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American Journal of Business, Economics and Management
2018; 6(4): 110-118
http://www.openscienceonline.com/journal/ajbem
ISSN: 2381-4462 (Print); ISSN: 2381-4470 (Online)
Impact of Women Wage Segregation on Economic
Growth: Evidence from Brazil, Egypt and Jordan
Doaa Salman Abdou
*
, Nadine Mostafa Kamel
Department of Economics, October University for Modern Sciences and Arts (MSA), Giza, Egypt
Email address
*
Corresponding author
To cite this article
Doaa Salman Abdou, Nadine Mostafa Kamel. Impact of Women Wage Segregation on Economic Growth: Evidence from Brazil, Egypt and
Jordan. American Journal of Business, Economics and Management. Vol. 6, No. 4, 2018, pp. 110-118.
Received: September 5, 2018; Accepted: September 28, 2018; Published: October 26, 2018
Abstract
This research analysis studies and outlines the statistical data regarding the female labor force the female labor trends in three
countries, Egypt, Jordan & Brazil. The three countries chosen provide a diverse comparative analysis with Egypt being the
lowest developed country and Brazil being the highest developed country; this assists in the decision making or policy making
procedure in reaching a macro economic framework with the least amount of errors and inaccurate forecasts. The paper then
analyzes and compares these labor trends whilst investigating the severity of wage segregation and wage discrimination in the
countries thus the effects it has on the gender gap in the labor force; this is how we reach an efficient regulatory policy
framework. Nevertheless, the aim of this research is to provide policies and reforms effective immediately for a future that will
enhance female labor participation rates. Statistically, we want to increase the female labor force participation rates (FLFPR)
especially in the MENA region countries. Conceptually, we want to reach solutions for the female labor force in each of the
stated countries as to implement and adopt policies in which foster women participation and decrease wage segregation.
Keywords
Feminization, Wage Segregation, Economic Growth
1. Introduction
“Labor was the first price, the original purchase - money
that was paid for all things” – Adam Smith
This quote focus on labor and it viewed labor as a
commodity or one of the most important inputs of factors of
production. To simply discriminate against a certain type of
labor, is to simply refute the fundamentals of capitalism;
fundamental that created a vision. The vision of
industrialization and globalization entitles wealth amongst
all, and each person shall earn as much as they work. So to
simply prohibit or discriminate against an entire gender, is to
simply contradict the very own fundamentals of capitalism
and “The Wealth of Nations”. The comparative analysis
provided is diverse and each country can be viewed as stages
of female labor development; we list a brief on the female
labor force in each country below from least developed to
most developed.
All the data compiled is meant to offer a broader
understanding of the female labor force and the crucial
importance of their participation while emphasizing on the
obsolete problem of occupational segregation. The large
majority of the literature provided on the matter was for the
increase of female labor participants, while a small group of
economists managed to provide reasonable data on a few
disadvantages to the increase in female participants; a debate
which is elaborated in the paper. As we previously
mentioned, the three countries chosen provide a diverse
comparative analysis with Egypt being the lowest developed
country and Brazil being the highest developed countries.
Since Egypt and Jordan are in the MENA region, many
researchers state that women’s participation in the economy,
as integral part of their empowerment, is a major challenge
facing the MENA-region, since women’s labor market
participation (LMP) is among the lowest in the world in these
countries [1]; In fact, in the Arab Human Development
Reports, women’s empowerment is mentioned as one of the
111 Doaa Salman Abdou and Nadine Mostafa Kamel: Impact of Women Wage Segregation on
Economic Growth: Evidence from Brazil, Egypt and Jordan
main targets of human development in the Arab World. It is
no secret that women’s labor participation plays a vital role in
the economic structure of a country, and an important aspect
of the general “women’s empowerment” movement concerns
their economic participation. From here we suspect there is a
correlation between economic growth, and female labor
participation. We obtain dynamic indicators in order to obtain
economic factuality when we set forth our policies in section
VII.
