Investigating the effect of gender inequality on economic growth in countries with high human development index

Abstract:

Undoubtedly, to support and strengthen role of women in society improves health, higher levels of literacy and education, voluntary control of population growth and generally economic growth and equitable distribution of benefits. To achieve such an important goal, a long-term process is required so that cultural, social, political and economic beliefs subjected to fundamental changes. It also requires a different attitude under which not only women’s choices are not limited to stereotypical manner, but as agents of change are known. Given the above, this study addresses the effects of existing inequalities between the two sexes on economic growth in countries with a level of human development Index (HDI) for the period 2015 to 2002. The results of model estimation, there is a negative relationship between inequality in life expectancy and disparities in wage levels of women than men, with economic growth shows, the results show a positive relationship between gender inequality and equality in education rate economic growth. The reduction in gender inequality or in other words an increase in the equality of women and men in all areas related to the labor market, employment, education, wages and full equality in cultural issues and problems in the community increases in economic growth with high human development index.

Key words: gender inequality, economic growth, extended torque
models

1. Introduction:

From turn of
this century, the world is faced with a new social phenomenon, so called
economic participation of women in outside jobs. This is a new achievement for
fundamental change in social, economic and cultural human society, and as the
substrate calving affected, grows and evolves and processes, infrastructure and
a strong initiating its share in the chain are interconnected and leaves social
existence. Industrial revolution caused women to actively participate in the
labor force and then rapid absorption and large increases women in the labor
market capitalism. Technological advances many job opportunities available to
women. Services sector growth, rate of urbanization, the increasing number of
schools and education popularity, more and more women from houses and farms to
draw the new workplace.

International
experiences show that promotion of gender equality developmental achievements
in the field of construction, so that it ensures living standards and human
rights for all individuals. This is done in order to achieve structural reforms
to increase the participation of women in political and social life is
essential. No doubt supporting and strengthening the role of women in society
improves health, higher levels of literacy and education, Voluntary control
population growth and generally improve economic growth and equitable
distribution of benefits. To achieve such an important process that is required
before long-term cultural beliefs, social, political and economic changes are
fundamental. It also requires a different attitude under which not only women’s
choices are not limited to stereotypical way, but as agents of change are
known.

However, based
on the theories of growth and development to achieve higher economic growth,
one of the main objectives and the usual countries, including the developed and
the developing world. In the form of economic growth can increase social
welfare, reducing poverty and reduce inequality in pay, but the problem here is
that for doing so (welfare), economic growth, along with other goals such as
equality gender , wage equality, educational equality … is powered at country
level, to their initial demands that the measure is to measure well-being,
should be maintained. Given that in the last century, the worldwide wave of
expression, numerous conferences and meetings on human rights, dialogue of
civilizations, the fight against terrorism, approaches based on social justice,
the eradication of poverty and …. is covered, so pay attention to human
rights, intellectual property and human rights, he and his attempt to achieve
this, in recent decades has become something universal and inevitable. So,
given the above, the question arises as to gender inequality, inequality in
wages for women than men, disparities in the level of education of women than
men, and the inequalities in life expectancy between men and women what effect
on economic growth in countries with level of Human Development Index (HDI) is
high that we will continue to investigate this issue.

2. A review of literature and literature:

Factors
affecting economic growth from one period to period and from one country to
another, depending on the characteristics of environmental, cultural, social
and economic, that are heterogeneous. But this interpretation of human
resources has been a major factor in the courses and in different countries
could affect economic growth. Gender inequalities in the tradition of the first
theorists such as Marx, Weber, Georg Simile et al who have paid social
inequality. The existence of gender inequality in employment and wages, because
the full potential of human resources in society (women and men) are not used,
can have a negative effect on economic growth is another factor affecting
economic growth, education. As in the recent literature on endogenous growth
models, Romer and Lucas subsequent studies in the 1980s, and workforce training
and the application of it (training) in the community, of the fundamental
factors of economic growth has gone. This means that any country that has a
dynamic training system, advanced and all consuming, your human and material
resources can be more efficient in order to achieve economic growth, the
management and allocation. In literature the development of recent years, the
education of women and the lack of education, gender inequality as one of the
factors in achieving economic growth and development is named. In this context,
one can think Sen Won the Nobel Prize in 1988 pointed out: the political
economy of development, more importantly, sufficient understanding of political
participation, economic and social leadership, nothing else exists and it’s
actually an important aspect of development as freedom (Amartiyasin 2002,).

