Macroeconomic impacts of gender inequality and informality in India / prepared by Purva Khera.

By:

Khera, Purva [author.]

Contributor(s):

International Monetary Fund. Asia and Pacific Department [issuing body.]

Material type: Text

TextSeries: IMF working paper ; WP/16/16.Publisher: [Washington, D.C.] : International Monetary Fund, [2016]Copyright date: �2016Description: 1 online resource (65 pages)Content type:

text

Media type:

computer

Carrier type:

online resource

ISBN:

1498311105
9781498311106
1475590784
9781475590784

ISSN:

1018-5941

Subject(s):

Genre/Form:

DDC classification:

331.4133 23

LOC classification:

HD6060.5.I4

Online resources:

Click here to access online

Abstract: This paper examines the macroeconomic interaction between informality and gender inequality in the labor market. A dynamic stochastic general equilibrium model is built to study the impact of gender-targeted policies on female labor force participation, female formal employment, gender wage gap, as well as on aggregate economic outcomes. The model is estimated using Bayesian techniques and Indian data. Although these policies are found to increase female labor force participation and output, lack of sufficient formal job creation due to labor market rigidities leads to an increase in unemployment and informality, and further widens gender gaps in formal employment and wages. Simultaneously implementing such policies with formal job creating policies helps remove these adverse impacts while also leading to significantly larger gains in output.

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"February 2016."

"Asia and Pacific Department."

Includes bibliographical references (pages 43-46).

Print version record.

This paper examines the macroeconomic interaction between informality and gender inequality in the labor market. A dynamic stochastic general equilibrium model is built to study the impact of gender-targeted policies on female labor force participation, female formal employment, gender wage gap, as well as on aggregate economic outcomes. The model is estimated using Bayesian techniques and Indian data. Although these policies are found to increase female labor force participation and output, lack of sufficient formal job creation due to labor market rigidities leads to an increase in unemployment and informality, and further widens gender gaps in formal employment and wages. Simultaneously implementing such policies with formal job creating policies helps remove these adverse impacts while also leading to significantly larger gains in output.

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