Gender issues in Kaleckian distribution and growth models: On the macroeconomics of the gender wage gap

Eckhard Hein

No 141/2020, IPE Working Papers from Berlin School of Economics and Law, Institute for International Political Economy (IPE)

Abstract: We introduce a gender wage gap into basic one-good textbook versions of the neo-Kaleckian distribution and growth model and examine the effects of improving gender wage equality on income distribution, aggregate demand, capital accumulation and productivity growth. For the closed economy model, reducing the gender wage gap has no effect on the profit share, and a gender equality-led regime requires the propensity to save out of female wages to fall short of the propensity to save out of male wages. For the open economy model this condition is modified by the effects of improved gender wage equality on exports and - through changes of the profit share - on domestic demand. Finally for the open economy with productivity growth we find an unambiguously expansionary effect of narrowing the gender wage gap on long-run equilibrium capital accumulation and productivity growth if the demand growth regime is gender equality-led. A gender equality-burdened demand growth regime, however, may generate different long-run effects of improving gender wage equality on capital accumulation and productivity growth: expansionary, intermediate or contractionary.

Keywords: gender wage gap; distribution; growth; Kaleckian model (search for similar items in EconPapers)
JEL-codes: E11 E21 E22 O40 O41 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-gro, nep-mac and nep-pke
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Citations: View citations in EconPapers (2)

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Journal Article: Gender Issues in Kaleckian Distribution and Growth Models: On the Macroeconomics of the Gender Wage Gap (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ipewps:1412020

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