The Economic Cost of Gender Gaps in Effective Labor: Africa's Missing Growth Reserve |
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Authors: | Amarakoon Bandara |
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Institution: | United Nations Development Programme, Block 10 Arundel Office Park, Norfolk Road, Mount Pleasant, Harare,Zimbabwe |
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Abstract: | This study analyzes the impact of the gender gap in effective labor – defined as the combined effect of the gender gaps in labor force participation and education – on economic output per worker. The results indicate that the gender gap in effective labor has a negative effect on the economic output per worker in African countries. A 1 percent increase in the gender gap in effective labor leads to a reduction in output per worker by 0.43–0.49 percent in Africa overall, 0.29–0.50 percent in Sub-Saharan Africa, and 0.26–0.32 percent in a wider group of countries from Africa and Asia. The total annual economic losses due to gender gaps in effective labor could be as high as US$255 billion for the African region. Results confirm that Africa is missing its full growth potential because a sizeable portion of its growth reserve – women – is not fully utilized. |
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Keywords: | Gender labor growth |
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