Economists Identify Three Key Factors to Boost Women’s Employment

Economists Identify Three Key Factors to Boost Women’s Employment

According to economists Vanessa Bammert and Claus Michelsen from the Association of Research-Based Pharmaceutical Companies (VFA), female labor market participation mainly depends on three factors, as reported by “Spiegel”.

First, women are strongly represented in sectors with high rates of part‑time work. The researchers attribute this to the continued burden of childcare that many women shoulder.

Second, the share of women in the workforce rises when the proportion of female leaders is higher. This part of the study focuses on industrial sectors; it shows that in companies where more women hold top positions, female employees are more likely to pursue career paths and have lower resignation rates.

Third, industries with higher wages and a greater share of bonus payments also exhibit higher female employment. Taken together, these three elements account for more than 90 % of the variation in women’s participation across industrial sectors according to the authors’ model.

The analysis comes at a time when the federal government is considering scrapping spousal splitting in income tax for new marriages and ending the free joint insurance for spouses in health and nursing care insurance, aiming to encourage more women to enter the workforce.
Economist Michelsen says it is correct to remove disincentives that hinder broader employment. “The current form of spousal splitting is a barrier and reduces labor incentives for secondary earners” he told “Spiegel”. “Free joint insurance is also a subsidy for non‑employment”.

Beyond tax and insurance reforms, Bammert and Michelsen recommend strengthening childcare infrastructure, allowing flexible working hours, and making career tracks visible to attract and retain more women in the workforce.