Ideas about
gender inequalities make it clear that gender inequalities that can be caused
by structural factors are economic, political, and normative or all of them.
These factors affect school performance in the production and reproduction of
inequalities affect much. Gender inequalities have a negative effect on growth
and human development and improve the quality of their human resources. Gender
inequality, limited economic growth and thereby reducing poverty makes it
difficult. Therefore, considering the issue of gender inequality and its various
aspects are of great importance for economists (Turner, 1998).

Randall Collins
thinkers who are in the Webern tradition and believes that the use of physical
force and material and symbolic resources are very important. Chafetz, Janet
Saltzman believes that the preservation and reproduction of gender theories
with each other. He maintains gender inequality knows two types of power:
coercive and repressive forces and the forces that result optional activities
of people. Facultative basis of gender inequality as the economic division of
labor, employment and distribution of elected positions as well as cultural
definitions, creates a kind of sexism. These acts of discrimination in
employment and activity and also, of socialization for the next generation Thus,
at the micro level and gender differences between men and women is
reproduction.

2-1. Comments related to gender inequality

2-1-1.
Functionalism theory:

The
functionalist sociologists, community plays an essential role in meeting the
sexual needs of men and women and children should not change jobs to be created
in these roles. The sexual division of labor in families, individuals and
family satisfaction guarantee efficient and stable. This division of labor for
the benefit of both sexes and society. Robert Lynn in “political
life” says: ((women’s participation in political affairs or any external
dependencies of the house, meaning the theft of opportunities for family.)) In
terms of Talcott Parsons women should not be in the career of male pattern
follow and in direct competition with men of their class afford, because
changes in jobs and equality, will lead to a breakdown of family structure. So
her family emotional role (tool) which is having children and taking care of
his wife and children to play the male role of breadwinner (tool) out of the
house, leading to earn to make plays and believes the mixing of men and women
seriously into the family. As well as any changes in women’s roles, risks and
roles of women in economic and political affairs resulted in the destruction of
the current functions of society (Center for Women’s Participation, 2001, p.
11).

2-1-2: Rapport
theory:

Rapport
believes that the necessity of working women in the field of women – housewives
– the separation between work and life is only when the mother was feeling.
Because workers who were employed at the factory hours of the day, we need to
separate areas of the plant had to regroup. They opened this place to their
production began, the financiers to use labor force, with a minimum fee tended,
therefore no attention to places reproduces workers. Thus, the (social) units
(private) was handed over to the family. Because the cost of doing this heavy
work impossible and if these costs onto the shoulders of those individuals were
no longer necessary for the capitalist (the government) to undertake the
reproduction of the workers there, so try to drive women out of the labor
market and promoting the instincts of motherhood and their wives, and women are
encouraged to place active in community organizations, at home to rest and
reproduce the working men act. To promote this life claiming to be behind every
successful man stands a woman and if she did not, he did not progress in their
business activities. Women behind the men or they were in the shade. Social
work and stayed away from the only family circumstances, to provide comfort and
convenience items for “successful men” began. The idea was so good
that even women believe it was advertised. To consider if it would not occur to
men for their career needs of a family and marriage, regardless, thus
procreation and childbearing declined as is clearly seen in many communities ,
successful women forced into forgoing marriage and childbearing families in
particular have (azazi, 2001, p. 150).

2-1-3: Model
Theory of the radicals:

The different
structure of the women and men linked to the capitalist system, this economic
model is divided into two parts: primary and secondary. The initial section
aims to maximize efficient capacity to act, so try to hire skilled and stable
workforce. This section (skilled and stable workforce) is less affected by
economic fluctuations and economic volatility to affect the secondary sector.
In a dual market, women work in the secondary sector, hence vulnerable (Edward,
cordon a, b 1983).

