Why Japanese Gender Parity Is a Problem

The JAL Group (Japan Airlines) new CEO is a woman.

However, the World Economic Forum’s Global Gender Report 2024 places Japan at 130 for female leadership positions among 146 nations:

Japanese Gender Parity

Womenomics

Japan has a history of anti-female economic bias. While their tax system encouraged women to take low paying jobs, they offered little support through parental leave and childcare policies. But perhaps most crucially, Japanese social norms tilt toward patriarchy. Whether for promotions at work or responsibilities at home, men get priority.

More recently though, the male bias became a problem. Observing Japan’s shrinking workforce, a Goldman Sachs executive said that more female participation would have boosted their GDP by as much as 15 percent. Following her lead, during 2013, Japan proclaimed its Womenomics initiative. Increasing female friendliness, new parental leave policies now provide support for a year after a child is born. In addition, the country added more daycare facilities as more women’s families needed their income.

But still, the new Japan Airlines CEO was an anomaly.

Our Bottom Line: Production Possibilities Graphs

Whenever any group is excluded, everyone suffers from the decline in business activity. Summarized through a production possibilities graph, the curve illustrates the maximum capability of an economy like Japan using all existing land, labor, and capital. Then, through a dot inside the curve, we can show the underutilization created by the absence of Japanese gender parity:

Japan is not alone. Like a production possibilities graph, IMF estimates display the benefits of gender parity:

My sources and more: Thanks to the BBCs Business Daily for inspiring today’s post. Next, for up-to-date stats, WEF’s Global Gender Gap Report 2024 had the numbers and this IMF blog had the analysis. Then, for more insight we can look at this dated but still accurate 2016 Asia Pacific Curriculum report and this paper from Goldman Sachs.