Gender Inequality Costs Economy Trillions, Study Claims
While all types of inequality have economic consequences, the McKinsey Global Institute (MGI) report, The power of parity: How advancing women's equality can add $12 trillion to global growth, focuses on the economic implications of lack of parity between men and women.
A “best in region” scenario in which all countries match the rate of improvement of the fastest-improving country in their region could add as much as $12tr, or 11 percent, in annual 2025 GDP. In a “full potential” scenario in which women play an identical role in labor markets to that of men, as much as $28tr, or 26 percent, could be added to global annual GDP by 2025. MGI’s full-potential estimate is about double the average estimate of other recent studies, reflecting the fact that MGI has taken a more comprehensive view of gender inequality in work.