2-1-4: The
theory of the neoclassical model:

Neoclassical
economists within the framework of the theory of rational behavior and to
maximize the utility tries to express these differences are why women enter the
labor market. In response to such questions as who they are; they have no
choice and stay at home. The question of how to choose between home and work or
enjoying leisure market, consideration and analysis of economists. They have
concluded that the supply of female labor force than men. Neoclassical increase
long-term supply of female labor force caused by the replacement of three of
the domestic labor market work and leisure are (it should be noted that in the
case of men between the labor market and active replacement is done domestic
work as much no), the demand elasticity of demand for active leisure with men;
Because women have two alternatives for leisure (labor and labor market), while
men have an alternative. With the advancement of technology, mainly of domestic
saving time has been reduced housework and the work of its alternative market
(World Bank, 1995). Some research suggests that reducing labor market has been
limited, but it is an active alternative. In other words, increasing women’s
participation has been at the expense of their leisure and well-being (Cowan,
1983, Hartman, 1981).

In theory,
neoclassical, to explain gender differences and the reasons for the limited
employment opportunities and income of women, on variables such as family
responsibilities, physical force, public education, technical training, working
hours, absence from work and shift work, which affect the productivity and labor
supply has insisted. One of the basic assumptions of the classical economists
is that the competitive conditions, the workers are paid a wage equal to the
value of the final product. Based on this assumption, it is said that the
income difference between men and women because of women’s lower productivity
or due to the failure of the market. Neoclassical assumption economist for new
families is that families have the resources (time, money) to approach Rational
between family members divided and this causes the women in the early
investment of human and material less and when they are more age, to stay at
home babysitting.

2-1-5: A new
model of family economic theory:

Since the
neoclassical microeconomic theory is based on individual decisions, it has been
criticized (Backer, 1981). Family economy by providing new insights utility
theory replaces the utility’s family is, in other words, the family is to seek
to maximize utility. In this view, all family decisions are made in this
context. In this type of analysis there is a correlation between the
consumption decisions of female labor supply decisions, Therefore, the primary
responsibility of women for domestic work and discontinuous and limited
participation in the labor market there is a correlation. However, the
advantage of this model is moving from the individual to the family, despite
the fundamental flaw is the lack of attention to the preferences of family
members, We have a set of rules for weighting preferences of family members be
provided. Here preferences, family by family representative [benevolent
dictator welfare economics] is taken. This view contrasts with the abstraction
of the decision, the person and the family together. Feminists believe that
“benevolent dictator” as the dominant form of patriarchy in the
family. They believe the models bargaining family ties can overcome this
problem. In this model the division of labor based on comparative advantage are
done. In this way, the men because they earn more, breadwinners and women were
less gain (due to having children and taking care of children forced to leave
the job), thus higher productivity in domestic work and less productive in
market works well. As a result, the domestic division of labor based on
comparative advantage, women (especially married with children) are looking to
work part-time, flexible and employment leads. So the more unstable areas of
women than men (Brown,J 1999).

2-1-6: Foreign
direct effect of gender disparities in education:

Gender
inequality is lower, especially in education means more training for women at
all levels of education as men, if there is a women’s education has a positive
effect outside on the quality of education has, thus reducing gender
disparities in education to increase the quality of education, as a result of
increased economic growth.  If you have
the belief that educating women leads to an increase in the quantity and
quality of their children will, in other words, the same effect is foreign
(through support and education for mothers of their children). Moreover,
consistency in levels of education, the quality of education at the household
level to generate positive external factors.  The way to increase the positive effects of
foreign reducing gender inequality. Human capital through increased labor
productivity can be directly on economic growth effect, can also human capital
indirectly on the growth of influence of this effect by increasing the rate of
return on physical capital, which in turn investment rate increase that and the
effect on economic growth affect investment and increase growth.

2-1-7: due to
the complexity of inequality in employment:

As a result of
educational inequality, reduction in employment opportunities for women are
likely to reduce the ability of the labor force, which is the average level in
the absence of gender inequality in employment that did not happen This results
in a reduction in economic growth. In addition, the creation of artificial
barriers to the employment of women in sectors of the economy, increasing labor
costs and reduce international competition.

