Spillovers from gender equality onto economic equality: Evidence from 162 nations

This paper studies the influence of different aspects of gender equality or female empowerment on income inequality. A key question addressed is: Are there positive spillovers from gender equality to income equality? Using data drawn from 162 nations over the years 1985-2019, results show that nations with a long history of women's suffrage, greater representation of women in the government, lower fertility rates and better overall gender equality experienced lower income inequality, ceteris paribus. These results are largely supported in several robustness checks, including different model estimation strategies to address potential reverse-causality issues, considering alternative measures of income inequality, and considerations of persistence and nonlinearities in the gender inequality measures. The spillovers from some dimensions of gender equality are found to be sensitive to existing income inequality. Policymakers ignoring the payoffs from gender empowerment on income distribution might be underinvesting in initiatives to empower women.