Connect with us

Markets in a Minute

Female Breadwinners Have Doubled, But Barriers Remain

Published

on

This Markets in a Minute chart is available as a poster.

female breadwinners

female breadwinners

This Markets in a Minute chart is available as a poster.

The Rise of Female Breadwinners

Who is the higher income earner in your family?

Over time, the U.S. has seen a rise in female breadwinners. In fact, the proportion of women who earn more than their male partners has almost doubled since 1981.

Today’s Markets in a Minute chart–from New York Life Investments–illustrates the historical trajectory of women’s earning power, as well as systemic challenges women still face.

Then and Now: Gaining Ground

In the last 40 years, there has been considerable progress in both the percentage and number of female breadwinners.

 19811991200120112018
% Female Breadwinners16%21%24%28%29%
# Female Breadwinners4.1M6.5M8.1M8.8M9.6M

For families that had dual incomes, only 16% of households in 1981 had a female breadwinner. This was equal to about 4 million women across the country at the time.

Fast-forward to the present, and close to 10 million married, female breadwinners were part of the U.S. labor pool in 2018.

Breakthroughs Could Link to Education

Higher education rates and rising earning power are helping to decouple women from pre-existing financial stereotypes.

For married female breadwinners*, the impact of education often plays out as follows:

Education level
% of Women Earning Equal or More Than Partner
More education than partner49%
Same education as partner29%
Less education than partner20%

Source: Pew Research Center
*Over age 25

The odds of a woman earning the same or more than her partner skyrockets nearly 250% if she has more education, compared to if she has less education.

Interestingly, when it comes to career trajectories, women and men share similar decision-making rationales. Among surveyed women, 83% were more likely to delay having kids in order to advance their careers, compared to 79% of men. The primary reason: to help secure a stronger financial standing for their future children.

While it is clear that women have become a growing financial force over time, they still face many persistent challenges today.

A Chorus of Systemic Barriers

Women experience a litany of headwinds, both overt and subtle. What are some variables that continue to have a pervasive impact on women’s finances?

Media Bias
According to one study, 65% of media language directed towards women and their finances surrounded “excessive spending”. In contrast, 70% of language towards men discussed “making money” as a masculine ideal.

Financial Well-being
According to a global survey, 85% of women manage day-to-day expenses as much as or more than their spouse. However, 58% of women defer long-term financial and investment decisions to their husbands.

Gender Wage Gap
Based on the median salary for all men and women, women earn 79 cents for every dollar men make in 2019. The gap starts small and continues to grow as people age. How can women close the gap? The Georgetown Center on Education and the Workforce has some advice:

  • Get one more degree
  • Pick a high-paying college major, such as the STEM fields
  • Negotiate starting pay

If current earning trends continue, women will not receive equal pay until 2059.

Leadership Roles
While more women are in the workforce compared to previous generations, they tend to be in lower positions.

Women in S&P 500 Companies

RoleWomen's Representation in Role
CEOs5.8%
Top Earners11.0%
Board Seats21.2%
Executive/Senior-Level Officials and Managers26.5%
First/Mid-Level Officials and Managers36.9%
Total Employees44.7%

Why are there so few women CEOs? Men dominate management roles that influence the company’s bottom line, such as COO or sales. On the other hand, female executives typically fill roles in areas like human resources or legal—which rarely lead to a CEO appointment.

The Road Ahead

The last 40 years have shown immense progress, yet there is still plenty of room for further advancement.

Women belong in all places where decisions are being made… It shouldn’t be that women are the exception.

—Ruth Bader Ginsburg, U.S. Supreme Court Justice

Advisor channel footer

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading
Comments

Markets in a Minute

Visualizing Interest Rates by Country in 2021

Are short-term interest rates rising or falling around the world? In this infographic we show interest rates by country in 2021.

Published

on

Interest Rates by Country

Visualizing Interest Rates by Country in 2021

Going as far back as the 14th century, pandemics have been found to have a negative effect on interest rates.

History shows that this effect is even greater than that of financial crises. Across a study of 19 pandemics since the mid-1300s, real interest rates fell an average of 1.5 percentage points lower in the following two decades than they would have otherwise. And yet, even before COVID-19, structural forces, such as rising debt, were causing interest rates to fall.

