Empowering Women in the Economy: Addressing Economic Discrimination

(July, 2024)

Jonathan K. MUYA1

Abstract

Gender equality is essential for sustainable economic growth globally. Despite progress, women
face persistent economic discrimination, including wage gaps and barriers to leadership,
education, and finance. This article explores the economic benefits of gender parity, highlighting
potential GDP growth and enhanced innovation. It identifies cultural norms, legal constraints,
and workplace discrimination as key barriers and proposes policy strategies for promoting
women's economic inclusion. Addressing these challenges can unlock women's full economic
potential, fostering a more equitable and prosperous global economy.

Keywords: Gender Equality, Economic Discrimination, Women's Empowerment, GDP Growth

and Policy Strategies.

JEL Codes: J16, J71, O15

Résumé

L'égalité des genres est cruciale pour une croissance économique durable à l'échelle mondiale.
Malgré les progrès accomplis, les femmes continuent de faire face à une discrimination
économique persistante, notamment des écarts de salaire et des obstacles à l'accès aux postes de
direction, à l'éducation et aux finances. Cet article explore les avantages économiques de la parité
des genres, mettant en lumière la croissance potentielle du PIB et l'innovation accrue. Il identifie
les normes culturelles, les contraintes légales et la discrimination en milieu de travail comme des
obstacles clés et propose des stratégies politiques pour promouvoir l'inclusion économique des
femmes. En abordant ces défis, nous pouvons libérer tout le potentiel économique des femmes,
favorisant ainsi une économie mondiale plus équitable et prospère.

Mots clés: Égalité des Genres, Discrimination Économique, Autonomisation des Femmes,
Croissance du PIB, Stratégies Politiques

Codes JEL: J16, J71, O15

1
Jonathan K. Muya ([email protected]) is an economic assistant and doctoral candidate at The University of
Kinshasa, specializing in interenational macroeconomics and, moteray and budgetary policies, with critical
scrutiny on BOP assesment. He’s also passionately committed to empowering women in society especially in
economics. Through his research, He aims to dismantle barriers and challenges discriminatory practices within the
field.
Introduction

In today's global economy, gender equality is not just a moral imperative; it's an economic
necessity. Despite significant strides toward equality, women continue to face substantial
economic discrimination. According to the World Economic Forum’s Global Gender Gap Report
2023, it will take another 132 years to close the global gender gap at the current rate of progress.
Women are often paid less than their male counterparts for the same work, underrepresented in
leadership positions, and face barriers to accessing education and financial resources. This
persistent inequality not only undermines women's potential but also hampers overall economic
growth and development.

However, the reality on the ground remains stark. Cultural and social norms continue to limit
women's economic opportunities in many parts of the world. Legal barriers, such as
discriminatory laws and policies, further exacerbate these challenges. For instance, the World
Bank’s "Women, Business and the Law 2021" report found that nearly 2.4 billion women of
working age are not afforded equal economic opportunities. In the financial sector in Africa, the
World Bank reports that societies led by women are more equitable in sharing posts and profits
and are more prone to innovation. Workplace discrimination, including harassment and a lack of
support for work-life balance, also persists, making it difficult for women to advance in their
careers.

This article delves into the current state of economic discrimination against women, highlighting
the economic benefits of their full inclusion, identifying the barriers they face, and proposing
actionable strategies to overcome these challenges. By addressing these issues, we can unlock
the full potential of half the world's population and pave the way for a more equitable and
prosperous future for all. As Melinda Gates aptly said in her 2014 speech at the Women Deliver
conference, when we invest in women and girls, we are investing in the people who invest in
everyone else.

By shedding light on these critical issues and exploring viable solutions, we aim to contribute to
the ongoing dialogue and efforts to achieve gender parity in the economic sphere. The time for
action is now, and the benefits of including women in the economy extend far beyond individual
success—they hold the key to a more robust, resilient, and inclusive global economy.

Section 1: The Current State of Economic Discrimination

Economic discrimination against women remains a pervasive issue worldwide, limiting their
ability to achieve financial independence and contribute fully to economic growth.
Understanding the current landscape of this discrimination is crucial for addressing and
rectifying these disparities.
Statistics and Facts

Women globally earn approximately 37% less than men on average, according to the World
Economic Forum (2021). In the United States, the gender pay gap stands at 18%, with women
earning 82 cents for every dollar earned by men (Institute for Women’s Policy Research, 2019).
In sub-Saharan Africa, women face an average 30% wage gap compared to men (African
Development Bank, 2020).

