The Global Gender Distortions Index (GGDI)
The Global Gender Distortions Index (GGDI) measures the losses in aggregate productivity that gender-based misallocation imposes.
Abstract
The authors propose, the Global Gender Distortions Index (GGDI), which measures the losses in aggregate productivity that gender-based misallocation imposes. Their index allows them to separately identify labour demand distortions (e.g., discrimination in hiring for formal jobs) from labour supply distortions (e.g., frictions that discourage women’s labour force participation) and can be computed using data on labour income and job types.
Their methodology also highlights an important distinction between welfare-relevant misallocation and the consequences on aggregate GDP if misallocation arises between market work and non-market activities. To showcase the versatility of their index, they analyse gender misallocation within countries over time, across countries over the development spectrum, and across local labour markets within countries.
This work is part of the Structural Transformation and Economic Growth (STEG) programme.
Citation
Goldberg P and others. ‘The Global Gender Distortions Index (GGDI)’. STEG Working Paper, 2025