Abstract
Using panel regressions, this article investigates to what extent a reduction in gender inequality in education may increase growth of output at sub-national level in India. The article finds a considerable impact of gender inequality on economic growth which is robust. Point estimates suggest that 0.58% of the growth rate is accounted for by a better gender ratio in education attainment. Given the assumption that the distribution of innate abilities among males and females is equal, it is observed that under-addressed issue of gender equity has resulted in educational inequality and further to the adverse selection of a less efficient pool of labour having a negative impact on economic growth through lowering the average quality of human capital. Gender equality is an outcome-based achievement depending upon the successful accessibility of opportunities by females thereby the issue of gender equity becomes the precondition for gender equality.
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