The Unassuming Economist

From a new VOX post by Christine Lagarde and Jonathan D. Ostry:

“The persistent gap between female and male labour force participation comes at a significant economic cost. This column argues that because women and men complement each other in the production process, the economic benefits from gender diversity are likely to be larger than suggested by previous studies. Gender complementarity also has important implications for the welfare costs from barriers to female labour force participation. The case for gender equity is even more compelling and pressing.”

“These are not all new concerns, but there is a renewed sense of urgency. For years, the IMF has been at the forefront of policy analysis highlighting the economic costs of inequality and possible remedies (Ostry et al. 2014, 2019). We know that the unlevel playing field between women and men has substantial economic costs. What we are now learning is that these costs are even larger than we previously thought. Now that we see the full picture, the case for greater gender equity has become even more compelling and pressing.”