There is existing literature on the effects of gender inequality on economic growth, employment, wages, and economic development. However, many of these studies deal with economic growth and one aspect of inequality; with few studies focusing on the economic development and general aspect of inequality (economic, social, political, etc). Some of the early studies provide evidence of a positive relationship between gender inequality in education on economic growth; implying that a higher level of women’s education has a negative relationship with economic growth [5, 6]. These studies are just a few of many studies that find a positive correlation between gender inequality and economic growth. The majority of the studies find that gender inequality is negatively related to economic growth [see 9, 12, 13, 15, 19, 21, 22, 26, 27, 33].
There are considerable empirical studies that favor the negative relationship between gender inequality in education and economic growth in literature. Low level of gender inequality in education increase the quality and quantity of human capital needed for production and thus productivity, and therefore, economic growth [see 9, 12, 13, 15, 19, 21, 22, 26, 27, 33].
Studies [see 1, 3, 9, 12, 13, 15, 19, 21, 22, 26, 27, 33] find that low level of gender inequality in education has indirect effects on economic growth through its effects on fertility rates, infant mortality, and children’s health and education. Women’s fertility will reduce if there is an improvement in women's education. This will in turn reduces population growth and promote the modification of age structure, by reducing the number of children and increasing the number of young workers. The growth of the working population will decrease the dependency ratios in the economy. Saving will increase as less people are dependent on others for survival. Higher saving will increase aggregate output. Like I pointed out above, these studies focus on economic growth and one aspect of inequality (inequality in education).
It is important to know that differences in education can lead to unequal employment opportunities, especially in the formal sector. This is because employers in the formal sector will prefer to employ well-trained workers, and thus will not employ untrained women [17, 22, and 23]. If women are not educated as men, they will not be employed, especially in the formal sector. This will have negative impacts on economic growth and by extension, economic development. Conversely, with better education for women, there will be better access to employment and positive economic growth [4, 11, 22, 28]. The implication is that low gender inequality in employment will lead to an increase in economic growth.
In a more comprehensive study by Amaia et al [2] using three dimensions of gender inequality (education, labor market, and institutional representation), the results of the panel analysis show that gender inequality in education contributes to economic growth, especially in developing countries. However, the female-male ratio of labor market participation is not statistically significant but the link between women's participation in parliament and economic growth is negative and significant for sub-Sahara Africa. This implies that, though female participation in politics has increased in Sub-Sahara Africa there are still challenges in the ways of women in trying to alter political priorities and affecting economic growth.
In a similar study, Forsythe et al. [14] present evidence for the Gender Kuznet Curve (gkc) in some regions and levels of income and a positive linear relationship between development and gender equality. Closely related to these findings is that of Eastin and Prakash [10]. Specifically, their results suggest a curvilinear- ‘a discernible S-shape gender Kuznets curve’. The result opposes the belief by some scholars that the effect of development on gender equality is monotonic or unidirectional. They concluded that any form of inequality reflects power symmetry. Any attempt to correct the inequality will be met by a force; leading to the normalization of the inequality in the society.