Unpaid Work, Income Inequality, and Economic Growth: Evidence from Libya in the Mena Region


KUMCU S. Y.

Gender Issues, cilt.42, sa.3, 2025 (ESCI, Scopus) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 42 Sayı: 3
  • Basım Tarihi: 2025
  • Doi Numarası: 10.1007/s12147-025-09367-7
  • Dergi Adı: Gender Issues
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), Scopus, Academic Search Premier, IBZ Online, ABI/INFORM, Educational research abstracts (ERA), Gender Studies Database, Index Islamicus, Psycinfo, Religion and Philosophy Collection, Social services abstracts, Sociological abstracts, Violence & Abuse Abstracts
  • Anahtar Kelimeler: Behavioural economics, GDP, Inequality, Labour-employment independence model, Unpaid work, Women labour
  • Uşak Üniversitesi Adresli: Evet

Özet

In contemporary economic theory, the fact that labour is evaluated according to employment conditions introduces a degree of complexity into both the calculation of gross domestic product (GDP) and the analysis of the labour market. On the other hand, as a consequence of population growth, it is evident that the provision of housework, which has become a component of the service sector, is met by the unpaid labour supply of housewives. Therefore, existence and measurement of the relationship between unpaid labour and economic growth represents a current topic of investigation within the field of economic research. In this study, the Labour-Employment Independence Model (LEIM), which posits that labour has become independent of employment, is employed in conjunction with the Behavioural economics approach, which asserts that the rational individual has evolved into a bounded rational individual. The unpaid labour variable in the model is defined that provided by housewives who are assumed to be bounded rational individuals with no employment in underdeveloped and patriarchal economies. Using data from the International Labour Organization (ILO) and World Bank (WB), Libya is selected as a representative case from the Middle East and North Africa (MENA) region. Our findings suggest unpaid labour may reduce inequality, increases social welfare and thus contributes to economic growth. However, these potential benefits likely depend on complementary structural reforms to prevent the instrumentalisation of unpaid work. Recognising labour as separately from employment is expected to enhance the accuracy of GDP measurement and support the formulation of policies aimed at identifying and addressing inequalities within the labour market.