Women and Income Inequality
Income inequality refers to the unequal distribution of wealth and income within a society. It is often measured by comparing the income or wealth of different groups within a population, such as the rich and the poor, or the top and bottom income earners.
Women are often disproportionately affected by income inequality, as they tend to earn less than men and are more likely to live in poverty. This can be due to a variety of factors, such as discrimination in the workplace, a lack of access to education and training, and the disproportionate burden of unpaid care work that falls on women.
Income inequality can have serious negative consequences for both individuals and societies. It can lead to social and economic divisions, undermine social cohesion, and reduce overall economic growth.
To address income inequality and promote gender equality, it is important to address the root causes of inequality, such as discrimination and a lack of access to education and opportunities. This can include policies such as equal pay laws, investment in education and training, and measures to support and value unpaid care work.
Effects of Employment for Women
When women can get jobs, they can get healthcare, higher education, and get specialized ways to work and start a family to improve their status in society. As countries develop economically, these women can have more rights which allows for more education and less “traditional” roles in homes. Their role in society can change and improve with an education because they can get a job, make money, and live without dependency on men.
Roles of Women Change Based on Economic Development
As countries develop economically, the roles and opportunities available to women often change. In many developing countries, increased economic development has led to a rise in women's participation in the workforce, as more women have gained access to education and employment opportunities.
However, despite this increase in participation, women still face significant barriers to achieving equality in the workplace. They are often paid less than men for the same work and may have limited access to higher paying jobs and leadership roles. In addition, women may face discrimination and other forms of gender-based violence in the workplace.
The changing roles of women in the workforce can also have an impact on other areas of society, such as family dynamics and gender roles. For example, as more women enter the workforce, traditional gender roles and expectations may shift, and there may be a greater need for support services such as child care and eldercare.
Here are some examples of how the roles of women have changed as a result of economic development:
- Increased participation in the workforce: As countries develop economically, women's participation in the workforce tends to increase. This can be due to a variety of factors, such as increased access to education and employment opportunities, changes in societal expectations and gender roles, and the need for additional household income.
- Changes in family dynamics: Economic development can also lead to changes in family dynamics, as more women enter the workforce and take on roles outside of the home. This can result in a greater need for support services, such as child care and eldercare, and may lead to a shift in traditional gender roles and expectations.
- Increased economic independence: Economic development can also provide women with greater economic independence, as they are able to contribute to household income and make their own financial decisions. This can lead to increased autonomy and empowerment for women.
- Changes in societal attitudes: Economic development can also lead to changes in societal attitudes towards women, as they become more visible in the workforce and take on a greater role in the economy. This can lead to a greater recognition of the value of women's contributions and a shift towards more gender-equal attitudes and policies.
Barriers for Women
Despite the increasing participation of women in the workforce, women still face significant barriers to achieving equality in terms of wages and employment opportunities.
On average, women earn less than men for the same work, a phenomenon known as the gender pay gap. The gender pay gap can be caused by a variety of factors, such as discrimination, a lack of access to education and training, and the disproportionate burden of unpaid care work that falls on women.
In addition to the gender pay gap, women may also face barriers to accessing certain types of employment or to advancing in their careers. They may be underrepresented in certain industries or occupational sectors, and they may face discrimination or other barriers to promotion and leadership opportunities.
Here are some examples of barriers that women may face:
- Discrimination: Women may face discrimination in the workplace based on their gender, which can take many forms, including unequal pay for the same work, limited opportunities for promotion and leadership, and gender-based harassment and violence.
- Lack of access to education and training: Women may have limited access to education and training opportunities, which can limit their ability to qualify for certain jobs and advance in their careers.
- Unpaid care work: Women often bear a disproportionate burden of unpaid care work, such as childcare and eldercare, which can limit their ability to participate in paid employment or pursue education and training opportunities.
- Limited access to credit and financial resources: Women may have limited access to credit and financial resources, which can make it difficult for them to start businesses or invest in their own education and training.
- Stereotypes and societal expectations: Women may face societal expectations and stereotypes that limit their career choices and opportunities, and they may be discouraged from pursuing certain fields or leadership roles.
To address these inequalities and promote gender equality in the workforce, it is important to address the root causes of inequality, such as discrimination and a lack of access to education and opportunities. This can include measures such as equal pay laws, investment in education and training, and policies that support and value unpaid care work.
Microloans
Microloans, or small loans provided to individuals or small businesses, can be a useful tool for promoting economic development and improving standards of living, particularly for women.