2. Literature Review
“Women are the Arab world’s unutilized and unrecognized
human reserve,” (Azzam, Abu Nasr &Lorging 1985)
The urgency of acknowledging insight on the restrictions
and incentives for women to enter the labor force in the
MENA region, the theories and empirical analyses on the
topic is very limited – as opposed to the plentiful studies on
Western countries. Theoretically, it seems that women’s labor
market participation (LMP) is determined at levels that focus
on one type of factor, such as: examining cultural
surroundings, or analyzing the economic opportunities and
social needs. However, we don’t see that women’s LMP
should be determined according to this level, but rather we
should examine the economic and political factors that
influence women’s LMP as well. Nonetheless, informative
literature underline that ramifications with gender inequality
are not only to enhance the lives of girls and women, but
more generally for human development, labor markets,
productivity, and GDP growth [2].
Indeed, the empirical & statistical evidence shows that
women living in the Middle Eastern and North African
region do have a lower LMP than women living in Europe
[3]. For example, Moghadam states that in the Middle
Eastern countries, only Israel and Turkey come close to other
Asian countries and Latin American countries with their 30-
40% total female labor force participation (FLFP), while it is
the highest in Eastern Europe and the Soviet Union where
FLFP reach 90% [4]. Moghadam’s statement is supported by
the majority of the literature, such as Chamlouet. al, as they
mention that women from more conservative societies tend to
participate less in the labor market, than women living in less
conservative societies; this impacts the country’s FLFP at an
aggregate level, especially with migration rates increasing.
Therefore, taking into consideration the determinants of
female labor supply is vital to establish the basis of our
analysis.
2.1. Determinants of Female Labor-Force
Participation
Generally, the determinants of FLFP can also be analyzed
by looking at the indices of the Human Development Index
(HDI). However, since two of our case studies are in the
MENA region, we have found other constraints that play a
large impact on shaping women’s thoughts when it comes to
working. Especially in these countries, cultural constraints
emerging from social traditions and religious traditions play a
large hidden role.
*The general determinants of FLFP can be identified as:
- Educational Attainment.
-Labor Market: Employment/Non employment benefits,
labor shortages, business opportunities, and state’s efforts in
creating jobs
- The Costs of Living
- Resource endowments
*Underlying & Hidden Determinants:
- Political stability/instability: State Infrastructure
Moghadam, offers an articulate explanation regarding
point #5 and the role of state infrastructures by mentioning:
“…The North African woman of today usually dreams of
having a steady, wage-paying job with social security, health
and retirement benefits; these women don’t look to a man
any longer for their survival, but to the State. [4]”
Moghadam’s statement can hardly be refuted, and along
with the majority of the literature, FLFP is highly dependent
on its state efforts to integrate them in the markets.
Nonetheless a widespread misbelieve that has emerged in the
Middle Eastern countries is that factory work is not suitable
for women; misbelieve that is less adapted in countries such
as Brazil and developed countries. To later explain, had the
world countries been female-led as export-led they would’ve
been more developed now [4]. In fact, due to these countries’
“import-substitution” policies and partial reliance on oil
wealth, industries in the Middle East have failed to make
progress comparable to India, Brazil, Hong Kong and
Singapore. States are also the main factors behind the gender
wage gap, with enough political power to adapt reforms that
are pro female laborers.
2.2. The Gender Wage Gap
The topic of gender gaps in employment has an increasing
effect on economic growth between countries and regions.
The topic is severely relevant to policymakers, especially in
the MENA region. The general determinants that can explain
the high existence of a gender wage gap in the MENA region
is due to high levels of illiteracy and obsolete cultural norms
in some countries, wage setters may discriminate against
female labor. However, a non-linear explanation is that low
FLFP has been greatly related to kin-ordered patriarchal
family structures [5]. In other words, our studies have found
that researchers acknowledged that religious and cultural
norms adapted from 1970s-1990s in this region have clearly
identified men as the main breadwinners and females as
dependents on the man [5].
