In the article, "How Gender Equality Boosts Economic Growth," the author analyzed the barriers gender created for economic productivity by country. As industrial policy and protectionism have started to return to high-income countries, low and middle-income countries need to make sure they have efficient human capital to keep up. Women, for centuries, have had low labor force participation rates, as they are usually doing household chores, which, although they are jobs, do not fall into the LF participation rate. If barriers are removed, there could be a 15-20% increase in countries. Looking at countries worldwide, such as Egypt and Peru, if gender disparities were to decrease, then Egypt's income would rise by 24%, while Peru's would see a smaller, yet still impactful, increase of 5%.
The main issue is the demand side, with discrimination by employers and supply distortions that have resulted. Barriers for women that have pushed them to adhere to social norms of staying home. By removing these demand-side issues, there can be a positive change for the supply side. Would investment in gender equality be a smart move for governments to implement? Or would forcing equality ruin people's drive to work harder and maximize competition?
Article: https://www.project-syndicate.org/commentary/gender-equality-boosts-economic-growth-at-low-cost-by-pinelopi-koujianou-goldberg-2025-09
The statistics you mention really highlight the significant untapped growth potential that exists when women are excluded from the labor force. A 15-20% income boost for some countries is substantial, and it demonstrates that gender equality isn't just a social goal but also an effective economic strategy. I'm curious how policymakers will balance reducing these barriers with respecting cultural and social norms that may resist such changes.
ReplyDeleteIt’s crazy how much untapped potential there still is. Letting more women into the workforce helps everyone in the long run.
ReplyDeleteI believe that it would be a smart move for governments to implement gender equality in countries like Egypt and Peru. I would imagine that their are opportunities for women to work across the world. If the government is able to push gender equality I think that having 15-20% more income could boost those countries economies.
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