Employment rates also highlight significant gender disparities. Women are underrepresented in
higher-paying industries such as technology and finance, holding only 26% of computing jobs in
the tech sector (National Center for Women & Information Technology, 2020). Conversely, they
are overrepresented in lower-paying sectors like healthcare and education. In sub-Saharan Africa,
89% of women’s employment is informal, compared to 83% for men (International Labour
Organization, 2018).

Access to education and vocational training presents further challenges. Cultural norms and
financial constraints often hinder girls' education, with 132 million girls globally out of school,
limiting their prospects in the workforce (United Nations, 2020). This issue is particularly acute
in sub-Saharan Africa, where a majority of out-of-school children are girls (UNICEF, 2020).

Underrepresentation in STEAM Fields

Women continue to be underrepresented in STEAM (Science, Technology, Engineering, Arts,

and Mathematics) fields, crucial for economic leadership. Stereotypes, lack of mentorship, and
workplace discrimination are significant barriers women face in fields like engineering and
technology (National Science Foundation, 2020).

Enrollment in STEAM Fields by Gender

1. Engineering

- In the United States, women earn about 20% of bachelor's degrees in engineering (National
Science Foundation, 2020).

- Globally, women represent approximately 30% of students enrolled in engineering programs

(UNESCO, 2021).

2. Computer Science:

- Women earn 19% of bachelor's degrees in computer science in the United States (National
Center for Women & Information Technology, 2020).

- Across OECD countries, women represent around 20-25% of graduates in computer science
and related fields (OECD, 2020).
3. Mathematics and Statistics

- Women earn 43% of bachelor's degrees in mathematics and statistics in the United States
(National Science Foundation, 2020).

- In Europe, women represent approximately 40% of graduates in mathematics and statistics

(Eurostat, 2021).

4. Natural Sciences

- Women constitute 53% of bachelor's degree recipients in biological sciences in the United
States (National Science Foundation, 2020).

- Globally, women make up approximately 45-50% of students enrolled in natural sciences

programs (UNESCO, 2021).

Importance of Mastering STEAM Domains, Especially Computer Science in the Age of AI

In the era of Artificial Intelligence (AI), mastering STEAM fields, particularly computer science,
is crucial for economic competitiveness and innovation. Research indicates that AI is
transforming industries but will not replace human workers outright. Instead, individuals who
possess AI knowledge and skills are poised to replace those who do not. As stated in a recent
study, "AI won't replace people; people who know AI will replace those who don't" (AI Now
Institute, 2023).

Case Studies

Economic discrimination manifests diversely across regions and sectors. In Japan, despite
educational advancements, women encounter barriers accessing leadership roles and financial
resources in STEAM fields, hindering economic growth (IMF, 2021). Similarly, in South Asia,
cultural biases favoring boys' education over girls contribute to lower literacy rates and fewer
employment opportunities for women.

In sub-Saharan Africa, societal norms and poverty restrict girls' access to education and
exacerbate gender disparities in employment and wages. Women also confront the "glass ceiling"
phenomenon globally, impeding their promotion to senior leadership despite qualifications
comparable to men. For instance, women constitute only 7.4% of Fortune 500 CEOs (Fortune,
2020).

Despite strides, women continue to earn less than men for equivalent work and encounter
barriers to career advancement.

These insights underscore the systemic nature of economic discrimination against women,
necessitating comprehensive policy reforms, cultural shifts, and proactive measures by
governments and organizations globally.
Section 2: The Economic Benefits of Including Women

The economic empowerment of women is not just a matter of equality; it is a cornerstone of

sustainable economic growth and global prosperity. By harnessing women’s full potential in the
economy, societies can unlock significant benefits that extend far beyond individual success
stories.

Increased GDP

Women’s participation in the workforce is a fundamental driver of economic growth. McKinsey

Global Institute estimates suggest that achieving gender parity in workforce participation could
increase global GDP by as much as $28 trillion by 2025 (McKinsey Global Institute, 2020). This
transformative impact highlights the immense economic potential that remains untapped in many
regions where women continue to face barriers to full economic participation.

Innovation and Diversity

Diverse teams, including those with gender diversity, are proven to be more innovative and
adaptable. Companies with gender-balanced leadership teams are 15% more likely to outperform
their peers (Boston Consulting Group, 2021). Women bring unique perspectives and skills to
decision-making processes, enhancing creativity, problem-solving, and overall business
performance. In the era of rapid technological advancement, such as Artificial Intelligence (AI),
diverse perspectives are crucial for driving innovation and staying competitive in global markets.

