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Women and the World Economy

To commemorate its founding 25 years ago, PS is republishing a selection of commentaries written since 1994. In the following commentary, Christine Lagarde argued that progress on increasing women’s access to labor markets – not just to high-powered positions – has stalled.

WASHINGTON, DC – In many countries, public debate about gender equality focuses mainly on women’s access to top positions and high-powered career opportunities. But the “glass ceiling” is only a small part of the issue. The broader question is whether women have the same opportunities as men to participate in labor markets in the first place. In other words, are women empowered to contribute fully to global economic growth and prosperity?

Unfortunately, the latest study by International Monetary Fund staff, “Women, Work, and the Economy,” shows that, despite some improvements, progress toward leveling the playing field for women has stalled. This is bad news for everyone, because it translates into lower economic growth – a loss of as much as 27% of per capita GDP in some countries.

Around the world, the number of women in the workforce remains far below that of men: only about half of working-age women are employed. Women account for most unpaid work, and are overrepresented in the informal sector and among the poor. They continue to be paid less than men for the same jobs, even in OECD countries, where the average gender wage gap is about 16%. And in many countries, distortions and discrimination in the labor market restrict women’s chances of equal pay and rising to senior positions.

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