2017 ineq 2

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DEVELOPMENT ECONOMICS module Inequality/2

Prof. Elisabetta CROCI ANGELINI Macerata University [email protected] A.A. 2017-2018

gender inequality •  There are reasons to believe that

inequality has some gender specific aspects: – Inequality between genders è is the

polarization concept of any help in understanding gender inequality?

– Inequality within genders è does inequlity within female individuals mimic inequality within male individuals?

a.a.2017/18 DE: Inequality 2 2

Two opposite views •  “Why can't a woman be more like a

man?” (Mr H. Higgins in My Fair Lady, a play adapted from Pygmalion by G. B. Shaw, Nobel Laureate in Literature, 1925

https://en.wikipedia.org/wiki/My_Fair_Lady_(film)) •  “Women are just men with less

money” (attributed to prof. Paul Samuleson, Nobel Laureate in

Economics, 1970) •  An “evolution” in the course of time?


2006 World Development Report “Equity and Development”

•  Nthabiseng is –  black, –  born to a poor family –  in a rural area […]

700 kilometers from Cape Town.

•  Her mother had no formal schooling

•  Pieter is –  white, –  born to a wealthy family –  in Cape Town.

•  His mother completed a college education at the nearby prestigious University


Consider two South African children born on the same day in 2000

Name Prob.dyingwithin1°year Lifeexpectancy Schoolingyears

Nthabiseng 7.2% 50 1

Pieter 3% 68 12

disparities in opportunity translate into different abilities to contribute to

South Africa’s development •  if at age 25, and despite the odds,

Nthabiseng manages to come up with a great business idea (such as an innovation to increase agricultural production), she would find it much harder to persuade a bank to lend her money at a reasonable interest rate

•  which is bad both for her and for her country


You do not need to be SouthAfrican to meet such inequalities

Wherever such inequalities occur, they are likely to lead to wasted human potential and thus to missed development opportunities

By equity we mean that individuals should have equal opportunities to pursue a life of their choosing and be spared from extreme deprivation in outcomes


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A chicken and egg game ? •  It is because women are less participating in

the public arena (e.g. labour market, politics …) that their supposedly equal rights and opportunities tend to fade away.

•  … Or is it the other way round? •  Womenomics takes the subject from the

efficiency handle rather than from the equity [or … (in)equ(al)ity] lever

•  A damage for both the society and the individual


womenomics•  a country can unleash its economic potential (and

increase its long-term growth and prosperity) by employing more women and narrowing the employment gap between men and women

•  GDP growth can come from 3 sources: – employing more people – using more capital per worker –  increase labour and capital productivity due to

new technology •  women remain perhaps the world's most under-

utilised resource


Women Time Allocation •  The increase in female employment in developed

countries has been aided by a big shift in the type of jobs on offer –  while jobs in services have expanded the demand

for manual labour has decreased –  the increase in female paid employment has meant

fewer hours of unpaid housework –  increased productivity by dishwashers, washing

machines and the like –  paid nannies and cleaners, employed by working

women, work the market economy


Time is money •  A lot of women’s time is spent working

in the home, looking after children, cleaning or cooking, and

•  being unpaid –  it is not counted in the official statistics – does not contribute to the GDP nor GNP

•  Gender inequality looks at both aspects: – Equity èget rid of gender discrimination – Efficiency è optimal resource allocation


Lisbon Agenda •  At the European Council held in Lisbon,

March 2000, the head of State and Government of the EU decided to make the EU "the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion“

•  the target was to be reached by 2010 •  Not all members managed to accomplish it


Employment targets •  were set regarding three groups in all

countries. •  Within 10 years:

– General employment rate should reach 70%. – Female employment rate should reach 60% – Older workers (55-64) employment should

reach 50% •  Each target was set about 10 points

higher than the existing average in 2000 a.a.2017/18 DE: Inequality 2 12

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in 2010 female employment •  reached 62.1% for the European Union

on the whole, yet big differences persist: – Some countries (Sweden, Finland, Denmark,

the Netherlands) overshoot the target – other countries (including France, Romania,

Spain, Poland, Hungary, Ireland, Bulgaria) seemed to need some more time

– Italy, Greece, Malta were still below 50%


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Femalesemploymentrate(15to64years) target

