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Figure 4.1Female to male secondary school enrolment ratio and per capita GDP, 2011Greater equality in education is associated with higher GDP1.2Female to male ratio in secondary enrollment1.11.00.90.80.70.60.50.40.35 6 7 8 9 10 11 12GDP per capita (PPP$, natural log)Source: World Bank 2015d.activities in which they may be more productive. 16Therefore, relaxing gender constraints in labourmarkets can be expected to raise averageincomes and growth rates.Gender equality may also contribute to growththrough its long-term impact on humandevelopment. Evidence shows that a mother’seducation and health status have a positiveimpact on the health of her children. This cancontribute to future economic growth. 17However, the reverse can also be true: when otherindicators are used, gender inequality (rather thanequality) seems to contribute to economic growthand macroeconomic performance, at least in theshort term. Women frequently earn less than men andgender wage gaps can help lower average labourcosts. Research on emerging market economies inAsia, Europe and Latin America suggests that higherwage gaps boost competitiveness when womenare disproportionately employed in labour-intensiveexport-oriented activities. 18 Gender inequalities inwages can thus contribute to the success of exportorientedgrowth and improve a country’s positionwith respect to its trade balance in the short term.Because it is premised on inequality, however, suchgrowth cannot be considered inclusive; and in thelong term, gender equality may be more beneficialto growth through its impact on women’s humandevelopment, such as improvements in educationalattainment, discussed above.

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