Microloans can provide women with the financial resources they need to start or expand small businesses, which can be an important source of income and a means of improving their standard of living. Small businesses can also contribute to local economic development and create jobs for others in the community.
Microloans can be especially useful for women in developing countries, where access to traditional forms of credit may be limited. They can provide a way for women to overcome financial barriers and gain greater economic independence and empowerment.
Here are some examples of how microloans have been used to support small businesses and improve standards of living:
- A group of women in a rural village in India received microloans to start a small business selling handmade crafts. The business provided a steady source of income for the women and allowed them to improve their standard of living by investing in education and healthcare for their families.
- A small business owner in a developing country received a microloan to expand her business, which sold fresh produce in the local market. The loan allowed her to purchase more inventory and invest in marketing, which helped her to increase sales and improve her standard of living.
- A group of women in a urban slum in a developing country received microloans to start a small business making and selling snacks. The business provided a stable source of income for the women and allowed them to improve their living conditions by investing in housing and other necessities.
- A small business owner in a developing country received a microloan to purchase equipment and supplies for her business, which provided a range of services to the local community, including tailoring and haircuts. The loan allowed her to expand her business and increase her income, which allowed her to improve her standard of living and support her family.
The United Nations developed a mandate called the Millennium Development Goals that were created in 2015 with eight goals in mind. One of these goals is to promote gender equality and empower women through the provision of better women’s health care. Some of the other goals include hunger eradication, basic universal education, and an end to abject poverty.
Here are some examples of how the MDGs promoted gender equality:
- Goal 3: Promote gender equality and empower women: This goal aimed to eliminate gender disparities in education, promote gender equality in employment, and eliminate all forms of violence against women. To achieve this goal, countries implemented a range of policies and programs, such as increasing access to education for girls, promoting women's participation in the workforce, and implementing laws and policies to combat gender-based violence.
- Goal 5: Improve maternal health: This goal aimed to reduce maternal mortality and increase access to reproductive health services. To achieve this goal, countries implemented a range of policies and programs, such as increasing the availability of skilled birth attendants and providing access to reproductive health services, including family planning.
- Goal 8: Develop a global partnership for development: This goal aimed to increase development assistance and improve the trade and financial systems that support development. To achieve this goal, countries implemented a range of policies and programs, such as increasing development aid and improving the access of developing countries to global markets.
Here is a graphic including all of the Millennium Development Goals below ↓
Image Courtesy of UN
Frequently Asked Questions
What is the relationship between economic development and women's roles?
As countries develop economically, women’s roles shift but not always evenly. Development raises girls’ educational attainment and female labor-force participation; women move from subsistence and unpaid domestic work into paid jobs, formal-sector employment, and entrepreneurship. However, gender parity is partial: wage gaps, glass ceilings, and limited property/inheritance rights often persist, plus many women face a “dual burden” of paid work plus unpaid household labor. Microfinance (e.g., small loans) has helped many women start local businesses and improve household living standards, but unequal opportunities and maternal labor-force exit still limit full parity. For AP exam review, focus on these EKs and keywords (gender wage gap, unpaid domestic labor, microloans) and check the Topic 7.4 study guide (https://library.fiveable.me/ap-human-geography/unit-7/women-economic-development/study-guide/EQiL4Ky4uBnSyYQsFdHi). For broader unit review or practice, see Unit 7 (https://library.fiveable.me/ap-human-geography/unit-7) and practice questions (https://library.fiveable.me/practice/ap-human-geography).
How do women's jobs change when a country gets richer?
As a country gets richer, women’s jobs shift from unpaid, agricultural, or informal-sector work into formal paid jobs, especially in manufacturing and services. You’ll see higher female labor force participation and more women in offices, education, and healthcare as educational attainment rises (EK SPS-7.D.1). But gender parity lags: women still face a gender wage gap, glass ceiling, and often a “dual burden” of paid work plus unpaid domestic labor (EK SPS-7.D.2). Economic development also increases women’s entrepreneurship—microfinance (e.g., Grameen Bank) helps women start small businesses and improve living standards (EK SPS-7.D.3). For the AP exam, connect these trends to measures of development and labor-sector changes in free-response answers. For more review, see the Topic 7.4 study guide (https://library.fiveable.me/ap-human-geography/unit-7/women-economic-development/study-guide/EQiL4Ky4uBnSyYQsFdHi) and practice Qs (https://library.fiveable.me/practice/ap-human-geography).
Why don't women get paid the same as men even in developed countries?
