A GUIDE TO WOMENOMICS

In rich countries, girls now do better at school than boys, more women are getting university degrees than men arc, and females are filling most new jobs. Arguably, women are now the most powerful engine of global growth. In 1950, only one-third of American women of working age had a paid job. Today two-thirds do, and women make up almost half of America’s workforce. Since 1950, men’s employment rate has slid by 12 percentage points, to 77%. In fact, almost everywhere more women are employed and the percentage of men with jobs has fallen – although in some countries, the feminisation of the workplace still has far to go: in Italy and Japan, women’s share of jobs is still 40% or less.

The increase in female employment in developed countries has been aided by a big shift in the type of jobs on offer. Manufacturing work, traditionally a male preserve, has declined, while jobs in services have expanded. This has reduced the demand for manual labour and put the sexes on a more equal footing. In the developing world, too, more women now have paid jobs. In the emerging East Asian economics, forever)’ 100 men in the labour force there are now 83 women, higher even than the average in OECD countries. Women have been particularly important to the success of Asia’s export industries, typically accounting for 60- 80% of jobs in many export sectors, such as textiles and clothing.

Of course, it is misleading to talk of women’s “entry” into the workforce. Besides formal employment, women have always worked in the home, looking after children, cleaning or cooking, but because this is unpaid, it is not counted in the official statistics. To some extent, the increase in female paid employment has meant fewer hours of unpaid housework. However, the value of housework has fallen by much less than the time spent on it, because of the increased productivity afforded by dishwashers, washing machines and so forth. Paid nannies and cleaners employed by working women now also do some work that used to belong in the non-market economy.

The increase in female employment has also accounted for a big chunk of global growth in recent decades. GDP growth can come from three sources: employing more people; using more capital per worker, or an increase in the productivity of labour and capital due to new technology. Since 1970, women have filled two new jobs for every one taken by a man. Back-of-the-envelope calculations suggest that the employment of extra women has not only added more to GDP than new jobs for men but has also chipped in more than either capital investment or increased productivity. Carve up the world’s economic growth a different way and another surprising conclusion emerges: over the past decade or so, the increased employment of women in developed economies has contributed much more to global growth. Women are becoming more important in the global marketplace not just as workers, but also as consumers, entrepreneurs, managers and investors.Women have traditionally done most of the household shopping, but now they have more money of their own to spend.][14]} Surveys suggest that women make perhaps 80% of consumers’ buying decisions –  from health care and homes to furniture and food.

Women’s share of the workforce has a limit. In America, it has already stalled. However, there will still be a lot of scopes for women to become more productive as they make better use of their qualifications. At school, girls consistently get better grades and in most developed countries, well over half of all university degrees are now being awarded to women. In America 140 women enrol in higher education each year for every 100 men; in Sweden, the number is as high as 150. (There are, however, only 90 female Japanese students for every 100 males.) In years to come, {[better-educated women will take more of the top jobs. At present, for example, in Britain, more women than men train as doctors and lawyers, but relatively few arcs leading surgeons or partners in law firms. The main reason why women still get paid less on average than men is not that they are paid less for the same occupations, such as nursing and teaching. This pattern is likely to change.

Making better use of women’s skills is not just a matter of fairness. Plenty of studies suggest that it is good for business, too. Women account for only 7% of directors on the worlds corporate boards – 15% in America, but less than 1% in Japan. Yet a study by Catalyst, a consultancy, found that American companies with more women in senior management jobs earned a higher return on equity than those with fewer women at the top. This might be because mixed teams of men and women are better than single-sex groups at solving problems and spotting external threats. Studies have also suggested that women are often better than men at building teams and communicating.

In poor countries too, the underutilisation of women stunts economic growth. A study last year by the World Economic Forum found a clear correlation between sex equality (measured by economic participation, education, health and political empowerment) and GDP per head. Correlation does not prove the direction of causation. However, other studies also suggest that inequality between the sexes harms long-term growth. In particular, there is strong evidence that educating girls boosts prosperity. It is probably the single best investment that can be made in the developing world. Not only are better-educated women more productive, but they raise healthier, better-educated children. There is huge potential to raise income per head in developing countries, where fewer girls go to school than boys. More than two-thirds of the world’s illiterate adults are women.

It is sometimes argued that it is short-sighted to get more women into paid employment. The more women go out to work,it is said, the fewer children there will be and the lower growthwill be in the long run. Yet the facts suggest otherwise. Data shows that countries with high female labour participation rates, such as Sweden, tend to have the decline in fertility has been greatest in several countries where female employment is low.

