Economic Gains from Gender Equality in Nordic Countries

Economic Gains from Gender Equality in Nordic Countries

SUMMARY BRIEF May 2018 http://oe.cd/last-mile-gender-nordic The Nordic countries are leaders on gender equality Key measures of gender gaps in employment, Nordic and selected other OECD countries, 2016 or latest available year Top Moderate Bottom performer performer performer Gender gap Gender gap Gender gap Gender gap Gender gap Female Gender gap in the labour in the in the in the in usual share of in median force employment employment employment weekly managers, earnings for participation rate, 15-64 rate, low rate, high working all ages (%) full-time rate, 15-64 year-olds education, education, hours, all employees, year-olds (p.p.) 25-64 year- 25-64 year- ages (p.p.) all ages (%) (p.p.) olds (p.p.) olds (p.p.) Denmark 6.3 6.2 17.9 4.9 4.2 27.3 5.8 Finland 3.0 2.0 16.7 4.0 4.0 33.8 18.1 Iceland 4.8 4.8 11.3 5.5 8.4 33.3 9.9 Norway 4.3 3.6 11.3 1.4 4.8 37.8 7.1 Sweden 3.6 3.0 13.7 1.5 3.6 39.4 13.4 Canada 7.6 6.1 19.7 6.7 5.6 35.5 18.2 France 7.9 6.4 13.9 5.8 5.6 32.9 9.9 Germany 9.1 8.0 16.4 6.7 8.7 29.3 15.5 Italy 20.0 18.3 30.8 10.0 7.3 27.7 5.6 Japan 18.2 17.2 .. 21.1 .. 13.0 25.7 United Kingdom 10.3 9.4 20.6 8.0 9.0 36.0 16.8 United States 11.5 10.8 25.2 9.8 4.0 43.4 18.1 OECD average 12.2 11.4 20.4 8.7 5.9 32.3 14.1 OECD std. dev. 8.0 7.8 9.0 5.5 2.5 8.0 7.2 The Nordic approach to family- and gender- equality policy The Nordic model has helped deliver large gains in gender equality in employment over the past half-century Female employment rate, 15-64 year-olds, earliest available year and latest available year (2016), Nordic and selected other OECD member countries Earliest available year (varies) Latest available year (2016) % 90 80 70 60 50 40 30 20 10 0 Denmark* Finland Iceland* Norway Sweden Canada* France* Germany Italy Japan United United (1967 & (1970 & (1970 & (1972 & (1963 & (1971 & (1962 & (1991 & (1970 & (1970 & Kingdom* States 2016) 2016) 2016) 2016) 2016) 2016) 2016) 2016) 2016) 2015) (1960 & (1970 & 2016) 2016) Gains in women’s employment can account for a large portion of economic growth in the Nordic countries Average annual rate of growth in GDP per capita and disaggregation of growth into its primary components, longest available series, Nordic and selected other OECD member countries GDP per capita, average annual growth rate (%) Labour productivity (p.p.) Working age share of population (p.p.) Men's employment (p.p.) Women's employment (p.p.) 3 2.5 2 1.5 1 0.5 0 -0.5 Denmark Finland Iceland Norway Sweden Canada France Germany Italy Japan United United (1967- (1970- (1970- (mainland) (1963- (1971- (1962- (1991- (1970- (1970- Kingdom States 2016) 2016) 2016) (1972- 2016) 2016) 2016) 2016) 2016) 2015) (1960- (1970- 2016) 2016) 2016) Future gains from closing remaining gender participation gaps are limited, but potential gains from closing Nordic working hours gaps are larger Estimated gains relative to the baseline in the projected average annual rate of growth in GDP per capita over the period 2013-2040, different gender gap scenarios (closing gender gaps in labour force participation and working hours), percentage points, Nordic and selected other OECD member countries Gender gap in labour force participation rates fully closed by 2040, gender gap in working hours at baseline Gender gaps in both labour force participation rates and working hours fully closed by 2040 Percentage point difference 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Denmark Finland Iceland Norway Sweden Canada France Germany Italy United United Kingdom States The last mile might just be the longest References Citation Is the Last Mile the Longest? Economic Gains from Gender Equality in Nordic Countries Is the Last Mile the Longest? Economic Gains from This brief summarises the OECD's report Is the Last Gender Equality in Nordic Countries Denmark, Finland, Iceland, Norway and Sweden, commonly known as the Nordic countries, have been leaders in the development of modern family and gender policy, and the explicit promotion of gender equality at home, Mile the Longest? Economic Gains from Gender at work, and in public life. Today, on many measures, they boast some of the most gender-equal labour markets Is the Last Mile the Longest? in the OECD. This report shows that improvements in gender equality have contributed considerably to economic growth in Economic Gains from Gender the Nordic countries. Increases in female employment alone are estimated to account for anywhere between Equality in Nordic Countries. The report looks at how roughly 0.05 and 0.40 percentage points to average annual GDP per capita growth – equivalent to 3 to 20% of total GDP per capita growth over the past 50 years or so, depending on the country. Equality in Nordic Countries The Nordic countries are closer than most to achieving gender equality in the labour market. But the last mile may well prove to be the longest one. To make further progress, a continued assessment of the effectiveness of past improvements in gender equality in employment existing public policies and workplace practices is needed. Only with resolve and a continued focus can Nordic countries ensure that men and women contribute to their economies and societies in gender equal measure. Is the have contributed to economic growth in the Nordic Last Mile the countries, and how much more could be gained from Longest? Economic Gains from Gender Equality in Gender from Gains Economic Longest? closing gender gaps still further. Findings suggest that past increases in women's headcount employment, in particular, have made large contributions to economic growth in the Nordics. It also finds that, while closing Nordic Countries remaining gender participation gaps would have only a Consult this publication on line at http://dx.doi.org/10.1787/9789264300040-en. This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information. comparatively small effect on future growth, large gains ISBN 978-92-64-30003-3 81 2018 11 1 P could still be made by closing gender gaps in working hours. 9HSTCQE*daaadd+ Consult the full version of this publication: http://dx.doi.org/10.1787/9789264300040-en.

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