The Economic and Socioeconomic Impact of Gender Inequality in Labour Force Participation in Selected Low-Income Countries
Creators: name: Alkhayl, Alaa Aba
Publisher: name: Macquarie University
Year: 2025
Subjects: classificationCode: 440599
subject: Gender studies not elsewhere classified

description: This thesis examines the impact of gender inequality in labour force participation (LFP) on economic growth and human development in 13 selected low-income countries. The initial results illustrate that gender inequality in LFP does not significantly affect economic growth. However, and despite this, we believed that it would be helpful to conduct the same analyses using a more comprehensive indicator, namely the Human Development Index (HDI), which more accurately reflects a country’s level of development. In this regard, we found that for each percentage point increase in the female-to-male ratio in LFP, the HDI score increases by a significant 0.141 percentage points. Additional examinations of various HDI components and other related outputs support this result. This is an encouraging finding, suggesting that any government policies addressing the gender gap can also make a positive contribution to human development.This thesis also examines the existence of a U-shaped relationship between gender inequality and economic growth and human development. Since we found that there is no such relationship, the policy recommendations that flow from the assumption are not supported here. The relationship between female labour force participation and economic growth is affected by the complexity of structural changes in individual economies, resulting in distinct patterns of adjustment according to circumstances.Furthermore, by using mediation analysis, the thesis found that the fertility rate does not mediate the relationship between the gender gap in LFP and economic growth, nor the relationship between the gender gap in LFP and HDI. However, it is possible that the mediator in the analysis does not fully capture all the potential pathways by which gender inequality in LFP impacts economic growth and human development. Our findings have policy implications for governments, especially in highlighting the importance of a range of social and cultural factors that have a bearing on individual capabilities.Finally, this thesis offers a novel contribution to the literature by applying the capability approach to help explain the persistent gender inequality in these 13 low-income countries and vi proposes a list of eight capabilities that we believe are the most fundamental to narrow the gender gap in LFP in these countries. The capability approach analysis also leads to the proposal of additional policy recommendations that would assertively address gender inequality and promote labour force participation. First, it is imperative to enhance access to education for girls and women if we are to see their active participation in the workforce. This should not stop at increasing the literacy rate and ensuring that families really enrol their girls in compulsory primary education, but should go as far as introducing laws regarding child labour and girls’ early marriage. Second, in the absence of workplace laws and freedom of mobility, legal reforms should be implemented to ensure gender equality in the workplace, including laws prohibiting discrimination and harassment. Third, governments can support female entrepreneurship by affording women access to credit, business training, and networking opportunities. Finally, increasing the representation of women in parliament (or equivalent) is essential for promoting gender equality. It not only amplifies women’s voices in legislative processes, but also sets a powerful precedent for their greater participation in the labour market.The thesis is structured as follows: Chapter 2 provides a literature review, Chapter 3 examines national economic indicators, Chapter 4 presents the empirical analysis, Chapter 5 applies the capability approach, and Chapter 6 concludes with policy recommendations and future research directions.