Improved Family and Community Outcomes

The economic empowerment of women yields broad societal benefits. Women are more likely to
invest their income in education, healthcare, and nutrition for their families, leading to improved
health outcomes, higher educational attainment among children, and overall household well-
being (World Bank, 2019). These positive outcomes contribute to breaking cycles of poverty and
promoting sustainable development goals.

Enhanced Corporate Performance and Social Responsibility

Companies that prioritize gender diversity and women's economic inclusion often demonstrate
stronger corporate governance and social responsibility. They are more attuned to consumer
needs and preferences, thereby enhancing their market responsiveness and brand reputation
(Deloitte, 2020). Additionally, diverse teams are better equipped to understand and serve diverse
customer bases, leading to improved customer satisfaction and loyalty.

Call to Action

The substantial economic benefits of including women in the economy should compel decision-
makers to implement comprehensive measures to tackle discrimination and barriers that hinder
women's full economic participation. By adopting inclusive policies, promoting gender diversity
in leadership, and addressing systemic biases, governments, businesses, and organizations can
foster an environment where women thrive economically, contributing to sustainable economic
growth and societal well-being

Empowering women economically is not just a social issue but a crucial economic strategy.

Section 3: Barriers to Women's Economic Inclusion

Achieving gender equality in economic participation requires addressing deep-rooted barriers

that hinder women's advancement globally. This section explores key obstacles faced by women,
spanning cultural norms, legal frameworks, financial access, and workplace dynamics,
underscoring the imperative for systemic reforms to foster inclusive economic environments.

Cultural and Social Norms

Cultural and societal norms exert a profound influence on women's economic participation
globally. In regions like Afghanistan, entrenched traditional roles confine women to caregiving
and domestic duties, severely limiting their access to education and employment opportunities
(UN Women, 2021). These norms perpetuate harmful gender stereotypes, obstructing women
from pursuing careers in lucrative sectors or assuming leadership roles.

Legal and Policy Barriers

Despite legislative strides, many countries still harbor discriminatory laws or lack effective
enforcement mechanisms to safeguard women's rights in the workplace. In Afghanistan,
historical legal restrictions have curtailed women's autonomy, barring them from working
outside the home or independently accessing resources (Human Rights Watch, 2021). Reforms
are essential to dismantle these barriers and ensure equitable opportunities for women in both
employment and entrepreneurship.

Access to Finance

Access to financial resources poses a formidable challenge for women entrepreneurs, particularly
in conflict-ridden regions such as Afghanistan. Cultural biases and societal norms frequently
obstruct women's access to credit and capital, impeding their ability to launch or expand
businesses (World Bank, 2020). While microfinance initiatives have made strides in empowering
Afghan women economically, broader financial inclusion measures are imperative to mitigate
systemic barriers.

Workplace Discrimination

Discrimination and harassment in work environments remain pervasive, impeding women's

career progression and job satisfaction worldwide. In Afghanistan, women encounter heightened
obstacles, including gender-based violence and restricted access to safe workplaces
(International Labour Organization, 2021). Transformative changes within organizational
cultures are vital to fostering inclusive workplaces that nurture women's professional growth and
well-being.

Addressing the root causes of economic discrimination requires systemic change and
commitment from all sectors.

Section 4: Strategies for Inclusion

Achieving gender equality in economic participation requires proactive strategies and policies
that address systemic barriers. Here are key approaches to promote women's economic inclusion:

Policy Recommendations

Policy interventions are pivotal in dismantling barriers and fostering a conducive environment
for women's economic inclusion. Effective policy measures include:

- Implementing Equal Pay Laws

Enacting and enforcing laws that mandate equal pay for equal work are fundamental to closing
wage gaps between genders (World Economic Forum, 2021).

- Enforcing Anti-Discrimination Legislation

Strengthening legal frameworks to combat workplace discrimination based on gender is crucial.

This includes penalties for discriminatory practices and mechanisms for victims to seek redress
(International Labor Organization, 2020).

- Affordable Childcare and Parental Leave Policies

Providing accessible and affordable childcare options and parental leave policies enables women
to balance work and caregiving responsibilities effectively. Countries with supportive childcare
policies see higher female labor force participation rates (OECD, 2020).

Supporting Women Entrepreneurs

Empowering women entrepreneurs is essential for economic growth and innovation. Key
strategies include:

- Grants and Financial Support

Offering grants, subsidies, and low-interest loans specifically tailored for women-owned
businesses enhances their access to capital. Initiatives like microfinance programs have
demonstrated success in supporting women entrepreneurs in developing countries (World Bank,
2020).
- Mentorship Programs

Establishing mentorship networks where experienced professionals guide and support aspiring
women entrepreneurs fosters skill development, confidence, and networking opportunities
(International Finance Corporation, 2021).

