Identifier

1105

Document Type

Discussion Paper

Date of Paper

Fall 12-12-2025

Abstract

Globally women’s labor force participation lags that of men and women, on average, have lower labor market earnings than men. Does economic growth reduce gender disparities in labor market outcomes between women and men? Conversely, do gender inequalities in the labor market impede growth? To inform these questions, we conduct two analyses. First, we estimate regressions using harmonized data on gender gaps in a range of labor market outcomes from 153 countries spanning two decades (1998-2018). Second, we conduct a systematic review of the recent economics literature on gender gaps in labor markets, examining 16 journals over 21 years. Our empirical analysis demonstrates that growth is not a panacea. The relationship between growth and labor market gaps is mixed, and results vary by specification. This result reflects, in part, the gendered nature of structural transformation, in which growth leads men to transition from agriculture to industry and services while many women exit the labor force. Disparities in hours worked and wages persist despite growth, and heterogeneity in trends and levels between regions highlight the importance of local institutions. Newly harmonized microdata further show substantial heterogeneity by education level and marriage status. To better understand whether gender inequalities impeded growth, we explore a nascent literature that shows that reducing gender gaps in labor markets increases aggregate productivity. Our broader review highlights how traditional explanations for gender differences do not adequately explain existing gaps and how policy responses need to be sensitive to the changing nature of economic growth. We conclude by posing open questions for future research.

Acknowledgements

We thank Akash Uppal, Carmen Arbaizar Mazas, and Ananya Varshneya for excellent research assistance on this project. We thank Kathleen Beegle at the World Bank for pointing us to the World Bank JOIN database. We thank the Yale Economic Growth Center for supporting the Gender and Growth Gaps project through which this work was initiated, and the Development Policy and Finance team at the Gates foundation for financial support. Gottlieb gratefully acknowledges financial support from Structural Transformation and Economic Growth (STEG) Large Research Grant 943 Agents of structural change: Insights from 30 years of survey data across the globe. Corresponding authors are Patrick Agte (patrick.agte@hhs.se) and Aishwarya Lakshmi Ratan (aishwarya.ratan@yale.edu).

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