 2013. This goal will be pursued by encouraging female workers to remain in the workforce through such measures as providing affordable, good-quality childcare facilities, and expanding paid parental leave Given this background, the objective of this paper is to assess the output cost of gender inequality and the impacts of gender-based policies on female labor force participation and on the Republic of Korea’s long-term economic growth. That the sex ratio has gone down to the normal level could be an indicator that Korean parents no longer perceive any disadvantage in having daughters instead of sons Even with these indications of improvement in gender equality, significant inequality between men and women still persists in various forms in the Republic of Korea
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