Moghadam has another opinion on this, and says that not
only have cultural and religious norms shaped the FLFP, but
at the time the boom of the oil industry in the late 1970s
actually reinforced this patriarchal gender contract. Recall
Moghadam’s study paper where he mentions that especially
in the MENA region factory work is only allowed for men;
this explains how the boom of “oil” in these countries had a
negative effect on FLFP [4]. However, other researchers
argue that the labor force market in the 1970s and 1980s was
highly demand driven, and at the time the demand structure
American Journal of Business, Economics and Management 2018; 6(4): 110-118 112
for labor was male-dominated [6]. In simpler words, female
jobs got defeminized while employment growth occurred in
male-dominant sectors.
A very important study conducted McKinsey Global
Institute in 2015 measures the distance each country has
travelled towards gender parity. The score is set at 1.00 being
the highest and 0.00 being the lowest. They use 15 dynamic
indicators in their Gender Parity Score (GPS) to try and
establish the closest links to I) Social gender equality, II)
Attitudes & Beliefs about the role of women, and III) Gender
equality in work. The Institution finally identifies ten “impact
zones” that highlight the need for immediate action; they also
provide a policy framework in how to handle the gap issue
and find that the results would effectively move more than
75% of women affected by gender inequality and
occupational segregation towards gender parity. The ten
“impact zones can be illustrated in figure 1 presented below:
Figure 1. Gender Parity Score: Ten “Impact Zones”.
Source: McKinsey Global Institute (2015): The Power of Parity
Figure 2. Range of Scores, Global Gender Gap Index (2016) [14].
Source: World Economic Forum Gender Report 2016
113 Doaa Salman Abdou and Nadine Mostafa Kamel: Impact of Women Wage Segregation on
Economic Growth: Evidence from Brazil, Egypt and Jordan
The GPS points to 95 countries grouped into 10 regions,
with South Asia excluding India being the lowest in gender
equality. Nonetheless, these 10 impact zones are home to
93% of the world’s female population. Gender inequality is
not only a pressing moral issue, but also a severe economic
challenge. If women – who account for half the world’s
population – do not achieve their full economic potential, the
global economy will suffer. Nonetheless, economists
continue to state that these 10 regions need immediate work
in precisely four areas to accelerate its development: I)
Education Levels, II) Financial & Digital Inclusion, III)
Legal Protection, and IV) Unpaid care work.
In addition to McKinsey Global Institute’s GPS, The
World Economic Forum also conducts an annual gender gap
report; the report consists of 4 indices that consist of 14 sub
indices – similar to the Human Development Index – and
ultimately give a score of 1.00 (Gender parity) and 0.00
(Gender inequality) similarly to McKinsey’s GPS. The 4
indices are grouped into: I) Economic Participation and
Opportunity sub index, II) Educational Attainment sub index,
III) Health & Survival sub index, and IV) Political
Empowerment sub index. The WEF’s 2016 Annual Report
findings were:
2.3. FLFP Expectations
Expectations play a drastic role in this situation;
feminization is a movement that desperately needs real action
supported with economic and political factuality. The most
important question we should be asking is “Will economic
growth occur when FLFP is at full utilization?”
McKinsey Institute answers this question by stating "in a
full-potential scenario in which women play an identical role
in the labor markets to men's, as much as $28 trillion or 26%
could be added to the global annual GDP by 2025" They
offer another solution and state that if all countries in a
specific region were to match the progress of the best gender
parity performer in the same region, annual GDP could be
boosted to $12 trillion by 2025.
We follow the assumptions McKinsey Institute based their
“full-potential scenario” and “best-in-region scenario”
expectations on which are:
(1) Gaps in relative productivity between men and women
within industries and service sectors are fully bridged.
(2) Agricultural Employment is equal for men and women.
(3) The transitioning from agricultural sector to industries
and service sectors for women is equal to the ratio of
female employment in industry relative to services in
the business-as-usual scenario.
(4) Employment rate by gender gap is fully bridged.
(5) Convergence of all countries (especially in 10 impact
zones) exists. As previously stated, each country
aspires to the progress of the best performing country
in the region.
