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Tag Archives: Sweden

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By Lilli DeBode, guest blogger, senior at Kent Place School

Sweden has the reputation of a land of idyllic gender equality. I personally have cited the country numerous times in my previous posts. As close as we have come so far to parity, Sweden’s promising experiment is a beacon of hope, proving that it is in fact possible for women to be treated as men’s equals. But despite their immense progress, they still have one area they need to work on.

Sweden is among the top ranked countries for parental leave (16 months for each parent,) the female employment rate is above 70%, and the difference between male and female employment rates is about 5%. Women also make up 45% of parliament, and 64% of managers in the public sector are women. Sounds pretty good, right? Yes, it is incredibly impressive and it’s much more than almost all other countries can say, but the Swedes are still struggling with managers in the private sector. Women only make up 28% of all upper managerial positions. While this number pretty much aligns with the rest of the developed western nations, the Swedes find the inconsistency between the number of women representatives in the public and private sectors quite irritating.

So what is the reasoning behind this lack of women in executive management teams? Women are taking more time off to look after their children. As I stated above, both men and women get 16 months off from work after they have a baby, but just because each parent is offered the leave from work, doesn’t mean they both take the same amount of time. The option is out there but it is relatively new and the gender norms haven’t been dispelled yet. Men and women are forced to take at least 60 days off, but after that time period, it is up to them whether they want to return early or not. According to Statistics Sweden, “Women take 75% of parental leave and work part-time more than three times as often as men.”

Although it often may sound like it, Sweden isn’t a utopia where both the men and the women work and share equal part in the office and the home. They still struggle with the problems we face every day. Though they seem much less entrenched in Sweden, the notion that men should be the breadwinners and the women should be the homemakers is still present. It is projected to take 52 years before women make up 50% of company management position, but citizens want results now. It seems that if they keep up the battle for equality that they have been winning in spades, the Swedes will have their equality in all sectors much sooner than they had planned.

Sources and Resources: This article by Quartz provides more in-depth information about Sweden’s “Mom Trap.” The Economist’s article on  female power contains more statistical information about female employment in Sweden and other developed countries around the world.

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The Surprising Glass Ceiling in Sweden and France

What happens to a woman’s career trajectory when her job is family-friendly? The results have not been what policy makers expected.

In their work lives, Swedish women receive generous paid maternity leave and and can opt for flexible work hours. Politically, the Swedish Parliament has gender balance as do 2 major Swedish political parties’ electoral slates. In France, 17 of President Hollande’s 34 cabinet ministers are female and the French Constitution was amended in 2010 to mandate corporate and public gender equality. In France, Sweden and across the EU, there is a commitment to end gender inequality.

And yet, in France and Sweden, in private industry, men are in charge. Among France’s 87 universities, only 8 presidents are female. In large French law firms, a vast minority of the partners are female. Even when their boards implement gender balance quotas, large corporations have few, if any, females CEOs.

Social scientists are not sure why women are not rising to the top when the work world has made it easier to combine work and family. One theory is children. When labor force participation enables women to divide their time and energy between work and the family, they select the balance. As a result, many do not become the professional alpha women who can compete against committed males who rise to the top.

Monday Gender Issues Posts


Sources and Resources: This excellent discussion of “The Plight of the Alpha Female” appeared recently in the City Journal while this paper, “Is There a Glass Ceiling in Sweden?” presents details on the the surprising results of the Swedish family-friendly work environment. Also, you might want to look at an avalanche of gender stats and ideas in this most recent 300+ page OECD report, “Closing the Gender Gap.”

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Unless We Look More Closely at Women in the Global Labor Force, We See Only the Tip of the Iceberg.

Name a nation.

No matter which country you choose, you probably would see that women are underemployed. And still then, you would be looking only at the tip of the iceberg. Female labor force underutilization relates to a host of facts about a society that the consulting firm, Booz & Co. compiled in a recent report. Although I was not entirely convinced that all of their variables were quantifiable, I was quite comfortable with their basic premise. The world will be much better off when the one billion or so women that will enter the global economy during the next decade are appropriately empowered.

To assess female empowerment in 128 countries, Booz & Co. used input and output variables to create a Third Billion Index. Input scores involved components like female literacy, access to credit, laws about job opportunities; output numbers included male/female pay equity, the glass ceiling in business and in government, the types of jobs women occupy. Shown by their diagram below, based on the Index rank, Booz also grouped countries to display, for example, who was, “On the Path to Success,” or “At the Starting Gate.”

Crucially, the Booz report points out that the positive externalities of empowering women ripple far beyond the GDP. For example, women with income tend to invest more in their children. As a result, the impact on future generations is geometric.

Their conclusions? The top ranked countries are Australia, Norway, Sweden, Finland, New Zealand. The US is #30.

Sources and Resources: The Booz & Co. report, titled “Empowering the Third Billion: Women and the World of Work 2012,” is thought-provoking and, in some ways, surprising. I recommend that you take a look at it. For a much briefer summary, here is an Economist article and the source of my GDP graph below.