Even in developed countries women often earn less than men because several structural factors interact. Employers and industries still reflect a gendered division of labor: women are overrepresented in lower-paying jobs and the informal sector, and face barriers to promotion (the “glass ceiling”). Women also do more unpaid domestic labor and childcare—called the “dual burden”—so they may work fewer hours, take career breaks, or accept part-time roles that pay less. Discrimination, biased hiring/promotion practices, and unequal access to leadership roles and property/inheritance rights also widen the gender wage gap. Economic development helps (higher female education and labor-force participation), but it doesn’t automatically create wage equity (CED EK SPS-7.D.1–D.2). Microloans and women’s entrepreneurship can improve parity at local scales (EK SPS-7.D.3). For AP review, study Topic 7.4 (https://library.fiveable.me/ap-human-geography/unit-7/women-economic-development/study-guide/EQiL4Ky4uBnSyYQsFdHi) and practice questions (https://library.fiveable.me/practice/ap-human-geography) to see how these concepts show up on the exam.
What are microloans and how do they help women start businesses?
Microloans are very small loans (often $50–$1,000) given to people who don’t qualify for traditional bank credit. They’re a core tool of microfinance (think Grameen Bank) and often target women. Because women face barriers like lack of collateral, limited property rights, and exclusion from formal banking, microloans let them start or grow small, local businesses in the informal sector—food stalls, tailoring, small farms, or crafts. That income boosts household standards of living, increases female labor-force participation, and helps move toward gender parity (EK SPS-7.D.3). On the AP exam, you might be asked to explain how microfinance affects development or gendered labor patterns in free-response or multiple-choice items (Topic 7.4). For a focused review, check the Topic 7.4 study guide (https://library.fiveable.me/ap-human-geography/unit-7/women-economic-development/study-guide/EQiL4Ky4uBnSyYQsFdHi), the Unit 7 overview (https://library.fiveable.me/ap-human-geography/unit-7), and practice questions (https://library.fiveable.me/practice/ap-human-geography).
I'm confused about how economic development affects gender equality - doesn't more development always mean more equality?
Short answer: no—economic development usually helps gender parity, but it doesn’t automatically produce full equality. Why: as countries develop, women’s educational attainment and female labor-force participation tend to rise (EK SPS-7.D.1). But structural limits remain: gender wage gaps, glass ceilings, unpaid domestic labor and the “dual burden,” and weak property/inheritance rights keep women from full equity (EK SPS-7.D.2). Development can even push women out of paid work (maternal labor-force exit) or funnel them into informal, low-pay jobs. Microfinance and women’s entrepreneurship (Grameen Bank model) do improve standards of living and agency, but they’re a partial fix (EK SPS-7.D.3). For AP exam prep: be ready to explain both how and to what extent development changes gender parity (SPS-7.D). Review the Topic 7.4 study guide (https://library.fiveable.me/ap-human-geography/unit-7/women-economic-development/study-guide/EQiL4Ky4uBnSyYQsFdHi) and practice questions (https://library.fiveable.me/practice/ap-human-geography).
What's the difference between women having more jobs versus having equal opportunities?
Having more jobs for women means female labor force participation rises—more women hold paid work. Equal opportunities means those jobs are comparable in pay, security, promotion chance, and legal access (true gender parity). So you can have lots more women working but still face: a gender wage gap, concentration in low-pay or informal jobs, a glass ceiling blocking leadership roles, and the “dual burden” of unpaid domestic labor that limits advancement. AP CED ties this to EK SPS-7.D.1–3: roles change with development, but equity in wages/opportunity often lags; microloans help entrepreneurship but don’t solve structural barriers. For exam answers, name specific concepts (gender parity, gender wage gap, glass ceiling, unpaid labor) and give examples of policies that promote parity (anti-discrimination laws, childcare, equal pay enforcement, property/inheritance rights). Review Topic 7.4 for examples (Fiveable study guide: https://library.fiveable.me/ap-human-geography/unit-7/women-economic-development/study-guide/EQiL4Ky4uBnSyYQsFdHi) and try practice questions (https://library.fiveable.me/practice/ap-human-geography).
How do microloans actually improve living standards for women and their families?
Microloans help women improve living standards by giving them access to small amounts of capital they otherwise can’t get (microfinance, Grameen Bank model). With loans, women start microbusinesses or expand informal-sector work, which raises household income and lets families spend more on food, health, and kids’ education—key drivers of development and gender parity (EK SPS-7.D.3, women’s entrepreneurship). Microloans also boost women’s economic power and social capital: group-lending models create peer support and higher repayment rates, increasing female labor force participation and decision-making at home. The effects ripple into local economies through job creation and increased demand. Limitations: loans are small, sometimes high-interest, and won’t erase structural wage gaps or legal barriers (EK SPS-7.D.2). For more AP-aligned review on women and economic development, see the Topic 7.4 study guide (https://library.fiveable.me/ap-human-geography/unit-7/women-economic-development/study-guide/EQiL4Ky4uBnSyYQsFdHi) and practice questions (https://library.fiveable.me/practice/ap-human-geography).
