The concept of ‘economy’ by its nature is complex: in brief, ‘economy’ includes aspects such as production, distribution (of those products and resources), consumption, as well as the institutions that work to enhance production and consumption, i.e., trade and businesses, within a specific geographical area, i.e., a region, country, or district1. The addition of the term ‘gender’ to the concept of ‘economy’ can be done in several ways: for example, it could be gender and economy, gender in the economy, or gender economy. Despite having overlapping themes, each topic carries distinct nuances depending on the context in which they are used.

Gender Economy often refers to a conceptual framework that integrates gender as a central dimension in understanding economic structures, systems, and outcomes. It can encompass the study of how economic policies, practices, and theories are shaped by and impact gender relations. For example, this may emphasize the economic roles of different genders, or gender-based economic disparities, and systemic biases within the economy. Gender and Economy may suggest a dual focus, examining the interplay between gender as a social construct and the broader economy. It highlights how gender influences economic participation and how economic systems reinforce or challenge gender inequalities.

This term is broad and emphasizes the interaction between the two realms, addressing both theoretical and practical issues. Gender in the Economy focuses on the specific roles, experiences, and impacts of gender within the existing economic framework. It often looks at how individuals of different genders navigate and are affected by economic systems and practices, and is more applied and descriptive, focusing on the gendered dimensions within economic activities. However, all these concepts identify and focus on addressing gender as a critical lens in understanding economic realities and aim to uncover disparities and inform policies that promote gender equity.

Gender equality is no longer solely a matter of social justice; it is a crucial driver of economic progress. Numerous researches underscores that investing in women’s empowerment and promoting gender equality policies lead to substantial economic returns, benefiting not only women but society as a whole. Women constitute nearly half of the global population, yet majority of these women are yet to achieve their full economic potential and their contribution to the economy remain underutilized. According to a report by McKinsey Global Institute, advancing gender equality could add $12 trillion to global GDP by 20252.

The Global Gender Gap Index (GGGI), an annual index/report published by the World Economic Forum, evaluates global and country-specific efforts to address gender disparities across four key dimensions: health, education, economic participation, and political empowerment. The 2023 edition, which assesses 146 countries, highlights significant progress in closing gender gaps: the Health and Survival gap is 96% closed, the Educational Attainment gap stands at 95.2% closed, the Economic Participation and Opportunity gap has reached 60.1% closure, while the Political Empowerment gap remains the most challenging, with only 22.1% closed5.

These statistics highlight that, despite decades of efforts, achieving gender parity and ensuring women’s equal participation alongside men remains a significant challenge, particularly in areas such as economic participation and political empowerment. It is important to note that decisions regarding economic participation are influenced by personal choices of individuals (despite their gender), apart from the opportunities available in the labor market. For example, women may prioritize family care over workforce engagement as a personal choice. However, it is also possible that structural barriers play a decisive role in women’s willingness to participate in the labor force: for instance, issues like unequal pay, limited access to capital, and disproportionate caregiving responsibilities, etc., are frequently hindering women’s ability to fully participate in the labor market, and these challenges underscore the critical need for targeted interventions to address both systemic and cultural obstacles to advance gender equality.

In addition, the ‘glass ceiling,’ or an invisible barrier that restricts women from advancing to senior positions in the workplace(s), significantly impacts female labor force participation and is often cited as a major obstacle to women's active engagement in economic activities. While this phenomenon is observed globally, it tends to be more pronounced in Asian societies due to several factors: rigid workplace hierarchies, less supportive institutional frameworks such as weak enforcement of gender equality laws and policies, etc., cause exacerbating this issue.

Additionally, traditional gender roles, which emphasize women’s responsibilities in the home and men’s roles as breadwinners, are more deeply entrenched in Asian cultures compared to Western societies. Women are frequently expected to prioritize family obligations over career advancement, which limits their professional opportunities and ambitions. For instance, in countries like Japan and South Korea, as well as across many South Asian nations, cultural norms often lead women to leave the workforce after marriage or childbirth. This contributes to the characteristic "M-curve" pattern in female labor force participation, reflecting periods of withdrawal and re-entry into the workforce over the life course.

Tackling these challenges can unlock substantial economic potential by promoting a more diverse and inclusive workforce. However, this requires strong and thoughtful policy initiatives and institutional support that have proven effective in promoting gender equality and generating economic growth. Equally crucial is the political will to design and effectively implement these policies, which plays a pivotal role in driving progress.

