A COMPUTABLE OVERLAPPING GENERATIONS MODEL FOR GENDER AND GROWTH POLICY ANALYSIS

Pierre-Richard Agénor

Macroeconomic Dynamics, 2017, vol. 21, issue 1, 11-54

Abstract: This paper develops a computable overlapping generations (OLG) model for gender and growth policy analysis that brings to the fore the role of access to public infrastructure. The model accounts for human and physical capital accumulation, intra- and intergenerational health persistence, fertility choices, and women's time allocation between market work, child rearing, and home production. Bargaining between spouses and gender bias, in the form of discrimination in the work place and mothers' time allocation between daughters and sons, are also accounted for. The model is calibrated for a low-income country and various experiments are conducted, including improved access to infrastructure, an increase in subsidies to child care, a reduction in gender bias, and a composite gender-based reform program to assess the role of policy complementarities. The results illustrate the importance of accounting for changes in women's time allocation in assessing the impact of public policy on economic growth.

Date: 2017
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