How unequal payment between men and women harms the Brazilian economy – 06/01/2019 – Market



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The world has made little progress on gender equality in the past year: fewer women than men entered the labor market; its participation in political life and private positions is still lower than that of men and its presence in emerging technology sectors, such as artificial intelligence, is still negligible.

The results are from a recent report of the World Economic Forum. , which gave a gloomy glimpse of gender equality in 149 countries under the political, economic, educational and health aspects

Brazil is not well placed in the report's ranking: five positions fell for the 95th, because "the gender gap is at its highest level since 2011," says the WEF. The reasons are, above all, persistent disparities in participation and economic opportunities.

According to the IBGE study on bad-disaggregated statistics, women work an average of three hours more per week than men. (19659002) In occupations requiring full or higher education, the wage gap is even greater: women received 63% of their salary, which is 4% of men's income by 2016, the latest data available.

Recent studies have examined the extent of this disparity, its causes and its impact on the economy as a whole.

Brazilian women with children average 35 per cent less than women without children, reflecting the impact of maternity on women's income. The survey was conducted by researcher Bruno Ottoni, from the IDados badysis company and from the Brazilian Institute of Economics of FGV Rio.

Ottoni compared the incomes of married, employed women aged 25 to 35, according to the national survey. (Pnad) continued in the third quarter of 2018.

Women in this group who did not have children received an average of R $ 2,182.06 per month, compared to R $ 1,618.47 $ for women with children.

And the more children there are, the lower their average income. According to Anderson de Souza Sant & Anna, a professor at the Dom Cabral Foundation and co-author of another study on wage disparities between men and women, women's careers make a "U-shaped curve." [19659010] "They are more educated, so they are promoted more quickly, but from a certain moment, towards 35 or 38 years old, it is reversed and the men go beyond them." maternity policy, women return to work after their return, unable to return and return to their job. "These combined factors are at the root of these differences (wages)," he told BBC News Brazil in October They spend a lot more time on household chores

In 2016, women spent an average of 18 hours a week on domestic work or caring for people (children or elderly parents, for example), compared to 10, 5 hours for men, according to IBGE, because of the burden of work. Enemas and care, many women feel compelled to perform occupations that require a day of work. more flexible work, "said Barbara Cobo, coordinator of demographic and social indicators of the IBGE

However," even with part-time work, women are working even harder, "Cobo adds." combining hours of paid and daily work, women work on average 54.4 hours per week, compared to 51.4 per week for men. "

They are disabled during the job interview

] According to Souza Sant & Anna, it is possible that job interviews help perpetuate wage gaps.

"When a woman is hired, human resources ask her how much she has earned . in the new job with a salary lower than that of a man.We have a lower entry wage.This is further aggravated by the increased participation of men in bonuses. In the case of promotion, the trend is more favorable to men. "[19659014] The higher the position, the higher the difference in pay

Women not only occupy lower positions (40% of management positions are reserved for women, according to L & # 39; IBGE), but also earn less than men when they climb the ladder

Souza Sant & Anna, of the Dom Cabral Foundation, badyzed the wages of men and women of 12 large companies in the sectors of industry and services, covering 50,000 workers.It identified an average wage gap of 16% between men and women occupying the same position.

In management positions, the gap reached 27 The gap between the highest wages of men and women at the top is 38%

There are also divergences between sectors.

"Areas such as the IDP (research, development and innovation) and production engineering are very masculine. They are even less represented in the most valued professions, "said Sant Anna.

" There is what we call the polarization of professions – women in care positions, such as human resources, which are much more prone to automation. In all functional positions, men earn more than women, with the exception of administrative and financial positions – supervisors of call centers, for example. "Our hypothesis is that the men left them and went to more noble neighborhoods."

Gender Equality: World GDP over $ 28 Billion

According to the report of the World Economic Forum, at the current rate, the world will put more than 200 years between men and women, a scenario which generates economic losses for the whole of society.

A 2015 survey by the McKinsey Global Institute estimated that gender equality could be an additional factor – in which countries reach the pace of the most egalitarian countries in their region – up to $ 12 trillion ($ 44.5 billion) of global GDP in 2025.

In an ideal scenario of total equality, in which "women participate in the economy in the same way as men "The gains could reach $ 28 trillion in annual global GDP – the equivalent at the time of the sum of the world's two largest economies, the United States and China. This scenario would allow the female half of the world's population to fully realize its potential, for example by increasing their hours of paid work and income.

"Gender equality is not only a question of social and moral urgency,

More female financial power improves families

In 2018, the International Monetary Fund (IMF) badyzed research and data from more than one hundred countries on issues such as access to the system. (19659002) The finding was that financially stronger women were more likely to invest in family well-being and to make smarter financial decisions the education and health of their families.

"This translates to less poverty, more economic growth and BBC News, told BBC News Ratna Sahay, co-author of the study and Deputy Director of the IMF's Money and Capital Markets Department.

"There are different examples: in the Philippines, there is evidence that women's empowerment has increased their control over budget decisions and spending on simple items that improve the quality of life for all the family. like a washing machine and cooking utensils, in Nepal we found that female-headed households spend 20% more on education than those headed by men, which is very important for children ", said Sahay, adding that although his study does not mention Brazil, the results could possibly apply

The IMF survey also addressed another angle: what impact if, in addition to the users of financial services, more women were providing these services – or

Again, the conclusion was that "the greater representativeness of women (in financial institutions) leads to greater financial stability "- in practice, lower debt, more cautious business decisions, increased efficiency and lower risk of financial crisis.

because many countries are concerned about systemic risk and stability. In all these respects, the reduction of gender inequality can have very positive macroeconomic effects, "said Sahay.

According to the IMF, less than 2% of the CEOs of global financial institutions are women, but they also represent less than 20% of members "

" And that contrasts sharply with the supply of women with relevant training (in this area), "says the text of the Fund." Women make up 30% graduates in economics and about 50% "

According to the World Economic Forum study, gender equality" is good for business ""

"Research conducted over the three ( …) companies with more women executives and boards of directors have higher profits and better financial results. They also have fewer cases of fraud, corruption and financial errors. In Norway, where companies are required to reserve at least 40% of the seats in their councils for women, surveys show that they are more likely to think long term and include citizens rather than shareholders in their deliberations . Women encourage boards to focus more on the community, the environment and employees. "

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