Macroeconomic Impacts of Gender Inequality and Informality in India

This paper examines the macroeconomic interaction between informality and gender inequality in the labor market. A dynamic stochastic general equilibrium model is built to study the impact of gender-targeted policies on female labor force participation, female formal employment, gender wage gap, as...

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Bibliographic Details
Main Author: Khera, Purva
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2016
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Macroeconomic Impacts of Gender Inequality and Informality in India  |c Purva Khera 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2016 
300 |a 66 pages 
651 4 |a India 
653 |a Social discrimination & equal treatment 
653 |a Migration 
653 |a Women 
653 |a Gender diversity 
653 |a Labor markets 
653 |a Aggregate Labor Productivity 
653 |a Gender studies, gender groups 
653 |a Labor 
653 |a Women & girls 
653 |a Informal Economy 
653 |a Sex discrimination 
653 |a Income Distribution 
653 |a Economic Development: Human Resources 
653 |a Gender Studies 
653 |a Macroeconomics 
653 |a Income economics 
653 |a Employment 
653 |a Gender studies 
653 |a Labour 
653 |a Gender inequality 
653 |a Economics of Gender 
653 |a Human Development 
653 |a Non-labor Discrimination 
653 |a Unemployment 
653 |a Demand and Supply of Labor: General 
653 |a Aggregate Human Capital 
653 |a Labor supply 
653 |a Labor Economics: General 
653 |a Labor market 
653 |a Sex role 
653 |a Underground Econom 
653 |a Wages 
653 |a Labor Discrimination 
653 |a Intergenerational Income Distribution 
653 |a Women's Studies 
653 |a Gender 
653 |a Labor economics 
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520 |a This paper examines the macroeconomic interaction between informality and gender inequality in the labor market. A dynamic stochastic general equilibrium model is built to study the impact of gender-targeted policies on female labor force participation, female formal employment, gender wage gap, as well as on aggregate economic outcomes. The model is estimated using Bayesian techniques and Indian data. Although these policies are found to increase female labor force participation and output, lack of sufficient formal job creation due to labor market rigidities leads to an increase in unemployment and informality, and further widens gender gaps in formal employment and wages. Simultaneously implementing such policies with formal job creating policies helps remove these adverse impacts while also leading to significantly larger gains in output