Mexico's Economic Potential: Bridging the Gender Employment Gap
A new report suggests Mexico could boost its economy by $390.5 billion annually by equalizing male and female workforce participation. Improved childcare access is key to achieving this goal.
A recent study by the Milken Institute has revealed a significant economic opportunity for Mexico. The report, released on August 20, 2024, suggests that the nation could increase its annual economic activity by over 25%, equivalent to $390.5 billion, by achieving gender parity in workforce participation.
Currently, there's a stark contrast in employment rates between Mexican men and women. World Bank data cited in the report shows that 77.5% of working-age men are employed, compared to only 45.6% of women. This disparity highlights a substantial untapped potential in the Mexican labor market.
The research emphasizes that improving access to childcare is crucial for increasing female workforce participation. Maggie Switek, who led the study, stated:
"The number one thing that keeps women out of the workforce is infant care and childcare."
Mexico faces one of the highest "child penalties" globally, referring to the impact of having children on the male-to-female employment ratio. This factor significantly contributes to the country's low female labor force participation, which is among the lowest in Latin America.
Interestingly, the desire for change is evident among the Mexican population. The institute's findings reveal that nearly 65% of Mexican women aspire to work, either exclusively or while managing household responsibilities. Moreover, 78% of men expressed support for women's participation in the workforce.
The economic benefits of increased female employment are substantial. The report estimates that if Mexico were to raise its female employment levels to match those of the United States (57.3% as of 2023), it would add $132 billion to the Mexican economy.
It's worth noting that Mexico has made significant strides in gender equality in recent years. The country ranks 25th out of 153 nations in the World Economic Forum's Global Gender Gap Index 2020, and the percentage of women in Mexico's Congress has increased from 14% in 2000 to over 48% in 2021. Additionally, Mexico introduced paid paternity leave in 2012, allowing fathers to take 5 days off, which is a step towards more equitable parenting responsibilities.
The upcoming presidency of Claudia Sheinbaum, set to become Mexico's first female president in October 2024, brings hope for further progress. Sheinbaum has pledged to reintroduce government-run "early education centers," which could play a crucial role in addressing the childcare challenges faced by working mothers.
As Mexico continues to address gender disparities in the workforce, it's clear that the potential economic gains are substantial. By focusing on policies that support working parents, particularly in terms of childcare access, Mexico could unlock a new era of economic growth and social progress.
