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The effect of women's economic power in Latin America and the Caribbean
For the last decade economic growth in Latin
America and the Caribbean (LAC) has sharply
accelerated, pushing poverty and inequality
to historic lows in the most unequal region in the
world. Even a global economic downturn and a fourpercent contraction in the regional economy in 2009
could not stop the region's progress and its significant
reductions in inequality.
In 2012, as the world's ongoing economic problems
make optimistic predictions less certain and threaten
to undermine gains against poverty and inequality,
it is critical to better understand the structural forces
that have promoted recent positive social outcomes.
These include more inclusive labor markets, expanded
safety nets, improved educational outcomes, macrostability and relatively high rates of growth.
This report explores how women have played a
critical role in achieving the poverty declines of the
last decade, with their labor market participation
rates growing 15 percent from 2000 to 2010. It further
considers how future progress will require increased
female economic power and more effective policies to
promote it.
If female labor income had remained the same during
this period, holding all else constant, extreme poverty
in Latin America and the Caribbean would have
been 30 percent higher in 2010. In other words, 17.7
percent of the population in the region would have
been below the extreme poverty rate, compared
to the actual 14.6 percent. Female labor market
income contributed 30 percent of the reduction in
extreme poverty, compared to 39 percent for male
labor market income, while the remainder was due
to public and private transfers (remittances, cash
transfer programs, etc.).
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