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UnitedKingdom



1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010UE27 51,4 52 53 53,7 54,3 54,4 54,9 55,6 56,3 57,3 58,3 59,1 58,6 58,2be 44,3 44,5 44,6 45 45,4 46,5 47,6 50,4 51,5 51 51,4 51,8 52,6 53,8 54 55,3 56,2 56 56,5bg 46,3 46,8 47,5 49 50,6 51,7 54,6 57,6 59,5 58,3 56,4cz 58,7 57,4 56,9 56,9 57 56,3 56 56,3 56,8 57,3 57,6 56,7 56,3dk 69,7 68,2 66,9 66,7 67,4 69,1 70,2 71,1 71,6 72 71,7 70,5 71,6 71,9 73,4 73,2 74,3 73,1 71,1de 55,9 55,1 55,1 55,3 55,3 55,3 55,8 57,4 58,1 58,7 58,9 58,9 59,2 60,6 62,2 64 65,4 66,2 66,1ee 60,3 57,8 56,9 57,4 57,9 59 60 62,1 65,3 65,9 66,3 63 60,6ie 37,1 38,5 40,1 41,6 43,2 45,9 49 52 53,9 54,9 55,4 55,7 56,5 58,3 59,3 60,6 60,2 57,4 56gr 36,2 36,6 37,3 38,1 38,7 39,3 40,5 41 41,7 41,5 42,9 44,3 45,2 46,1 47,4 47,9 48,7 48,9 48,1es 31,5 30,7 30,7 31,7 33,1 34,6 35,8 38,5 41,3 43,1 44,4 46,3 48,3 51,2 53,2 54,7 54,9 52,8 52,3fr 51,4 51,5 51,6 52,1 52,2 52,4 53,1 54 55,2 56 56,7 58,2 58,3 58,4 58,6 59,7 60,4 60,1 59,7it 35,8 35,4 35,4 36 36,4 37,3 38,3 39,6 41,1 42 42,7 45,2 45,3 46,3 46,6 47,2 46,4 46,1cy 53,5 57,2 59,1 60,4 58,7 58,4 60,3 62,4 62,9 62,5 63lv 55,1 53,9 53,8 55,7 56,8 57,9 58,5 59,3 62,4 64,4 65,4 60,9 59,4lt 58,6 59,4 57,7 56,2 57,2 58,4 57,8 59,4 61 62,2 61,8 60,7 58,7lu 45,7 44,8 44,4 42,6 43,8 45,3 46,2 48,6 50,1 50,9 51,6 50,9 51,9 53,7 54,6 56,1 55,1 57 57,2hu 45,2 45,4 47,2 49 49,7 49,8 49,8 50,9 50,7 51 51,1 50,9 50,6 49,9 50,6mt 33,1 32,1 33,9 33,6 32,7 33,7 33,4 35,7 37,4 37,7 39,3nl 51,8 52,2 53,2 53,8 55,8 58 60,1 62,3 63,5 65,2 66,2 66 65,8 66,4 67,7 69,6 71,1 71,5 69,3at 58,9 59 58,4 58,6 58,8 59,6 59,6 60,7 61,3 61,6 60,7 62 63,5 64,4 65,8 66,4 66,4pl 51,3 51,7 51,2 48,9 47,7 46,2 46 46,2 46,8 48,2 50,6 52,4 52,8 53pt 55,9 55 54,4 54,4 54,9 56,5 58,2 59,4 60,5 61,3 61,4 61,4 61,7 61,7 62 61,9 62,5 61,6 61,1ro 59,1 58,2 57,5 57,5 57,1 51,8 51,5 52,1 51,5 53 52,8 52,5 52 52si 57,1 58 58,6 57,7 58,4 58,8 58,6 57,6 60,5 61,3 61,8 62,6 64,2 63,8 62,6sk 53,5 52,1 51,5 51,8 51,4 52,2 50,9 50,9 51,9 53 54,6 52,8 52,3fi 63,7 59,5 58,7 59 59,4 60,3 61,2 63,4 64,2 65,4 66,2 65,7 65,6 66,5 67,3 68,5 69 67,9 66,9se 73,1 69,7 68,5 68,8 68,1 67,2 67,9 69,4 70,9 72,3 72,2 71,5 70,5 70,4 70,7 71,8 71,8 70,2 70,3uk 60,8 60,8 61,2 61,7 62,5 63,1 63,6 64,2 64,7 65 65,2 65,3 65,6 65,8 65,8 65,5 65,8 65 64,6

Female (15-64) employment rate EU

inequality of what? income, rights, both …

•  The important aspect, as always, is how does it happen è the reasons, issues, mechanisms bringing in the (unwanted?) result showing so many women outside the labour market.

