Manager. Illustrative photo.
New York – Closing the gender pay gap would increase global gross domestic product (GDP) by roughly seven percent, or seven trillion dollars (about 155 trillion CZK). This is stated in a report by Moody's Analytics. At the current rate, however, it will take 132 years to balance the differences, according to her.
“Eliminating the men's and women's labor force participation and management gaps in Organization for Economic Co-operation and Development (OECD) countries could increase global economic activity by approximately seven percent, or seven trillion dollars in today's prices,” they wrote in in a report by analysts Dawn Holland and Katrina Ell. The report says narrowing the pay gap in emerging markets such as India would increase this potential even further.
The calculation is based on the pay increase that women in OECD countries aged 25 to 64 would make. years recorded if their wages were equal to their male counterparts of the same age in 2021. “This alone would increase potential output in the OECD by almost ten percent and global output by 6.2 percent,” Moody's said.
According to the report, women work less often in better-paid positions due to family care and are less connected professionally. They are less likely to ask for a promotion, and at the same time they have to perform better to get a higher position. Changing social norms is a lengthy process, helped by flexible working conditions, the provision of affordable childcare and paid parental leave, Moody's writes. reports the World Bank (SB). It adds that almost half of the world's economies do not mandate equal pay by law.
Moody's points out that the number of women in OECD countries who have a master's degree or equivalent degree exceeds the number of men. But women are still underrepresented in middle and higher management positions. “Women, on average, invest more in education at the beginning, but they tend to end up in lower and lower-paid positions and to be employed below their skill level, measured by their educational attainment,” the authors of the study stated.