The above Markets in a Minute chart from New York Life Investments shows interest rates by country in 2021.

How Have Interest Rates Changed?

Broadly speaking, the majority of countries’ short-term interest rates have declined since COVID-19 began. Using data from CEIC as of April 2021, short-term interest rates are measured by three-month money market rates where available.

Interest rate change Apr 2020 – Mar 2021

  • Interest rates fell: 69 countries
  • Interest rates increased: 10 countries
  • Interest rates stayed the same: 3 countries

Across nearly every continent, interest rates have decreased as central banks enacted measures to combat the economic fallout of COVID-19.

Country/ RegionShort-Term Interest Rate Mar 2021 (%)*Short-Term Interest Rate Apr 2020 (%)**Interest Rate Change 2020-2021 (%)
Argentina3112.418.6
Australia0.00.1-0.1
Austria-0.5-0.3-0.2
Bangladesh0.77.1-6.4
Belarus13.910.63.3
Belgium-0.5-0.3-0.2
Bolivia11.58.62.9
Botswana3.54.4-0.9
Cambodia1.81.60.2
Canada0.10.3-0.2
China2.61.41.2
Colombia1.84.6-2.8
Costa Rica3.64.1-0.5
Cyprus-0.5-0.3-0.2
Czech Republic0.40.9-0.5
Denmark-0.2-0.40.2
Ecuador1.01.3-0.3
Egypt9.99.60.3
Estonia-0.5-0.3-0.2
Finland-0.5-0.3-0.2
France-0.5-0.3-0.2
Georgia8.09.0-1.0
Germany-0.5-0.3-0.2
Greece-0.5-0.3-0.2
Hong Kong0.21.7-1.5
Hungary0.81.1-0.3
Iceland1.42.4-1.0
India3.75.3-1.6
Indonesia3.84.9-1.1
Ireland-0.5-0.3-0.2
Israel-0.10.1-0.2
Italy-0.5-0.3-0.2
Japan-0.10.1-0.2
Jordan4.64.7-0.1
Kenya6.97.2-0.3
Kosovo-0.5-0.3-0.2
Kuwait1.51.8-0.3
Latvia-0.5-0.3-0.2
Lithuania-0.5-0.3-0.2
Luxembourg-0.5-0.3-0.2
Macau SAR0.31.7-1.4
Malaysia1.92.8-0.9
Malta-0.5-0.3-0.2
Mauritius0.11.2-1.1
Mexico4.26.2-2.0
Moldova7.08.0-1.0
Montenegro-0.5-0.3-0.2
Morocco1.52.0-0.5
Mozambique13.310.03.3
Nepal1.12.1-1.0
Netherlands-0.5-0.3-0.2
New Zealand0.30.30.0
Nigeria6.910.1-3.2
Norway0.41.4-1.0
Pakistan7.68.2-0.6
Panama0.20.7-0.5
Philippines1.23.2-2.0
Poland0.20.7-0.5
Portugal-0.5-0.3-0.2
Qatar1.11.10.0
Romania1.72.5-0.8
Russia4.76.7-2.0
Saudi Arabia0.81.2-0.4
Serbia0.91.2-0.3
Singapore0.40.9-0.5
Slovakia-0.5-0.3-0.2
Slovenia-0.5-0.3-0.2
South Africa3.84.2-0.4
South Korea0.81.0-0.2
Spain-0.5-0.3-0.2
Sweden-0.20.3-0.5
Switzerland-0.8-0.7-0.1
Taiwan0.50.50.0
Thailand0.60.9-0.3
Turkey208.411.6
UAE0.31.9-1.6
United Kingdom0.10.6-0.5
United States0.00.1-0.1
Uruguay5.010.1-5.1
Venezuela73.823.550.3
Vietnam1.74.2-2.5
Zambia14.016.5-2.5

Source: CEIC (Apr, 2021)
*Bolivia, Botswana, Costa Rica, Japan, Mauritius, Nepal, Qatar, Russia, Slovakia, Zambia have most recent data as of Feb ’21
**Costa Rica, Denmark, Mauritius, Norway & Russia have 2020 data as of Mar 2020

In the U.S., interest rates fell to record lows, dropping by 0.1 percentage points between April 2020 and March 2021. As vaccine rollouts accelerated in 2021, real GDP grew by an annual rate of 6.4% in the first quarter. Unemployment slightly improved to 6.1%, but still remains well above pre-pandemic levels of 3.5%.

