A Macroeconomic Analysis of the Effects of Gender Inequality, Wages, and Public Social Infrastructure: The Case of the UK.

The aim of this study is to develop a model to analyze the macroeconomic effects of two dimensions of inequality – gender inequality and functional income distribution – and public spending, in particular on social infrastructure, on output, productivity, and hours of employment of men and women. Th...

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Published in:Feminist Economics Vol. 28; no. 2; pp. 152 - 189
Main Authors: Onaran, Özlem, Oyvat, Cem, Fotopoulou, Eurydice
Format: Article
Published: Taylor & Francis Ltd Apr2022
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Online Access:View this record in EBSCOhost
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        10.1080/13545701.2022.2044498
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        atl: A Macroeconomic Analysis of the Effects of Gender Inequality, Wages, and Public Social Infrastructure: The Case of the UK.
      aug:
        au:
          Onaran, Özlem
          Oyvat, Cem
          Fotopoulou, Eurydice
        affil:
          University of Greenwich, London, United Kingdom of Great Britain and Northern Ireland
          University of Greenwich - International Business and Economics Department, Old Royal Naval College, London, United Kingdom of Great Britain and Northern Ireland
          Goldsmiths University of London, London, United Kingdom of Great Britain and Northern Ireland
      su:
        Wage differentials
        Gender inequality
        Infrastructure (Economics)
        Gender wage gap
        Wages
        Income inequality
        United Kingdom
      sug:
        subj:
          United Kingdom
          Wage differentials
          Gender inequality
          Infrastructure (Economics)
          Gender wage gap
          Wages
          Income inequality
      keyword:
        employment
        functional income distribution
        productivity
        social infrastructure
      ab: The aim of this study is to develop a model to analyze the macroeconomic effects of two dimensions of inequality – gender inequality and functional income distribution – and public spending, in particular on social infrastructure, on output, productivity, and hours of employment of men and women. This study estimates the model econometrically using an IV-GMM estimator and time series data for the period of 1970–2016 for the UK. For the estimation of productivity, the article uses IV-GMM estimations based on panel data for eighteen industries for the period of 1970–2015. The study finds that output in the UK is both gender equality-led and wage-led, and hence generally equality-led. Public social infrastructure investment has a high positive effect on both output and employment. Despite a strong positive effect on productivity, the employment of both men and women increases in the medium run. HIGHLIGHTS Output in the UK is gender equality-led and wage-led; hence the UK is equality-led. An upward convergence in wages by closing gender pay gaps leads to higher output. Public social infrastructure spending has a positive effect on output and productivity. Public social infrastructure leads to higher employment for both men and women. A mix of labor market and fiscal policies can achieve both equality and employment.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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