Closing the gender payment gap

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Closing the Gender Payment Gap
It can be indicated that an increase in women’s involvement in the labor force in addition to closing the pay gap that exists between men and women should have a positive impact on the economic growth of all the European Union countries. In the recent past, a lot of improvements have been made labor laws; there still exist persistent gender gaps both in market activities and pay rates between men and women that have consequently lowered the employment rates for the females. The result is that the potential growth of European Union has been limited. Therefore, closing the gender gap payment can lead to better economic growth in four different ways.
First, there will be an increase in GDP per capita income from about 3.2 to 5.5% by 2050. According to the Economics Benefits of Gender Equality in European Union (1), this will contribute to almost 280 billion euros rise in the GDP by the end of 2030. Secondly, closing the gender pay gap could lead to employment increase. According to studies, it is estimated that employment rates should increase from 3.5 to 6 million, and the number of women will rise in the labor market (3). Consequently, the flow of money in the economy will be improved. Moreover, the closure will result in poverty reduction and improved standard of living among people. Increasing the women’s pay rates and allowing more women to acquire jobs will boost family income. Additionally, the women will gain more confidence that would encourage them to take more leadership, social, and economic roles.

Lastly, demand for labor is likely to increase. As more companies will be opening their systems to hire more people, more opportunities will be created to meet the requirement. Consequently, more people will get jobs and the economy of the country is likely to rise.
Work Cited
Economics Benefits of Gender Equality in European Union. How closing the gender labor market activity and pay gap leads to economic growth. 2018. Retrieved from http://eige.europa.eu/gender-mainstreaming/policy-areas/economic-and-financial-affairs/economic-benefits-gender-equality/activity-pay. Accessed on 26 June 2018.