IZA Tower Talk: Is the future of labor female?

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Angela Titzrath
Better policies to increase female labor market participation are urgently needed to cope with the demographic challenge and the growing shortage of skilled labor. Among the main impediments to women’s careers are insufficient childcare, work disincentives provided by joint income taxation, and generally lower career advancement prospects for women.

IZA not only stimulates research on this topic but also actively supports women’s careers in academia. Examples are the IZA European Summer School in Labor Economics with its large share of female graduates or IZA initiatives to promote anonymous job applications as a way to reduce discrimination of female applicants. Awarding the 2010 IZA Prize in Labor Economics to Francine Blau (Cornell University and IZA) for her contributions to gender economics also reflects IZA’s mission to strengthen the role of women in the labor market.

At a recent IZA Tower Talk co-organized with Zonta Club Bonn, guest speaker Angela Titzrath, board member for human resources at Deutsche Post DHL, stressed that women’s equal participation in professional life is also a “matter of economic reason” as it would lead to substantial GDP gains. However, although women “are clearly in the lead” when it comes to education and training, there are still too many “male domains” and too many high-skilled women who involuntarily work part-time, Titzrath argued. She also reported on initiatives by Deutsche Post DHL to set internal gender quotas and to offer flexible working time arrangements. Moreover, her company actively helps mothers and fathers during parental leave to maintain their labor market attachment and achieve a smooth return to the job. She also called for a “new corporate culture” – away from the “fetish of workplace presence” and towards a better family-work balance, which is increasingly demanded by new-generation career entrants. In addition to childcare access, employees should be able to take extended sabbaticals for the family, for elderly care, or for education.
IZA Director Klaus F. Zimmermann pointed at the recent improvements in female participation, but warned that the high part-time rate for women in Germany reveals the deficits in childcare provision. He called it “socially unfair and economically counterproductive” that parents have to spend enormous amounts of money for childcare services while university education is essentially free.

In a lively debate moderated by Adelheid Feilcke (Deutsche Welle), an inside view of women’s situation in academia was given by Annegret Schell, equality commissioner at the Bonn-Rhein-Sieg University of Applied Sciences. She reported subtle incidents of discrimination against female applicants for professorships. Unlike Schell, however, IZA Director Zimmermann opposed all forms of statutory gender quotas. He agreed with Angela Titzrath that the main focus should be on improving childcare – including after-school care– to improve women’s career prospects and save them from the part-time trap.