Developing Women: Why Technology Can Help

Abstract

The paper investigates why the Internet and communication technology (ICT) has the potential to increase the equity and efficiency of female participation in the labour force. Rigidities in female labour allocation can explain observed male-female earnings differentials. Although the static outcome is efficient, female earnings are below male earnings. The loss of potential learning-by-doing in the private good production leads to dynamic inefficiencies, which are reinforced by power relations, bargaining, perceptions and self-perceived limitations. ICT can reverse some of these effects and lower matching costs. Since perceptions take time to change, policy intervention is required.

Keywords: ICT, gender, learning-by-doing, matching

JEL Classification: J16, O12, O33