Europe is crying out for measures to enhance growth. Here is – perhaps – a novel way.
I recently came across, at the homepage of the Central Statistical Bureau of Latvia, reporting of a study of gender equality in the European Union and looking at the data it struck me how much it resembled data for GDP per capita and a simple plot of the two against each other confirms that, see Figure 1.
Figure 1: Gender equality plotted against GDP per capita, 2012, EU27 minus Luxembourg (Estonia in blue, Latvia in red, Lithuania in green)
Source: Eurostat and Central Statistical Bureau of Latvia
As we know, such a relationship does not necessary imply causality – does equality increase GDP per capita? Or does higher GDP per capita foster more equality? Or is the relationship just of a spurious nature? Without really knowing it I could buy into causality going both ways: On the one hand, giving women better opportunities should help growth (as an extreme example one could use Saudi Arabia where women are not allowed to drive a car – this hardly helps GDP…), on the other hand richer countries devote more resources to promote equality. I should know since of the top four in terms of equality we find the three Nordic countries of the EU plus the Netherlands.
So, improve Latvian gender equality and higher GDP will ensue! We shall see…
And we shall indeed see if this relationship might hold for if one thing seems certain then it is the Rise of the Women in Latvia, certainly in terms of education. Figure 2 displays – and this is the graph I find fascinating here – the difference between female and male higher education attainment. Most countries these days see more women than men in higher education, a very different situation from the ‘old’ days but the Baltic countries stand out in terms of this inequality with startlingly high differences in terms of higher education attainment.
Figure 2: 15 – 64 years of age, 2012. Share of women with tertiary education minus share of men with tertiary education
Source: Eurostat and own calculations
Some day that should translate into more power for the women and thus less inequality between the two sexes and then – perhaps – higher GDP per capita.
OK, pretty lightweight ‘analysis’ but Figure 2 is remarkable and worth contemplating also in other contexts than pure economic ones.
Morten Hansen is Head of Economics Department at the Stockholm School of Economics in Riga
Komentāri (21)
lindapastare 17.07.2013. 10.52
This is all pretty simple. There is an awful lot of jobs in public sector that require higher education and are heavily underpaid at the same time – education, health care and local/state government. These positions are mainly filled by women – by a great margin (160K vs. 60K, even including male-dominated law enforcement).
But the reason those jobs ar mostly occupied by women is the overall social structure where men are considered to be the main financial supporters of the family. This requires them to always seek more lucrative position, a more risky approach in general. It allows them to support their wives who in turn can work in more stable (but less paid) jobs.
Therefore I would suggest education does not affect gender equality. It is the general family structure and male-female relationship that does.
Now how does it correlate with GDP per capita? With higher GDP state (and individuals) can spend more on those public sector positions that are occupied mostly by women. Once that happens and women in general start earning almost as much as men, the family and social structure changes and men are not considered main family supporters anymore. That in turn puts more financial responsibility to women and now they have to take risks and pursue better-paid jobs as well. That makes everyone equal and results in better gender equality.
But I don’t think that is a good thing, actually :)
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grislits > lindapastare 17.07.2013. 11.13
Very well written!
And if gender equality is reached, there remain question – if women is free to decide, does woman want to do these jobs that are mainly considered as men jobs? Actually, answer is – no! – http://www.youtube.com/watch?v=tiJVJ5QRRUE (Brainwash: The Gender Equality Paradox)
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lasis75 17.07.2013. 11.27
Warren Buffett once said that one of the reasons for his great success was that he was competing with only half of the population. And I can say the same about myself except that so far I don’t consider my success to be “great” in comparison with Warren Buffett. But anyway I have seen women being mistreated and not having the same opportunities in Latvia. The huge mystery about this situation for me is why women accept that. I have discussed that with my wife and other women and it seems that they don’t realize how bad the situation actually is. A lot of them agree that “men are better managers”, “majority of women in workplace are bitches” and “women colleagues are nervous and captious”.
