Agte et al.: "Gender Gaps and Economic Growth: Why Haven't Women Won Globally (Yet)?"

Globally women’s labor force participation lags that of men and women, on average, have lower labor market earnings than men. Does economic growth reduce gender disparities in labor market outcomes between women and men? Conversely, do gender inequalities in the labor market impede growth? To inform these questions, we conduct two analyses. First, we estimate regressions using harmonized data on gender gaps in a range of labor market outcomes from 153 countries spanning two decades (1998-2018). Second, we conduct a systematic review of the recent economics literature on gender gaps in labor markets, examining 16 journals over 21 years. Our empirical analysis demonstrates that growth is not a panacea. The relationship between growth and labor market gaps is mixed, and results vary by specification. This result reflects, in part, the gendered nature of structural transformation, in which growth leads men to transition from agriculture to industry and services while many women exit the labor force. Disparities in hours worked and wages persist despite growth, and heterogeneity in trends and levels between regions highlight the importance of local institutions. Newly harmonized microdata further show substantial heterogeneity by education level and marriage status. To better understand whether gender inequalities impeded growth, we explore a nascent literature that shows that reducing gender gaps in labor markets increases aggregate productivity. Our broader review highlights how traditional explanations for gender differences do not adequately explain existing gaps and how policy responses need to be sensitive to the changing nature of economic growth. We conclude by posing open questions for future research.