Policy Briefs 2024
CLEARING THE FOG: TACKLING PAKISTAN'S SMOG CRISIS
Mariam Qureshi
The persistent smog in Pakistan, particularly in urban centres, is posing a serious health risk to the population. The use of fossil fuels to meet energy requirements and the burning of waste and crops emit smog-causing pollutants in the air. Administrative and bureaucratic lags from both federal and provincial governments, along with costly measures for transition to eco-friendly fuel, have impeded air quality management efforts. To effectively tackle the smog crisis, a mixture of short and long-term policies are required:
1. Removing taxes from renewable energy sources (e.g., solar power systems) while imposing taxes on non-renewable energy sources (e.g., diesel generators) for domestic and commercial consumption.
2. Limiting the use of private transport by extending public transport networks and commercial centres, and transitioning to eco-friendly fuel to limit the emission of smog-causing pollutants from vehicle exhausts.
3. Providing subsidies and cash incentives to farmers for adopting eco-friendly farming practices and working with international partners to develop an eco-friendly waste disposal system.
Check out the policy brief or download it here!
Addressing Italy’s Youth Unemployment Crisis: Mitigating Skills Mismatch
Carolina Montorfano
Abstract
In Italy, youth unemployment is a phenomenon affecting one in five individuals aged 15-34, with severe repercussions on the social and economic tenure of the country, its future development, as well as on youth’s mental health.
This policy brief addresses the long-standing problem of Italian youth unemployment through the lens of skills mismatch, identified by research as one of the main reasons behind the phenomenon. The brief has three main objectives:
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Address the scarcity of digital and numeracy competencies among children in primary schools with innovative cognitive tools;
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Mitigate uninformed career choices with enhanced career orientation projects in middle and high schools;
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Address the gap between tertiary education and the job market demand.
Introduction
As of December 2023, the Italian youth unemployment rate was 20.1% (Istat, 2024), while the NEET rate reached 28.1% (OECD, 2023), with one Italian youth out of four (15-29 years) being at risk of poverty (Eurostat, 2023). Combined with the 36,125 Italians that emigrated abroad for job-related reasons in 2023 (CENSIS, 2023), these statistics demonstrate the necessity for the Italian government to take tangible action against the increasing socio-economic crisis affecting mainly younger generations.
Among the main reasons identified behind youth unemployment in Italy, skills mismatch represents a substantial burden, with 21% of workers being under-qualified, 6% under-skilled, and 35% working in a field unrelated to their studies (OECD, 2017; EURES, 2023). These figures are expected to rise in the coming years due to the fast-paced technological development, and the reinterpretation of roles in multiple industries aligned with green transition and sustainability objectives (EURES, 2023).
Youth unemployment negatively affects the country from an economic and financial perspective, with the huge outflow of human capital and young entrepreneurship, as well as from a social perspective, increasing the demographic crisis, the poverty rate, and the tenure of social welfare.
Overview of research
To explore possible policy reforms suitable to address the skill mismatch in Italy, the brief will focus on those skills identified as “scarce” among the population by the OECD reports on skill strategy, published in 2017 and 2019. These are literacy, numeracy, and digital skills, all rated as “low” and “very low”. This brief also integrates considerations on skills that will be required in the future, based on a research on the labour market’s forecast for Italy (EURES, 2023), which indicate competencies in sustainable practices, coupled with applied mathematical and IT skills, as the most needed. The data will then be discussed in relation to the Italian education system, from primary education to tertiary education, to suggest how this scarcity can be addressed in different stages of schooling.
Recommendations
1. Enhancement of cognitive tools in primary and lower secondary schools
Providing children in primary and secondary school with enhanced cognitive tools necessary to master the required skills in their next educational steps is crucial to fostering the foundation of learning competencies. New tools include educational activities of ordinary subjects through group projects, and the stimulation of creative ideas by the integration of practical tasks into theory. Concerning digital skills, new teaching methods which consider digitalisation as a means of applying and refining other competencies, especially numerical and logical ones, should be introduced to the curricula. Through an interdisciplinary approach, these methods would allow students to practise multiple skills through digital tools, while learning both how to use them and their relevance in performing different tasks. Moreover, the teaching hours allocated for this activity should be increased, from one hour per week for primary schools and no hours for lower secondary schools, to two hours. (MIUR, 2024; Openpolis, 2020).
