Benefits of Women's Economic Participation
Financial advisers are scurrying to attract women as impact investing becomes increasingly popular. Pax World Investments published a study showing that over the past 40 years, women's participation in the world economy has generated more than $3.5 trillion. By 2030, it is projected that women will hold two thirds of America's wealth. This is a plus for financial advisers because women are twice as likely to be loyal to advisers and are 20% more interested in environmentally responsible investments than men. Higher female participation in the economy not only benefits environment and social causes through impact investing, but also would cause GDP to rise. A UN Women study found that if women's paid employment rates rose to the same level as men's, the United States' GDP would rise by 9%. The study also found that increasing the share of household income controlled by women changes spending in ways that benefit children. Additionally, Fortune 500 companies with more women in management positions delivered a total return to shareholders that was 34 per cent higher than for companies with the lowest representation. The financial and social benefits of female economic participation are hard to ignore. For the sake of society at large, men and women alike need to work together to empower women to increase their involvement in the financial world.