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Since its inception in 1901, the Nobel Price – one of the World’s most prestigious international annual awards – has been awarded to 64 women[i]. This year, Claudia Goldin is the third woman to receive the ‘Nobel Price for Economics’[ii]. Ms. Goldin’s work is a fascinating journey of discovery: Over 4 generations of women she unveils the factors that drive gender inequality in the work place, in particular the gender pay gap. Thus, this article shows some of the links between her work and ours at AFC and GOPA; and hopes to encourage reading of her books and related literature (thus, exceptionally on this site, a bibliography with this article).
A historical perspective: Women's struggle through centuries
Ms. Goldin’s starts of about one and a half centuries ago, when laws practically everywhere discriminated against women. Women were prohibited from voting, from making their own choices, and were told what profession and career to pursue (and where), whom to marry, and how many children to bear. Notably, the same week of unveiling the Nobel Memorial Prize to Ms Goldin was the 120th anniversary of the formation of ‘Women's Social and Political Union’ by Emmeline and Christabel Pankhurst.
Legal reforms: Progress in the West, challenges in the Global South
Legal discrimination against women has been largely eradicated in ‘the West’[iii]. Indeed, the economist noted that the drive to gender equality and equity is one of the dividing lines with authoritarian and anti-modern regimes. One of those is ruling Iran, making suppression and humiliation of women a corner stone of its power model. Narges Mohammadi is imprisoned by that same regime for that same reason. Her Nobel Peace Prize is as valuable as sad a reminder.
Luckily, most low-income countries of the ‘Global South’ have discarded legal discrimination in many dimensions, such as land ownership, inheritance, choice of education, career, and spouse (not necessarily in that order). Development cooperation has been contributing persistently to this progress, GOPA Consulting Group’s firms have been implementing projects in that line as well.
The role of technology and changing societal norms
Ms. Goldin showed how the legal and customary discriminations were dissipated by the choices of succeeding generations of women across the 20th century. Technological change played an important role in this story; namely the innovation of female-controlled, effective and convenient contraception. Ms. Goldin tells the fascinating and inspiring story how women, for the first time in history, came within reach of equality in various dimensions of careers and family; and how modern economies have to rethink how to organize care-giving if they want to overcome the persisting gender-gaps.
„[C]aregiving, so critical to the career goals of women and to couple equity, is also crucial to the running of the entire economy. Women cannot be essential workers in two places at the same time. Something has to give.” (Goldin 2021)
Whereas Ms. Goldin’s findings have been affirmed for several economies, actual change in most places in the ‘Global South’ is much slower than legal change. Customs that discriminate against women persist and sadly often reign. For instance, too often relatives steal the family assets from a recently widowed wife. Many women are married off at young age, rather than choosing whom to marry and when. The girlpower index compares this dimension of gender equity for various countries (e.g. Hamaus/Selhause 2012). Financial literacy training and supporting account opening of rural women is one way to alleviate these customs; AFC has delivered such trainings among others in Togo and Nigeria.
Women empowerment and economic development
Esther Duflo who won the Nobel Memorial Price in 2019[iv], wrote a landmark paper about ‘women empowerment and economic development’. It summarized the state of research in 2011, and underlined the significant potential that gender equality and equity offer for economic development. However, it showed that gender-oriented policy goals do not work like simple levers to propel development; rather policy makers have to make a deliberate choice to pursue gender equality and equity in their own right. Ms. Duflo’s paper informed the World Development report on ‘Gender and Development’ in 2012. Since then, gender-equality and equity have gained importance as corner stones of bi- and multilateral development agencies’ programmes. Germany’s ‘feminist development policy’ builds on these discourses and research.
