How Closing the Gender Gap Could Add $12 Trillion to the GDP
Part 2 of a 4 part series
The Economic Benefits of Equity
There is a very tangible price that economies across the globe pay every day that passes without true gender parity. While the social and moral aspects of disparities between men and women are just as important, there is still an economic aspect that deserves more attention.
While women account for half of the world’s working-age population they only form a striking 37% of the GDP, meaning they are underrepresented in the workforce overall. An economic study done by Christine Largarde and colleagues found that adding women to the work force gives greater results than only adding more men, because women bring different skillsets. Since women introduce new skill sets to the workforce, the growth and productivity gains from adding more women to the labor force (by lowering barriers to women’s workforce participation) are greater than previously thought.
Furthermore, businesses with low levels of gender and racial diversity are 27% more likely to underperform compared to the national average. In other words, a company’s bottom line is likely to suffer if its leadership teams lack diversity. Despite the strong business case and strengthening of the correlation over time of diversity and financial performance, a study of hundreds of companies over several years shows that progress on diversity is slow or stalled.
All of these factors explain how reports have reached the conclusion that if every nation increased gender parity, the global economy would gain $12 trillion in wealth, and that true gender parity would increase global GDP by up to $28 trillion.
Health Benefits Of Gender Equity
According to the data, the majority of people live better lives in more gender-equal countries and states. Statistics point out that countries with greater gender parity score much higher on well-being and lower on depression both among men and women. When we talk about the health benefits of gender parity, we mean health in a broad sense, taking into account factors like welfare, depression, divorce, fertility, suicide, and violent deaths.
The likelihood of being a victim of violent death decreases significantly as society becomes more gender equal. In fact, reports have found that the likelihood of women becoming victims to violent death is nearly half in most gender-equal countries as compared to countries with large gender disparity scores. Furthermore, the data shows that this phenomenon is likely associated with income disparities.
The good news is that, in terms of health, fewer mothers are dying during childbirth, and female life expectancy has increased significantly as a result. Women now outlive men in almost every country, with a few exceptions.
Furthermore, the health benefits of gender equity applies to men: According to a recent World Health Organization (WHO) report comparing 41 European countries, men’s health is worse in more gender-unequal societies — the gender division of labour harms both men and women. Research has found that overall men report higher levels of life satisfaction, mental well-being, and relationship quality in more gender equal communities. Gender equality allows men to break free from the narrow confines of traditional gender roles, promoting personal growth, emotional expression, and healthier relationships.
Both men and women appear to sleep better in more gender-equal societies and the benefits of sleep on mental, emotional and overall health are widely documented. In addition, men in these societies taking better care of themselves.
Another study points out that these men are half as likely to be depressed, half as likely to commit suicide, have a 40% lower risk of dying violently, and less likely to suffer from chronic back discomfort. In addition, adolescent boys have fewer psychosomatic complaints and are more likely to use contraception.
Benefits of Gender Parity for Men
Everyone, including men, is affected by gender inequality. Stereotypes or ‘rules’ about how men and women, girls and boys should behave start in childhood and continue into adulthood. It is critical that both men and women understand the benefits of gender equality for themselves as individuals, as members of communities, and as members of societies.
When gender inequality exists, men are often forced into a more masculine role as toxic masculinity prompt them into believing a more feminine identity equals less value of them as a person. Therefore, gender equality can actually give men more freedom in the way they express themselves. Not to mention, men will be treated equally in terms of parental leave, family time, and flexible work hours.
Gender-equitable parental leave policies contribute to men’s increased involvement in caregiving responsibilities. This involvement not only strengthens the bond between fathers and children, but also alleviates the pressure of solely shouldering the financial burden.
With the right policy framework in place, more men around the world are taking on the responsibility of child caregiver. The number of countries where paternity leave is enshrined in law has more than doubled to about 90 in the last 20 years (paid paternity leave is available in over 50 countries). Globally, at least four out of every 10 organizations are thought to provide paid leave above the statutory minimum. When the economic advantages overpower the negative conversation about manhood, men begin to take that leave.
IIt has been suggested and forecasted that gender equality contributes to economic growth by harnessing the untapped potential of women and reducing gender-based productivity gaps. As women’s labor force participation increases, it positively impacts household incomes, and boosts overall economic prosperity. Men benefit from these economic advancements through improved financial stability, increased opportunities for professional growth, and expanded choices in their careers.
READ PART 1 IN THIS SERIES: We’re Still 132 Years From Reaching Gender Equity