Can someone explain why women still face workplace discrimination in wealthy countries?
Even in wealthy countries women face workplace discrimination because economic development changes roles but doesn’t erase structural and cultural barriers. Causes include occupational segregation (women concentrated in lower-paid sectors), the gender wage gap, and the “glass ceiling” that blocks promotions. Unpaid domestic labor and the dual burden (paid job + most caregiving) push many into part-time work or maternal labor force exit, lowering wages and advancement. Bias—both explicit and unconscious—affects hiring, raises, and evaluations. Weak family policies (limited paid leave, high childcare costs) and gaps in enforcement of equal-pay laws also keep inequality in place. For AP exam connections, this ties directly to EK SPS-7.D.2 and concepts like female labor force participation and gendered division of labor. Review Topic 7.4 for examples and definitions (study guide: https://library.fiveable.me/ap-human-geography/unit-7/women-economic-development/study-guide/EQiL4Ky4uBnSyYQsFdHi) and try practice questions (https://library.fiveable.me/practice/ap-human-geography).
What are some specific examples of how women's roles changed during industrialization?
During industrialization women’s roles shifted a lot: many moved from unpaid domestic work and home-based cottage industries into paid factory jobs (female labor force participation rises), especially in textiles and assembly. They earned wages but faced a gender wage gap and limited upward mobility (glass ceiling), and often took on a “dual burden”—paid work plus unpaid household labor. Industrial cities also expanded education for girls, raising female educational attainment and later fertility decline, which changed labor patterns (some mothers temporarily exit the labor force). In some regions industrial jobs pushed women into informal-sector or low-skilled employment with fewer protections. Later development tools—like microloans (e.g., Grameen-style programs)—help women start small businesses and improve household standards of living (women’s entrepreneurship). These changes are tested on APHG—expect multiple-choice or FRQ prompts about female labor-force participation, gender wage gaps, unpaid labor, and microfinance (see the Topic 7.4 study guide for targeted review: https://library.fiveable.me/ap-human-geography/unit-7/women-economic-development/study-guide/EQiL4Ky4uBnSyYQsFdHi). For broader review, check Unit 7 (https://library.fiveable.me/ap-human-geography/unit-7) and practice questions (https://library.fiveable.me/practice/ap-human-geography).
How do I write an essay about the effects of economic development on gender parity?
Start with a clear thesis that answers “how and to what extent” economic development affects gender parity (this matches SPS-7.D). Brief plan: define gender parity, then show causes, evidence, and limits across scales (local → national). Use these evidence points from the CED: rising female labor-force participation, persistent gender wage gap and glass ceiling, unpaid domestic labor/dual burden, changes in educational attainment, microfinance (e.g., Grameen Bank) and women’s entrepreneurship, and property/inheritance rights. Explain mechanisms (industrialization, urbanization, education → more women working) and then evaluate extent (improved access but unequal wages/opportunities; many women trapped in informal sector). Use numbers or country examples where possible and discuss spatial variation (more progress in some regions). For the AP FRQ, explicitly define terms, cite evidence, analyze cause/effect, and evaluate degree/limitations to score well. Review the Topic 7.4 study guide (https://library.fiveable.me/ap-human-geography/unit-7/women-economic-development/study-guide/EQiL4Ky4uBnSyYQsFdHi), Unit 7 overview (https://library.fiveable.me/ap-human-geography/unit-7), and practice FRQ-style questions (https://library.fiveable.me/practice/ap-human-geography).
Why do developing countries often have women starting small businesses instead of working for big companies?
Because of social, economic, and legal barriers, many women in developing countries start small businesses instead of working for big companies. Employers often limit women’s advancement (glass ceiling) and pay them less (gender wage gap). Women also carry unpaid domestic work and a “dual burden,” so flexible, home-based microbusinesses fit better around care responsibilities. Microfinance programs (like Grameen Bank) give small loans that let women become entrepreneurs in the informal sector, improving household income and standards of living (EK SPS-7.D.3). Legal limits on property or inheritance can push women to informal self-employment too. This is a core AP Human Geography idea—changes in development affect gender roles (EK SPS-7.D.1–D.2)—and shows up on Unit 7 questions. For a quick review, see the Topic 7.4 study guide (https://library.fiveable.me/ap-human-geography/unit-7/women-economic-development/study-guide/EQiL4Ky4uBnSyYQsFdHi). For more practice on Unit 7, try the unit overview (https://library.fiveable.me/ap-human-geography/unit-7) and 1000+ practice questions (https://library.fiveable.me/practice/ap-human-geography).
