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Background Over thirty years of equality legislation in the European Union combination of hard and soft approaches to promote gender equality Gender Equality widely accepted as socially important goal but also viewed as… not necessarily in line with economic goals a constraint or a cost a societal choice or preference Need to recognise the costs of non-equality and the positive economic contribution of gender equality

The Economic Case for Gender Equality Mark Smith Grenoble Ecole de Management 8 March 2011

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Background

• Over thirty years of equality legislation in the European Union combination of hard and soft approaches to promote

gender equality

• Gender Equality widely accepted as socially important goal but also viewed as… not necessarily in line with economic goals

a constraint or a cost

a societal choice or preference

• Need to recognise the costs of non-equality and the positive economic contribution of gender equality

An Economic Case

• Gender Equality can be viewed as an investment a productive factor that can be leveraged

exploit full productive potential of the labour force

• An ‘Economic Case’ develops the ‘Business Case’ encompassing all organisations

economic merits at a national or regional level

• Sharing the investment in, and the benefits of, Gender Equality

• An economic case as a complement rather than replacement to the moral case

Gender Equality and Growth

• Women make the difference when we focus on employment rates

• Productive use of women’s investment in education and human capital Utilisation of all human capital investments

Access to full range of skills - address shortages

Returns on personal investment in human capital

• Gender equality as contributor to GDP closing gap with competitor nations and regions

higher productivity through avoidance of skill loss

Gender Equality for Sustainable Populations and States

• Sustainable regions• sustainable populations through the positive

relationship between female employment and fertility

• address rising dependency ratios and ageing populations

• Integration of informal work• recognising the value of unpaid and informal work• positive contribution of tax and social

contributions• modern fiscal systems that avoid perverse

thresholds for job creation and/or household disincentives

• Integration into employment more than covers investment in social infrastructure

Economic Case: a summary

  Participation 

Growth Fertility Fiscal

Macro Employment rates,

Utilisation of investment in education system

Investing in a productive labour force

Reduced poverty/social exclusion 

Sustainable populations 

Funding and sustainability

Meso   

Utilisation of Human resources

Access to full range of skills 

skill diversity

avoid skill loss

Work life balance policies supporting retention 

Avoidance of perverse tax thresholds

Micro Return on personal investment in human capital

domestic division of labour

Reduce social risks and personal costs of inequality

Individual rights, individual employment preferences

Taxation without perverse disincentives

Receive benefits on work done

Rights for non-standard workers

Looking Forward with the Economic Case

• Gender equality can be viewed as … an investment and not a cost

a productive factor not a constraint

• Investment in social infrastructure to reap rewards of investment in human capital

akin to investment in physical infrastructure

• These benefits of equality expand when we move beyond GDP as a measure of progress quality of life, well being, child poverty, etc.

• Gender equality central to economic development and sustainability

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One step forward, one step back?

Factors Leveraging Equality Benefits

Macropolicies to expand access to employmentgender-based Targets gender mainstreaming obligationsMesoorganisational innovations (WLB, retention)progress in organisation hierarchiesMicroImproved education attainmentmore continuous participationshorter and fewer career breaks

Factors Limiting Equality Benefits

Macrolack of gender mainstreaming economic policy short-term crisis responses public sector cutsMesosegregation occupationswomen’s concentration in low-paid workMicrounequal division of care and unpaid work limited support for carers

A time to underline the economic case

• Progress under threat… Exit Strategies from the recession risk a reduced focus

on gender equality goals and thus economic benefits

Risk of trying to turn back the clock on gender equality

Long-term challenges remain for European societies

• Making the case Importance of gender mainstreaming policies

Promoting coherent social and economic policy

Drawing on the potential contribution from the whole population

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