Women & Economic Development (College Board AP® Human Geography)

Economic Development & the Roles of Women

• As countries develop economically, the roles and status of women in society changes

• Overall, economic development usually improves women’s social and economic status

  • Progress in this area varies based on cultural, political, and regional factors

• The changing social status of women is reflected in access to:

  • education

  • employment opportunities

  • changing cultural norms and family dynamics

• Economic development corresponds to increased access to education for women and higher female literacy rates

  • In traditional economies, women primarily work in subsistence agriculture or domestic labor

  • In more developed, industrial economies, women work in factory and service-sector jobs

  • Higher-paying, professional jobs then open to women as gender inequality in a society decreases

• Greater access to education and jobs leads to reduced fertility rates and increased access to reproductive healthcare and family planning, which reshapes cultural norms and family dynamics

  • In more advanced economies, women will focus more on their education and careers ‒ delaying marriage and childbearing age, and reducing fertility rates

  • Women will also gain increasing access to political power the more active they are in the economy

Women & Inequality

• Around the world, women are increasingly joining the labor force, especially in developing and newly industrialized countries

• Although there are more women in the workforce, they do not have equity in wages or employment opportunities

Wage inequality

• Wage inequality means that women earn less than men for the same work, contributing to the global gender pay gap

  • Women tend to be overrepresented in lower-paying jobs, meaning women’s overall income is generally lower

  • Women tend to be underrepresented in high-paying industries like technology and finance

• Women have less opportunity to advance to leadership positions in their careers. Reasons for this include:

  • gender discrimination in hiring, promotions, and evaluations

  • lack of workplace policies that support women, such as paid maternal leave, flexible hours, or daycare facilities

Workforce participation

• In more developed countries, there is increased participation of women in the workforce, but significant lags in wage and leadership positions

  • Women are more likely to face a “glass ceiling”, preventing them from reaching senior positions

• In less developed countries, women are often prevented from full participation in the formal economy due to cultural and legal barriers

  • Instead, women remain engaged in informal, underpaid, or unpaid labor, such as domestic labor

Changing gender roles

• In general, traditional gender roles are changing globally and being replaced with more equitable distribution of responsibilities, including:

  • labor force participation: women are increasingly contributing to household incomes

  • education: access to education for girls is improving globally, closing literacy gaps

  • childcare and domestic labor: responsibilities are beginning to shift to a more equal balance between women and men

  • employment: opportunities and pay are increasing for women

  • total fertility rate: the rate is falling

Microloans & Women

• Microloans provide financial opportunities for women to start their small businesses, particularly in developing countries

  • This increases women’s economic participation and improves the overall standard of living in a country

• Microloans are small loans given to people in developing countries to start small businesses

  • Loan sizes are typically small amounts, ranging from a few dollars to a few thousand dollars

• The purpose of these loans is to improve the general condition of the economy

• These loans help women in areas where traditional banking and financing are unavailable due to limited incomes

• The loans are used to start small businesses, which benefit the holder of the loan and the wider community

  • Women can create their own streams of income, reducing dependence on traditional household roles or external support

  • Women are supported in small-scale businesses, such as selling goods and providing services

• Potential drawbacks of microloans are:

  • the perpetuation of debt cycles if the new business is not successful

    • Without access to other forms of financial support or education, women may find it difficult to repay the loans

  • In some instances, a lack of experience or market demand may result in the business failing, leaving more debt than before

• For microloans to be successful and have long-term impacts, they need to be accompanied by: 

  • business training

  • financial literacy

  • mentorship