IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/332595.html
   My bibliography  Save this paper

Economic Impact of Womens Participation in the Labor Market: A General Equilibrium Approach

Author

Listed:
  • de Souza, Kênia Barreiro
  • Domingues, Edson Paulo

Abstract

Woman’s participation in Brazilian labor market has increased remarkably in the last decades. Moreover, those who found jobs are the most qualified ones. Despite these changes, unemployment rates are still higher, the wages are lower, and the employment is highly concentrated in some sectors. In this context, this paper aims to evaluate the importance of woman’s work, and its growth, for the Brazilian economy in recent years. We use a Dynamic General Equilibrium Model for Brazil, which follows the Australian modelling approach, with two main developments. First, we disaggregate the labor factor by gender and qualification. Secondly, we split the household income into four types: labor; capital; government transfers and other sources. Two simulations were carried out, historical and decomposition, both for the period 2006-2013. Results showed that when analyzing the GDP composition, labor loses contribution. However, at the same time, woman’s contribution to total labor increased from 34.71% to 42.38%. This increase reflects not only the increase in women’s employment, but especially reveals its increasing contribution to the national income. The decomposition simulation demonstrates that 31.17% of the average growth of GDP in the period was explained by changes in labor usage, being 28.37% due to the increased use of high-skilled woman. Regardless the positive overall effect on the economy, for several sectors changes in labor composition produced negative effects on production growth in the period. In general, the positive impacts were concentrated in the sectors related to domestic demand, in which women’s work with high qualification gained importance, such as clothing items and accessories, leather goods and footwear, perfumery, hygiene and cleaning and most service sectors. On the other side, the negative effects were concentrated in manufacturing sectors linked to exports and the services related to them.