What happened to women's economic status as countries like South Korea and China developed?
As South Korea and China industrialized, women’s economic roles shifted a lot: more women gained education and entered paid work outside the home (higher female labor-force participation), moving from mainly unpaid domestic labor into manufacturing and services. But economic development didn’t create full equity—women often face a gender wage gap, glass ceiling, and the “dual burden” of paid work plus unpaid care. Many women end up in lower-paid, informal, or service jobs; some leave the labor force for childbearing (maternal labor-force exit). Microfinance and women’s entrepreneurship have helped local standards of living for some, but systemic barriers to equal wages and advancement persist. This fits AP CED Learning Objective SPS-7.D and EK SPS-7.D.1–D.3. For a focused review, see the Topic 7.4 study guide (https://library.fiveable.me/ap-human-geography/unit-7/women-economic-development/study-guide/EQiL4Ky4uBnSyYQsFdHi) and try practice questions (https://library.fiveable.me/practice/ap-human-geography).
Do microloans actually work or is it just a feel-good solution that doesn't really help women?
Short answer: Microloans can help—but they’re not a silver bullet. Why they work: Microfinance (like small loans tied to Grameen-style programs) has helped many women start microbusinesses, raise incomes, and gain economic independence—which ties directly to EK SPS-7.D.3 about women’s entrepreneurship improving standards of living. Microloans also increase female labor-force participation and local economic activity. Limits: Loans are small, so businesses often stay informal and low-profit; interest rates and repayment pressure can hurt the poorest; microcredit doesn’t fix structural problems (gender wage gap, lack of property/inheritance rights, limited market access). Most positive impact comes when loans are paired with training, market access, and legal rights. For AP prep: mention microfinance as an example in free-response answers about women and development (SPS-7.D). Review the Topic 7.4 study guide for concise examples and practice (https://library.fiveable.me/ap-human-geography/unit-7/women-economic-development/study-guide/EQiL4Ky4uBnSyYQsFdHi) and use practice problems for application (https://library.fiveable.me/practice/ap-human-geography).
I missed class - what's the main argument about women and economic development?
Main argument: as countries develop economically, women’s roles expand—more girls get schooling and more women enter the labor force—but full gender parity doesn’t automatically follow. Economic development increases female labor force participation and women’s entrepreneurship (often via microloans like those modeled by Grameen Bank), which raises household incomes and standards of living. Still, women face a gender wage gap, glass ceiling, unpaid domestic labor and the “dual burden” of work + home duties, plus barriers in property/inheritance rights and formal employment. So development helps reduce gender disparities but unevenly and incompletely; policy (education access, legal rights, childcare, anti-discrimination laws) matters. This aligns with EK SPS-7.D.1–3 and is tested conceptually on the AP exam (explain how development affects gender parity). Review this topic’s study guide for targeted examples (https://library.fiveable.me/ap-human-geography/unit-7/women-economic-development/study-guide/EQiL4Ky4uBnSyYQsFdHi) and practice 1000+ AP-style questions at (https://library.fiveable.me/practice/ap-human-geography).
How has globalization specifically affected women's economic opportunities compared to men's?
Globalization expanded women’s economic opportunities—but unevenly. Export-led manufacturing and global service sectors raised female labor-force participation in many developing countries by creating low-skill, factory and call-center jobs that often prefer women. Women also gained from increased educational access and microfinance (e.g., Grameen-style loans) that support entrepreneurship. However, globalization didn’t erase inequality: women are overrepresented in informal, low-pay, and precarious work, face a persistent gender wage gap and glass ceiling, and still carry unpaid domestic labor (the “dual burden”). Global labor migration created remittance income but also family strain and maternal labor-force exit for some. On the AP exam, link these trends to gender parity, measures of development, and sectoral change (Unit 7). For a focused review, see the Topic 7.4 study guide (https://library.fiveable.me/ap-human-geography/unit-7/women-economic-development/study-guide/EQiL4Ky4uBnSyYQsFdHi). Want extra practice? Try hundreds of Unit 7 problems (https://library.fiveable.me/practice/ap-human-geography).