Do Remittances Reduce Gender Inequality? Evidence from Nepal
Abstract
This study examines the impact of remittance inflows on gender inequality in Nepal using annual time-series data from 1990 to 2023. Despite being one of the world’s most remittance-dependent economies, Nepal continues to experience persistent gender disparities in education, labor-market participation, and empowerment. This context highlights the need to empirically assess whether remittance inflows contribute to reducing gender inequality in Nepal. The study employs the autoregressive distributed lag (ARDL) approach to estimate the short-run and long-run relationships between remittance inflows and gender inequality. The empirical results reveal that remittance inflows have a statistically significant effect on reducing gender inequality in both the short and long run. However, the magnitude of the estimated coefficient indicates that remittances alone are unlikely to generate substantial improvements in gender equality without complementary institutional and labor-market reforms. These findings highlight the importance of complementary institutional and labor-market policies. Accordingly, policymakers should expand women's access to formal employment, skills development, and decision-making opportunities to enhance the contribution of remittances to gender equality.
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