*Implications of the scenarios on the overall structure of
GDP:
Due to the bridging of the gender gap in both scenarios,
more job opportunities need to enter the labor market. For all
regions, this represents an expansion of service-sector GDP,
due to both the increase in employment & services and a shift
of employment of women to more productive service sector
jobs. The new supply of labor will lead to the creation of 240
million incremental jobs in the “best-in-region scenario”. The
largest number of jobs will need to be created in India (68
million), while developed countries like Western Europe and
North America will need 10-15 million jobs [2]. Needless to
say, this might be a challenging implication for societies
trying to move towards gender parity however with the
creation of new jobs, our GDP will start to increase.
Regardless, we don’t find it as an implication but rather as an
“urgent goal”.
As we previously stated, the new supply of labor would
lead to a higher demand on jobs, and a higher demand of
employment on all sectors. In figure 3, we see that in the
best-in-region scenario by 2025 the world would need a
MINIMUM of 240 million extra jobs than if it were business-
as-usual scenario. This implies many things. First, the world
is on its way towards increased incremental job creation and
by 2025 – under the condition of movement towards gender
parity –the normal rate (business-as-usual scenario) will
reach an increase of 363 million jobs. Had countries adapted
a “full-potential” scenario where all female laborers
participate and global FLFP rates start to reach 90-100%, the
creation of 1,081 million jobs would be a reality by 2025.
This is a fascinating phenomenon.
Higher Gender Parity/Equality Increased Job Creation
Increased Production in all Industries Increased
Exports/Imports Mass Increases in GDP Increased
Gains from Trade Higher Disposable Income
Enhanced Welfare Economics Extinction of Easterlin
Paradox
Eventually, the extinction of Easterlin’s Paradox will be
made possible; In other words, if we viewed happiness the
same way Easterlin did, then global happiness (absolutely
GLOBAL: all countries and all regions) will have reached its
maximum achievable level of happiness.
In our analysis, we discovered there are no objectives
worthy enough if they don’t include happiness. Feminization
is a humane movement this have an economic implications
and results would bring absolute global
economic/political/cultural change it would eventually bring
happiness – which is the most important [10].
American Journal of Business, Economics and Management 2018; 6(4): 110-118 114
Figure 3. Expectations of Job Creations.
Source: McKinsey Global Institute Gender Gap Report 2016
3. Feminization & Occupational
Segregation: A Comparative
Analysis
The comparative analysis provided is diverse and each
country can be viewed as stages of FLFP development; we
list a brief on the female labor force in each country below
from least developed to most developed.
3.1. The Case of Egypt
There are many problems that emerge in the female labor force
in Egypt ranging from gender discrimination, low education levels,
little to nonexistent employment benefits and incentives.
According to the World Economic Forum’s Gender Gap report in
2012, Egypt ranked number 126
th
out of 135 countries on the
gender gap index, and scored number 130
th
in total labor
participation rate [5]. As presented in Table 1 below, the female
employment rate from the total labor force was 23.07%.
Table 1. Female Labor Force (as % of total labor force).
Year 2017 2016 2015 2014 2013 2012 2011 2010
Percentage 23.07% 23.00% 23.12% 23.09% 23.10% 22.50% 22.40% 23.08%
Source: www.data.worldbank.org/indicator
*The highest recorded rate of participation was in 2007 at 23.69% followed by 23.63% in 1994.
*The lowest recorded rate of participation was 2002 at 20.97% followed by 21.93% in 1998.
It has been argued that cultural factors play an important
role in explaining the gendered labor outcomes in Egypt, thus
it is important to understand whether or not the Egyptian
FLFP has changed following the 2011 revolution while also
understanding the reasons behind women’s low LFP.
A recent study conducted by Tsani as cited in Hendy
shows that for every increase by 5% in FLFP leads to a
cumulative 1.3% increase in GDP (from 2015 to 2030) in the
case of Egypt [5]. Indeed, in section VII we find an inverse
relation between decrease in female unemployment and
increase in GDP, however it is still necessary to analyze the
determinants & dynamics of the female labor market in
Egypt to understand where countries (who correspond with
Egypt’s development level) have gone wrong, and what can
be enhanced.
