High gender inequality in LAC region
Despite great strides made to solidify the role of women the workplace, there still are large gender gaps in the business environment in the Latin America and the Caribbean (LAC) region, where women hold only 15 per cent of management positions and own only 14 per cent of companies, according to a study by the Inter-American Development Bank (IDB).
The study, entitled ‘An Unequal Olympiad: Gender Equity in Latin American and Caribbean Companies’ (available in Spanish only), indicated that only in one out of ten companies the main manager position is held by a woman.
According to the report, the participation of women in leadership positions, the level of training of the workforce, the use of advanced technologies, and a favourable business culture are the main factors that affect gender equality in companies in the region.
The study revealed that women’s participation predominates significantly in areas considered ‘soft’, such as communication and public relations, while ‘harsh’ areas, such as foreign trade, women represent less than 35 per cent of the people employed.
Additionally, there is a higher rate of women in lower positions (36 per cent) than in higher positions (25 per cent), and women represent only 35 per cent of the workforce that uses advanced technologies.
Also it is interesting to note that six out of 10 companies in the LAC region do not provide any type of maternity leave beyond what is determined by law, and only 15 per cent of companies a part of the study analyses whether there are salary gaps within their organisation.
The study was based on interviews with women entrepreneurs and a survey of 1,015 companies from 20 countries in the region on female participation in their organisations, policies towards their employees and the impact caused by the novel coronavirus pandemic.
IDB President Mauricio Claver-Carone said,“Gender inequality, particularly in the labour market, has hampered economic growth and social development in the region for too long. That is why investing in female leadership and promoting women-owned businesses is essential to drive strong and sustainable growth throughout Latin America and the Caribbean”.
The study further proposed implementation of gender quota legislation, transparent publication of salary information, the creation of training programmes and the development of an agenda that facilitates the balance between paid and unpaid work assumed by the majority of women.
Gender equality is one of the five pillars of Vision 2025, the IDB’s plan to achieve a sustainable recovery and economic and social development in the region. This strategy includes the design of incentives to finance initiatives and companies led by women, as well as improvements in access to financial systems.