2-2. background research:

2-2-1: Studies
done in the country

– Majma and
Ozlati moghadam (2012) in a study of the impact of human development, gender
and education in Islamic countries with emphasis on the country for the period
2007-1990 were examined. The results show that Iran’s position on the human
development index and gender among the 19 selected Islamic countries, is not
recommended. Also, despite the relative increase in the proportion of women
enrolling in higher education in Iran, compared with Kuwait, Qatar, Albania,
UAE, Saudi Arabia, Malaysia, and Lebanon is at a low level. The article also
describes the current situation of Iranian and Islamic countries, the
respective indices, developed a model for improving the system in relation to
the country’s scientific development is proposed.

– Partovi et al
(2011) study examined the effect of gender inequality on economic growth in the
period 1966-2006 using ordinary least squares models are. The results show that
education has a significant positive effect on economic growth in Iran and to
any level poses reduce gender inequality in education and employment, economic
growth increases. With increase in average years of schooling for women,
economic growth increases.

– Barzaee and
Hatemi (2010) in his study of the effects of gender equality on economic growth
in developing countries (2006-2000) Using a system of simultaneous equations,
it concluded that; Gender equality in education, and a significant positive
impact on economic growth which impact directly through its impact on human
capital accumulation and indirectly through regulation of population growth and
development affect economic growth.

– Fasaee and
Kalhor (2007) to reduce the size of the gender gap and the realization of the
country are in the Third Development Plan. The results showed that in the first
development plan directly to the issue of women and the gender gap is not
addressed. In the second program, which is paid directly to the issue of women
more concerned with the protection of women And parentless children through
indirect payments and social security is improving. The third program coincided
with the start seriously addressing this issue. In the third quarter, but
slightly wider as well as follow-up program and Article 111 refers to the issue
of women and increase their participation. In general, it is observed that with
the passage of time from the first to the fourth program planners sensitivity
to the issue of gender and women has increased.

– Khalili In a
study in 2007 to increase and improve the participation of women on the macro
level did It found that the development should enable all people to the
greatest extent possible, increase your abilities.  In the meantime, enhance and improve the
participation of women on the macro level perceptions and beliefs of a society
in its whole structure, positive impact. It seems that complementary and
egalitarian relations should be developed, especially relations between the
sexes, In order to enable men and women to bring their energy to increase
effective supply its capabilities in the public sphere. Because if women in the
fabric and applied to daily tasks, repetitive and continuous passive manner,
they will not be no possibility of growth and the level of knowledge and
insight they will not grow.

2.2.2: Studies conducted abroad

– Oriana
Bandiera and Ashwini Natraj (2013) study was to answer the question whether
gender inequality is a barrier to economic growth and development? They
concluded that evidence of the impact of gender inequality on economic growth
and development are not yet results, meaning it is not the policy of inequality
on economic growth and development ineffective, but also to achieve the results
more accurate and more detailed evidence is required.

 – Rashmi Umesh Arora (2012) in a study to
examine gender inequality, economic development and globalization for India
deals during the period 2006-1998. The results show that if the per capita
income is below the level of national income, The lower income is associated
with higher gender inequality has a negative impact on economic growth and
development of India.

– Berik et al
(2009) study the relationship between inequality among groups and macroeconomic
variables are examined. Since gender inequality and economic growth affect each
other in many ways, this study emphasizes the equality of income, in addition
to equality of opportunity. Gender inequality undermines the provision of
capacity development, Therefore, this research is exploring how gender
relations in education and the labor market has a negative impact on the
macroeconomic level.

– Costello and
Domenech (2006) in a study using panel data the inequality of human capital for
the total population (without segregation) won and its effect on life
expectancy, and then, on economic growth showed they viewed that inequalities
in human capital, and economic growth will reduce life expectancy. In this
model, the life expectancy is one of the basic variables that a lot depends on
the human capital of their parents. The results showed that a steady economic
growth in the primary distribution of education depends, but economic growth is
temporary, such as a poverty trap and children born in poor households, life
expectancy low, and workers without training work . This study shows that the
mechanism is an important part of the relationship between inequality in life
expectancy and per capita income growth is human capital. Specifically, they
analyzed the mechanism that inequality and economic growth, because of the
difference in life expectancy between those with economic status – have
different social, connects to each other.

