The Role of Women in Economy - Term Paper Example

Women in the Economy Introduction Women in both urban and rural areas are fast becoming major contributors to the global economy and hence are rightly considered to be the saviors of the present world economy. They have become a part of the labor force in several sectors such as exports and agriculture. Gone are the days when women were economically completely dependent on men who were considered to be the sole economic providers of the family. In this new dawn of civilization women are empowered with education and as a result have become major contributors to the economy of their family and the country. Hence participation of women in labor is being viewed as more of an economic necessity rather than a mode of liberation. The only way by which the single mother of today or the housewives can better their standard of living is by working and shouldering the family’s financial responsibility along with their husbands respectively (Female Power, 2009). Studies have revealed that more women go to universities than men with nearly 60% of university degrees being earned by women and hence they are considered to become better equipped to work and earn higher financial returns than men (Women in the workforce, 2006; Female Power, 2009). They are better poised to earn and perform well at work compared to men and given the current pace of rise of women in the global economic market, experts believe that companies with senior women executives would fare much better in the future (Kay, 2009). Though the percentage of women occupying key positions at work is still lesser than men at present, it is bound to undergo a rapid change in the coming years when there would be equality at work place. Provision of adequate education to women would help them achieve better social status and they can help boost the economy at large. Many governments all over the world are recognizing the potential and ability of women to handle various forms of labor and are beginning to provide more opportunities for women especially for mothers. Several policies are being initiated for women employees that would enable them to manage both home and work. Body According to the international labor organization, women constitute about 40% of the workforce globally. In developed countries this percentage is about 70%, while in developing countries it is 60% (Facts on women at work, n.d). Their earnings could reach $18 trillion by the year 2014 according to the World Bank which could surpass the combined growth market created by China and India during the same period and their annual consumer spending is expected to reach $28 trillion by the same time (Silverstein, 2009; Voigt, 2009). In America women now constitute nearly half of the workforce with some heading some prominent companies such as PepsiCo and they constitute the majority of professional workers in the country. In countries such as Italy women employment has risen drastically over the years (Female Power, 2009). Thus the increasing trend of women being employed in various fields has given a major boost to the GDP. In the case of developed countries statistics reveal that women produce more than 40% of the total GDP of the country, the majority of which is from agriculture (Facts on women at work, n.d) In order to improve the statistics on the informal economy several experts in the field have come together to form a global network, Women in Informal Employment: Globalizing and Organizing (WIEGO). In addition to providing statistical inputs, WIEGO has also worked to promote the welfare of women involved in informal employment (Women in the Informal Economy, n.d). Surveys carried out by Ernst and Young have revealed that women are becoming powerful deciders about the economic status of a country and many other studies have documented that companies in which women hold senior managerial positions are flourishing, a result also obtained in a survey of fortune 500 companies. They have also added that many of those who have been laid-off during the economic recession were men. Estimates show that nearly 82% of the jobs lost mainly in the manufacturing and construction sectors involved men. Since women have been largely employed in areas such as healthcare and education which are less likely to be hit by the economic recession the onus of taking care of the family has come upon many of them. Despite the lower income and fewer benefits from their jobs compared to their spouses, active participation of women in labor has made economists to predict that the number of employed women is likely to surpass that of men in the coming years (Rampell, 2009). Companies which included three or more women in their boards showed a 40% better performance compared to the others. A study conducted on fund managers showed that female investors used more strategies, took fewer risks and showed more consistent returns compared to the male counterparts. The high testosterone in men force them to take more risks and act instinctively compared to the more cautious and foreseeing ability of women (Kay, 2009). (The Economist. “Women in the workforce: Female Power.” 