Why Women's Economic Empowerment MattersThere is compelling evidence that women can be powerful drivers of economic development.Research from the World Bank, United Nations, and Goldman Sachs demonstrates that gender equality helps reduce poverty and ensure sustainable growth. A recent paper from Goldman Sachs found that closing the gap between male and female employment rates would have huge implications for the global economy, boosting American gross domestic product (GDP) by as much as 9%, Eurozone GDP by 13% and Japanese GDP by 16%. (Goldman Sachs) Research from the Middle East and North Africa shows that if rates of female participation in the labor force increased from their actual levels to predicted levels, average household earnings would increase by as much as 25%. If female participation rates had been at predicted levels, per capita GDP growth rates might have been 0.7% higher per year during the 1990s. This lost potential is significant when compared with an average per capita income growth of 1.9% for the decade. (World Bank) Potential Boost to GDP from Closing the Gap in Female and Male Employment Rates
From Goldman Sachs
Female education is a key source of support for long-term economic growth.It has been linked to higher productivity; higher returns to investment; higher agricultural yields; and an improved demographic structure. The economic growth that results from higher education supports continued investments in education and extends the gains to human capital and productivity. The impact is felt not only in women's lifetimes, but also in the health, education and productivity of future generations. (Goldman Sachs) Despite improved access to education, women do not enjoy equal workforce participation in either developed or developing countries.Across the globe, there are still disparities in wages, occupational segregation, and women's leadership in senior management or on corporate boards. Women's labor force participation rates tend to lag behind those of men, and their increased educational achievements have not necessarily translated into strong participation in the labor market. In the Middle East, for example, there are 61 million women who are of working age and 67 million men, but only 17 million women have a job compared to 47 million men. (ILO) Yet inequality in the workforce can have serious adverse economic consequences.The Social Commission for Asia and the Pacific Countries found that restricting job opportunities for women costs the region between US$42 billion and US$46 billion a year in GDP growth. A gap of 30 to 40 percentage points between men's and women's workforce participation rates is common in the Asia-Pacific region. The gap in women's education limits their participation in the workforce, causing a further loss of US$16 billion to US$30 billion to the region's economic output. (UNESCAP) Women's access to assets such as credit or land, and improved decision making power within the household is linked with reduced poverty and greater productivity.Studies of microcredit provision have found that credit in the hands of women has a significant positive effect on their empowerment (Pitt et al 2006 and Hashemi et al 1996). Research from Cote de Ivoire shows that increasing women's share of cash income significantly increases the share of household budget allocated to food, and leads to decreases in the share allocated to alcohol and cigarettes. (Hoddinott and Haddad 1995) Women's 'double burden' of domestic and work responsibilities is a deterrent to their full economic participation.Across the globe, women are still predominantly responsible for family duties such as child-rearing or care of the elderly. Even in relatively more gender balanced Europe, women still devote twice as much time to domestic tasks as men: 4 hours and 29 minutes per day, compared to 2 hours and 18 minutes for men (see figure below). Women consider these responsiblities as handicaps to their success in the workforce. In the United States, 62% of women perceive family or personal responsilibites as an obstacle to promotion. (McKinsey)
From McKinsey
Despite the growing evidence, better data is needed to track women's economic participation.The World Economic Forum's annual Global Gender Gap report includes a measure on 'economic participation and opportunity.' Several other sources measure to some degree women's economic contributions. Yet, available data on gender still do not adequately capture women's economic status across countries, or take into account variables such as participation in the informal economy, or access to asseets such as land or finance. Several sources provide a useful starting point: |