– Anderson
(2003) in a study that found that, despite the wage gap and discrimination
facing women in the labor market, Labor force participation rate both now and
in the future and reduces future generations. Lower rates of labor force
participation for women seeking lost wages, wage discrimination women to stay
at home movement. This wage discrimination can also automatically reduces
investment in families to educate their daughters than sons.

– Seguino
(2000) in a study to investigate the relationship between gender inequality and
economic growth. The initial hypothesis, the test is whether gender inequality
in the labor market and lower relative wages of women, leading to GDP growth
through the development of the export sector? Empirical analysis shows that GDP
growth in the period 1995- 1975 is positively associated with gender
inequality.

– Klasen (1999)
using cross-country panel regressions have shown the extent to which gender
disparities in education and employment may reduce growth and development. The
dramatic effect of gender inequality on economic growth is achieved. Gender
disparities in education due to lower average quality of labor (human capital)
have a direct impact on economic growth, but because of investment and population
growth indirectly impact on economic growth. He concludes that 0.4to 0.9
percent of the differences in growth rates in East Asia, sub-Saharan Africa,
South Asia and the Middle East can be explained by the widening gap of gender
in public education. In addition, the analysis shows that gender inequalities
in education hinder fertility and mortality rates fall children.

3. The specification model and the introduction of variables:

In line with previous studies, this article explores the relationship between gender inequality, inequality in wages for women than men, disparities in the level of education of women than men, and the inequalities in life expectancy between men and women on economic growth in a selection of countries by category high human development proposed by Arellano and bond (1991) two-stage model Generalized method of moments (GMM) for dynamic panel data presented in this study as well. The study sample consists of about 14 countries with HDI above, includes Argentina, Uruguay, Turkey, Mexico, Iran, Brazil, Kazakhstan, Venezuela, Malaysia, Lebanon, Azerbaijan, Colombia, Ecuador and Russia, according to the latest rankings United Nations development program in 2016 for the period 2015-2002 is. Data from the database to the World Development Indicators (WDI) and the United Nations Educational, Scientific and Cultural Organization of the United Nations (UNESCO) has been collected. According to theoretical and experimental studies of the foregoing, the research model is presented as follows:

Where:: GDPgr   : GDP
growth, GI: gender inequality,: WI: Inequality of wages and salaried workers,
women than men, : EDU: . Net enrollment rates, secondary, gender quality index,
LE: . Net enrollment rates, secondary, gender quality index and
: is the error.

4. Empirical results:

4-1.
Reliability testing (Unit root Test):

Pre-Integration testing to determine long-term relationship between the main indicators of the study, Unit root test shall be done to prevent the problem of spurious regression for variables. And a unit root econometrics literature indicates that the unit root test based on panel data time series with the power of the unit root test is more accurate. In this study, two types of unit root test of validity variables were used. The test is as follows: unit root test Levin, Lin et al (Levine, Lin & Chu (LLC) test and have sons and Shane (Im, Pesaran and shin, 2003) in the name of the IPS study. IPS test makes it possible for the heterogeneity among individual effects exist, why IPS test the unit root test known heterogeneous. The results of this test and evaluate the acceptance of the values of the calculated probability indicates that some of the variables are stable level some of the variables were steady with time differencing.

4-1.
Cointegration Test:

In case of co-integration relation between the two variables, it is possible to estimate the efficiency of the model achieved that in this case, despite the time series unsteady problem of spurious regression not have the equation is estimated, equilibrium has term relationship will be long. In this study, CAO integration test to check for long-term relationship between variables is used when the results are presented in the table below.