 A LIBRARY AT YOUR FINGERTIPS

A few years ago, at the height of the dotcom boom, it was widely assumed that a publishing revolution, in which the printed word would be supplanted by the computer screen, was just around the corner. It wasn’t: for many, there is still little to match the joy of cracking the spine of a good book and settling down for an hour or two of reading. A recent flurry of activity by big technology companies – including Google, Amazon, Microsoft, and Yahoo! – suggests that the dream of bringing books online is still very much alive.

The digitizing of thousands of volumes of print is not without controversy. On Thursday, November 3, Google, the world’s most popular search engine, posted the first installment of books on Google Print, an initiative first mooted a year ago. This collaborative effort between Google and several of the world’s leading research libraries aims to make many thousands of books available to be searched and read online free of charge. Although the books included so far are not covered by copyright, the plan has attracted the ire of publishers.

Five large book firms are suing Google for violating copyright on material that it has scanned and, although out of print, is still protected by law. Google has said that it will only publish short extracts from material under copyright unless given express permission to publish more, but publishers are unconvinced. Ironically, many publishers are collaborating with Google on a separate venture, Google Print Publisher, which aims to give readers an online taste of books that are commercially available. The searchable collection of extracts and book information is intended to tempt readers to buy the complete books online or in print form.

Not to be outdone, Amazon, the world’s largest online retailer, has unveiled plans for its own foray into the mass e-book market. The firm, which began ten years ago as an online book retailer, now sells a vast array of goods. No doubt piqued that Google, a relative newcomer, should impinge upon its central territory, Amazon revealed on Thursday that it would introduce two new services. Amazon Pages will allow customers to search for key terms in selected books and then buy and read online whatever part they wish, from individual pages to chapters or complete works. Amazon Upgrade will give customers online access to books they have already purchased as hard copies. Customers are likely to have to pay around five cents a page, with the bulk going to the publisher.

Microsoft, too, has joined the online-book bandwagon. At the end of October, the software giant said it would spend around $200 million to digitize texts, starting with 150,000 that are in the public domain, to avoid legal problems. It will do so in collaboration with the Open Content Alliance, a consortium of libraries and universities. (Yahoo! has pledged to make 18,000 books available online in conjunction with the same organization.) On Thursday, coincidentally the same day as Google and Amazon announced their initiatives, Microsoft released details of a deal with the British Library, the country’s main reference library, to digitize some 25 million pages; these will be made available through MSN Book Search, which will be launched next year.

These companies are hoping for a return to the levels of interest in e-books seen when Stephen King, a best-selling horror writer, published “Riding the Bullet” exclusively on the Internet in 2000. Half a million copies were downloaded in the first 48 hours after publication. This proved to be a high-water mark rather than a taste of things to come. While buyers were reluctant to sit in front of a computer screen to read the latest novels, dedicated e-book reading gadgets failed to catch on. Barnes and Noble, a leading American bookshop chain, began selling e-books with fanfare in 2000 but quietly pulled the plugin in 2003 as interest faded.

The market for e-books is growing again, though from a tiny base. According to the International Digital Publishing Forum, which collates figures from many of the world’s top publishers, in the third quarter of 2004, worldwide sales were 25% higher than the year before. Unfortunately, this only amounted to a paltry $3.2 million split between 23 publishers in an industry that made sales worth over $100 billion that year.

Both retailers and publishers reckon they will eventually be able to persuade consumers to do a lot more of their reading on the web. Some even hope they can become to online books what Apple’s iTunes is to online music. There are crucial differences between downloading fiction and downloading funk. Online music was driven from the bottom up: illegal filesharing services became wildly popular, and legal firms later took over when the pirates were forced (by a wave of lawsuits) to retreat; the legal providers are confident that more and more consumers will pay small sums for music rather than remain beyond the law. The iPod music player and it's like have proved a fashionable and popular new way to listen to songs. The book world has no equivalent.

So the commercial prospects for sellers of online books do not yet look very bright. They may get a lift from some novel innovations. The ability to download mere parts of books could help, for instance: sections of manuals, textbooks, or cookery books may tempt some customers; students may wish to download the relevant sections of course books, or readers may want a taste of a book that they subsequently buy in hard copy. The ability to download reading matter onto increasingly ubiquitous hand-held electronic devices and 3G phones may further encourage uptake. In Japan, the value of e-books (mainly manga comic books)delivered to mobile phones has jumped, though it will be worth only around ¥6 billion ($51 million) in 2005, according to estimates.