Women's Empowerment: Aggregate Effects on Savings and Wealth

Abstract

This article explores the aggregate effects of women's empowerment on intra-and intertemporal household choices within a Bewley-style heterogeneous agent framework to aggregate household level decisions into macroeconomic variables. Emphasis is placed on the role of attitudes towards risk and subsistence consumption. In this context, we find that as women get more empowered, we assume that households show a higher risk aversion reflecting the more risk adverse women's preferences. Thus, households heighten self-insurance by increasing precautionary savings for smoothing consumption and, in turn, this higher level of savings tends to reduce wealth inequality. Also, regardless of income, women's preferences increase food intake in households as women get empowered. The model is calibrated with the 2014 National Survey of Household Income and Expenditures of Mexico.

A partial least squares analysis of gender inequality, occupational segregation, and economic growth: Evidence from Sub‐Saharan Africa

“…The biggest barrier to an egalitarian Sub‐Saharan Africa (SSA) appears to be deeply ingrained structural obstacles, such as unequal resource distribution, a male‐dominated power struggle, and a minority of women's opportunities to create wealth, which are supported by antiquated social institutions and cultural alignments that support discrimination (Adekunle et al, 2020). Despite the significant advancement in narrowing inequalities in education, health, and economic empowerment, SSA women only contribute 47% of human development outcomes in the region (Portes et al, 2019). This is due to the increased marginalization of women in attaining secondary education, reduced workforce engagement by women, and rising maternal mortality rates (Adjiwanou & LeGrand, 2014; Lutz & McGillivray, 2015).…”

“…discrimination (Adekunle et al, 2020). Despite the significant advancement in narrowing inequalities in education, health, and economic empowerment, SSA women only contribute 47% of human development outcomes in the region (Portes et al, 2019). This is due to the increased marginalization of women in attaining secondary education, reduced workforce engagement by women, and rising maternal mortality rates (Adjiwanou & LeGrand, 2014;Lutz & McGillivray, 2015).…”