Empowering Women Adds to a Nation's GDP

Comparing How Countries Empower Women

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Looming Worldwide Pig Shortage

Announcing the cancellation of this year’s bacon eating contest, Major League Eating (“the world body that governs all stomach-centric sports’) said,  ”We cannot, in good conscience, allow [top ranked eater] Joey Chestnut to eat bacon during a global pork shortage,…We estimate that Joey alone could eat 20 pounds of bacon in 10 minutes of competition.”

Where is the pork shortage?

First stop, the US:

  • Skyrocketing corn prices make feeding pigs so expensive that farmers are killing their livestock. Actually, we have a pork glut now–up 31% between last August and this August according to the USDA. But less livestock will probably create a shortage during 2013.

 

Next, the European Union:

  • Britain’s National Pig Association (NPA) reports steep declines in Poland’s, Sweden’s, and Ireland’s pig population. Compounding the problem, in the UK, the NPA says sow herd size will probably drop by 20%.

 

And finally, China:

  • With global pork prices ascending, will China need even more inventory for its Strategic Pork Reserve (SPR)? Created during 2007 after porcine blue ear disease diminished the Chinese pig population, the SPR continues to stock hundreds of millions of pounds of frozen pork that are ready for release when prices spike. (But, according to the NY Times, frozen pork only lasts 4 months so maintaining the supply is more complicated than just keeping frozen meat.)

 

This returns us to the bacon eating contest cancellations. With pork so pricey, pancake contests are getting more publicity. Here, an economist would point out the unintended consequences. Who would have thought that a congressional ethanol mandate could have pushed corn prices upward, the pig population downward, and led to more pancakes???

Sources and Resources: My information on pig populations came from a Foreign Policy blog, a Washington Post blog, this Huffington Post article, and on China’s SPR, here. To describe Major League Eating, I used their publicity.

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Tax Revenue

Talking about taxes, economists like to quote Louis XIV’s finance minister: “The art of taxation consists of so plucking the goose as to obtain the largest amount of feathers with the least possible amount of hissing.”

We have been hearing a lot of “hissing” about France’s 75% tax hike proposal. News articles tell us that business executives are planning to leave France because of high taxes. And yes, looking at other countries, France’s taxes are high. The new 75% rate would move France to the top of a list of high income tax countries that currently is led by Sweden, Japan, the UK and Germany.

A progressive tax, the 75% rate reflects an approach through which those who earn more pay a higher rate than people who earn less. For France and most other countries, the top rate is marginal. It just applies to a slice of income at the top of what an individual earns.

In France, currently, if you earn €100,000, then…

  • The first €5963 of your paycheck has a 0% income tax.
  • The next layer of earnings between €5964 – €11,896 is taxed at 5.5%.
  • Then, for the slice that is between €11,897 – €26,420, 14%.
  • And, for earnings between €26,421 and €70,830, 30%.
  • Finally, everything above €70,830 has a 41% rate.

 

Now, the new law would mean that on the amount you earn above €1,000,000, you give back 75% to the government.

This table from the NY Times provides a specific example:

A French Millionaire’s Taxes: With and Without the 75% Proposed Rate

A family with 2 children

Current Tax Law

(In euros)

Proposed Tax Law

(in euros)

Gross Salary

2,224,694

2,224,694

Income Taxes

-837,242

-1,137,383

Employee Social Taxes

-289,210

-289,210

Take-home pay after taxes

1,098,242

798,101

Source: NY Times

The income tax is not France’s only tax. People also pay social taxes that relate primarily to healthcare, retirement and unemployment and a value added tax (sort of the equivalent of a sales tax) of 19.6%.

France’s tax approach represents considerable income redistribution from those who earn it to those who spend it for medical reasons, as old age pensions and when they are unemployed. Looking at income redistribution (below), you can see that France is among those countries with more equality.

Equality Among Selected Countries For Disposable Income: Ranking From First (most equal) to Fifth (least equal)

#1

The Most Equal

#2

Almost as Equal

#3

Less Equal

#4

Even Less Equal

#5

The Least Equal

Denmark

Iceland

Norway

Sweden

Switzerland

Belgium

Czech Republic

Estonia

Finland

France

Italy

Slovak Republic

Slovenia

Austria

Germany

Greece

Hungary

Japan

Korea

Luxembourg

Poland

Spain

Australia

Canada

Ireland

Netherlands

New Zealand

UK

Chile

Israel

Mexico

Portugal

Turkey

USA

Source: OECD

France’s President Hollande says his tax proposal is all about social justice. Disagreeing, others believe that the income redistribution he proposes will further diminish France’s stagnant economic growth, worsen its fiscal slide, and thereby harm social welfare.

Your opinion?

And finally, nearby states seem to delight when their neighbors raise taxes. Belgian business people are smiling as French inquiries about home purchases and business investment increase. (Similarly, when Illinois raised taxes, Wisconsin said, “Come here!”)

News stories about the 75% proposal and the facts I cite are here and here. You might also want to look at this OECD paper on income inequality. My information on French tax  rates came from here.

Please note this post was slightly edited after it first appeared.

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