Lezione Su Gender and Economics.2013(Area Giuridica e Conomica)

8/22/2019 Lezione Su Gender and Economics.2013(Area Giuridica e Conomica)

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Economics, economists

and the gender gap:some recent findings

Pier Francesco Asso, Universit di Palermo

[email protected]

3 dicembre 2013
mailto:[email protected]:[email protected]


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Contents

Quando nasce e di che cosa si occupa lagender economics?

Cosa il gender gap e come vienemisurato?

Il gender gap nel mondo e in Italia

Il gender gap nel mercato del lavoro: W,

Occ. Suggerimenti di policy e altre misure per

ridurre il gender gap


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No. Exclusion. La parola gender entra a farparte delleconomiamolto tardi

Nella teoria economica le donne hanno avuto unruolo come oggetto di analisi o come protagonistedi nuove teorie, strumenti, proposte di policy etc?

Gender non categoria centrale, a differenza diclasseo di homoeconomicus. Nessuna analisi sucome cambiamenti sociali ruolo della donna

Concl.: nessuna attenzione per attiviteconomica donne (efficienza, mercatolavoro, discriminazione)


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Approccio mainstream domina a lungo:

2. Economia si occupa degli agenti economici che sono entitseparate, non collegate agli altri

Q. Quali spiegazioni?

1. Economia si occupa di beni e servizi venduti sul mercatoe non

delle attivit che possono migliorare la vita

Ipotesi che nascondono la condizione di svantaggio delle

donne nel mercato e nelle famiglie

3. Economia si base su ipotesi restrittive: scelte compiute inmodo autonomo, informazioni complete e concorrenza perfetta


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Altre cose su questa conclusione negativa

Gli uomini hanno dominato la comunit scientificadegli economisti molto di pi che nelle altrescienze

BlaugsWhoswho in economics:31D/1500U

Introduction: gender studies and HET

Premi a donne economiste (Nobel, F.A. Walker or

J.B. Clark medal):1

Donne presidenti dellAEA (b. 1886): 1

Altri indicatori di genere: professori, numero di

dottorati: crescono ma sono molto bassi (cfr. Matm)


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Donnealluniversit

: grossi divari soprattutto nelleposizioni apicali di professore associato e professoreordinario

Situazione oggi in alcuni ambiti professionali

particolarmente importanti: universit, ricerca

scientifica, Banca dItalia

Introduction: gender studies and HET

Donne alla Banca dItalia: 35% e 22% dirigenti.Percentuali in crescita: nel 2002 28% e 15% deidirigenti.


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Donne alluniversit, 2008


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Discriminazioni e disuguaglianze --- salari,opportunit, regole, etc.

Misura le le attivit invisibili: (non remunerate, acasa, volontariato, lavoro di assistenza )

Investigare alcune relazioni intra-familiari(powerrelations, distribuzione del reddito, processidecisionali)

What is gender economics and what does itstudy?


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Euro Parliament vetoed appointment of a(very qualified) new member of the ECBbecause of gender reasons

In Africa female entrepreneurs are driving the

Continents fast growing economies (NYT)The rate of female entrepreneurship is higherin Africa than in any other region of the world

According to a WB report, more than 20 sub-

Saharian countries and more than 400mpeople have gained middle income status

What about Italy?...

How do we measure it?

Is the gender gap closing? Some recent evidence


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Our starting point is the Global gender gap indexintroduced by the World Econ. Forum 06

Over 30 gender related variables affectingdisparity

It measures gaps, rather than levels in access toresources, opportunities, capabilities(rappresentano la libert individuale di acquisireil benessere Amartya Sen)

The Index independent from the different stages

of economic development

It is based on outcomes, results, related to basicrights (health, education, participation, income,

politicsetc.)

The global gender gap index


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134 countries were considered for inclusion,representing 90% of total population

Figure 1 shows a global snapshot

4 major measures of gaps: health(and surivivalrates), education(access and results), economicparticipation (and opportunities), politics (keyposts)

Value 0 = perfect inequality;

value 1: perfect equality



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Main results in 2011, world level

96% of the gap on healthoutcomes is closed

93% of the gap on educationalattainment is

closed

The gap on economic participation stillremains very high (59%)

The largest bridge remains politics: only 18%of the gap is closed.

