Measuring the economic gain of investing in girls : the girl effect dividend
Although girls are approximately half the youth population in developing countries, they contribute less than their potential to the economy. The objective of this paper is to quantify the opportunity cost of girls' exclusion from productive e...
Main Authors: | , |
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Format: | Policy Research Working Paper |
Language: | English |
Published: |
2012
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Subjects: | |
Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110808092702 http://hdl.handle.net/10986/3514 |
Summary: | Although girls are approximately half
the youth population in developing countries, they
contribute less than their potential to the economy. The
objective of this paper is to quantify the opportunity cost
of girls' exclusion from productive employment with the
hope that stark figures will lead policymakers to reconsider
the current underinvestment in girls. The paper explores the
linkages between investing in girls and potential increases
in national income by examining three widely prevalent
aspects of adolescent girls' lives: early school
dropout, teenage pregnancy and joblessness. The countries
included in the analysis are: Bangladesh, Brazil, Burundi,
China, Ethiopia, India, Kenya, Malawi, Nigeria, Paraguay,
Senegal, South Africa, Tanzania, and Uganda. The authors use
secondary data to allow for some comparability across
countries. They find that investing in girls so that they
would complete the next level of education would lead to
lifetime earnings of today's cohort of girls that is
equivalent to up to 68 percent of annual gross domestic
product. When adjusting for ability bias and labor demand
elasticities, this figure falls to 54 percent, or 1.5
percent per year. Closing the inactivity rate between girls
and boys would increase gross domestic product by up to 5.4
percent, but when accounting for students, male-female wage
gaps and labor demand elasticities, the joblessness gap
between girls and their male counterparts yields an increase
in gross domestic product of up to 1.2 percent in a single
year. The cost of adolescent pregnancy as a share of gross
domestic could be as high as 30 percent or as low as 1
percent over a girl's lifetime, depending on the
assumptions used to calculate the losses. |
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