Why gender matters in economics (review)

Mukesh Eswaran (2014), “Why Gender Matters in Economics”, Princeton University Press, ISBN 978-0-691-12173-4 (Hardback), 392 pages, US$45.00

Eswaran’s book neatly plugs a gap in the interdisciplinary space between gender studies and mainstream economics. It is presented as something of a textbook, but its narrative style makes it a useful item for anyone looking to get an insight into how mainstream economics approaches issues of gender. Previous texts in what might be termed ‘feminist economics’ have tended to critically analyse economic thinking through the lens of feminism. Eswaran’s book is instead concerned with applying the core analytical tools of economics to issues of women’s empowerment. 

Why gender matters in economics is ideally suited to an undergraduate elective course in economics, development studies or gender studies. Readers at the graduate level might find its coverage a bit too shallow for their needs. It would nonetheless be a useful starting point for research and an excellent overview for a lay-reader. The book limits itself to employing only the most basic and readily understandable of economic tools and these are always introduced and explained in isolation before being applied. Graphical models, for example, are frequently employed but calculus and complex equations are given a wide berth.

Given the book’s introductory nature and emphasis on accessibility, Eswaran has sensibly opted for breath rather than depth. Topics range across labour market discrimination, birth control, domestic violence and access to credit to the effects of globalisation on women and a great deal in between. The focus is on the developing world, but useful comparisons are frequently made between developing and developed world issues and the important differences between them. Unfortunately, this means some prominent developed world issues are neglected, including maternity/paternity leave, the cost of childcare and spousal tax treatment.

Especial praise must be given for Eswaran’s consistent integration of perspectives from gender studies, history, political science and sociology to provide context for the economic investigations that form the bulk of the book. This not only makes the text accessible and appropriate for use in a range of disciplines, but also ensures that readers receive a holistic introduction to the book’s theme rather than a specialised economic perspective. One can reasonably hope that this respect to interdisciplinary contributions will encourage bridge building between disciplines at the undergraduate level, where economics is often viewed with some suspicion by students (and staff) who are uneasy with its emphasis on self-interested actors and mathematical models. 

Attention is given in the book to building both the reader’s analytical tools and their intuition. Sample tutorial questions at the close of each chapter cover both technical concepts and more general take away messages. They can be usefully employed by lecturers and comfortably avoided by casual readers. There are obvious places where university staff could augment the analysis in the text to add value by covering topics in greater depth and technical detail or by more thoroughly integrating perspectives from other disciplines.

Perhaps the greatest boon to the casual reader of Why gender matters in economics is its clear and meaningful explanation of key terminology used in debates around gender issues. The gender wage gap, for example, is covered at length as is the somewhat unusual way that economist’s use the term ‘discrimination’. Put very simply, the wage gap does not refer to two people doing the same job being paid differently but to the difference in average earnings between men and women across the entire economy. Without disaggregation it is not a very useful target for or measure of policy success, yet it is deployed frequently to incite indignation. Similarly, economists’ estimates of pre-market ‘discrimination’ are regularly misinterpreted in the popular media as referring to prejudice when instead they refer to practices that reflect reasonable expectations about differences in productivity between various groups. Eswaran’s book is an obvious place for people to go if they want knowledge of these matters without formal training in economics. The text is even-handed and apolitical to boot, with extensive coverage of relevant empirical studies. 

Why gender matters in economics is an excellent combination of textbook and general audience book; a suitable hybrid for the subject matter. This synthesis is well executed and makes the book useful to a wide audience.      

A version of this article was first published here, in The Economic Record.