In his report, James Medagalio discusses the global economic rise of women. He uses India and China as examples of increased of female earnings, equaling $1.6 trillion in 2015 and an expected $5 trillion in 2020. However, there is still inequality in the workforce as many more men than women are engaged in labor unions. Medagalio discusses education as a solution to reducing inequality and enabling women to compete for higher paying jobs. He states that women’s purchasing power is increasing and womenomics is a long term trend. He poses three factors to consider when investing in womenomics: the emerging market consumer, millennials, and baby boomers.
This article uncovers traditional assumptions about men and women in the workforce. The writer, Brian Bloch, concedes that there are factors that differentiate men and women. He quotes different sources which state these differences are evident in investment behavior. He also cites a study done at the University of Cologne which found that female fund managers’ performances and strategies are more stable than those of men. He goes on to discuss different barriers and ceilings women face when applying for jobs in finance. In all, he states that these differences are likely to decline, but not completely disappear. He ends on a positive note, acknowledging the barriers women were able to break through in the 20th century.
Women, Wealth & Impact: Investing with a Gender Lens 2.0
Luisamaria Ruiz Charlie, Lori Choi, Patricia Farrar- Rivas, and Alison Pyott
"Gender Lens is about making the world a better place for everyone through our investment choices. Investing in all of us, by all of us, has to be the ultimate goal."
Traditionally, financial analysis has ignored gender inequality in the workforce. This report discusses Gender Lens, an approach to investment which takes gender imbalances into account. The report goes on to state the different factors which are garnering an interest into gender awareness. One factor is the increased cognizance of the under-representation of women in the workforce. In all, investors have begun to realize the benefits of gender consideration, allowing companies to receive financial gain, while making a positive social impact.
In this article, Barry Ritholz discusses why so few women are in finance. He cites a statistic that states, “Less than 10% of all US fund managers are women; women exclusively run 2% of the industry’s assets and 78% of the funds, with mixed-gender teams accounting for the balance.” He explains that this grim statistic can be attributed to a male dominated society, but is a larger reflection of the “resistant to change” nature of the financial industry. He uses research conducted by Credit Suisse which demonstrates that increasing female representation on corporate boards is associated with enhanced financial performance. He also mentions several studies that show women perform better on an absolute and risk-adjusted basis than men. He concludes with signs of progression in this field which include an increased female representation on corporate boards and the creation of organizations such as Girls Who Invest which aim to increase female representation in the financial industry.
This paper discusses the lack of women in leadership and describes a possible strategy aimed at increasing the amount of women in leadership positions. Furthermore, this strategy can be used to decrease the gender gap and help create a more diverse work environment.