More specific results and trends



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Out of the 114countries that have been coveredsince 2006, 98have improved, 16have shownwidening gaps

Top ranking Northern Europe: Iceland,

Norway, Finland, Sweden, Denmark. New ZealandBottomranking Yemen, Chad, Pakistan, Mali,Costa dAvorio

High income groups Spain 11, Germany 13,

Belgium 14, UK 15, Netherl. 17, US 19, Canada 20The BRICS: South Africa 12, Russia 45, China 61,Brazil 85, India 112

The rest: France 46, Grecia 58, Italy 74, Japan 94

The global gender gap index. Rankings


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Greatest disparities among the different regionsare related to the economic participationsubindex

Topranking North America with 0,8Bottom ranking Middle East and North Africawith 0,4

Sub saharan Africa countries are the surprise,3 with 0.62

Europe and Central Asia are 2 close to SouthAfrican countries

The global gender gap index. Rankings


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The GGG sub-index. Economics. Rankings


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Closing the gender gap is not only a matter ofrightsbut also of efficiency and development

The most important determinant of a countrys

competitiveness is talent and women have alot of talents

3 graphs plot the GGP index aganinst Globalcompetitiveness index, GDPpc, HDI

There is a strong correlation between equality,growth, human development

The correlation is strongest particularly with HDI

The GGP index. Link with other variables


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GGP and G. Competitiveness I.


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GGP and GDP p.c.


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Distinction between growth of GDPpc and realdevelopment of a human being

UNDP: capabilities approach

HD is a process of widening the choices and

opportunities for all people and not just for onepart of society

Gender disparities are strongly related to HD

HD becomes unjust and discriminatory if most

women are excluded from its benefits

Exclusion of women from opportunities isagainst modern progress

What is the HDI and the HD approach?


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GGP and HDI


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Women education has high returns, increases

general productivity. Human capitalParticipation reduction of the employmentgap is a great driver in the European growth

Women are more efficient consumers, help torise savingsrates, reduce waste of resources

Women and spending decisions greaterinvestors in the real engines of growth:

education, health, sustainable growth (greeneconomy, etc.)

Reasons for strong correlation


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Women and leadership more innovative,

greater talents

International firms are more pro-gender

equality recent research findings confirm roleof women

International emerging firms are more progender

Conclusion. In order to max competitivenessand development potential countries must strive

for gender equality



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More legal rightsfor women leads to more

spending on healthand children and to greaterdevelopment

Recent findings on the relationship betweenwomens rights and growth shows that causalityruns in both directions

GEM vs GDP per capita. Gender EmpowermentMeasure (UNDP) is a mixture of legal rights andeconomic outcomes for women


l E d E l


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Female Empowerment and Economic Development

Across Countries


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Human rights across countries by income group


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Italy continues to be one of the lowest countriesin the EU and deteriorates further over the lastyears

It is 74/134in 2011 Good results (0.996) in education and health(0.98) + very bad (0,589) in economics and politics(0.152)

Economics: occupation, wage diff., key jobsHowever there were positive changes since 2006(+4.8%since 2006, ranked 36 in dynamics)

Lesothos was 1, with 12,8% change

Italy in comparison. Rankings


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Where the most relevant changes in the last 5yrs?

Estimated earned income(0.46 to 0.5)

Posts: Professions, officials, managers (027 to 0.5)

Labor force participation(0.62 to 0.7)Women in ministerialposition (0.09 to 0.28)

Where the least relevant changes in the last 5yrs?Women in Parliament(0.21 to 0.27)

Years with females headof major institutionalbodies (0 to 0)

Italy in comparison. Rankings


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The first revolution occurred: young Italianfemales are more educated than men,according to statistics and tests

however there are still gaps in the universitycurricula

women seem to prefer human and socialsciences despite the occupation and income

gaps .. Why?reasons for this are perhaps still related toother gaps (household discrimination, parentalbent etc.)

Education: the gap is closed but not yet


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Education: the gap is closed but not yet


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Same picture: generally depressed with minor

positive changes

Participation rate: 47% vs 67,7% of men (Total

labor force / total population, 15-64)Italy is far from Lisboa agenda which set part.rate at 60% - the lowest in Europe after Malta

Occupationgap is 0,66 in Italy, 0,80 in Europe,0,95 in Scandinavia.

Role of Women in the Labor Market


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Lower wages between6% and -10%according to official sources (Istat, Cnel,Eurostat), 25-30% according to other estimates

Lower recognition: Do not reach the sameposition although as students outperformmales. Greatest barriers to entry in the labor

market

Lower dynamics: overall picture is changingbut more slowly than other countries (E, Irl, Gr).



