User:VeronicaOp/Resource curse

Studies suggest that natural resource abundant countries contain higher levels of gender inequality in the areas of wages, labor force participation, violence, and education.

Oil, Islam, and Women, a research study by Michael Ross, indicates that oil wealth is the source of reduction of women’s economic and political power in the Middle East. A cross-national regression of female labor force participation on oil wealth conducted by Ross found that oil rich countries do have fewer women employed. The rise in oil production reduces the sector of traded goods, which lowers female wages and increases male wages. This results in higher female unearned income and lower female labor force participation. In the demand and supply channels, women’s employment is diminished from the exploitation of natural resources. In oil rich countries, across the Middle East, Africa, Latin America, and Asia, the need for female labor reduces as export-oriented and female-dominated manufacturing is ousted by Dutch disease effects.

In sub-Saharan Africa, quantitative analysis of the structural labor market shift, indicated that the change between women’s occupational status in the mining industry has increased the chances of domestic violence on women. A regression analysis on the marginal effect of mineral control and employment between international and domestic mines concluded that within extractive industries, gender structural labor shift markets are based on mineral control rights. In domestically owned mining areas, there is essentially less domestic violence present as males remain to be more in control. International mining owned sectors in sub-Saharan Africa, encourages women to actively pursue employment which dissipates the male breadwinner model within rural societies. The disruption of traditional gender norms creates a higher uncertainty and frustration among men who relies on domestic violence to reassert power in the household, ultimately pressing on more violence towards females.

In resource rich countries, there are higher levels of gender inequality as measured by the gender gap in average years of schooling. The study: Inequality and Economic Growth: Do Natural Resources Matter?, indicates that the abundance of natural resources significantly increases gender inequality through the analysis of cross-country data from households. In resource rich countries, due to the unequal distribution of ownership on natural resource sectors, there is an unequal distribution of education, as women are more inclined to work in households. In a macroeconomic study of gender and growth assessment, in countries that are mainly abundant with mineral and agricultural resources, there are higher levels of gender inequality based on the analysis of relative average years of schooling between males and females. Researchers concluded this based upon the structural characteristics seen between gender roles within the labor and education of countries that are abundant in resources.