30 December, 2009) The contribution of women in the formal and in the informal sectors of work has also increased over the years. While women with a good educational background have taken up suitable employment in the services industries, where they can compete with men, and which has gained a better impetus due to the declining employment in the manufacturing sector. As a result the developed nations are providing more employment to women. Studies have also revealed that better educated women are more likely to continue their job even after child-birth (Female Power, 2009). According to reports in the Ease Asian economy for every 100 men there are 83 women, which is the ratio of employment between the sexes. In this about 60 to 70% women have found employment in export sectors that includes textiles and clothing. In addition, a major percent of part-time workers, 60 to 90%, throughout the world are women and women have also made their foray into the field of business. In countries such as the US, Canada and Thailand more than 30% of the businesses are run by women. Thus women are also successful in the entrepreneurial field (Women and the World Economy, 2006). Countries such as Norway have issued regulations that business boards be constituted by a 40% female population, and banks in Iceland are being headed by women, a move undertaken after a financial crisis (Kay, 2009). While this constitutes formal employment of women, there are millions of women who are part of the informal economy. This includes women working in unregistered enterprises, the agricultural sector, domestic workers, self-employed, unpaid household workers and all others who do not work under any fixed employee or organization. In certain countries agricultural work is not included under informal work. In developing countries, for example, self-employment constitutes a major form of informal employment (Facts on women at work, n.d; Women and the World Economy, 2006; Women in the Informal Economy, n.d). Many well-educated and talented women are moving out of the corporate sector and are beginning their own businesses and studies have shown that women-led companies hire more people than many other firms (Female Power, 2009). It is quite difficult to obtain the exact percentage of women working in the informal sector as it includes those who work from home or outside as street vendors. But their contribution to the economy cannot be neglected as women in the informal economy contribute almost equally or more than men. However, it is to be noted that these women are less protected and poorly paid. In countries such as India, Africa and Mexico a major chunk of women are part of the informal economy (Facts on women at work, n.d; Women and the World Economy, 2006; Women in the Informal Economy, n.d). Apart from their contributions to the world economy, women are also paying an active role in many other fields such politics which also influences the global economy. Female politicians such as Margaret Thatcher up to Hillary Clinton have had a positive influence on women and instilled a sense of confidence and pride within them (Female Power, 2009). (“Women and the World Economy”, 2006) Women are contributing to the growing economy not only as workers but also as consumers. The buying potential of women has drastically increased and they are making the final buying decisions with regard to household and personal consumer products. This purchasing power of women has increased the productivity in a number of companies worldwide. Studies reveal that women are better investors compared to men and companies which had women in their senior positions earned better revenues compared to the businesses that had a lesser workforce of women in top positions. This simply proves that women are efficient at managerial work (Women and the World Economy, 2006). This experience is gained right from home where it is chiefly women who run the show. However, surveys conducted show that women feel that many services sectors such as banking, investment and insurance are not making enough effort in connecting with them and they either ignore or insult them. In another instance the Dell Company’s website launched to tap the buying potential of women faced stiff criticism from women as it focused on topics such as health tips and cooking recipes which many women found to be very insulting. Very few companies are concentrating on the real needs of women and helping them make their life easier as many believe that they do not have a say in the purchasing matters of the household. (Silverstein, 2009). Hence it would be wiser if these industries make an effort to reach out to the womenfolk considering that they are fast becoming the new spending power across the globe and devise better ways of selling their products to them. New economic opportunities for women have resulted in an increase in domestic spending even despite the recession (Voigt, 2009). However despite their efficiency, only about 50% of the womenfolk in countries like Japan and within Europe have paid jobs. Reports show that women earn only 77 cents for every dollar earned by men and they still occupy only a fraction of top executive positions in companies (Voigt, 2009). This would definitely have an impact on the economic growth of these countries as studies have consistently shown that the GDP of a country is dependent on the gender equality with regard to employment. The higher number of people employed in a country the better the GDP. One of the major reasons for reduced employment of women is they are entrusted with the responsibility of taking care of their children as most companies in countries like Japan and Germany do not provide privileges for working mothers (Women and the World Economy, 2006). On the other hand studies have revealed that childless mothers earn as much as men. Nearly one-third of professional women leave their career after a point of time to concentrate on their families or in some cases take up jobs such as teaching which are less demanding. It should also be noted that some professional women do not prefer to enter in to motherhood due to the demands of their jobs (Kay, 2009; Female Power, 2009). In order to avoid the brain drain of women companies should realize that the potential of women can be tapped by allowing them to take care of their personal lives along with work. Recent moves by companies such as Wal-Mart include work-from-home options for women which is having a positive response both from the women and the productivity of the company (Kay, 2009). Another reason cited is their reduced access to proper information especially