Legal gender equality as a catalyst for convergence

Abstract

Despite the remarkable progress toward gender equality in the law over the last five decades, the legal environment across the world is still far from providing a level playing field for women. Based on a global sample since the 1970s, this paper finds that greater gender equality in the law facilitates cross-country income convergence over time. The results call for action and provide a reason to be optimistic. The findings imply that legal reforms supportive of gender equality, which could indeed be actionable in the shorter term, help poorer countries catch up with the living standards in the advanced economies. This offers a window of opportunity to set the stage for an inclusive and sustainable growth path in the post-Covid-19 period, given the adverse effects of the pandemic on economic growth and gender gaps.