•  Women stay outside the labour market for lack of education, will, opportunities …


Objective reasons •  Education? Unlikely! At school, girls

consistently get better grades •  in most developed countries well over half of

all university degrees are now being awarded to women

•  in the US 140 women enrol in higher education each year for every 100 men

•  in Sweden the number is as high as 150 •  but, in Japan for every 100 males only 90

female students a.a.2017/18 DE: Inequality 2 17

Subjective reasons

Lackofwill

•  A supply-side problem: •  Women ultimately do not

think that their place is in the labour market

•  They get a job only when their families are less in need (no babies, no young children, no elderly, no disabled, no excuses?)

•  This attitude shows their priorities

LackofopportuniGes

•  A demand-side problem: •  Women are offered less

opportunities because the employers think their place is not in the labour market

•  This is why ultimately a no great deal of incentives is deployed to overcome (their?) difficulties

•  This attitude shows a society’s cultural priorities


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Gender discrimination and job segregation

•  Again, how do we assess the fact that many jobs are gender-oriented?

•  Horizontally è male and female workers tend to be found in different jobs: frequencies are not gender-blind

•  Vertically è in addition, male and female workers are often found in different shares according to the higher/lower level, grade, respondibilities and pay


What it is possible to observe •  The main reason why women still get paid less on

average than men –  is not that they are paid less for the same jobs –  but that they tend not to climb so far up the career

ladder –  or they choose lower-paid occupations, such as

nursing and teaching •  Is nursing and teaching less paid because

fraught with women? Are they fraught with women because they are less paid?


Gender pay gap in the EU •  No disadvantage in education è in 21

over 27 countries women more educated •  Big differences in the labour market è

on average in the EU women are found – 35% in high skill top jobs (managers) – 50% in medium skills jobs (clerks) – 60% in low skill jobs (sales attendants)

•  Full-time jobs è 38% women •  Part-time jobs è 80% women a.a.2017/18 DE: Inequality 2 21

Average difference in employees pay per EU country – all=1

Average difference in employees pay per EU country in euro

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What the pictures show

•  Average difference in employees pay per country index all=1; –  men/all è 1.2-1.4 –  women/all è 0.8-0.6

•  Per kind of occupation –  Lowest woman average

pay in sector 6 and 7 –  In 2 occasions only

women pay is higher than men è bg1 & PT3

–  Lowest differences in sector 3 and 4

•  Average difference in employees pay per country in euro è in absolute values, of course, biggest differences in richest countries

•  Source of information: EU-SILC 2008

•  Survey onIncome and Living Conditions


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1 = Legislators, senior officials and managers 2 = Professionals (health, engineers, teaching, legal, religious) 3 = Technicians and associate professionals 4 = Clerks 5 = Service workers and shop and market sales workers 6 = Skilled agricultural and fishery workers 7 = Craft and related trades workers 8 = Plant and machine operators and assemblers 9 = Elementary occupations


Differences in employees pay per EU country and per kind of occupation – all=1

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Discrimination? •  Although what appears discrimination could be

self-segregation - i.e. female workers choosing “female” jobs so giving rise to a labour market fragmented on a gender basis - concentrations of women in low paid jobs and low paid occupations does not look optimal and is fought by active policies

•  Yet, highest segregation is found where female activity rates are highest


Segregation from the supply side •  An assessment involves comparisons across

individual preferences •  Yet, preferences are related to appraisal of

different cost and benefts evaluations about the actual alternatives on the labour market

•  Choices are observable, their causes are not •  The different choices by female and male

workers cannot be judged per se, since they face different incentives


Segregation from the demand side •  “There is wage discrimination if individuals

with the same economic characteristics receive different wages, and the differences are systematically correlated with certain non economic (racial, religious) characteristics of the individual” J.Stiglitz, AER 1973

•  A female worker with same productivity as a male worker is unlikely to get the job or to get equal pay just because of her gender


Segregation on the labour market •  It is unlikely that segregation in the labour market

can be understood with no reference to women time allocation and to how household time is allocated into paid and unpaid work as well as leisure

•  Differences across countries matter, too. •  Without analysing countries specificities in life

organization, and their cultural bearing, it is difficult to envisage proper incentives for famale participation in the labour market.

