Economic Gender Equality

Main

Economic gender equality means that men and women have the same opportunities and outcomes in the economic sphere, regardless of their gender. In a gender-equal economy, women and men would earn the same pay for the same work, have equal access to jobs and leadership roles, own assets and businesses at the same rates, and share unpaid domestic and care work equitably. Economic equality is not just about fairness - it also boosts economic growth and prosperity for all. For example, if women participated in the labor force at the same rates as men, global GDP could increase by $28 trillion by 2025. Some key examples of economic gender inequalities include:

• The gender pay gap: Globally, women earn 77 cents for every dollar men earn on average.

• Underrepresentation in leadership: Only 10% of Fortune 500 CEOs are women.

• Unequal access to capital: Women-owned businesses receive just 3% of venture capital funding.

• Disproportionate unpaid care work: Women perform 76% of unpaid care work like childcare and housework.

• Higher rates of informal and vulnerable employment: 58% of women work in the informal sector vs. 50% of men.

• Legal barriers: In some countries, women still can't own property, open a bank account, or work in certain jobs without a man's permission.

Terms

• Glass ceiling: An invisible barrier caused by discrimination that prevents women from being promoted to leadership positions. As of 2023, only 10% of Fortune 500 CEOs were women.

• Occupational segregation: The tendency for women and men to work in different occupations or sectors. Female-dominated fields like childcare and nursing assistants tend to pay less than male-dominated ones like software engineering.

• Unpaid care work: Domestic tasks like cooking, cleaning, and taking care of children and the elderly. Women perform 76% of the total hours of unpaid care work globally, 3.2 times more than men.

• Motherhood penalty: The negative impact that having children has on women's earnings and career advancement. Mothers face wage penalties and hiring discrimination that fathers do not.

Analogy

Imagine the economy is like a two-engine plane. The "female" engine and "male" engine should provide equal power and thrust. But right now, the female engine is running at half speed due to discrimination, lack of fuel (investment), and carrying extra cargo (unpaid work). This is holding back the plane from soaring to its full potential altitude (maximum GDP). We need to bring the female engine up to full speed to make the economy really take off.

Misconception

Some people argue that women earn less because they "choose" lower-paying jobs or take more time off for family. But that view ignores how discrimination, societal expectations, and lack of support shape women's economic options and decisions. The reality is women face bias at every stage of their careers. For example, one study found that fictitious resumes with female names were offered starting salaries that were 8% lower on average than identical resumes with male names. It's not about women's choices - the system is rigged.

History

1. Pre-1900s: Women were largely excluded from the formal economy and denied property rights. Unpaid domestic work was seen as women's natural role.

2. 1900-1950s: Women entered the workforce in larger numbers, especially during wars. But they still faced severe pay discrimination and were mostly limited to "feminine" jobs like teaching and nursing.

3. 1960s-1990s: Anti-discrimination laws like the U.S. Equal Pay Act of 1963 were passed. Women made gains in education and new fields, but major inequities persisted. The term "glass ceiling" was coined.

4. 2000-2020s: More countries adopt laws against economic discrimination. But progress stalls and even regresses in some areas. COVID-19 takes a disproportionate toll on women's jobs and incomes. The World Economic Forum estimates that global economic gender parity will take another 268 years at the current rate.

How to use it

1. As an employee, you can advocate for pay transparency and equity in your workplace. If you suspect discrimination, gather evidence and report it. Negotiate assertively and know your worth in the market.

2. As a manager, compensate employees fairly and equitably from day one, rather than basing pay on salary history. Implement objective, gender-neutral performance evaluation and promotion criteria. Offer generous family leave to men and women. Conduct pay audits to proactively identify and fix disparities.

3. As a policymaker, strengthen laws requiring equal pay for equal work and banning discrimination in hiring, promotions and firing. Invest in affordable, high-quality childcare. Give tax credits to companies that achieve gender parity in leadership. Make parental leave mandatory for both mothers and fathers.

Facts

• If women participated in the labor force at the same rates as men, global GDP could increase by up to $28 trillion, or 26%, by 2025. This is roughly equivalent to the combined size of the economies of the U.S. and China today.

• The COVID-19 pandemic cost women around the world at least $800 billion in lost income in 2020, more than the combined GDP of 98 countries.

• Globally, 740 million women work in the informal economy, earning less, saving less, and at greater risk of falling into poverty.

• 42% of women globally are outside the paid labor force, compared to 6% of men.

• Almost 40% of countries have at least one legal restriction on women's property rights, while 104 countries still have laws preventing women from working in certain jobs.