The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
This paper argues that sex discrimination is an inefficient practice. We model sex discrimination as the complete exclusion of females from the labor market or as the exclusion of females from managerial positions. The former implies a reduction in GDP per capita; the latter distorts the allocation of talent and lowers economic growth. Both imply lower female-to-male schooling ratios. Our model predicts a convex relationship between nondiscrimination and growth. Although discrimination is difficult to measure, it will be reflected in schooling differentials. We present evidence based on cross-country regressions that is consistent with a convex relationship between schooling differentials and growth.