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Exploring Why the U.S. Falls Short for Working Women

by CEO Times Team

Sweden Emerges as the Best Country for Working Women

On International Women’s Day, The Economist released its glass-ceiling index, ranking Sweden at the top for working women—a position previously held by Iceland for two consecutive years. This ranking underscores the progress Sweden continues to make in fostering an equitable work environment for women, while the United States finds itself falling short in comparison.

Annual Glass-Ceiling Index Insights

The glass-ceiling index evaluated the working conditions for women across 29 OECD countries, assessing various factors such as salary, educational opportunities, parental leave policies, and representation in leadership roles. Besides Sweden, other Nordic countries like Iceland, Finland, and Norway remain in the upper echelon of the rankings, exemplifying successful gender equity models. Conversely, Turkey, South Korea, Japan, and Switzerland occupy the lower ranks, pointing to significant barriers to women’s professional advancement.

U.S. Challenges in Parental Leave

Among key findings, the index revealed that the United States stands out as the only country without federally mandated paid parental leave. In stark contrast, the average paid maternity leave across the 29 evaluated countries is 31.6 weeks, with Hungary leading at 78.9 weeks. In the U.S., new mothers have no guaranteed paid time off, relying instead on the Family and Medical Leave Act, which provides up to 12 weeks of unpaid leave for eligible employees. Although some states have implemented their own paid leave policies, comprehensive national provisions remain elusive.

Paid paternity leave is also lacking in the U.S., where fathers have no guaranteed leave despite global averages of 7.9 weeks, with Japan offering the highest paternity leave at 31.1 weeks. The absence of paid paternity leave primarily affects women’s professional trajectories by reinforcing traditional gender roles when caregiving is solely attributed to mothers.

High Childcare Costs Impact Working Women

The financial burden of childcare in the U.S. is substantial, with expenses consuming about 30% of the average wage. This economic stress disproportionately affects women, who often manage the majority of childcare responsibilities, forcing many to choose between career advancement and family obligations.

Gender Disparities in Advanced Education

In terms of education, although women are achieving higher university graduation rates than men, disparities persist in the pursuit of advanced degrees. In the United States, only 36.2% of those taking the GMAT—crucial for MBA admissions—are women, despite women outpacing men in undergraduate degrees. Finland stands out as the sole country where a higher percentage of women than men take the GMAT.

Representation in Leadership Roles

In management roles, women in the U.S. hold 42.9% of positions, a figure slightly below Sweden’s 43.7%. However, women’s representation diminishes in corporate boardrooms, where they occupy only 33.7% of board seats. This is significantly lower than in countries with enforced gender quotas, like Norway, which mandated that at least 40% of board seats be occupied by women in 2005. While California attempted to legislate a similar requirement, it was deemed unconstitutional in 2022.

Gender Pay Gap Remains a Persistent Issue

When examining pay disparities, the U.S. ranks a troubling 25th out of 29 countries, with women earning, on average, 16.4% less than their male counterparts. Only a handful of countries exceed this pay gap, with South Korea, Israel, Japan, and Finland displaying larger discrepancies. The stagnation in closing the pay gap over the past eight years highlights enduring structural barriers, including inadequate parental leave policies, expensive childcare, and persistent biases that hinder women’s career progress.

The findings from The Economist illustrate the urgent need for policy reforms and societal shifts to ensure equitable opportunities for women in the workforce. Sweden’s top ranking serves as a benchmark for other nations striving to improve their support for working women.

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