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Total gender wage gap: depends on genderdifferences in the distribution of individualcharachteristics (education, family burdens,etc.) and on gender differences in the

rewardsof the samecharacteristicsWage differentials depend on workersattainment it is min with high educated W,max with low educated W

However, recent research shows that if menand women had the same distribution ofindividual characteristics the gap is between

17 and 25%

NO Role of Women in the Labor Market


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History of institutional developments wereunfavourable to women

1. women work in more flexible, lessunionized and less protected segments of the

labour market2. markets where prejudices or discriminatorypractices on gender ground become more

markedLabor market must become less segmentedwith child care and family policies on behalfof women



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Women and the crisis - Italy

Better performance than men

Women are more active (work or willing to

work). 75% of the reduction in inactivity ratesregards women

Less women have lost their jobs during thecrisis


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Women disparities are correlatedwithmotherhood and the number of children

Participation rate falls down and is set at 33%

for mothers with 3 or more childrenItaly is again at the bottomof all charts

Also in terms of inactivity, abandonments anddismissals

More than 50% of mothers leaves does notdepend on a free choice (youngsters andsoutherners are on top)

Mothers in the Labor Market


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Mothers in the Labor Market: participation rates


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Mothers do not return to the Labor Market


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Enormous and not decreasing significantly

In Italy, 76%of family work falls on womenshoulders

No significant signs of changes, other than in

the very long runin 1988 (first year of Istat survey), 85%, in 2002,78%

when both M+W work, at the end of the day,in the average, women work 1.5hrs more thanmen

Household disparities


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things do not improve with children, quite to

the contrary when they arrive men tend todisappear

40%of men devotes 0%to child caring and

27%devotes 0%to family occupationsdifferences are greater in the South and foryoung couples with children

The gender gaps closes too late, and thedistance is maximumfor couples with youngchildren



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In Italy, 76% of family work falls on womenshoulders

No significant signs of changes, other than inthe long run

in 1988 (first year of Istat survey), 85%, in 2002,78%

when both work, women work 1.5hrs more

than mendifferences are greater in the South and foryoung couples with children



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Many studies show that there are goodgeneral reasons for closing the gender gap incompanies boards

It is believed that a heterogeneous board ismore able to monitor the behaviour ofexecutives, decide long term strategies etc.

Itsa better guarantee for shareholders different backgrounds, different viewpoints

Gender gaps in Boards of Directors


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Recent studies show that women are moreactive, vocal and independent members particularly when 2 or more sit on the board

Nevertheless, the Italian Corporate GovernanceCode makes no reccomendations on the issueof gender diversity --- unlike most Europeans

Italian Parliament bill from 2015, 1/3 of theBoards of listed companies must be held byfemale

Gender gap in Boards of Directors


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In Particular Boards an active presence of women helpsto

identify criteria for measuring strategies,

have higher levels of board accountability,

Improve the general governance (levels of attendance,

number of board meetings, performance, transparency)

have more effective communication with stakeholdersand shareholders,

Be more active in promoting non financial performance

measures

such as customer sarisfaction, gender diversity,innovation, and corporate social responsibility

Role of Women in Boards of Directors


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Dismalpicture: 7%of total board seats is held bywomen 3,0if we exclude family ownership

Women are less represented in boards of listedcompanies in Italy than in other OECD countries

Listed companies are less open to women than othercentres (PA, liberal professions)

However, the share is slowly increasing: 4,1% in 2001127 companies --- less than 1% in 1934 12 women in

1962, 291 in 2007.127companies listed at the SE (50%) have at least 1woman (93 or 36% in 2006),

26 have 2 women, 3have 3,2 have 4, 1has 5.

Statistics, again, reflect a big gap and delay


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Role of Women in the Boards of Directors


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Women are less likely to serve on key or executivecommittees ---

Few women on Board are appointed as independentmembers.

They are often related to other members 47% havefamily connections with the controlling shareholder

Family directors are on average less educated thannon affiliated women directors

Women are usually members of SME, operating inconsumption or luxury goods, with largeboards,where ownership is more concentratedand where areinstitutional investors

On the whole they do not count much!!!

Characteristics of Women in Boards


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What are ID?

Same people in different boards ---

Effects of ID. Bad performance and institutionaldegenerations

Monti Gov. has introduced new formal limits

Also women, not differently from men, hold more thanone position

Social network analyisis shows that there is a growth offemale networksand confirm the great importance offamilies in defining the position of directorates

Role of Women in Interlocking Directorates


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1. Women tend to have a greater participation rateover the years

2. The presence of women has positive effects on theequity value and stock returns. This effect increases

as the share of women directors increases3. Women participation is higher in companies

characterized with high propensity to innovate

4. The equity value and stock returns of a company

decreases with the presence of board interlocking.Women interlockers do not make any difference(though small numbers can make a difference)

General evaluation of Women in Boards


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1. In Italy 1,5m firms are headed by women, 23,3%.

