Gender gaps in education and labor, human-capital efficiency and inclusive regional growth in Chile

Abstract

Purpose This study investigates whether reducing gender gaps in education and labor markets contributes to regional economic growth in Chile. It provides empirical evidence on the economic costs of gender inequality across the country's diverse sixteen regions, highlighting how tailor-made inclusive growth strategies can yield substantial growth dividends. Design/methodology/approach The research employs a dynamic panel-data model (system GMM). The framework identifies STEM graduation and labor force participation rates as the primary gender gaps drivers associated with regional growth. The specification incorporates macroeconomic controls and a mining-region interaction to capture structural heterogeneities. Findings The results reveal a statistically significant and negative association between gender gaps and regional GDP growth. A counterfactual “Minding the Gap” scenario estimates that a 25% reduction in these disparities yields a national growth dividend of up to 0.5% points. The impact is highly heterogeneous; the largest dividends are found in relatively poorer, non-mining regions, supporting regional convergence. While macro-level data limitations prevent capturing non-economic dimensions of inequality, the consistency across GMM specifications provides a robust basis for tailored policy interventions. Originality/value This paper provides novel subnational evidence on the economic impacts of gender inclusiveness within an emerging economy context. It suggests that persistent disparities restrict human capital efficiency, undermining regional productivity and long-run growth potential, thereby framing gender equality as a strategic lever for territorial development.