Chile leads the way in closing the gender gap in labor-force participation.
Narrowing gender gap would increase regional GDP by $1.1 trillion by 2025.
If all countries in Latin America were to match the rates at which Chile is closing the gender gap in labor-force participation, and those at which Ecuador is pulling women out of agriculture, and eliminated other labor market inequities, the region could boost its gross domestic product by 14 percent, or $1.1 trillion, by 2025.
According to a global study at the McKinsey Global Institute, Latin America’s potential economic gain from narrowing the gap is the second highest of any region. The Institute calculated the economic impact of closing the gender gap in labor markets in 95 countries covering 93 percent of the world’s female population and 97 percent of its GDP. Every country would receive a GDP boost of at least 9 percent.
The study considers a number of indicators to gauge gender equality in work: labor-force participation rates, male-to-female participation in professional and technical jobs, wages, and representation in leadership positions.
If Latin American women were to participate in the economy identically to men, the full potential boost to GDP could be $2.6 trillion, or an additional 34 percent of GDP. Worldwide, the full potential is $28 trillion or 26 percent of GDP. This assumes that gender gaps in labor-force participation rates, hours worked and representation within each economic sector (which impacts productivity) are erased.
“Governments have traditionally been at the …
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