2. 61% are individual firms, 97,4% are micro

3. 0,4m are in trade, 0.3 in agriculture

4. Even distribution among regions, with Molise on topwith 30.16%

5. Looking at results there is difference betweenIncome, HDI and GEM

6. Little access to credit. 50% have personal or familycapital, 28% bank credit (83% local banks)

Women as entrepreneurs


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1. How are GG disparities distributed among regions?

2. Some researchers have built different indicators whichalso consider access to resources, to education, tohealth

3. Capability approach and HDI are particularlysentitive to gender issues

4. A GEM Index has been calculated to capture genderinequality in 3 key area: political participation anddecision making power, economic participation, powerover economic resources

5. Looking at results there is difference between Income,HDI and GEM

Some regional disparities in the gender gap


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1. If we focus on Income, Northern reasons are on top

2. If we focus on other indices, Centreregions havehigher values

3. With both rankings the Southremains well belowthe average: there is a regional gap bothconsidering the income and the HD dimensions

4. Regions like Calabria, Campania and Sicily havefemale unemployment rates triplethan Italy

5. Italian regions are on a development path notoriented towards a reduction of regional genderdisparities



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Some regional disparities: rankings


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Some regional disparities: disaggregated values


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Some regional disparities: disaggregated values


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Norms against white resignments. Prodi introducedit in 2007, Sacconi cancelled it in 2008, Forneroreintroduced in 2012 against discrimination

Voluntary dismissals must be recorded on specialbooksat the Labor Office

Sanctionsin case of abuses

Norms are more apt to prevent abuses rather than

prevent dismissals

Policy changes to close the gender gap


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Policy changes 2012, oct. Incentives in the labor market for

youngster (


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Parental leaves and a more equal labor distributionwithin the familiy recognize European legislationand introduce child caring reforms

October 2010, European Parliament: parental leave,2 wks

Fornero reform does not follow only 3 days for thefirst 5 months of life, much less than Fr., Dk, Esp.

Part time jobs are a gender trap, because womentend to fill those positions in a much greaterpercentage



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Public expenditures on behalf of child caring

(0-2 years of age) is very limited:

o 25% less than OECS average

o 50% less than 3-5 years

Fornero reform: vouchersfor baby sitting andbaby schools

Follows the example of Emilia Romagna 250 Euros if both parents work Use of ESF;45% of children (0-3) at baby schools, lessthan 10% in the rest of the country



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August 2011 new bill has introduced new quotas 1/3 of all new seats for listed companies after Aug.2012 must go to women

According to recent changes it may take 60 yrs to

reach the 1/3 quota unless this norm becomes reallyeffective

On an international comparison Italy occupies bottomplaces



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What about the labour market reform?No effective measures to close the gender gap

Tax credits or differential taxation on behalf of womenmay be an effective reform with little burden on the

fiscal deficitIn the UK, between 1970 and 2010 womensparticipation rate increasedby 20% (from 50 to 70%)as a result of voucher distribution for child care andworking tax credit

Incentives on behalf of unemployed women,particularly in the South and if they aredisadvantaged (less taxes for the employer)



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As usual there are normative issues but mainly genderequality is quite hard because of a great culturaldivide

There is a problem of growth potentials

In Italy, for 100 more women in the labor market, wehave 15 more employed people


Closing the gender gap: some rough estimates of


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Closing the gender gap: some rough estimates of

potential benefits

REFERENCES


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REFERENCES

OECD, (2013 Hows life. Measuring well being,http://www.oecd.org/statistics/howslife.htm

M. Doepke, et. al. (2011), The economics and politics ofwomens rights

World Economic Forum (2011) The global gender gapreport, 2010

V. Costantini and S. Monni (2006), Gender disparities in Italyfrom a human development perspective

C. Mussida and M. Picchio (2011), The trend over time ofthe gender wage gap in Italy

T. Addabbo and D. Favaro (2010) Education and wage

differentials by gender in Italy Limpresa in genere. 2 rapporto nazionale

sullimprenditoria femminile

www.lavoce.info gender
http://www.oecd.org/statistics/howslife.htmhttp://www.lavoce.info/http://www.lavoce.info/http://www.oecd.org/statistics/howslife.htm


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In Italy, differences in wages between menand women are high

despite the fact that in Italy, a wider

percentage of better educated women areemployed

And women with potentially lower salaries areunemployed

The wage spread is about 30%, not 6%,among the highest in Europe


Documents

Lezione Su Gender and Economics.2013(Area Giuridica e Conomica)