Interconnectedness between Gender Inequality and Income Inequality: Implications for Pakistan's Economy

Abstract

This study examines the relationship between gender inequality and income inequality, focusing on their economic implications for Pakistan. Gender inequality, marked by disparities in opportunities, resources, and treatment between men and women, is closely linked to income inequality, which reflects the uneven distribution of income within a society. These inequalities are exacerbated by high unemployment, pervasive poverty, and restricted access to education. In Pakistan, gender disparities in education, employment, and wages significantly contribute to income inequality. Women face labor market marginalization, earning lower wages and encountering barriers to decent employment. The gender wage gap further entrenches economic disparities. Limited access to quality education restricts women’s economic participation, reinforcing intergenerational poverty cycles. Cultural norms limiting women’s mobility and decision-making autonomy also contribute to economic marginalization. Addressing gender and income inequality requires comprehensive strategies targeting structural barriers and promoting inclusive economic growth. Policies enhancing women’s access to education, healthcare, and vocational training can increase labor force participation and reduce the gender wage gap. Gender-sensitive labor laws and workplace reforms can foster equitable economic environments. The study employs the Augmented Dickey-Fuller (ADF) test and unit root tests to confirm stationarity in time series data. The Autoregressive Distributed Lag (ARDL) model is used to analyze long-term relationships between gender inequality and socio-economic indicators, including unemployment, poverty, and the Gini coefficient. The findings reveal significant associations, highlighting the need for policy interventions to mitigate gender disparities and foster equitable economic development in Pakistan.