Gender discrimination is a widespread and overestimated phenomenon. Developed or non-developed country, to a greater or lesser extent, all countries and economies present a gender gap. The relative status of woman is poor in the developing world, compare to developed country. More woman enter in labor market means increase in per capita income which leads to higher economic growth. Research shows that there may be market failures hindering investment in girls in developing countries and that effect on their economic growth. Ultimately,then, my goal is to demonstrate that a extend gender gaps in education and employment (using gender gaps in labor force participation) reduce economic growth. Because of the systematic pattern, study suggest that low investment in woman is not any efficient economic choice, moreover it is bad for economic growth. A study presents that thus societies has to pay for not to investing in girls in terms of slower growth and reduced income. “The combined “costs” of education and employment gaps in Middle east and north Africa and south Asia amount respectively to 0.9-1.7 and 0.1-1.6percentage point difference in growth compared to East Asia.” Gender gaps in employment perform to have an increasing effect on economic growth difference between regions, with the Middle East and North Africa and south Asia suffering from slower growth in female employment.
Gender inequality refers to unequal behavior or views of individuals based on their gender. While sex refers to physical differences of the body, gender distresses the psychological, social, and cultural differences between males and females. It is widely recognized that gender discrimination is a prevalent phenomenon. In everywhere females find it more struggle than males to entrance market activities, political power, or health and education inputs. As mentioned in Hausmann, Tyson, and Zahidi (2006), “no country in the world has yet reached equality between woman and men in critical areas such economic participation, education, health, and political empowerment.” My point is not how gender inequality in widespread in the world but how gender inequality in education and employment affect economic growth.The causes and consequences of gender inequality are interrelated each other through the complex system of social, cultural and economics determination. There are many reasons to be worried about existing gender inequalities in important well being magnitude such as education, health, employment, or pay. A literature has developed recently which investigated the fundamentals effects of gender inequality on other important development outcomes with a particular center of attention on economic growth.
A main focus of that literature has been to analyze the impact of gender inequality on economic growth. A number of theory and analysis suggest that there has a negative correlation between gender inequality and economic growth (e.g.Odded Galor and David weil1996;Nils-Petter Lagerlof 2003). “Social observes have long noted that the status of woman and overall socio-economic development tend to go hand –in –hand (Harriet Martineau). In the poorest quartile countries in 1990, only 5% of adult woman had any secondary education, one –half of the level for men. In the richest quartile, on the other hand, 51% of adult woman had at least some secondary education, 88% of the level for man. This information provides that in the developing countries, women are particularly inadequately served in terms of education.
Gender inequality, income and growth co factor each other. It is possible that income affects gender inequality; that gender inequality affects growth and income or both. The primary focus of this paper is how gender discrimination in education and income affect on economic growth. Some earlier study suggest that gender inequality in education might actually increase economic growth(Robert Barro and Jong-Wha Lee 1994) but recently researcher(Ann Hill and Elizabeth King1995;David Doller and Roberta Gatti 1999Cristin Forbes 2000; Stephen Knowles,Paula Lorgelly and Dormin Owen 2002; Stephan Klasen 2002;Steven Yamarik and Sucharita Gosh 2003; Diana Abu-Ghaida and Klsen2004; Stephan klasen and Francesca Lamanna 2008) find opposite case. In this paper not only find the relation between gender inequalities in education with economical growth also able to explain why earlier study gets opposite result.
Study found that the gender enequality in education and income effects are quite large for the regions where gender discrimination is sizable, such as South Asia or the Middle East and North Africa (MENA). In fect Klasen (2008) estimated that “.9 percentage points of the 1.8 percentage point annual per capita growth difference between the countries in MENA and those in East Asia and the Pacific can be attributed to higher initial gender inequality in education there as well as a slower closing of the gap vis-à-vis East Asia and the pacific.” This paper has attempted to explain that gender inequality in education and income lead to reduce economic growth. In other words,The gender equality and economic development are jointly reinforcing. To put it another way ,woman education is a good investment that raises national income, and higher income in turn leads to more gender equality- in education and in other areas (Doller, Gatti 1999).
A number of theoretical and empirical studies finding that gender inequality in education and employment reduces economic growth. This paper presents some of them. Regarding gender inequality in education the study suggests as a first argument that gender inequality reduces average human capital in society and thus harms the performance of economic growth(Klasen 1999,2002,2006,2008). For gender discrimination when a pool of talent girls deprived from education and thereby society also deprived from talented human capital(and taking less qualified boys instead, e.g.Doller and Gatti 1999). According to the macroeconomics , “declining marginal returns to education , restricting the education of girls to lower levels while taking the education of boys to higher of boys to higher levels means that the marginal return to educating girls is higher than that of boys and thus would boost overall economic performance(world bank 2001;Knowles et al 2002)”. A second argument is promoting female education related with other social benefit. Incidentally, we will briefly note,girl’s education means fertility levels, reduce child morality and promote the education of the next generation. reduceSo this information provides that girl’s education link with many positive factor which leads to economic growth. Similarly gender gaps in education reduce the benefit to society of high female education (e.g.Galor and Weil 1996;Lagerlof 1999;World Bank 2001; King,Klasen, and porter 2008). 5.4%of adult woman have in the secondary education in the poorest country, where the adult man percentage is 11.6%. In the richest countries ,comparable figures for male 54.8% and man for 57.9%(Dollar,Gatti 1999). just as important, woman education reduces fertility levels. A study finds that reduced fertility levels increase the higher working age population and thus leads to economic growth. woman live longer than man in all societies, but difference is small in poorest countries (life expectancy of 48.3 years for man and 51.3 years for woman) compare to the richest countries(73 years for men and 79.1 years for women).
A third argument about how gender inequality impact on global economy. “Many East Asian countries have been able to be competitive on world markets through the use of female intensive export –oriented manufacturing industries, a strategy that is now finding followers in south Asia and individual countries across the developing world”(e.g. Seguina 2000). In developing countries woman’s have opportunity to enter the competitive manufacture industries but they can access in there because education barrier to their employment. According to the World Bank that gender inequality in education and employment would reduce the ability of countries to capitalize on these opportunities.
A fourth argument about female employment and how their earnings related with their personal and family life. Female employment and earnings increase their bargaining power in the home(Amartya Sen,world bank, Stepphan klasen). This not only better for women, women employment means more savings and more investment which brings economic growth for family as well as nation.
Gender equality in education and employment is linked with nation’s economic growth. so this is a challenge for a country to bring gender equality for higher economic growth. If any society has extend gender gaps ,not only woman entire society has to pay for that by lower economic growth. Gender inequality in education in the Middle East and North Africa and South ASia region continues to harm growth in that region. In short,gender equality in education and employment increase economic growth.