Professor Catherine Powell co-authored an op-ed for Fortune regarding “womenomics,” a concept to encourage women’s labor force participation and reduce pay disparity.
At last month’s World Economic Forum in Davos, Switzerland, Japanese Prime Minister Shinzo Abe boasted that women’s labor force participation had hit 67%, “an all-time high for Japan.” Abe deserves some credit: In the 1990s, Japan’s female labor participation was among the lowest in the developed world, now it is higher than in the U.S., where female labor force participation is just over 57%. To achieve this, and kickstart Japan’s stalled economy, Abe turned to “womenomics.”
Womenomics, a concept first articulated by Kathy Matsui, vice chair of Goldman Sachs Japan, seeks to boost gross domestic product by encouraging women’s labor force participation and reducing pay disparity. Womenomics is unique in that it not only seeks to address the barriers to women’s economic empowerment and create more opportunities for women, but it also challenges entrenched gender stereotypes and male attitudes towards child care.
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In the coming years, Japan’s economic success will largely hinge on its ability to ensure that women have equal access to and opportunity in the workplace. Encouraging women’s labor force participation and empowering families to strike a healthy work-life balance will help Japan overcome its labor shortage and dual demographic challenge of an aging population and low birth rate. Womenomics has already resulted in progress.
The time is now for Japan to double-down on this strategy—and the world would do well to learn from its example. Though it may take years to dismantle legal barriers and shift gender stereotypes, the effort will be well worth it: A study by the McKinsey Global Institute shows that achieving gender parity in the workforce could add a $28 trillion to the global economy. Empowering women isn’t only the right thing to do, it’s the smart thing to do.