The Gender Pay Gap in Top Jobs Costs the Global Economy $7 Trillion

The gender pay gap in high-level corporate roles could cost the global economy trillions of dollars. Cecily Arcus — Getty Images

The persistence of the gender pay gap is a long-standing global problem. In the United States, women earn 92 cents for every dollar a man makes, and female labor force participation rates worldwide have remained flat for decades, with working-age women only about half participate in the labor market.

But as women climb the corporate ladder, the gender gap widens, and labor force participation rates cannot explain the difference, according to a new report from Moody’s ratings agency. When it comes to jobs, women often find themselves overqualified, underpaid and underrepresented.

Dawn Holland and Katrina Elle, Moody’s directors and authors of the report, said, “On average, women make more upfront investment in education but tend to be in lower-level, low-paying positions. ” writes.

Countries such as the UK and France saw a decline in the number of women in senior management positions between 2010 and 2019. The percentage of women in managerial positions varies greatly by industry. In traditionally male-dominated industries such as mining and construction, less than 20% of her leaders are women. However, in health and education, the percentage is over 60% of her. The male-female gap in management is of particular concern in fast-growing sectors such as information and technology, where only about 33% of leaders are women.

“Women have the education and broad skill sets needed to succeed in these important areas, but are still underrepresented in management positions,” Elle said. luck“This is a problem for future growth and productivity gains because these sectors are essential to driving future productivity gains.”

Women aren’t the only ones hurt by gender inequality in companies. Closing the labor force participation and skills gaps and addressing the underutilization of women in managerial positions across the 38 OECD countries would add her $7 trillion to the global economy, the report said. pointing out.

“This revitalization of economic activity means that more women will join the labor force and become more productive as more women enter more productive managerial and professional positions, thereby increasing the productivity of working people. due to the increasing number of ,” Elle wrote.

According to the report, there are several reasons for the shortage of women in management positions. In some cases, women struggle to establish themselves as leaders because they lack role models in the industry. Other barriers include the burden of family responsibilities, unequal access to relevant professional networks, and higher standards for women than men in the workplace. In some countries, labor force participation and skills gaps also contribute to women’s skills shortages.