2. Promotion of career orientation and skills awareness
Upper secondary schools must introduce mandatory courses on topics such as computer science and coding, business and finance, political discourse, ecological practices, debate, and writing techniques. These particular subjects would allow students to train their critical thinking, reach a good level of IT literacy, and grow their interpersonal and communication skills, as well as their problem-solving capacity. In particular, computer science and coding should provide essential knowledge of cybersecurity, data science and computing, necessary for multiple tertiary education faculties. On the other hand, courses related to sustainability and civics should aim to equip students with the tools necessary to effectively convey their opinions on current affairs, and make informed choices in the workplace. Students must attend at least one course per semester, with an allocation of two hours per week. This approach also enhances career orientation, as it allows students to explore their interests and talents, and how they can be applied to the job market and future professional positions.
3. Adaptation of teaching programmes in tertiary education institutes
Tertiary education institutes, especially Social Sciences Faculties, must incorporate courses in digitalisation and sustainability-related topics, tailored to the specific field of study and career prospects. In fact, the current job market not only requires individuals with this type of academic background to master digital tools, but it also calls for working knowledge of sustainability-related laws, practices, and social issues. Such incorporation can be achieved by introducing at least 9 ECTS, mandatory for both Bachelor and Master degrees, which will help students acquire the relevant academic background and the appropriate problem-solving skills. The strategy would allow students to build a multidisciplinary profile, suitable to multiple industries and roles. It is also expected to reduce the number of young students who choose to go abroad to undertake a competency-oriented education.
Conclusion
In a fast-changing world, where digitalisation and green transition are transforming societies and businesses, the job market is adapting by demanding new roles and skill sets. At the same time, the Italian educational system lacks the tools to provide students with the competencies necessary to access the job market. As a consequence, skills mismatch is one of the main reasons behind youth unemployment in Italy, and strong action by the Italian government is vital to address this issue. The three policy recommendations outlined in this brief integrate the development of urgently needed skills into the progressive stages of students' educational path, with special regard to career orientation. Difficulties in the implementation of these recommendations may lie in the low budget allocated to education by the Italian government, which in 2023 represented only 4% of the national GDP (Il Sole 24 Ore, 2023), as well as in the lack of teachers and professors with highly-trained digital skills, especially in primary and lower secondary schools (Camera dei Deputati, 2023). Finally, a possible hurdle can be identified on a cultural level, as new skills and cognitive tools require innovative teaching methods, which may be difficult to accept instead of traditional ones.
References in English
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EURopean Employment Services. (2023, September 15). Labour market information: Italy. https://eures.europa.eu/living-and-working/labour-market-information/labour-market-information-italy_en
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Eurostat. (2023, April 4). 6% of EU youth severely materially & socially deprived.https://ec.europa.eu/eurostat/en/web/products-eurostat-news/w/ddn-20230404-1
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OECD. (2023). Education at a Glance 2023.https://gpseducation.oecd.org/Content/EAGCountryNotes/EAG2023_CN_ITA_pdf.pdf
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OECD. (2017). OECD Skills Strategy Diagnostic Report, Italy. https://www.oecd.org/skills/nationalskillsstrategies/Diagnostic-report-Italy.pdf
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OECD. (2017). Skill mismatch and shortages in Italy: Highlights from the OECD Skills for Jobs Database.
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https://read.oecd-ilibrary.org/employment/getting-skills-right-italy/skill-mismatch-and-shortages-in-italy-highlights-from-the-oecd-skills-for-jobs-database_9789264278639-6-en#page2
References in Italian
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Camera dei Deputati. (2023, May 3). Il percorso di sviluppo delle competenze digitali in Italia e l’impatto dell’innovazione sull’istruzione: https://www.camera.it/application/xmanager/projects/leg19/attachments/upload_file_doc_acquisiti/pdfs/000/008/832/Memoria_ICom.pdf
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Censis. (2023, December 1). “La società italiana al 2023”, 57° rapporto Censis sulla situazione sociale del paese. https://www.censis.it/sites/default/files/downloads/Sintesi%20Fenomenologico%202023.pdf
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European Parliament. (2017, December 6). La disoccupazione giovanile nell’UE: cifre e soluzioni. https://www.europarl.europa.eu/topics/it/article/20171201STO89305/la-disoccupazione-giovanile-i-numeri-e-le-soluzioni#:~:text=Il%20fallimento%20nella%20ricerca%20di,e%20sulla%20societ%C3%A0%20che%20invecchia.