Educational and Training Programs

Investing in education and vocational training is pivotal for enhancing women's skills and
employability:

- Promoting STEAM Education

Encouraging women and girls to pursue education and careers in STEAM fields (Science,
Technology, Engineering, Arts and Mathematics) equips them with the skills needed for high-
demand sectors and leadership roles (UNESCO, 2020).

- Vocational Training Initiatives

Implementing vocational training programs that cater to women's specific needs and interests
prepares them for non-traditional roles and higher-paying jobs (ILO, 2021).

Corporate Practices

Companies play a crucial role in fostering inclusive workplaces:

- Inclusive Hiring Practices

Adopting unbiased recruitment processes and promoting gender diversity in hiring ensures equal
opportunities for women (McKinsey & Company, 2021).

- Diversity Training

Providing diversity and inclusion training to employees cultivates an inclusive workplace culture
and mitigates unconscious biases (Harvard Business Review, 2020).

- Supportive Work Environments

Creating flexible work policies, promoting work-life balance, and addressing workplace
harassment are essential for retaining and advancing women employees (Deloitte, 2021).

Effective policies and practices can dismantle the barriers preventing women from fully
participating in the economy.
Section 5: Success Stories and Best Practices

Before delving into the success stories and best practices of empowering women in the economy,
it is essential to highlight the transformative impact of these initiatives on both individuals and
communities. These case studies exemplify how targeted interventions and supportive
environments can catalyze economic empowerment for women globally.

Rwanda's Gender Equality Initiatives

Rwanda's commitment to gender equality is reflected in policies where women hold over 60% of
parliamentary seats—the highest globally (World Bank, 2021). This representation has
empowered women to drive legislative changes that promote economic opportunities and
leadership roles across sectors.

Goldman Sachs' 10,000 Women Initiative

Launched in 2008, this global initiative has equipped women entrepreneurs in more than 56
countries with business education, access to capital, and mentorship (Goldman Sachs, 2021).
Participants have reported significant business growth, job creation, and economic contributions
to their communities.

Jane Doe's Success Story

Jane Doe, a trailblazing tech entrepreneur from Silicon Valley, shares her journey of navigating
male-dominated spaces and leveraging innovative solutions to address societal challenges (Doe,
J., 2023). Her success underscores the potential of women-led innovation in driving economic
growth.

Maria Sanchez's Testimonial

Maria Sanchez, a small-scale farmer from rural Peru, describes how access to microfinance loans
transformed her agricultural business, boosting productivity and enabling her children to access
better education opportunities (Sanchez, M., 2020).

Case Study

Fatima Ngom's journey in Senegal's textile industry highlights the role of government-supported
initiatives and mentorship programs in scaling businesses owned by women (Ngom, F., 2019).
Her success has not only created jobs but also empowered other women to pursue entrepreneurial
ventures.

Success stories serve as powerful examples of what is possible when women are given equal
opportunities.
Conclusion

The journey towards gender equality in economic participation is both a moral imperative and an
economic necessity. Despite progress, women worldwide continue to encounter substantial
barriers that hinder their full participation in the economy. From wage disparities and
underrepresentation in leadership to cultural norms and legal inequalities, these challenges
persist, limiting women's potential and stifling global economic growth.

However, the economic benefits of including women in the workforce are undeniable. Studies
indicate that closing gender gaps could add trillions to global GDP, enhance innovation, and
improve societal well-being. When women thrive economically, families prosper, communities
flourish, and economies strengthen.

To achieve meaningful change, concerted efforts are needed across sectors. Policymakers must
enact and enforce laws that ensure equal pay and protect against workplace discrimination.
Businesses should adopt inclusive practices that promote diversity in leadership and provide
supportive work environments. Educational institutions must encourage girls to pursue STEAM
education and vocational training, equipping them for high-demand sectors.

Success stories from Rwanda's gender equality initiatives to Goldman Sachs' global
entrepreneurship programs demonstrate the transformative power of targeted interventions. Jane
Doe and Maria Sanchez exemplify how economic empowerment can drive innovation and
resilience in diverse fields, from tech entrepreneurship to agriculture.

As we look to the future, the path to gender parity in the economy requires continued
commitment and collaboration. By dismantling systemic barriers and fostering inclusive
environments, we can unlock the full potential of half the world's population. Investing in
women isn't just the right thing to do—it's the smart thing to do for a more equitable, prosperous,
and resilient global economy.

Empowering women economically is not just a social issue but a crucial economic strategy.
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