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The Black Queen of Hearts : Gender and “Sticky” Paradigms in Economics

The Black Queen of Hearts : Gender and “Sticky” Paradigms in Economics. Stephanie Seguino University of Kansas at Lawrence November 1, 2013. The Black Queen of Hearts?. How Did South Korea Move from “Basket Case” in 1960 To Developed Country BY1995 ?.

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The Black Queen of Hearts : Gender and “Sticky” Paradigms in Economics

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  1. The Black Queen of Hearts: Gender and “Sticky” Paradigms in Economics Stephanie Seguino University of Kansas at Lawrence November 1, 2013

  2. The Black Queen of Hearts?

  3. How Did South Korea Move from “Basket Case” in 1960 To Developed Country BY1995? Free markets and free trade? State-led development?

  4. Gender Inequality As impetus to export-led growth

  5. Stylized features of SIEs • Gender job segregation with women concentrated in export mfg. industries, and men in non-tradables. • Exports are price elastic due to availability of substitutes in contrast to goods in oligopolistic non-tradables sector. • Export firms are mobile. • High-income HH and businesses save at a higher rate than workers; some (modest) evidence women save at higher rates than men (Seguino and Floro 2002). • No priors on distributional nature of import propensities by class or gender.

  6. Empirical research on education-adjusted gender wage gap and trade

  7. Gender and STRucturalist macro modelling • Seguino (2000) – Growth accounting econometric analysis • 21 SIEs • Gender wage inequality Exports ForexK goods imports Productivity growth • Blecker and Seguino (2002) – Two-sector macro model, mark-up pricing, exchange rate dynamics, short run. • Seguino (2010) – Balance of payments constrained growth, short and long run.

  8. The effect of Gender wage inequality on economic growth in semi-industrialized economies, 1975-99

  9. Debate on effect of gender inequality on growth • On the one hand, wage inequality stimulates growth in SIEs. • Educational equality stimulates growth in developing countries (Klasen and Lamanna 2009). • How to reconcile? • Unit labor costs (μ= mark-up, b=labor coefficient).

  10. Stylized features of LIAEs • Men concentrated in export industries (commodities and cash crops); • Women work as subsistence farmers (and a small portion in NTAEs); • Women’s MPC higher than men’s; • Modest evidence that men’s import propensity > women’s. • Evidence that  in productive resources to women farmers raises agricultural productivity and Y, potentially reducing food imports.

  11. Long-Run Growth Key components of model • Potential output does not necessarily = demand • Productivity growth is influenced by: • physical capital accumulation • human capacities development.

  12. The Production of labor: Care Work

  13. Gender Equality in Primary Education and Food Production in SSA, 1990-2010

  14. Effect of Austerity and public sector budget cuts • ↑ Women’s care burden: • Cuts to child care subsidies reduce paid work; • Cuts for services to disabled children ↑ women’s unpaid labor; • Declines in household income ↑ women’s time spent preparing food at home. • Health budget cuts ↑ women’s time burden for care of sick.

  15. Two-way Causality g Gender inequality Economic Growth and Development

  16. Gender inequalityis just one type of inter-group inequality

  17. It’s not always about gender.Sometimes it’s aboutsingle parents.Sometimes about race/ethnicity.

  18. US Monthly Unemployment Rates by Marital Status, Jan. 1990-Jan. 2013

  19. Unemployment Rates by Race/ethnicity, US, 1980-2012

  20. The sacrifice ratio:Employment Costs of fighting inflation Lowest for white men Then white women Then black men Highest for black women

  21. Short-short run: is curve Where Z and X, respectively are: ,

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