As you can see,
the results are in Table 2 integration or long run relationship between
variables will be accepted at 95%

4-2. the estimated model and interpret the results:

The results of
model estimation torque generalized to countries with HDI above, there is a
negative relationship between inequality in life expectancy and disparities in
wage levels of women than men, with economic growth shows, the results showed
the association positive between gender inequality and equality in education
with economic growth. The reduction in gender inequality or in other words an
increase in the equality of women and men in all areas related to the labor
market, employment, education, wages and full equality in cultural issues and
problems in the community increases in economic growth with high human
development index. Gender inequality is lower, especially in education means
more training for women at all levels of education as men, if there is a
women’s education has a positive effect outside on the quality of education
has, thus reducing gender disparities in education to increase the quality of
education, as a result of increased economic growth. If you have the belief
that educating women leads to an increase in the quantity and quality of their
children will, in other words, the external effect is the same. According
provide greater access to training and retraining of women, their participation
in the labor market increases. However, most theorists insist that the only
factor of economic growth modifiers for women’s participation and change their
position in relation to men, but also cultural structure of patriarchal
important factor in determining the position of women. Empirical studies show
that economic growth, the modern sector is affected more than the national
average. Also, according to Kuznets social inequality in the early stages of
economic development, increase, then stabilize and eventually reduced. After
positive relationship for countries with high human development index, which
most countries in the early or mid-development are not unexpected? The results
show that by reducing the inequalities in life expectancy and reduce
disparities in wage levels in women than in men and increase equality in
education between the two sexes, or in other words, an increase in the equality
of women and men in all fields related to the labor market, employment,
education, wages and full equality in cultural issues and problems in the community,
the economic growth rate increases. The plus sign lag variables of economic
growth shows the movement of these countries on the path of development and
implementation of programs in line with the strategy of development and
economic infrastructure and the equality of men and women in countries with a
Human Development Index of the investigation, however, the mobile is slow.

To investigate
the validity of the matrix of Sargan test tools we use in this test, the null
hypothesis showed no correlation with the instrumental variable component is
disturbing. According to the results of this test we can use two methods: We
compute chi-square small table with two degrees of freedom, rank instrumental
variables minus the number of variables in the model is estimated, We also test
P-value is 0.05. So we accepted the null hypothesis of no correlation between
instrumental variables and components disturbing.

5. Conclusions and recommendations:

Lack of women’s
participation in economic activity can be considered a problem in the way of
developing countries. The need for women’s entrepreneurial creativity must
increase and expand employment opportunities based on cultural values that once
controlled it, the answer is yes. Research shows that during the past decade,
especially since 2000 two major developments in trade and international
economics is taking place. Development of explosive growth and development of
women entrepreneurs and the growing volume of international trade. These two
developments together will promote women’s economic and overall economic growth
in most major countries and developed and the dimensions of this changes
somewhat wide that experts consider it the beginning of a new era of global
businesses.  Increasing women’s education levels have the opportunity to
find specialized tasks. Now the professional women with a university education
in Western countries such as science, business and finance, management
consulting, accounting and advertising trends have found. As well as
specialized jobs in the field of women’s health services have also been
considered, but in countries with medium human development index and low
tendency to handicrafts, agricultural and artistic jobs. One of the
misunderstandings about the women’s businesses develops, this is supposed to be
a woman in this business for the customer. Problems of the rule of patriarchal
thinking, obstacles that women have for their creation and inequality and
higher education. Single-product economy, mode of production dominant in the
country, centralization and state economy, huge losses during the war and
reduce the production of national budgets with the attitude of state
capitalism, the development of technocracy and employment in governmental
agencies, lack of planning and codified for women’s employment , cultural
problems, opposition to the employment of women and the lack of cooperation by
working women, low wages for women than men, lack of expertise of women, the
unwillingness of employers to insurance cover for women, the dominant culture
of men, the historical trend of sexual discrimination, ignoring women’s
abilities in the management of cooperative banks and institutions The credit to
women, society’s attitude towards women in some activities, economic
feasibility lack of funding for women’s labor force because of the possibility
of marriage, childbirth and leave by their laws and regulations to protect
women employers a problem that is, lower labor productivity women due to family
responsibilities, lack of confidence and self-esteem in women as a result of
lack of proper upbringing family, the lack of women in technical skills and
professionalism, inappropriate workplace in some of the activities in terms of
ethical issues and the need to have more physical ability in some Activities in
some workplaces false competition, high cost of day care centers and the lack
of public and private organizations for their major barriers to women’s
employment considers their employment. aid for self-employment and equitable
distribution of the benefits of economic growth and development between men and
women can be measured in economic growth is vital.

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[1] Master of Economic Sciences