the financial services (Women and the World Economy, 2006). It should however, be realized that women promptly repay loans and do the right investments for the family and studies reveal that migrant women worker remit more money to their home countries despite earning less than men. Hence financial companies should learn to better trust the capability of women and encourage their interests (Voigt, 2009). Despite all the above contributions by women to the economy at large, they still earn less than men and in many countries are not eligible for access to property or finance (Silverstein, 2009). This is crippling the economic progress of women. It must be however added that many governments throughout the world are taken steps to alleviate social, economic and legal discriminations against women. This would help both the rural and urban women to enhance their status in society and also contribute to the growth of the country and the world at large. One of the basic requirements for this is the provision of basic and higher education to women. This would help women to improve their knowledge and understanding and aid in shaping their careers. Organizations like the WIEGO are helping women in entrepreneurial work by encouraging home based employment by which women would be able to balance their family life and career. Many people believed that working women have low fertility rates and are unable to concentrate on their families (Women in the workforce, 2006). In another study, mothers were found to be spending the same amount of time on their children as in 1965 (Women in the workforce, 2006; Women and the World Economy, 2006). In countries like Sweden and America, where there is a higher percentage of working women, fertility rate has only been in the increase as it provides a more flexible working atmosphere for mothers by reducing the working hours and by allowing husband and wife to share jobs. Similarly many countries around the world are taking more measures to provide a congenial working atmosphere for mothers by providing flexible working hours and encouraging working mothers by giving appropriate promotions (Female Power, 2009). This explains that if a company frames the right set of policies for women, it would encourage more women to take up employment (Women and the World Economy, 2006). Countries such as Japan and Italy have fewer working women population and if this rose it would greatly contribute to the economic growth of these countries. This could be brought about by educating women as they have the ability to improve the livelihood, health and well being of the family through their economic independence (Women in the workforce, 2006). Additionally the recent technological advances are making the lives of women simpler by reducing the amount of time spent on routine household chorus and enabling them to wok and improve other skills (Female Power, 2009). Economic independence will help women to enhance their skills and achieve a better status in society. It would bring about equality among the sexes and would prevent bias in any form against women. Women constitute an under-utilized section of the society and only the right government policies and initiatives can help companies tap the hidden potentials of women and help alleviate poverty and the economic burden of a country (Women in the workforce, 2006). Hence governments should lay out suitable policies and programmes that would facilitate more women to take up employment (Facts on women at work, n.d; Women and the World Economy, 2006). Conclusion The women of today are faced with a lot of challenges as they have begun to play a vital role in the recovery of the global economy and growth of many consumer industries which are dependent on their purchasing potential. Many countries are burdened with an ageing workforce and the need for more skilled workers and the only immediate and effective option available to these countries is the employment of their women in labor. This trend is now gaining a lot of momentum with many research studies showing that the employment of women would definitely result in an increase of the company’s GDP. Thus with the support from governmental policies and encouragement from the family women can pursue their dreams without any inhibitions with the end result benefitting the country as a whole. Reference: 1. International Labor Organization. “Facts on women at work.” (n.d). 15 November, 2010. http://www.ilo.org/public/english/region/eurpro/budapest/download/womenwork.pdf 2. The Economist. “Women and the World Economy.” April 12, 2006. 15 November, 2010. http://www.policy.hu/nagy/Economist12042006_A%20guide%20to%20womenomics.doc 3. Women in Informal Employment: Globalizing and Organizing. “Women in the Informal Economy.” (n.d). 15 November, 2010. http://www.wiego.org/papers/brochure.pdf 4. The Economist. “Women in the workforce: the importance of sex.” April 12, 2006. 15 November, 2010. http://www.economist.com/node/6800723 5. Silverstein, Michael J., and Kate Sayre.” The female economy.” Harvard Business Review, September, 2009. 15 November, 2010. http://hbr.org/2009/09/the-female-economy/ar/1 6. Voigt, Kevin. “Women: saviors of the world economy?” CNN. 25 October, 2009. 15 November, 2010. http://157.166.226.46/2009/WORLD/asiapcf/10/25/intl.women.global.economy/index.html?iref=mpstoryview 7. Kay, Katty., and Claire Shipman. “Fixing the Economy? It’s Women’s Work.” The Washington Post. 12 July, 2009. 15 November, 2010. http://www.washingtonpost.com/wp-dyn/content/article/2009/07/10/AR2009071002358.html 8. The Economist. “Women in the workforce: Female Power.” 30 December, 2009. 15 November, 2010. http://www.economist.com/node/15174418 9. Rampell, Catherine. “As Layoffs Surge, Women May Pass Men in Job Force.” The New York Times. 5 February, 2009. 15 November, 2010. http://www.nytimes.com/2009/02/06/business/06women.html Read More