•  General solutions are often impractical.


Is segregation a choice? •  Evidence supports the association of higher

female employment rates with more pronounced levels of gender segregation

•  does it happen by chance or is it a stable causal relationship?

•  Female workers’ careers are influenced by “the role of women in society” also when that particular worker is single and childless

•  No relation with productivity, though a.a.2017/18 DE: Inequality 2 29

Choosing a gender-blind or rather a gender-specific career?

•  Gender-blind è fighting gender stereotypes and discrimination bearing adjustment costs at least in the short run

•  Gender-specific è taking advantage of gender stereotypes and discrimination and so obtain better conditions and increased efficiency in the short run

•  Test: check how frequent is finding a female worker in top occupations


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Empirical evidence •  A number of indicators have recently been

deployed addressing the issue of measuring gender inequality

•  Empowerment is the “new” concept, more difficult than an income inequality measure

•  The focus changes from having to being and from measuring inequality to devising indicators leading to its assessment, persistence and dynamics


Global Gender Gap Index •  Since 2005 the World Economic Forum

publishes the Global Gender Gap Report •  the GGGI is calculated on the basis of

14 indicators aggregated into 4 issues: 1) Economic Participation and Opportunity 2) Educational Attainment 3) Health and Survival 4) Political Empowerment


1. Economic Participation and Opportunity

1. Ratio: female labour force pariticipation over male value

2. Wage equality between women and men for similar work (converted to female-over-male ratio)

3. Ratio: estimated female earned income over male value

4. Ratio: female legislators, senior officials and managers over male value

5. Ratio: female professional and technical workers over male value


2. Educational Attainment •  Ratio: female literacy rate over male

value •  Ratio: female net primary level

enrolment over male value •  Ratio: female net secondary level

enrolment over male value •  Ratio: female gross tertiary level

enrolment over male value a.a.2017/18 DE: Inequality 2 34

3. Health and Survival •  Sex ratio at birth (converted to female-

over-male ratio) •  Ratio: female healthy life expectancy

over male value


4. Political Empowerment

•  Ratio: females with seats in parliament over male value

•  Ratio: females at ministerial level over male value

•  Ratio: number of years of a female head of state or government (last 50 years) over male value


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Gender-related development index - GDI •  The Human Development Report includes information on

inequalities between men and women in various countries in relation to the Human Development Index (HDI) through the Gender-related development index – GDI –  mother mortality (death per 100.000 births) –  adolescent fertility rates (births per 1000 adolescents 15-19

years old) –  women seats in national Parliaments –  over 25 years old with secondary education –  participation to the labour force

•  2012 è 1° Netherlands, 11° Italy, UK 34° …


Gender-related development index

•  The Human Development Report provides information about gender-related inequalities in the countries surveyed also for the Human Development Index (HDI)

•  The Gender-related development index (GDI) offers a measure.

a.a.2017/18 DE: Inequality 2 39 a.a.2017/18 DE: Inequality 2 40

Gender empowerment measure

•  the Gender empowerment measure (GEM) offers a flavour of women opportunities in three dimensions:

1) political participation 2) economic participation 3) economic resource control


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GenderInequlityIndex•  The Gender Development Index (GDI) and the

Gender Empowerment Measure (GEM) have been substituted since 2010 by the Gender Inequality Index (GII) which includes three dimensions particularly critical for women:

1) Reproductive health è adolescent fertility & maternal mortality

2) Empowerment è educational attainment & parliamentary representation

3) Labour market è labour force participation a.a.2017/18 DE: Inequality 2 43

European Institute for Gender Equality •  The European Commission has conferred the

task of assisting the Council of the European Union in devising the action programme.

•  Women attitude and relations with the economy should be analysed and in particular how to reconcile professional, family and private life.

