Closing the gender wage gap in the labor market could boost the global economy by around 7%, or $7 trillion. dollars – according to his report Analytics Moodis.

According to the same report, at current rates, it could take 132 years to bridge the economic gap between the two sexes.

The report estimates that the economic recovery will come as more women enter the labor market and increase productivity, which will further promote their entry into leadership positions.

“Narrowing the gender gap in the workforce as well as in governance in Organization for Economic Co-operation and Development (OECD) countries could boost global economic activity by about 7%, or about $7 trillion today,” economists and directors say. Moody’s Analytics, Don Holland and Katrina Ell on the show.

Closing the wage gap in emerging markets like India could further boost that momentum, the report notes.

The estimate is based on wage growth for women aged 25-64 in OECD countries if they were paid the same as their male counterparts of the same age in 2021.

“This alone would increase potential OECD production by almost 10% and global production by 6.2%,” Moody’s Analytics stresses.

“Family Responsibilities”

The report attributed the root causes of the gender pay gap to “female family responsibilities” and the lack of such networking, highlighting that women are “less likely” to apply for promotions despite being held to higher standards than to men.

“Changing social norms is a time-consuming and complex process, but measures such as increasing flexible working conditions, providing affordable childcare and providing paternity leave will pave the way for change in the right direction,” the report says.

In a recent report, the World Bank pointed out that the wage gap between the two genders is still associated with discrimination.

“Gender biases and inequalities that push women into low-paying jobs, as well as disproportionate child-rearing responsibilities, contribute to the pay gap,” this report says.

“The persistence of this income gap between men and women negatively affects the development of the country’s economy,” it added, noting that there is room for improvement in 119 countries around the world to improve their legal framework to reduce the wage gap.

Overqualified but underpaid

According to Moody’s, the number of women in OECD countries with a master’s degree or an equivalent degree exceeds the number of men. However, they are still grossly underrepresented in middle and senior management positions.

This leads to what is called the persistent “underskilling” of women, a term for underutilization of their skills and time.

As a result, this can lead to “financial losses at the individual and macro level.

“Women, on average, invest more in their education and training, but tend to be assigned to lower and paid positions and hired in positions below their qualifications,” it notes.

Source: CNNBC.