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Istat. (2023, December). Occupati e Disoccupati (Dati Provvisori) - Dicembre 2023.https://www.istat.it/it/archivio/293468
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Il Sole 24 Ore. (2023, July 7). Istruzione, Istat: in Italia la spesa è al 4% del Pil, inferiore alla media dei Paesi Ue.https://www.ilsole24ore.com/art/istruzione-istat-italia-spesa-e-4percento-pil-inferiore-media-paesi-ue-AEfJbmzD
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Ministero dell’Istruzione e del Merito (MIUR). (2024). Scuola secondaria di primo gradohttps://miur.gov.it/scuola-secondaria-di-primo-grado
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Openpolis. (2020, September 20). Perché la presenza di pc nelle scuole non basta da sola. https://www.openpolis.it/perche-la-presenza-di-pc-nelle-scuole-non-basta-da-sola/
South Korea’s Population Problem
Yunsu Song
Abstract
South Korea’s birth rate has been hitting an all time low for several years – in 2022 the birth rate was 0.78 (Kim, 2023), which further dropped to 0.72 in 2023. In this brief I outline what policies have been attempted, why they are failing, and what can be done to immediately help parents and relieve the burden of raising a child. This is a salient topic for many countries that are experiencing an ageing population in Asia and Europe, especially in East Asia, where other countries’ birth rates face a similar situation to South Korea’s.
Introduction
Korea has the world’s lowest birth rate, despite the 2005 legislation of the Framework Act on Low Birthrate in an Aging Society, and the investment of 280 trillion won (around 214.4 billion USD) spent between 2006 to 2021 on policies including supporting maternity/paternity leave, IVF support, direct monetary child support, and various child care institutions and policies (Cheon 2023). There need to be immediate measures to alleviate the factors that deter people from having children. Moreover, as the changes in demographic structure will be felt for several generations, long term measures must be planned and executed along with short term policies.
Policy Recommendations
1. Improving work-life balance: stronger and more enforceable measures
a. Stronger support for parental leave and enforced paternity leave
The government needs to support businesses, so that hiring women or allowing maternal and paternal leave is not perceived as a potential loss to their workforce and revenue. Since 2023, there have been stronger measures in place in Korea such as paying parents up to 100% of their usual wages if both parents use parental leave, instead of the current coverage of 80%, and extending the time frame for receiving the benefit from 12 months after childbirth to 18 months.
Despite the legislation in place, many parents are still unable to take parental leave. South Korea’s income replacement rate during paternity leave is 44.6%, which ranks 17th out of the 27 OECD countries that have a parental leave system comparable to Korea’s. Employees are still left unsure whether their job security and career prospects will be affected after returning to work. For employers as well, parental leave is an unwelcome prospect as it forces them to find replacements and it increases the burden on other workers.
To bridge this gap between policy and implementation, enforced paternity leave should be strongly considered. For instance, paternity leave that is not interchangeable with other benefits and with a high income replacement rate is what spurred Norway’s paternity leave rate to increase from 3-4% in the early 1990s to 97% in 2017 (Lee, 2019). A similar measure should be a priority in Korea. It is notable that Sweden’s adoption of enforced paternity leave has also been met with sizable success (Kwon, 2023). Strengthened paternity leave will encourage equal participation in childcare, and can also improve employers’ avoidance of hiring women.
b. Sick Leave
When children are sick, parents have to use up their annual leave to take care of them. Korea should introduce policies that allow parents to use paid leave when the child is sick or needs care, while the wages are covered by government so that paid leave is not seen as a loss for employers (Kwon, 2023). In Sweden, thanks to this policy called Vård av Barn, parents can stay at home to care for their children up to 120 days a year per child (under 12 or in some cases 16). Parents receive a little under 80% of their salary as temporary parental benefits (Oresunddirekt, 2023).
c. Salary support to employees of small and medium-sized enterprises
Policies supporting parents should be readily applied to small and medium-sized enterprises. In a survey of 1,000 people, 45.2% replied that they had difficulties using parental leave freely; contract workers, employees of businesses with less than 5 employees, and employees with a monthly salary inferior to 1.5million KRW, responded at a higher rate (58.5%, 67.1%, and 57.8% respectively) (Maeil Business Newspaper, 2023). Because of the lack of support for smaller enterprises and other factors such as the high price of real estate, marriage and child-rearing are increasingly seen as a privilege of the economically well-off. To reduce the socio-economic gap in marriage and child-rearing, the government must step in and systematically support smaller businesses with policies such as covering the salary of employees on leave and increasing economic benefits to businesses so that they can hire replacements more easily.
