Mexico could boost its annual economic activity by more than 25%, or $390.5 billion, if women worked at a rate comparable to men, a report found on Tuesday from the Milken Institute, a U.S.-based think tank.
According to World Bank data cited in the study, about 45.6% of working-age Mexican women have jobs, compared to 77.5% for men. The report suggests that improving access to childcare is key to getting more women into the workforce. If female employment levels were comparable to those in the U.S., Mexico’s economy would gain an additional $132 billion, according to data compiled by the institute.
According to the research, childcare and infant care are the primary reasons why women are not working. The report highlighted that Mexico has one of the highest “child penalties” in the world, meaning that having children has a more significant impact on the female employment rate than in other countries.
The expansion of high-quality, low-cost childcare is a crucial area where Mexico needs to invest, said Maggie Switek, who led the research. Japan’s success with this approach was cited as an example. With some of the lowest female labor force participation rates in Latin America, Mexico has room for improvement.
According to the institute, nearly 65% of Mexican women want to work, either exclusively or while also taking care of their homes and families, and 78% of men said they would prefer women working. President-elect Claudia Sheinbaum, who is set to become Mexico’s first female president in October, has promised to revive “early education centers” run by the government.
Source: US News
