The study examines how gender imbalances in the labour market influence economic development, understood as the joint evolution of economic growth, labour productivity, and demographic outcomes. It analyses three forms of gender inequality—occupational segregation, the gender pay gap, and the gender gap in labour force participation—and treats them as systemic constraints that distort the allocation of human capital across sectors, occupations, and job positions, thereby lowering aggregate output and economic efficiency. The paper also considers the demographic dimension by analysing the relationship between female employment and fertility and the institutional arrangements that shape the compatibility of labour market participation with reproductive intentions. Methodologically, the paper synthesises findings from empirical studies and international organisations’ assessments, interprets cross-country regularities in labour force participation and the employment–fertility nexus in their institutional context, and supplements the discussion with illustrative comparisons of employment structures and demographic indicators. The paper contributes a unified conceptual framework that places labour market gender equality—conceived as narrowing gender gaps—at its core and links it to growth, productivity, and fertility, while specifying institutional conditions that determine the nature and strength of these links. The results indicate that losses in growth and output arise not only from lower female participation but also from inefficient talent allocation driven by segregation and barriers to high-productivity jobs and managerial positions. Pay gaps often exceed differences in observed productivity and reinforce persistent structural distortions. The employment-fertility relationship is heterogeneous and depends on job quality, childcare infrastructure, employment flexibility, and the division of household responsibilities. The findings can inform comprehensive policy packages aimed at achieving gender equality by removing labour market barriers, reducing pay gaps, and strengthening family support measures.
Leonova et al. (Thu,) studied this question.