Challenges AFC experiences in African and Asian economies
At AFC, we experience that the dynamics that Ms. Goldin unveiled play out in parallels in many economies in Africa and Asia; for instance, when we provided training to female entrepreneurs in Uganda (also here) and in Ghana. Women who struggle to attain education – at times held back by their (male) relatives who do not want to pay for their daughters’ academic or professional training. Women who find ways to combine motherhood and careers – but amidst weakening wider families, face new challenges to organize the care for their children. Oftentimes, they find that their husbands are not willing to pick up a share. One of my favorite findings from financial behavior research in Uganda (between 2011 and 2015, exemplary Muzigiti/ Schmidt 2013) illustrates the point: Men recorded paying of school fees as one of their top three expenditures; in focus groups they said they are the ones responsible for educating the children (‘that’s a man’s job’). Yet, women record paying of school fees as their number one expenditure as well. Obviously, men and women share the task. However, one side also has to nurture the illusion of the other side that they do it all.
Adapting to modern realities
I am glad to observe that this is also changing. For instance in Uganda, parents who come jointly to vaccinate their child do not have to wait in line (of children brought by their mothers alone). Inevitably, they face challenges that Ms. Goldin discussed for the most recent generation. Couples have to decide the trade-off between ‘greedy work’ and a more flexible job. Ms. Goldin denotes as ‘greedy work’ that which requires working odd evenings or weekends, e. g. to beat deadlines; however it is excessively better paid than the flexible job position that allows to respond to caretaking needs. These needs, in Europe and Northern America and other countries well advanced in the demographic transition, increasingly refer to caring for the elderly. Africa is home to the 10 countries with the youngest populations, the continent’s median age is estimated at 19 years. Yet, in our financial literacy projects, we see the topic of ‘preparing for old age’ rising in resonance even in Africa; surely a coming topic for both couple and gender equity.
See also our article on Gender-inclusiveness in finance as a first step to gender equality.
For more information please Oliver.Schmidt [at] afci.de
Bibliography:
Duflo, E. (2012): Women Empowerment and Economic Development, Journal of Economic Literature 2012, 50(4), 1051–1079.
Goldin, C. (2021): Careers and Family: Women’s Century-Long Journey toward Equity (English Edition).
Hamaus, J. /Meier zu Selhausen, F. (2012): Gender and Development, in: F. Meier zu Selhausen (ed.): Development matters – Africa, Uganda and the Rwenzoris, MMU Yearbook Vol. 3, p. 96-105, https://mmuyb.files.wordpress.com/2013/10/yearbook-2012-vol-3.pdf (date accessed 13/10/23).
Muzigiti, G. / Schmidt, O. (2013): Gender - Balance and Microfinance Product Development, AMFIU Working Paper No 14, 2nd edition, www.researchgate.net/publication/303851285_Gender_-_Balance_and_Microfinance_Product_Development (date accessed 13/10/23).
World Bank (2012): Gender and Development, World Development Report, https://openknowledge.worldbank.org/entities/publication/51c285f6-0200-590c-97d3-95b937be3271 (date accessed 13/10/23).
[i] The first women to receive the Nobel Prize in Physics was Marie Curie together with Henri Bequerel and Pierre Curie. The French Academy of Sciences, which also long refused to admit Madame Curie, initially did not nominate her. Her husband and subsequent co-laureate objected and so she was added to the ultimately successful nomination. In 1909, Marie Curie was the first person ever to receive a second Nobel Prize, this time in Chemistry.
[ii] The correct name is ‘Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel’. It was created by the Central Bank of Sweden in 1968, on occasion of its 300th anniversary. It is since awarded alongside the classic Nobel Prices. Interestingly, Ms. Goldin is only the 2nd economist to receive the prize. The first went to political scientist Elinor Ostrom in 2009.
[iii] A socio-cultural and political concept, not a geographical one, see exemplarily Münkler, A. H. (2010): Geschichte des Westens, Vol. I, 2nd edition, München.
[iv] Also the youngest laureate of the Economics Prize. The youngest Nobel laureate of all (so far) is also a woman, Malala Yousafzai who received the Nobel Peace Prize in 2014 at age of 17 years.