Furthermore, Assaad and El-Hamidiconducted an
investigative analysis on the Egypt Labor Market Survey
(1988, 1998, and 2006) and conclude that the declining labor
force participation of women is primarily by the contraction
of the public sector hiring [6]. During the Nasser era, all high
school & higher education degree holders were promised
state-sector jobs regardless of their gender; this naturally
increased FLFP. However, in the 1990s guaranteed state
employment was suspended and women stopped aspiring to
115 Doaa Salman Abdou and Nadine Mostafa Kamel: Impact of Women Wage Segregation on
Economic Growth: Evidence from Brazil, Egypt and Jordan
have a governmental career. On the other hand, the private
sector employment rose however it did not meet the decline
in the public sector. After the suspension of the state-
promised jobs, the informal sector started to increase
especially in the private sector; meanwhile Assaad and El
Hamidicontinue to state that other determinants of female
employment rely greatly on the sector of employment, and
women’s marital status. They explain the relation that exists
between the two factors and found that women who worked
in the public sector continued to work even after their
marriage however those employed in the private sector quit
in the beginning of their marriage [6]. Figure 4 presented
below shows the FLFP and how marital status affects their
careers.
Figure 4. Women’s Labor Market by Marital Status.
Source: Hendy, R. (2015)
For example, here we can see that in 1998 16% of ever-
married women were employed compared to only 13% of
never-married women, while at the same time only 3% of the
ever-married women were unemployed compared to the 11%
share of never-married women; this signifies the motivation
for female laborers to earn promised state-sector jobs. Both
groups witnessed an increase in employment till 2006 where
it reached 25% for married women, and 16% for never-
married women. Although the share in the labor force was
larger in 1998 for never-married females, these figures have
reversed in 2006 and 2012. According to Hendy she offers a
broader understanding behind each sector employment.
She requested for more analytical explanation for each
sector’s demanded employment by females. It is clear that
the FLFP is highly correlated in Egypt with culture,
traditions, and norms showing significant linkages to
governmental/state-sector employment rather than
entrepreneurship or private sector employment.
Nevertheless, Hendy along with many others continue to
illustrate the main reasons behind the decrease in
employment by females as a result of the weak state
infrastructure, or the insufficient efforts by the state to
provide the FLFP employment in the right sector. Of course,
education levels play an imminent role especially when we
see that only 3% of never-married females working as an
employer or self-employed in 2012 post the revolution. This
indicates that the lack of the entrepreneurial mindset and the
lack of motivation between the female labor market.
3.2. The Case of Jordan
It is crucial that when examining the statistics we also
examine the population size. Jordan has a small population of
9.5 million with 40%of the labor force is female. Although
Jordan seems to show positive health and educational
indicators, its female labor participation rate seems to be
fairly low and at times stagnant [7]. After analyzing the data
below, we discovered a linear chart pattern throughout 1990-
2000. Later we discovered a continuation rectangle pattern
throughout 2000-2003 (see figure 1 below). Nevertheless
Jordan has a relatively low female to male ratio in the labor
force, and shows indications of stagnant employment rates.
Table 2. Female Labor Force (as % of total labor force).
Year 2017 2016 2015 2014 2013 2012 2011 2010
Percentage 17.65% 17.53% 17.52% 17.44% 17.38% 18.07% 18.12% 17.87%
Source: www.data.worldbank.org/indicator
*The highest recorded rate of participation was in 2011 at 18.121% followed by 18.073% in 2012.
* The lowest recorded rate of participation was in 1990 at 12.302% followed by 12.471 in 1991.
In the case of Jordan, the low FLFP rates are a paradox
especially with higher numbers of females attaining better
health care and education. Hendy et. al answer this paradox
by explaining that the decline of participation in educated
American Journal of Business, Economics and Management 2018; 6(4): 110-118 116
women is due to the continued curbing and deterioration of
the opportunity structure (Economic Opportunity & Structure
according to MGI’s GPS) since the 1980s [8]; this is very
similar to the case of Egypt.
