7.4 Women and Economic Development

Women and Income Inequality

Income inequality refers to the unequal distribution of wealth and income within a society. It is often measured by comparing the income or wealth of different groups within a population, such as the rich and the poor, or the top and bottom income earners.

Women are often disproportionately affected by income inequality, as they tend to earn less than men and are more likely to live in poverty. This can be due to a variety of factors, such as discrimination in the workplace, a lack of access to education and training, and the disproportionate burden of unpaid care work that falls on women.

Income inequality can have serious negative consequences for both individuals and societies. It can lead to social and economic divisions, undermine social cohesion, and reduce overall economic growth.

To address income inequality and promote gender equality, it is important to address the root causes of inequality, such as discrimination and a lack of access to education and opportunities. This can include policies such as equal pay laws, investment in education and training, and measures to support and value unpaid care work.

Effects of Employment for Women

When women can get jobs, they can get healthcare, higher education, and get specialized ways to work and start a family to improve their status in society. As countries develop economically, these women can have more rights which allows for more education and less “traditional” roles in homes. Their role in society can change and improve with an education because they can get a job, make money, and live without dependency on men.

Roles of Women Change Based on Economic Development

As countries develop economically, the roles and opportunities available to women often change. In many developing countries, increased economic development has led to a rise in women's participation in the workforce, as more women have gained access to education and employment opportunities.

However, despite this increase in participation, women still face significant barriers to achieving equality in the workplace. They are often paid less than men for the same work and may have limited access to higher paying jobs and leadership roles. In addition, women may face discrimination and other forms of gender-based violence in the workplace.

The changing roles of women in the workforce can also have an impact on other areas of society, such as family dynamics and gender roles. For example, as more women enter the workforce, traditional gender roles and expectations may shift, and there may be a greater need for support services such as child care and eldercare.

Here are some examples of how the roles of women have changed as a result of economic development:

• Increased participation in the workforce: As countries develop economically, women's participation in the workforce tends to increase. This can be due to a variety of factors, such as increased access to education and employment opportunities, changes in societal expectations and gender roles, and the need for additional household income.
• Changes in family dynamics: Economic development can also lead to changes in family dynamics, as more women enter the workforce and take on roles outside of the home. This can result in a greater need for support services, such as child care and eldercare, and may lead to a shift in traditional gender roles and expectations.
• Increased economic independence: Economic development can also provide women with greater economic independence, as they are able to contribute to household income and make their own financial decisions. This can lead to increased autonomy and empowerment for women.
• Changes in societal attitudes: Economic development can also lead to changes in societal attitudes towards women, as they become more visible in the workforce and take on a greater role in the economy. This can lead to a greater recognition of the value of women's contributions and a shift towards more gender-equal attitudes and policies.

Barriers for Women

Despite the increasing participation of women in the workforce, women still face significant barriers to achieving equality in terms of wages and employment opportunities.

On average, women earn less than men for the same work, a phenomenon known as the gender pay gap. The gender pay gap can be caused by a variety of factors, such as discrimination, a lack of access to education and training, and the disproportionate burden of unpaid care work that falls on women.

In addition to the gender pay gap, women may also face barriers to accessing certain types of employment or to advancing in their careers. They may be underrepresented in certain industries or occupational sectors, and they may face discrimination or other barriers to promotion and leadership opportunities.

Here are some examples of barriers that women may face:

• Discrimination: Women may face discrimination in the workplace based on their gender, which can take many forms, including unequal pay for the same work, limited opportunities for promotion and leadership, and gender-based harassment and violence.
• Lack of access to education and training: Women may have limited access to education and training opportunities, which can limit their ability to qualify for certain jobs and advance in their careers.
• Unpaid care work: Women often bear a disproportionate burden of unpaid care work, such as childcare and eldercare, which can limit their ability to participate in paid employment or pursue education and training opportunities.
• Limited access to credit and financial resources: Women may have limited access to credit and financial resources, which can make it difficult for them to start businesses or invest in their own education and training.
• Stereotypes and societal expectations: Women may face societal expectations and stereotypes that limit their career choices and opportunities, and they may be discouraged from pursuing certain fields or leadership roles.

To address these inequalities and promote gender equality in the workforce, it is important to address the root causes of inequality, such as discrimination and a lack of access to education and opportunities. This can include measures such as equal pay laws, investment in education and training, and policies that support and value unpaid care work.

Microloans

Microloans, or small loans provided to individuals or small businesses, can be a useful tool for promoting economic development and improving standards of living, particularly for women.

Microloans can provide women with the financial resources they need to start or expand small businesses, which can be an important source of income and a means of improving their standard of living. Small businesses can also contribute to local economic development and create jobs for others in the community.

Microloans can be especially useful for women in developing countries, where access to traditional forms of credit may be limited. They can provide a way for women to overcome financial barriers and gain greater economic independence and empowerment.

Here are some examples of how microloans have been used to support small businesses and improve standards of living:

• A group of women in a rural village in India received microloans to start a small business selling handmade crafts. The business provided a steady source of income for the women and allowed them to improve their standard of living by investing in education and healthcare for their families.
• A small business owner in a developing country received a microloan to expand her business, which sold fresh produce in the local market. The loan allowed her to purchase more inventory and invest in marketing, which helped her to increase sales and improve her standard of living.
• A group of women in a urban slum in a developing country received microloans to start a small business making and selling snacks. The business provided a stable source of income for the women and allowed them to improve their living conditions by investing in housing and other necessities.
• A small business owner in a developing country received a microloan to purchase equipment and supplies for her business, which provided a range of services to the local community, including tailoring and haircuts. The loan allowed her to expand her business and increase her income, which allowed her to improve her standard of living and support her family.

The United Nations developed a mandate called the Millennium Development Goals that were created in 2015 with eight goals in mind. One of these goals is to promote gender equality and empower women through the provision of better women’s health care. Some of the other goals include hunger eradication, basic universal education, and an end to abject poverty. 

Here are some examples of how the MDGs promoted gender equality:

• Goal 3: Promote gender equality and empower women: This goal aimed to eliminate gender disparities in education, promote gender equality in employment, and eliminate all forms of violence against women. To achieve this goal, countries implemented a range of policies and programs, such as increasing access to education for girls, promoting women's participation in the workforce, and implementing laws and policies to combat gender-based violence.
• Goal 5: Improve maternal health: This goal aimed to reduce maternal mortality and increase access to reproductive health services. To achieve this goal, countries implemented a range of policies and programs, such as increasing the availability of skilled birth attendants and providing access to reproductive health services, including family planning.
• Goal 8: Develop a global partnership for development: This goal aimed to increase development assistance and improve the trade and financial systems that support development. To achieve this goal, countries implemented a range of policies and programs, such as increasing development aid and improving the access of developing countries to global markets.

Here is a graphic including all of the Millennium Development Goals below ↓

Image Courtesy of UN