Gender and its Relevance to Macroeconomic Policy: A Survey
IMF Working Papers, October 1, 2006
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Bibliographic details
- Authors: Janet Gale Stotsky
- Published: October 1, 2006
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451864939.001
Executive summary and core findings
- The survey examines the implications of gender differences in economic behavior for macroeconomic policy.
- Reducing gender inequality and improving the status of women may contribute to higher rates of economic growth and greater macroeconomic stability.
- Women's relative lack of opportunities in developing countries inhibits economic growth; conversely, economic growth leads to a reduction in their disadvantaged condition.
- Equality of opportunity in labor and financial markets is identified as critical to enabling women to take full advantage of improved macroeconomic conditions.
- Macroeconomic policies should take into account the benefits of reducing gender inequalities, especially in the lowest-income countries where these differences are most pronounced.
- Policymakers should consider the potentially harsher short-term effects of economic austerity measures on women to avoid exacerbating gender inequalities.
Detailed themes and analytical points
- Linkages between gender inequality and growth
- Gender gaps in labor and financial markets reduce aggregate productivity and per capita income by limiting the contribution of women to economic activity.
- Improving women’s status and opportunities is associated with higher rates of economic growth and greater macroeconomic stability.
- Interaction between growth and gender outcomes
- Economic growth tends to reduce the disadvantaged condition of women, suggesting bidirectional causality between growth and gender equality.
- Labor and financial market access
- Equality of opportunity in labor and financial markets is emphasized as a mechanism through which women can benefit from broader macroeconomic improvements.
- Distributional and short-term policy considerations
- The survey highlights that macroeconomic adjustments—especially austerity measures—can have harsher short-term effects on women; policies should be designed to avoid exacerbating gender inequalities during adjustment.
Policy recommendations and implications
- Incorporate gender considerations into macroeconomic policy design, with particular focus on:
- Promoting equal access to labor markets.
- Expanding financial market inclusion for women.
- Designing fiscal consolidation and austerity measures to mitigate disproportionate short-term burdens on women.
- Prioritize interventions in lowest-income countries where gender disparities are most pronounced to capture growth and stability benefits from reduced inequality.