Does equality pay? Can gender equality and WLB promote economic development and reduce effects of crisis? Liss Schanke Norwegian Association of Local and Regional Authorities

Background: Norwegian Association of Local and Regional Authorities (KS) Represents the interests of all Norwegian local authorities Participates in international projects –EEA and Norway Grants projects in 12 EU countries on a broad range of issues Projects on gender equality in 4 countries, Spain, Portugal, Slovenia, Czech Republic – e.g. pol. participation and WLB “Work life balance” – facilitate balance for men and women between family life and working life, e.g. flexible working hours, parental leave and services for children and elderly. (Flexible working hours, not flexible contracts) WLB is not new, earlier it has been seen as challenge of each individual woman to combine her job and family – now it seen as a structural challenge for society.

1. Can gender equality and WLB promote economic development? “Gender equality and work life balance is a luxury that only rich countries can afford, not relevant for countries in financial crisis.” The contrary is true: gender equality and work life balance represents substantial economic advantages to individual and national economy,very relevant in financial crisis.

Higher birth rates Work life balance makes it easier for young couples to dare to start a family – and easier to combine work and children. WLB thus leads to an increased birth rate Birth rate is a key factor for future economic stability and growth. The sustainable birth rate is 2.1. The rates in Europe vary between 1.3 and 2.2. Very relevant for Greece: the birth rate is approx. 1.4.

Higher employment rates Work life balance requires new services to provide care for children and elderly people – creates new jobs. Lower unemployment rates: very relevant for Greece: Unemployment in Greece 26% in sept – higher for women than men. Youth unemployment 57.6% Higher employment rates: for men/women(S 53/67,N 74/78)

More taxes – and better public services 2 salaries families generally earn more, and pay more taxes Taxes are the basis for all public services: transport, schools, child care, hospitals, care for elderly and disabled Taxes are the basis for employment in the public sector The basis for the «democratic contract»…

Increased purchasing power and consumption Work life balance enables both men and women to work outside the home Generally implies increased family income and increased purchasing power. Purchasing power is the basis for the whole private sector: shops, factories, restaurants, services Purchasing power is the basis for all jobs in the private sector

Better quality and higher productivity? Conservative minister, launched the 2003 law on 40% quota in reg.private company boards. «Success of private companies is linked to the quality/diversity of the board, e.g.to assess the market» 2003: 6% women, % Very possible to find qualified women, 60% of EU university students are women.

Economic crisis as opportunity: Spanish EEA WLB project Develop low cost WLB Best Practices based on local analysis and priorities in Spanish communities Local government WLB planning for staff and inhabitant -Flexibility with regard to working hours in private business and local governments -Day care programs, play groups, open space etc. for children -Support for elderly living at home and their families -Time banks – exchange of voluntary services Such initiatives has a double effect – improve WLB, but also Increases voluntarism, social networks and “social capital”

IDS report 2012: Equality and Growth: Win-Win? “To what extent does gender equality contribute to economic growth? And to what extent does the reverse hold true? A review of literature suggests that the relationship between gender equality and economic growth is asymmetrical. The evidence that gender equality, particularly in education and employment, contributes to economic growth is far more consistent and robust than the relationship that economic growth contributes to gender equality in terms of health, wellbeing and rights. From a growth perspective, therefore, the promotion of certain dimensions of gender equality may appear to offer a win-win solution”

OECD report 2012: Closing the Gender Gap The OECD report focuses on gender equality in education, employment, entrepreneurship Summary: «Gender gaps are pervasive in all walks of economic life and imply large losses in terms of foregone productivity and living standards to individuals and the economy.»

2.Does equality within a country generally pay? - Spirit level: a tool to check whether something is flat, level, in balance - Main message: A society benefits from greater economic equality – not only the poor – but the whole population. - Examples: Life expectancy, literacy, infant mortality, homicides, imprisonment, mental illness, drug addiction

Income differences between the richest and poorest 20%

Negative effects Mental illness – incl. drug & alcohol addiction Infant mortality Homicides Imprisonment Teenage births Obesity Positive effects Life expectancy Social mobility Math & Literacy Trust Health and Social Effects Source: Wilkinson & Pickett, The Spirit Level (2009)

Summing up Gender equality and work life balance represent substantial economic advantages, e.g. increased birth rates, employment and taxes - with positive short term and long term effects. This is especially relevant during a financial crisis – as key elements for a long term strategy to overcome the crisis. It is also important to discuss how the crisis can be used as an opportunity to develop mechanisms that will have a positive effect on gender equality and WLB – not a negative effect. Gender equality and work life balance is of course equally relevant for women and men!