Economic freedom and the lives of women : an empirical analysis

Abstract

Recent literature on comparative institutional analysis has found that the set of institutions consistent with the concept of economic freedom correlates with higher levels of per capita income (Gwartney, Holcombe, and Lawson 2004), more rapid economic growth (Dawson 2003, 2006; Gwartney, Holcombe, and Lawson 2004, 2006; de Haan, Lundström, and Sturm 2006), more entrepreneurial activity and investment (Gwartney, Holcombe, and Lawson 2006; Dawson 2006; Bjørnskov and Foss 2008), less unemployment (Feldmann 2007, and 2010), a healthier populace (Becker, Philipson, and Soares 2005) and happier individuals (Bjørnskov, Dreher, and Fischer 2010; Gropper, Lawson, and Thorne 2011). Some researchers have examined the impact of economic freedom on income inequality (Berggren 1999; Scully 2002) as well as quality of life adjusted inequality (Becker, Philipson, and Soares 2005). However, there has been little research investigating the impact of economic freedom on women's lives and status. This dissertation is a broad examination of the impact economic freedom has on the lives of women across the world. Chapter one reviews the existing literature on inequality, institutions, gender and economic development. It also discusses the major data sources used throughout this study. Chapter two focuses on the measurement of gender disparity in formal and informal economic institutions and incorporates these new measures into the existing indexes of economic freedom. In chapter three, a model explaining the determinants of gender discrimination is developed, which is related to Becker's (1957/1971) economic model of discrimination. The measure of gender-disparity in informal institutions developed in chapter two is used to empirically test this model. Chapter four empirically tests the impact of economic freedom on a key set of development outcomes for women: educational outcomes. The final chapter summarizes the major findings of this study, and discusses their implications for public policy and future lines of economic research.