Given these variables, the question of whether interest rates will rise is an open one.

Like the U.S., interest rates in the European Union declined, although at a greater rate—from -0.3% to -0.5%. To help improve economic conditions, the European Central Bank promises to purchase $2.2 trillion in government bonds until March 2022.

Together, the euro area, the U.S., Japan, and Britain have produced at least $3.8 trillion in new money supply since early 2020.

Interest Rates: The Steepest Gains and Declines

As money creation and low interest rates have become increasingly common phenomena, the focus has shifted to inflation.

With interest rates reaching 343% in 2020, Venezuela has been a poster child for hyperinflationary forces. Energy shortages only compounded the effect which was well underway before the pandemic. Between April 2020 and March 2021, interest rates jumped over 50 percentage points.

In addition, Turkey and Brazil raised interest rates in March 2021 to dampen inflation. Interest rates in Turkey have increased 11.6 percentage points over the time frame, one of the highest absolute changes globally.

In 2020, the lira faced historic declines, causing the price of imports to climb significantly.

Interest Rates by Country

On the other hand, Bangladesh has seen its interest rates decline 6.4 percentage points, the steepest drop across the dataset. To help offset the effects of COVID-19, the Bangladesh Bank lowered interest rates from 7.1% to 0.7%.

With rates falling 3.2 percentage points, Nigeria has also seen one of the greatest interest rate drops. In March, Fitch Ratings gave the country a B rating with a stable outlook, supported by its low government debt-to-GDP ratio and large economy.

Research has found that countries with better credit ratings and transparent fiscal infrastructure had greater ability for central banks to lower interest rates in response to the crisis.

Sign of the Times

Policy rate changes, a key central bank maneuver, have been an important tool in response to COVID-19.

As economic activity in some countries picks up, interest rates could rise. However, progress in vaccination distribution remains uncertain, especially in emerging markets.

In tandem with this, global central banks are applying unproven monetary policy frameworks, including money creation and large-scale bond purchases. While studies show that interest rates have been falling over the past several centuries, the confluence of these factors will be revealing in the years that follow.

Advisor channel footer

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading

Markets in a Minute

Mapped: Global GDP Forecasts for 2021 and Beyond

The International Monetary Fund (IMF) revised its global GDP forecasts and anticipates a strong economic recovery from COVID-19 in 2021 and beyond.

Published

on

This infographic is available as a poster.

Mapped: Global GDP Forecasts for 2021 and Beyond

In the April 2021 version of its Global Economic Outlook, the International Monetary Fund (IMF) reiterated its expectations of a strong economic recovery over the next few years.

Economists acknowledged that, while the path of the pandemic remains uncertain, global vaccine rollouts represent the light at the end of the tunnel. As a result, global GDP growth forecasts for 2021 and 2022 sit at +6.0% and +4.4% respectively.

In this Markets in a Minute chart from New York Life Investments, we’ve mapped the IMF’s country-level GDP forecasts to see which areas are expected to have the greatest rebounds.

Country-level Data

The following table lists each country’s percentage GDP change for 2020, as well as forecasts for 2021 and 2022.