Jordan’s FLFP rates are among the lowest in the world, with
the World Bank ranking Jordan the 5
th
lowest female
participation rate among 185 countries after countries such as:
Syria, Iraq, Algeria, and the West Bank & Gaza. In the case of
Jordan, women look upon education as not a necessity but as a
way to find employment in the future, and due to the
deterioration opportunity structure, more and more women are
dropping out [8]. Unlike Egypt, Jordanian females have the
option to attain education – especially secondary levels of
education – however educated women primarily work in the
health and education sectors, both in which are highly
dominant by public sector employment [11].
Nevertheless, Jordanian women are similar in this case to
Egyptian women in looking to obtain a governmental job,
which is seen as more family friendly. Although the private
sector employment has been steadily growing in Jordan,
these growth rates are not sustainable; they are temporary,
precarious and generally perceived to be inhospitable to
women [8].
To sum up Jordan’s female labor market dynamics in a few
words, “the constraints of women’s participation in
employment in Jordan is due to the “gender system by which
the interplay between cultural and family-level factors and
those associated with state jobs and state employers actually
shape the female labor’s job searching and employment
strategies” [8] . So the failure of the government to operate a
strong public sector or provide more state-promised
employment has indeed brought FLFP to staggering levels,
and explains the rapid increase that Jordan has witnessed in
mid-1970s to early 1990s where state policies were in favor of
increase employment for educated women in the public sector.
3.3. The Case of Brazil
One of the main reasons we chose Brazil as the third
country to conduct the analysis on, was due to the
empowerment of women and fairly high female labor
participation rate. Although Brazil does not abide by similar
cultures and norms such as the two Mediterranean countries,
Brazil has experienced high levels of corruption especially in
their last presidential impeachment of Dilma Rousseff;
Brazil’s first female president. Surprisingly, Dilma Rousseff
was also the first democratically elected female president that
got impeached in the world. All political and social factors
islater elaborated in the research [13]. We discovered an
almost perfect linear pattern for female participation rates in
Brazil from 1990-2017 with a steady increase of
approximately 0.5% every year. There is the exception of
2010 where participation rates dropped almost 0.4%; a drop
that is not significant in comparison to other countries.
Table 3. Female labor participation (as % of total labor force).
Year 2017 2016 2015 2014 2013 2012 2011 2010
Percentage 42.94% 42.92% 42.77% 42.45% 42.35% 42.34% 42.18% 42.54%
Source: www.data.worldbank.org/indicator
*The highest recorded rate of participation was in 2017 at 42.939% followed by 2009 at 42.897%
*The lowest recorded rate of participation was in 1990, at 34.457% followed by 35% in 1991.
4. Policies & Reforms
It is indeed the main objective of this study to provide a policy framework that is based on the trials and errors of the three
countries so that any developing – developed country can achieve successful and efficient reforms that eventually lead to
economic growth. We divide the points of altering four categories:
Table 4. Sectors and Policies in urgent need of altering.
Country Education Health Labor Market Dynamics Economic Opportunities &
Structure for Participation
A. Egypt
*Public education system
urgently needs to be altered with
clear employment incentives
behind placement tests.
*Basic education attainment
as % of female labor force has
plummeted from 2015 by 4.2%
*Increased health
care for maternity
*Enhancement of
overall health care
system for women.
*Increased awareness
in rural areas
*Increase female employment benefits
especially in the private sector.
*Equal Gender-Pay for all public and private
firms to eliminate high levels of existing sex
discrimination.
*Increased long term benefits
for private-sector employees
* Eliminate the “declining hours
of domestic work” over time
especially for never-married
women [5].
*Relaxation of economic
opportunities in the public sector
for female employees
B. Jordan
*Increased entrepreneurial,
feminization curriculums in
primary & secondary education.
*Promising of high quality
private sector jobs when
education attained.
