Germany is missing out on significant economic potential due to the high rate of part-time work among women. According to Marcel Fratzscher, President of the German Institute for Economic Research (DIW), this unusually high proportion of part-time employment means a massive economic potential remains untapped. Fratzscher commented to the “Redaktionsnetzwerk Deutschland” that “society is consequently foregoing a great deal of prosperity.”
He stated that by dismantling existing hurdles and encouraging more women to increase their working hours, Germany could gain hundreds of thousands of additional full-time jobs in its labor market. Furthermore, increasing female labor force participation is the most effective and best instrument available to stabilize Germany’s statutory pension system over the next 15 to 20 years.
Fratzscher described the calculations made by an EU agency-which suggest that greater gender equality could boost the European gross domestic product by up to 10 percent by 2050-as realistic. He emphasized, “When we increase women’s participation in the workforce, everyone benefits.” The advantages extend beyond just the women who are being held back; the entire society, including men, faces significant economic harm as a result.
The barriers facing women in the job market include insufficient childcare facilities in kindergartens and schools, limited financial incentives related to the spousal split tax system (“Ehegattensplitting”), and free health insurance coverage for spouses. Moreover, for many women, minimum-wage jobs can act as a trap. Coupled with the persistent gender pay gap between men and women, these factors create a challenging environment for professional women.
Fratzscher criticized the current situation, stating, “We are still miles away from true equality.” He lamented that politics largely neglects this issue-perhaps even intentionally does so. He noted that an increasing number of older, traditional men cling to outdated values. However, he warned that this reluctance is costing Germany economically.