Several successful initiatives illustrate the potential for targeted interventions to drive economic and social progress. For instance, Bangladesh provides a compelling example of how microfinance can empower women and stimulate economic growth. Organizations like Grameen Bank and BRAC have enabled women entrepreneurs to start businesses, generate income, and improve their families' living standards through small loans. Similarly, programs aimed at improving girls’ access to education in Sub-Saharan Africa have demonstrated remarkable economic benefits. Educated women are more likely to join the labor force, earn higher wages, and invest in their children’s education, creating a lasting ripple effect for future generations. UNESCO estimates that each additional year of schooling for girls increases a country’s GDP growth rate by 0.37%, underscoring the transformative impact of such initiatives3.

While it is crucial to tailor policies to the specific context of each country or region, this article proposes several general recommendations that authorities can adopt to enhance female labor force participation. These include:

  • Equal pay and anti-discrimination laws: ensuring equal remuneration for men and women performing the same work can help reduce wage gaps and incentivize women’s participation in the workforce.

  • Access to education: education is fundamental to women’s empowerment. Policies that guarantee girls access to quality education, particularly in low-income countries, yield significant economic benefits. According to the World Bank, closing education gaps could generate lifetime earnings of up to $30 trillion globally4.

  • Childcare support and parental leave: subsidized childcare and parental leave policies can help alleviate caregiving responsibilities, enabling women to pursue careers without compromising family obligations. Countries such as Sweden and Canada provide exemplary models of parental leave that promote gender equity in caregiving roles.

  • Access to credit and entrepreneurship programs: empowering women through financial inclusion and entrepreneurship training supports business creation, job generation, and broader economic development. Microfinance programs in South Asia and Sub-Saharan Africa, such as those pioneered by Grameen Bank, have achieved notable success in empowering women entrepreneurs.

Such measures, if effectively implemented, can create an enabling environment for women to fully participate in and contribute to the labor market.

Despite being important to be customized based on the context of the country or region, this article suggests some of general policy recommendation that can be implemented by the authorties to enhance female labor force participation. These includes, inter alia, equal pay and anti-discrimination laws: ensuring equal remuneration for men and women performing the same work can reduce wage gaps and incentivize female labor force participation; access to education: education is a cornerstone of women’s empowerment. Policies that ensure girls’ access to quality education, especially in low-income countries, yield significant economic dividends. The World Bank estimates that closing education gaps could generate lifetime earnings of up to $30 trillion globally (World Bank 2018); childcare support and parental leave: addressing caregiving responsibilities through subsidized childcare and parental leave policies enables women to pursue careers without sacrificing family responsibilities.

Countries like Sweden and Canada offer exemplary models of parental leave that promote gender equity in caregiving roles; and access to credit and entrepreneurship programs: empowering women through financial inclusion and entrepreneurship training helps them establish businesses, create jobs, and contribute to economic development. Microfinance programs in South Asia and Sub-Saharan Africa, such as those implemented by Grameen Bank, have shown remarkable success in empowering women entrepreneurs.

Investing in women’s empowerment is not only a moral imperative but also an economic necessity. Gender equality policies hold the potential to unlock untapped talent, fuel economic growth, and foster more equitable societies. Examples from Bangladesh, Rwanda, Sweden, etc., demonstrate the transformative impact of targeted interventions. As nations work to recover from global challenges such as the COVID-19 pandemic, prioritizing gender equality will be pivotal in building resilient and thriving economies.

Achieving gender equality demands collective action from actors such as governments, businesses, and civil society. By breaking down barriers, implementing inclusive policies, and advancing women’s empowerment, we can pave the way for a world where gender equality serves as a driving force for sustainable development and shared prosperity.

References

1 James, Paul, Liam Magee, Andy Scerri, and Manfred Steger. 2015. Urban Sustainability in Theory and Practice: Circles of Sustainability. London: Routledge.
2 Woetzel, Lola, Anu Madgavkar, Kweilin Ellingrud, Eric Labaye, Sandrine Devillard, Eric Kutcher, James Manyika, Richard Dobbs, and Mekala Krishnan. n.d. “The Power of Parity: How Advancing Women’s Equality Can Add $12 Trillion to Global Growth.” McKinsey Global Institute.
3 UNESCO. 2012. Reaching Out-of-School Childern Is Crucial for Development.
4 World Bank. 2018. “Not Educating Girls Costs Countries Trillions of Dollars, Says New World Bank Report.” Workd Bank.
5 World Economic Forum. 2023. Global Gender Gap Index 2023.