Jurisdiction2020 GDP Growth (%)2021 GDP Growth Forecasts (%)2022 GDP Growth Forecasts (%)
Afghanistan-5.04.04.5
Albania-3.55.04.0
Algeria-6.02.92.8
Angola-4.00.42.4
Antigua and Barbuda-17.3-3.011.9
Argentina-10.05.82.5
Armenia-7.61.03.5
Aruba-25.55.012.0
Australia-2.44.52.8
Austria-6.63.54.0
Azerbaijan-4.32.31.7
Bahrain-5.43.33.1
Bangladesh3.85.07.5
Barbados-17.64.17.7
Belarus-0.9-0.40.8
Belgium-6.44.03.1
Belize-14.11.96.4
Benin2.05.06.0
Bhutan-0.8-1.95.7
Bolivia-7.75.54.2
Bosnia and Herzegovina-5.53.53.3
Botswana-8.37.55.4
Brazil-4.13.72.6
Brunei Darussalam1.21.62.5
Bulgaria-3.84.44.4
Burkina Faso0.84.35.2
Burundi-1.32.83.7
Cabo Verde-145.86.0
Cambodia-3.54.26.0
Cameroon-2.83.44.3
Canada-5.45.04.7
Central African Republic03.55.0
Chad-0.91.82.6
Chile-5.86.23.8
China2.38.45.6
Colombia-6.85.23.6
Comoros-0.503.6
Costa Rica-4.82.63.3
Côte d'Ivoire2.36.06.5
Croatia-9.04.75.0
Cyprus-5.13.03.9
Czech Republic-5.64.24.3
Democratic Republic of the Congo-0.13.84.9
Denmark-3.32.82.9
Djibouti-1.05.05.5
Dominica-10.4-0.45.8
Dominican Republic-6.75.55.0
Ecuador-7.52.51.3
Egypt3.62.55.7
El Salvador-8.64.22.8
Equatorial Guinea-5.84.0-5.9
Eritrea-0.62.04.9
Estonia-2.93.44.2
Eswatini-3.31.40.9
Ethiopia6.12.08.7
Fiji-19.05.09.0
Finland-2.92.32.5
France-8.25.84.2
Gabon-1.81.22.7
Georgia-6.13.55.8
Germany-4.93.63.4
Ghana0.94.66.1
Greece-8.23.85.0
Grenada-13.5-1.55.2
Guatemala-1.54.54.0
Guinea5.25.65.2
Guinea-Bissau-2.43.04.0
Guyana43.416.446.5
Haiti-3.71.01.0
Honduras-8.04.53.3
Hong Kong SAR-6.14.33.8
Hungary-5.04.35.9
Iceland-6.63.73.6
India-8.012.56.9
Indonesia-2.14.35.8
Iraq-10.91.14.4
Ireland2.54.24.8
Islamic Republic of Iran1.52.52.1
Israel-2.45.04.3
Italy-8.94.23.6
Jamaica-10.21.55.7
Japan-4.83.32.5
Jordan-2.02.02.7
Kazakhstan-2.63.24.0
Kenya-0.17.65.7
Kiribati-0.51.82.5
Korea-1.03.62.8
Kosovo-6.04.55.5
Kuwait-8.10.73.2
Kyrgyz Republic-8.06.04.6
Lao P.D.R.-0.44.65.6
Latvia-3.63.95.2
Lebanon-25n/an/a
Lesotho-4.53.54.3
Liberia-3.03.64.7
Libya-59.71315.4
Lithuania-0.83.23.2
Luxembourg-1.34.13.6
Macao SAR-56.361.243.0
Madagascar-4.23.25.0
Malawi0.62.26.5
Malaysia-5.66.56.0
Maldives-32.218.913.4
Mali-2.04.06.0
Malta-7.04.75.6
Marshall Islands-3.3-1.53.5
Mauritania-2.23.15.6
Mauritius-15.86.65.2
Mexico-8.25.03.0
Micronesia-1.6-3.72.8
Moldova-7.54.54.0
Mongolia-5.35.07.5
Montenegro-15.29.05.5
Morocco-7.04.53.9
Mozambique-0.52.14.7
Myanmar3.2-8.91.4
Namibia-7.22.63.3
Nauru0.71.60.9
Nepal-1.92.94.2
Netherlands-3.83.53.0
New Zealand-3.04.03.2
Nicaragua-3.00.22.7
Niger1.26.912.8
Nigeria-1.82.52.3
North Macedonia-4.53.84.0
Norway-0.83.94.0
Oman-6.41.87.4
Pakistan-0.41.54.0
Palau-10.3-10.810.4
Panama-17.912.05.0
Papua New Guinea-3.93.54.2
Paraguay-0.94.04.0
Peru-11.18.55.2
Philippines-9.56.96.5
Poland-2.73.54.5
Portugal-7.63.94.8
Puerto Rico-7.52.50.7
Qatar-2.62.43.6
Republic of Congo-7.80.21.0
Romania-3.96.04.8
Russia-3.13.83.8
Rwanda-0.25.76.8
Samoa-3.2-7.81.7
San Marino-9.74.53.4
São Tomé and Príncipe-6.53.05.0
Saudi Arabia-4.12.94.0
Senegal0.85.26.0
Serbia-1.05.04.5
Seychelles-13.41.84.3
Sierra Leone-2.23.03.6
Singapore-5.45.23.2
Slovak Republic-5.24.74.5
Slovenia-5.53.74.5
Solomon Islands-4.31.54.5
Somalia-1.52.93.2
South Africa-73.12.0
South Sudan-6.65.36.5
Spain-11.06.44.7
Sri Lanka-3.64.04.1
St. Kitts and Nevis-18.7-2.010.0
St. Lucia-18.93.110.7
St. Vincent and the Grenadines-4.2-0.14.9
Sudan-3.60.41.1
Suriname-13.50.71.5
Sweden-2.83.13.0
Switzerland-3.03.52.8
Syrian/an/an/a
Taiwan Province of China3.14.73.0
Tajikistan4.55.04.5
Tanzania1.02.74.6
Thailand-6.12.65.6
The Bahamas-16.32.08.5
The Gambia06.06.5
Timor-Leste-6.82.84.9
Togo0.73.54.5
Tonga-0.5-2.52.5
Trinidad and Tobago-7.82.14.1
Tunisia-8.83.82.4
Turkey1.86.03.5
Turkmenistan0.84.63.9
Tuvalu0.52.53.5
Uganda-2.16.35.0
Ukraine-4.24.03.4
United Arab Emirates-5.93.12.6
United Kingdom-9.95.35.1
United States-3.56.43.5
Uruguay-5.73.03.1
Uzbekistan1.65.05.3
Vanuatu-9.23.24.6
Venezuela-30.0-10.0-5.0
Vietnam2.96.57.2
West Bank and Gaza-11.05.77.0
Yemen-5.00.52.5
Zambia-3.50.61.1
Zimbabwe-8.03.14.0

