Gender Diversity and Economic Growth
The gains from gender inclusiveness are likely to be much larger than standard economic models estimate, notes Jonathan Ostry in his
Bruegel article. Women and men are far from being perfect substitutes in production, a result that is consistent with much microeconomic evidence, but has not permeated to macroeconomics. While cultural factors, including those related to the historical role of agricultural work in the division of labour, may partly explain this legacy, technological improvements at home, changing norms of gender roles, contraception and improved schooling of women have helped to partly reverse the impact of history. This article explains the theoretical and empirical relevance of extending one of the most prominent macroeconomic equations, the neo-classical production function, to account for gender.
https://www.bruegel.org
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