•  European Institute for Gender Equality (EIGE) http://www.eige.europa.eu/


Europe 2020 •  Following Lisbona Agenda, whose time

span ended in 2010 (and was not deemed a success), the new target is to raise the general employment rate to 75%

•  The age range was changed to 20-64 •  All member states are invited to

facilitate the access and permanence of female and male workers in the labour market and encourage a fairer division of labour within the household


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EU(27countries) Be Bg Cz Dk DeEe Ie Gr Sp Fr ItCy Lv Lt Lu Hu MtNl At Pl Pt Ro SiSk Fi Se UK

Total employment rate 20-64

The new generations •  It is sometimes argued that it is shortsighted

to get more women into paid employment. •  The more women go out to work, it is said, the

fewer children there will be and the lower growth will be in the long run

•  The higher the number of children, the lower the female employment rate: what a choice!

•  Empirical evidence does not confirm: fertility rates go up with employment rates

•  It seems to be very country-specific a.a.2017/18 DE: Inequality 2 47

A positive, although not very precise, relationship

The picture, a cross-section taken in 2001, shows that it is not true that fertility rates suffer from women active in the labour market a.a.2017/18 DE: Inequality 2 48

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… however, it depends upon how you measure it •  Cross country è the

positive relationship (i.e. the higher the participation rate, the higher the fertility rate) hides country specific factors

•  Through time, the same evidence is not supported –  Italy è increase in TFR no

difference in FLP –  UK & Germany è opposite –  Denmark only supports itè

both decrease

•  Through time, specific rates for mothers aged 20-50 of kids under 4 again show that –  only in Denmark Total

Fertility Rate (TFR) and Female Labour Participation (FLP) move in the same direction

–  in Germany and the UK FLP drops dramatically and moves opposite than TFR

–  Italy shows a little difference against non specific measures


Parental leave •  Can be enjoyed by both parents •  Fathers and mothers do not take equally

advantage of this facility •  The fathers’ participation share in the

scheme is still very low, the time they ask for leave is very often lower than when asked by mothers

•  Incentives are being devised to promote more male parental leave


European Council in Barcellona •  in 2002 a raccomandation is issued to

guarantee childcare and nurseries for at least 33% of the children aged 0-3 within 2010 so to meet the female employment rates required by Lisbon Agenda – 9 countries succeded: Belgium, Denmark,

Spain, France, Luxembourg, Portugal, the Netherlands, Sweden and the UK

– 9 countries reached less than 10%: Austria, Bulgaria, Hungary, Lithuania, Malta, Poland, Czech Republic, Romania e Slovacchia


The old generations •  The elderly care is almost entirely taken

up by women – Within the household, – In the informal sector – As a proper job

•  Is it fostering a stereotype? The traditional portrait of women whose place is where care has to be given

•  Is it a choice? Leading to segregation … a.a.2017/18 DE: Inequality 2 52

Informal jobs •  The share of informal jobs reaches

nearly 80% in Bulgaria, Cyprus, Estonia, Hungary, Italy, Latvia, Poland, Romania and Slovakia

•  Informal jobs are nearly inexistent in Malta, Denmark, Sweden and the Netherlands.


In Italy •  Istat produces statistics about time

allocation per gender, age, economic activity, occupation è La divisione dei ruoli nelle coppie, Anno 2008-2009. Statistiche in breve, novembre 2010 (the role division in couples, 2008-2009. 11, 2010 in Italian):

•  http://www3.istat.it/dati/catalogo/20120705_00/Arg_12_43_Uso_del_tempo_e_ruoli_di_genere.pdf


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the role division in couples in Italy•  The time spent in a paid job is always

higher for men than for women •  While no major differences appear

across time for men, the time spent in a paid jod shows an increasing trend for women

•  Not so for the youngest age group (15-24) where the decrease across time appears less pronounced for women than for men. Is it due to education?


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Lavoro retribuito M

Lavoro retribuito F

Time spent in paid job per age group


Time spent in education in Italy •  A considerable increase in time spent in

education for the youngest women •  Men of the same age group (15-24), also

increase their time in education, bur are overtaken as of the new century

•  the proposition “more time is spent by women in education than by men” is true regardless the age group, although in a smaller scale


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Classe di età

Istruzione e formazione M

Istruzione e formazione F

Time spent in education


Time spent in household chores •  Women, not surprisingly, spend a lot

more time than men in household chores •  The difference decreases as age

increases •  Across time:

– a declining trend appears for women (all age groups except the oldest)

– an increasing trend appears for men (all age groups except youngest)


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Lavoro familiare M

Lavoro familiare F

Time spent in household chores


2017 ineq 2

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