*No need for urgent
altering
*Increased female employment benefits.
*Decreasing high protective legislation on
women’s working conditions & maternity leave
(this has already led to employers discrimination
against women)
*Social Insurance legislation that treats women
as dependents rather than independent workers
*Elimination of Gender-system
(decreasing the power of
employers to shape women’s
employment strategies.
*Increase of maternity leaves
like public sector in 1970-1990.
117 Doaa Salman Abdou and Nadine Mostafa Kamel: Impact of Women Wage Segregation on
Economic Growth: Evidence from Brazil, Egypt and Jordan
Country Education Health Labor Market Dynamics Economic Opportunities &
Structure for Participation
C. Brazil
*Urgent need to offer diverse
education to females
(Entrepreneurial, self-
employment and business
drivers)
*Brazil has 60% of females in
the construction industry as they
have 9 more years on men in
educational attainment.
*World Health
Organization’s
recommendation: 6
months of
breastfeeding; this
highlights maternity
leaves be 120 days
*The constitution of 1988: I) Decreasing number
of restrictions and fees employers pay to hire
individuals.
II) Women maternity leaves increased from 90
days to 120 days. Fully paid. (THIS MUST BE
ADAPTED BY OTHER COUNTRIES)
*Decrease high excessive regulations on labor
market.
*Increase employment benefits to decrease
informal market [9].
*Urgent adaptation of equal pay.
Brazil GINI Index: 0.513
(2015).
*Relaxation of job requirements.
Brazil has high level of female
participation rates with a
large % working both in formal
& informal markets to sustain a
flow of disposable income.
5. Conclusion
As economists, it is crucial for us to understand the
importance of eliminating wage & occupational segregation
while understanding the problems that arise from high female
unemployment rates socially, economically and politically. It
is also vital to understand the significance level behind the
enhanced policymaking, and overall better economic welfare
each of the three countries could experience. Our theory is
empirically based on trial and error, which is why taking a
sample of three countries with different levels of development,
can provide a dynamic and unbiased macroeconomic
framework that can benefit the countries in the long run.
We urge readers to grasp the severity of the situation.
According to a study conducted by McKinsey Global Institute
in 2015, if women participated equally in the economy global
GDP could increase $28 trillion by 2025. This would be
enough to eradicate global poverty for many years. In fact, the
UN estimate that the total sum needed to eradicate world
poverty, world hunger, and provide sustainability for the drop
in hunger is $267 billion per year. With an increase in the
global GDP by $28 trillion this would eradicate poverty for
100 years. $267 billion also amounts to 0.3% of the current
global GDP. McKinsey Institute also conducted a research on
the highest levels of female unemployment in the world,
dividing them into 10 “impact zones” with urgent need of
feminization development. Nevertheless, occupational
segregation is a moral contradiction to the economic
development, and thus the global feminization movement
should also highlight the economic gains and opportunities in
which our economies are lacking.
The policies we provide are policies in need of urgent
altering and are seen as a policy framework in this study for
developing and even in some cases developed countries. Our
sample of Brazil, Jordan, and Egypt offer different
determinants of FLFP and different trends in female
employment. We found that in countries such as the MENA
region, cultural and religious norms have had substantially
high effects on the decision making or job hunting that
females perform, while in countries such as Brazil and Latin
America female employment is dominant, with many female
laborers working in both the formal and informal sectors to
provide a sustainable flow of disposable income.
Nevertheless all countries have shown indicators of high
regulation and stifled economic opportunities in the labor
market dynamics and the structure of the state. Due to high
levels of education in Brazil, female laborers were actually
found to be dominant by 60% in sectors such as
Construction, highlighting their continuous participation in
education enrollment. Countries in the MENA region can
learn from policies such as the Constitution of 1988 in Brazil
while Brazil can also learn to decrease their regulatory
process of hiring and firing in sectors such as education &
health like Jordan.
References
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Participation in Egypt, Jordan, Morocco, Syria, & Tunisia: A
three-level analysis. IZA-World Bank Conference on
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