Binelli, C.; (2003) Educational gender gap, inequality and growth: a gender sensitive analysis. (Temi di Ricerca 31). Ente Luigi Einaudi for monetary, banking and financial studies: Rome, Italy.

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Abstract

Adopting a gender-aware perspective, this paper investigates the controversial relationship of inequality and growth studying the effects of income disparity on the differences between male and female schooling in the presence of liquidity constraints and inefficient financial markets. In cultural contexts where male education is considered more profitable, financial markets’ inefficiency has biased effects on human capital accumulation; given the significant contribution of women’s education to economic prosperity, a theoretical model and a panel data analysis of sixty three countries for six five years periods from 1965 to 1994 show a negative impact of income inequality on economic growth through the disincentives to invest in female schooling. A financial markets’ reform to improve efficiency and increase available liquidity could offer an important contribution to the closure of the gender educational gap.

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