Suggested Citation

  • de Souza, Kênia Barreiro & Domingues, Edson Paulo, 2015. "Economic Impact of Womens Participation in the Labor Market: A General Equilibrium Approach," Conference papers 332595, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332595
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/332595/files/7432.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Esther Duflo, 2012. "Women Empowerment and Economic Development," Journal of Economic Literature, American Economic Association, vol. 50(4), pages 1051-1079, December.
    2. Joana Costa & Elydia Silva & Fábio Vaz, 2009. "The Role of Gender Inequalities in Explaining Income Growth, Poverty and Inequality: Evidence from Latin American Countries," Working Papers 52, International Policy Centre for Inclusive Growth.
    3. Claudia Olivetti & Barbara Petrongolo, 2014. "Gender gaps across countries and skills: Demand, supply and the industry structure," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 17(4), pages 842-859, October.
    4. Edson Paulo Domingues & Marco Flavio da Cunha Resende & Aline Souza Magalhães & Admir Antonio Betarelli Junior, 2010. "Cenário Macroeconômico Para A Economia Brasileira 2010-2025: Repercussões No Estado De Minas Gerais E Seus Municípios," Anais do XIV Semin·rio sobre a Economia Mineira [Proceedings of the 14th Seminar on the Economy of Minas Gerais], in: Anais do XIV Seminário sobre a Economia Mineira [Proceedings of the 14th Seminar on the Economy of Minas Gerais], Cedeplar, Universidade Federal de Minas Gerais.
    5. Rendall, Michelle, 2013. "Structural Change in Developing Countries: Has it Decreased Gender Inequality?," World Development, Elsevier, vol. 45(C), pages 1-16.
    6. Robert A. Blecker & Stephanie Seguino, 2002. "Macroeconomic Effects of Reducing Gender Wage Inequality in an Export‐Oriented, Semi‐Industrialized Economy," Review of Development Economics, Wiley Blackwell, vol. 6(1), pages 103-119, February.
    7. Standing, Guy, 1999. "Global Feminization Through Flexible Labor: A Theme Revisited," World Development, Elsevier, vol. 27(3), pages 583-602, March.
    8. Claudia Olivetti & Barbara Petrongolo, 2014. "Gender gaps across countries and skills: Demand, supply and the industry structure," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 17(4), pages 842-859, October.
    9. Seguino, Stephanie, 2000. "Gender Inequality and Economic Growth: A Cross-Country Analysis," World Development, Elsevier, vol. 28(7), pages 1211-1230, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Romina Kazandjian & Ms. Lisa L Kolovich & Ms. Kalpana Kochhar & Ms. Monique Newiak, 2016. "Gender Equality and Economic Diversification," IMF Working Papers 2016/140, International Monetary Fund.
    2. Romina Kazandjian & Lisa Kolovich & Kalpana Kochhar & Monique Newiak, 2019. "Gender Equality and Economic Diversification," Social Sciences, MDPI, vol. 8(4), pages 1-24, April.
    3. Baliamoune–Lutz, Mina & McGillivray, Mark, 2015. "The impact of gender inequality in education on income in Africa and the Middle East," Economic Modelling, Elsevier, vol. 47(C), pages 1-11.
    4. Bhalotra, Sonia & Fernandez Sierra, Manuel, 2018. "The distribution of the gender wage gap," ISER Working Paper Series 2018-10, Institute for Social and Economic Research.
    5. Paweenawat, Sasiwimon Warunsiri & Liao, Lusi, 2022. "Parenthood penalty and gender wage gap: Recent evidence from Thailand," Journal of Asian Economics, Elsevier, vol. 78(C).
    6. Kucera, David & Tejani, Sheba, 2014. "Feminization, Defeminization, and Structural Change in Manufacturing," World Development, Elsevier, vol. 64(C), pages 569-582.
    7. Cigdem Gedikli, 2020. "Occupational Gender Segregation in Turkey: The Vertical and Horizontal Dimensions," Journal of Family and Economic Issues, Springer, vol. 41(1), pages 121-139, March.
    8. Nguyen, Canh Phuc, 2021. "Gender equality and economic complexity," Economic Systems, Elsevier, vol. 45(4).
    9. Bhalotra, Sonia & Fernandez, Manuel & Wang, Fan, 2022. "The Distribution of the Gender Wage Gap: An Equilibrium Model," CEPR Discussion Papers 17253, C.E.P.R. Discussion Papers.
    10. Duygu Buyukyazici, 2023. "The Gender Dimension of Industrial Diversification: What is the Role of Skills Gap?," Papers in Evolutionary Economic Geography (PEEG) 2319, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2023.
    11. Tendai Zawaira & Manoel Bittencourt & Matthew W. Clance, 2018. "Gender Inequality and Marketisation Hypothesis in Sub-Saharan Africa," Working Papers 201876, University of Pretoria, Department of Economics.
    12. Ines Buono & Annalivia Polselli, 2022. "An international map of gender gaps," Questioni di Economia e Finanza (Occasional Papers) 714, Bank of Italy, Economic Research and International Relations Area.
    13. Bhalotra, Sonia R & Fernández, Manuel & Wang, Fan, 2022. "The distribution of the gender wage gap : An equilibrium model," CAGE Online Working Paper Series 614, Competitive Advantage in the Global Economy (CAGE).
    14. Ines P. Murillo Huertas & Raul Ramos & Hipolito Simon, 2017. "Regional Differences in the Gender Wage Gap in Spain," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(3), pages 981-1008, December.
    15. Joanna Tyrowicz & Lucas van der Velde, 2017. "When the opportunity knocks: large structural shocks and gender wage gaps," GRAPE Working Papers 2, GRAPE Group for Research in Applied Economics.
    16. Rita K. Almeida & Mariana Viollaz, 2023. "Women in paid employment: a role for public policies and social norms in Guatemala," Oxford Development Studies, Taylor & Francis Journals, vol. 51(3), pages 252-279, July.
    17. Jeremy Greenwood & Nezih Guner & Guillaume Vandenbroucke, 2017. "Family Economics Writ Large," Journal of Economic Literature, American Economic Association, vol. 55(4), pages 1346-1434, December.
    18. L. Rachel Ngai & Barbara Petrongolo, 2017. "Gender Gaps and the Rise of the Service Economy," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(4), pages 1-44, October.
    19. Claudia Olivetti & Barbara Petrongolo, 2016. "The Evolution of Gender Gaps in Industrialized Countries," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 405-434, October.
    20. Petrongolo, Barbara & Ronchi, Maddalena, 2020. "Gender gaps and the structure of local labor markets," Labour Economics, Elsevier, vol. 64(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pugtwp:332595. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.