Inequality, Gender Gaps and Economic Growth: Comparative Evidence for Sub-Saharan Africa

By Dalia S Hakura, Mumtaz Hussain, Monique Newiak, Vimal V Thakoor, Fan Yang

June 8, 2016

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Dalia S Hakura, Mumtaz Hussain, Monique Newiak, Vimal V Thakoor, and Fan Yang. Inequality, Gender Gaps and Economic Growth: Comparative Evidence for Sub-Saharan Africa, (USA: International Monetary Fund, 2016) accessed September 19, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

A growing body of empirical evidence suggests that inequality—income or gender related—can impede economic growth. Using dynamic panel regressions and new time series data, this paper finds that both income and gender inequalities, including from legal gender-based restrictions, are jointly negatively associated with per capita GDP growth. Examining the relationship for countries at different stages of development, we find that this effect prevails mainly in lower income countries. In particular, per capita income growth in sub-Saharan Africa could be higher by as much as 0.9 percentage points on average if inequality was reduced to the levels observed in the fastgrowing emerging Asian countries. High levels of income inequality in sub-Saharan Africa appear partly driven by structural features. However, the paper’s findings show that policies that influence the opportunities of low-income households and women to participate in economic activities also matter and, therefore, if well-designed and targeted, could play a role in alleviating inequalities.

Subject: Education, Gender, Gender inequality, Income distribution, Income inequality, National accounts, Personal income, Women

Keywords: Caribbean, Economic growth, Gender inequality, Income distribution, Income inequality, Income share, Inequality indicator, Inequality measure, Net Gini coefficient, Personal income, Real GDP, Sub-Saharan Africa, Women, WP, X LICs

Publication Details

Pages:

29
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2016/111
Stock No:

WPIEA2016111
ISBN:

9781484382349
ISSN:

1018-5941

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