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International Monetary Fund. Middle East and Central Asia Dept.

can be done to further integrate women in Armenia’s labor market. B. Selected Stylized Facts 6. Female LFP remained broadly unchanged over the last decade . The female LFP was rising until 2014 but rolled back to about 53 percent in 2017. As a result, the LFP gap— the difference between the male and female LFP rates—has widened from 2012–13 lows to around 18 percentage points. Armenia: LFP Rate (In percent) Source: Statistical Committee of Armenia and IMF staff calculations. 7. The level of female LFP in Armenia seems to be consistent with

Natalija Novta and Joyce Wong
Women across the world remain an underutilized resource in the labor force. Participation in the labor force averages around 80 percent for men but only 50 percent for women – nearly half of women’s productive potential remains untapped compared to one-fifth for men. Latin America and the Caribbean (LAC), as a region, saw the largest gains in female labor force participation (LFP) in the world during the last two decades. Women in LAC are becoming increasingly active in paid work, closing the gap with men and catching up to their counterparts in advanced economies at an impressive rate. In this paper, we document the recent trends in female LFP and female education in the LAC region, discuss the size of potential gains to GDP from increasing female LFP and policies which could be deployed towards this goal.
Mr. Christian Gonzales, Ms. Sonali Jain-Chandra, Ms. Kalpana Kochhar, Ms. Monique Newiak, and Mr. Tlek Zeinullayev
This study shows empirically that gender inequality and income inequality are strongly interlinked, even after controlling for standard drivers of income inequality. The study analyzes gender inequality by using and extending the United Nation’s Gender Inequality Index (GII) to cover two decades for almost 140 countries,. The main finding is that an increase in the GII from perfect gender equality to perfect inequality is associated with an almost 10 points higher net Gini coefficient. For advanced countries, with higher gender equity in opportunities, income inequality arises mainly through gender gaps in economic participation. For emerging market and developing countries, inequality of opportunity, in particular in education and health, appear to pose larger obstacles to income equality.
Natalija Novta and Joyce Wong

gap in LFP, as well as the implied gender gap in LFP if demographics in LAC were the same as those in U.S. In that case, as the figure shows, the gender gap in LAC would be significantly reduced in most LAC sub-regions, with the exception of CAPDR. Examining the largest LAC economies, we also note that while the demographics account for a significant difference in LFP gaps vis-à-vis the US for some countries (Brazil, Colombia, Peru, and Uruguay), for others (Argentina, Chile, and in particular Mexico) the gender gap remains significant. Figure 4. Gender gaps in

Mr. Christian Gonzales, Ms. Sonali Jain-Chandra, Ms. Kalpana Kochhar, Ms. Monique Newiak, and Mr. Tlek Zeinullayev

greater income inequality. In addition to the legal restrictions, we use other instruments to test the robustness of the results. Our results also hold when the labor force participation gap is instrumented by other instruments used in the literature. For instance, we include the lag of the share of female tertiary teachers as an instrument for the LFP gap. Further details are available in Annex 2 . Table 4. Income Inequality and Instrumented Gender Inequality Dependent Variable: Net Gini (Second stage) and LFP Gap (First stage) (1) (2

Mariya Brussevich and Ms. Era Dabla-Norris

reducing the barriers women face in job advancement and wage parity, discrimination in these areas persists. Barriers emanate from labor market regulations (e.g., discriminatory hiring, firing and promotion practices, see Zhang and Huang (2020) ), employer discrimination, and lack of affordable child and elderly care options. In the counterfactual analysis, we show that reducing barriers to the level observed in an advanced economy can narrow gender wage and LFP gaps by 5 and 15 percentage points, respectively. Similarly, accelerating marketization of services by

Anna Ivanova, Jaume Puig, Victoria Valente, and Joyce Wong

.776) Observation 4073 4069 3514 3514 1789 1789 592 303 R square 0.495 0.502 0.507 0.513 0.556 0.458 0.692 0.710 Low female education attainment and limited investments in infrastructure appear the main factors behind low female LFP rates in CAPDR . Results from the cross-country panel show that inequality of opportunity driven by limited access to education for women and low investments in infrastructure needed to help access to job markets are the main drivers of the female LFP gap with the LA5 shown in Figure 3.3 4 —LA5

International Monetary Fund. Western Hemisphere Dept.

telecommunications and transportation contributes significantly to explaining female LFP variation, both in levels and in differences, compared to LA5. This is the largest driver of Costa Rica’s female LFP gap with LA5. Another factor that contributes slightly to Costa Rica’s relatively low female LFP is total GDP per capita, with Costa Rica featuring at the lowest point of the estimated U-shaped relationship. Lastly, the contribution of the residuals to the difference between Costa Rica and LA5 is negative and could reflect elements which are not captured by the model, including

Mariya Brussevich and Ms. Era Dabla-Norris
This paper examines gender inequality in the context of structural transformation and rebalancing in China. We document declining women's relative wages and labor force participation in China during the last two decades, despite rapid growth and expansion of the service sector. Using household data, we provide evidence consistent with a U-shaped relationship between economic development and women's labor market outcomes. Using a model of structural transformation, we show that labor market barriers for women have increased over time. Model counterfactuals suggest that removing these barriers and increasing service sector productivity can boost both gender equality and economic growth in China.