Eradicating gender inequality is also a question of economic efficiency

Eradicating gender inequality is not only a matter of social justice but also of economic efficiency. The significant gender gaps that persist in many areas of our society symbolize the waste of female talent, and have significant costs for the economy as a whole.

A study published in a prestigious economic journal (Hsieh et al. 2019) concludes that changes in the occupational distribution of women and ethnic minorities account for 20% to 40% of US GDP growth between 1960 and 2010. had fallen to 62%. The authors argue that if innate talent for certain jobs is distributed similarly between men and women, occupational segregation prevents individuals from making the most of their talent, thereby limiting the growth of the economy as a whole.

Occupational segregation, both horizontal (by sector) and vertical (by position), is very present in our society. According to the latest data published by the Active Population Survey (EPA), women are still concentrated in the lowest paid sectors: 73% of people working in education, health and social services are women. Significant imbalances are also observed in leadership positions, where only 31% of positions on boards of directors and 12% of presidencies in the private sector are occupied by women.

What is behind occupational segregation? The presence of social norms and stereotypes, which attribute to women the role of primary caregiver in the home, would be one of the causes of the waste of female talent. These social conventions cause many women to specialize in parenting, thus limiting their professional development and determining what to study, and how much and where to work.

Social norms would have to be changed. But this is a slow and cumbersome task. In a study (Farré et al. 2021) we show that the introduction of paternity leave contributes to changing family dynamics and encourages men's involvement in parenting. These changes promote more progressive attitudes among boys and girls exposed to more egalitarian family models.

But until these changes have a real impact on the labour market, effective measures are needed to move towards gender equality. Family policies that make it easier for a working parent (often a woman) to be strengthened. In this regard, paternity leave (paid, of the same duration as maternity leave, non-transferable and mandatory) is a key tool to involve men in parenting, reduce women's specialisation in household tasks and, in turn, reduce gender gaps in the labour market. The universal and free provision of the first cycle of early childhood education (between 0 and 3 years) also facilitates the outsourcing of parenting to professionals, which contributes positively to the cognitive development of children, especially among those from less favoured backgrounds.

Family policies must be accompanied by effective measures to promote female talent and leadership in the labour market. On the one hand, gender quotas, perhaps temporary, for access to positions of power and leadership would be an effective solution to reduce imbalances without compromising efficiency, since the female candidates chosen would most likely be as talented or more talented than the men who would be excluded. The presence of women in leadership positions is not only a measure to reduce wage inequalities, but could also encourage the adoption of more flexible work practices and safer working environments. For example, a recent study (Adams-Prassl et al. 2024) reveals that sanctions against harassers in the workplace are more severe when there is a woman at the head of the institution where the harassment occurs.

Furthermore, interventions within the education system would be needed to enhance the mathematical empowerment of girls and adolescents, thus favouring their participation in STEM studies and occupations. The age of making irreversible decisions about investments in human capital could also be delayed. Currently, at 14 or 15 years of age they must decide on the branch of specialisation in high school, often without having sufficient information about their own abilities and job opportunities.

Without decisive policies to eradicate gender inequality, gaps will persist, female talent will continue to be wasted and we will continue to tell them about it every March 8.