And there’s more… I have heard manager saying to my fellow college „sorry but I will not assign you to this job, because you’re a woman”. And I have heard another manager (btw lady with western education) saying to another college who was an acting head of division at that time „sorry but I will not make you a permanent head of division, because there’s too much femininity in our department, so I’m looking for a male manager who could hold everything together”.
Even if we would agree that women are more nervous or captious in the workplace (which they are not) then it’s only because we are mixing effect with causes. I have a very high confidence, which has helped me a lot in my professional carrier, but it’s only because I have always been “the bright tall young men” that all the grandmas, aunts, teachers, women colleagues so much love and worship here in Latvia. But already as a child I saw that my grandma’s attitude was different towards my sister. I also noticed that in school boys were “smart”, but girls were “zubrilas”. In my wild study years I was confused why the one night stands make me a “cool guy” while the girls I was picking up in the bars were “whores”. So it’s no wonder that women end up having a nervous breakdown at some point of their carriers, while men can “hold everything together” with their confidence.
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janis17 > lasis75 17.07.2013. 21.27
Women were pushed to leave their traditional life style after World War in 20th century.
Especially after WWII. Especially in ussr.
I don’t think this made society “more happy”, children more quality “rised”.
http://russiapedia.rt.com/files/galleries/back-to-the-ussr/back-to-the-ussr_31.jpg
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janis17 > lasis75 18.07.2013. 12.01
Aha. Taleban :)
http://www.allposters.co.uk/-sp/Woman-Playing-Piano-1922-Posters_i6044536_.htm
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Ieva Leinerte > lasis75 20.07.2013. 00.03
This is one of the best write-ups I have seen for ages. I wish there were more comments like this.
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lasis75 > lasis75 17.07.2013. 21.33
traditional?
what are you? a Taliban?
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Kaspars Špūle 18.07.2013. 09.19
Hansena kungs!
Vai Jūs esat krievs?
Vai arī Jums nav naudas, lai samaksātu tulkam par Jūsu raksta pārtulkošanu mūsu (Latvijas valsts) valodā?
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@Aivars Laicāns > Kaspars Špūle 18.07.2013. 10.46
fretka!
Vai Jūs esat kretīns? Vai arī Jums nav naudas, lai samaksātu skolotājam par anglu valodas stundām?
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Ieva Leinerte > Kaspars Špūle 19.07.2013. 23.58
Cienijamais fretka
Jus, un it sevishki, IR komentu lasitaji bus daudz laimigaki ja dosieties komentet Delfu saita un she te aprobezosieties tikai ar lasishanu.
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Elita Dreimane > Kaspars Špūle 21.07.2013. 21.37
Hansena kungs ir dānis, kurš ar šo demonstrē cieņu pret valsti, kurā viņš strādā gandrīz desmit gadus.
No otras puses – varbūt viņam ar valodām vēl grūtāk nekā ar ekonomiku.
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Ieva Leinerte > Kaspars Špūle 23.07.2013. 06.12
Var būt ka nav citas tādas vietas, kur angliski runājošā sabiedrība varētu diskutēt par Latvijas ekonomikas jautājumiem..
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Ieva Leinerte > Kaspars Špūle 23.07.2013. 06.33
The relationship you found is very fascinating. However, I believe there is another strong variable unaccounted, hence all other things aren’t equal. Unlike in Germany, The post soviet countries have an inflation of the post secondary education. Accordingly attaining another bachelors or masters is an alternative to being unemployed. Also, a similar trend has been observed in the US: a weak job market motivates people to stay in school longer.
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Kaspars Špūle > Kaspars Špūle 18.07.2013. 11.23
Paldies par Jūsu viedokli, Paula!
Jūs noteikti esat ļoti inteliģents cilvēks.
Lai gan man šķiet, ka diezin vai Hansena kungs būs Jums pateicīgs… :)
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Kaspars Špūle > Kaspars Špūle 20.07.2013. 08.27
Cienījamais MZGD!
Paldies, ka cenšaties rakstīt latviešu valodā.
Diemžēl arī Jūs nekādi nepaskaidrojat, kādēļ jau tā nelielā vieta, ko latviešu valoda ieņem pasaules tīmeklī, būtu jāatdod citām valodām.
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