A Macroeconomic Analysis of the Effects of Gender Inequality, Wages, and Public Social Infrastructure: The Case of the UK

The aim of this study is to develop a model analyze the macroeconomic effects two dimensions inequality – gender and functional income distribution public spending, in particular on social infrastructure, output, productivity, hours employment men women. This estimates econometrically using an IV-GMM estimator time series data for period 1970–2016 UK. For estimation article uses estimations based panel eighteen industries 1970–2015. finds that output UK both equality-led wage-led, hence generally equality-led. Public infrastructure investment has high positive effect employment. Despite strong women increases medium run.HIGHLIGHTS Output wage-led; equality-led.An upward convergence wages by closing pay gaps leads higher output.Public spending productivity.Public women.A mix labor market fiscal policies can achieve equality