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Journal Article

How Do Gender Inequalities Hinder Development? Cross-Country Evidence

Gaëlle Ferrant
Annals of Economics and Statistics
No. 117/118, SPECIAL ISSUE ON THE ECONOMICS OF GENDER (June 2015), pp. 313-352
Published by: GENES on behalf of ADRES
DOI: 10.15609/annaeconstat2009.117-118.313
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Page Count: 40
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How Do Gender Inequalities Hinder Development? Cross-Country Evidence
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Using cross-country and panel regressions, this paper investigates how gender inequality hinders economic and human development: a one standard deviation change in the Multidimensional Gender Inequality Index (MGII) will increase long-run per capita income by 3.4% and the Human Development Index (HDI) by 4.6%. These results are mainly driven by inequalities in the identity dimension and in the access to economic activity for economic development, and by inequalities within the family and in the access to education for human development. Gender inequality may then explain differences in economic development: 10% of the long-run income difference between South Asia and East Asia & the Pacific can be accounted for by the difference in gender inequality. Moreover, this paper provides evidence of a vicious circle between gender inequality and long term income. Gender inequality is measured by a composite index with endogenous weightings: the MGII. These results are robust to changes in specifications and controls for potential endogeneities. JEL: J16, O11, C43. / KEY WORDS: Growth, Gender Inequality, Development Economics.

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