Just 27 countries saw positive GDP growth in 2020, including a cluster of Asian economies that includes China, Taiwan, and Vietnam. Although the virus originated in China, the country’s strict lockdowns enabled it to flatten the infection curve relatively quick. As a result, Asia’s biggest economy returned to pre-COVID GDP levels in 2020—something most others aren’t expected to do until 2023.

Forecasts for 2021 are very positive, with the vast majority of countries expected to bounce back economically. Within advanced economies, the U.S. is expected to be a strong performer. The IMF believes that the Biden administration’s new fiscal package, valued at $1.9 trillion, will provide a strong boost to growth.

Looking further to 2022, the IMF expects GDP growth to remain positive around the world. Many European economies will experience positive GDP growth above 3%, including France (+4.2%), Germany (+3.4%), and Spain (+4.7%). The European Central Bank (ECB) has relied on expansionary monetary policy to stimulate its economy during the pandemic, growing its balance sheet by over $2 trillion since February 2020.

Uncertainty Remains, Despite Vaccine Rollouts

Given the unpredictable nature of COVID-19 and its many variants, the GDP forecasts visualized in the above maps should not be interpreted as concrete figures.

India, which was forecasted to grow its GDP by 12.5% in 2021, is now facing the world’s worst surge of COVID-19, fueled in part by the emerging B1617 variant that many are dubbing a “double mutation”.

“We completely let down our guard and assumed in January that the pandemic was over.”
– K. Srinath Reddy, President, Public Health Foundation of India

It remains to be seen if India’s second outbreak will significantly impact its economy, or even the economies of other countries. This situation does, however, serve as a reminder that the virus can still surprise us.

Advisor channel footer

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading
New York Life Investments

Subscribe

Are you a financial advisor?

Subscribe here to get every update, including when new charts or infographics go live:

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Popular