This equation measures the total effect of gender-based discrimination in social institutions on income and is used to estimate the income loss associated with discriminatory social institutions. Male and female human capital and labour force may be considered as separate factors of production (Knowles, Lorgelly and Owen, 2002, Klasen and Lammanna, 2009). This empirical analysis tests whether the strength of the relationship between gender-based discrimination in social institutions and income may vary with the country's level of economic development.