WOMEN'S CONTRIBUTION TO ECONOMIC DEVELOPMENT AND THE EFFECTS OF THE GENDER PAY GAP

Women represent approximately half of the global human capital but continue to remain one the most underutilized resources since their contribution to economic development is hindered by various barriers. Sustainable economic growth can only be achieved by fully allowing women to become economically empowered meaning to have equal access to jobs as men, being equally paid, and having the same opportunities and chances to be promoted to higher positions. The present paper approaches the manner in which women contribute to economic development by focusing on female participation in the labor market as well as on the positive externalities generated by female employment. In addition, the study focuses on the effects of the gender pay gap on the ability of women to contribute to economic development and pays particular attention to the situation in Lebanon, a developing country with a frail economy where women face various forms of labor discrimination and Romania, a country with a better situation regarding gender equality and the gender pay gap. The main findings of the study reveal the importance of addressing the gender pay gap through changes in legislation, public policies, and public services providing in order to help at boosting the economies.