2. Adapting to an ageing society
As South Korea has already had a birth rate below the replacement level for several decades, the country should prepare for an increasingly ageing society.
a. Enhance elderly welfare and caretaking
Currently, South Korea’s elderly population is marginalised– Korea’s old-age poverty and suicide rate is the highest in the OECD (Lee, 2021). The elderly often find it difficult to adjust to the pace of change and development in Korean society, and this strengthens prejudices that elderly people are unproductive and unable to adapt. Therefore, investment in R&D for technologies that help the elderly and will enable senior citizens to stay in the workforce longer should be encouraged. This will alleviate the problems that come with the working younger generation supporting a much larger retired older generation. It will also allow the elderly to be seen as active members in society and not passive recipients of assistance.
Considering the high poverty rate and suicide rate of the elderly in Korea, welfare programs for the elderly should be expanded, so that care of the sick will not fall solely upon family members or spouses. Social connection and community should be taken into account when devising welfare policies, as lonely deaths and suicide can be countered with social connection.
b. Pension system reform
The biggest policy challenge is restructuring the National Pension Service, which will be lacking in funds as the elderly outnumbers the working population. This reform requires a social consensus that may be hard to reach, and it will be the role of future administrations to prepare the pension and welfare system for a drastically different population structure from the past decades.
Conclusion
South Korea’s case demonstrates what factors lead to an extremely low birth rate and points to what should be done to counter it. Although each society has its own culture and social consensus surrounding work, family, procreation, and welfare, Korea's situation should act as a reference for a large part of the world that shares some of Korea’s predicaments. Policies supporting gender equality, paid paternity leave, and marginalised employees and businesses are measures that are worth considering for all societies that wish, and need, to make themselves more welcoming to all kinds of families.
References
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Cheon, H. (2023, March 26). “15년간 280조 쓰고도 저출산 반전 실패...맞춤형 접근 필요” [Efforts to reverse low birth rate have failed despite spending 280 trillion won in the last 15 years... a tailored approach is needed"]. The Hankyoreh. https://www.hani.co.kr/arti/society/rights/1085184.html
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Cho, E. (2018). 가족과 통치: 인구는 어떻게 정치의 문제가 되었는가 [Family and Ruling: How did population become a matter of politics?]. Changbi.
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Douthat, R. (2023, December 2). Is South Korea disappearing?. The New York Times. https://www.nytimes.com/2023/12/02/opinion/south-korea-birth-dearth.html
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International Monetary Fund. Asia and Pacific Dept. (2023). Front Matter Republic of Korea: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Korea. IMF Staff Country Reports, 2023(369), 1. https://doi.org/10.5089/9798400259432.002
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Kim, K., Original, Il., Posted by, CGV, P. by C., & Posted by 더. (2023, February 22). 한국 출산율 0.78...서울 0.59 더 쇼크 [Korea’s birth rate at 0.78...Seoul more shocking at 0.59]. The JoongAng. https://www.joongang.co.kr/article/25142530#home
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Kwon, O. (2023, June 15). 아빠 육아휴직 도입하자 기적이...추락하던 출산율 반등한 나라 [Miracle after introducing paternity leave... falling birth rate rebounded in this country]. Maeil Business Newspaper. https://www.mk.co.kr/news/politics/10761306
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Lee, C. (2023, August 30). 더 쪼그라지는 대한민국 인구...합계출산율 0.7명선도 깨지나 [ROK’s population shrinking further... will the 0.7 birth rate collapse as well]. The Kyunghyang Shinmun. https://m.khan.co.kr/economy/economy-general/article/202308301622001#c2b
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Lee, H. (2016, September 15). “둘도 많다더니…” 저출산·고령화로 위기맞은 대한민국 ["Two was said to be too many..." Korea in a crisis due to low birth rate and ageing]. News1. https://www.news1.kr/articles/?2774621
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Lee, S. (2019, July 17). [나는 허수애비입니다]④ 육아휴직 늘리자는데…무슨 돈으로 하죠? [I am a strawman father… increase parental leave… with money from where?]. KBS. https://news.kbs.co.kr/news/pc/view/view.do?ncd=4243861
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Lee, W. (2018, March 20). 고령사회 적응 계획을 짜자 [Let’s make a game plan for adapting to an ageing society]. The Hankyoreh. https://www.hani.co.kr/arti/opinion/column/836954.html
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Maeil Business Newspaper. (2023, December 20). 육아휴직 20만시대라지만 中企·비정규직엔 '그림의 떡' [200 thousand people taking parental leave but a pie in the sky for contract workers and employees of SMEs]. Maeil Business Newspaper. https://www.mk.co.kr/news/editorial/10903266
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Presidential Committee on Aging Society and Population Policy, Fourth Framework Act on Low Birth Rate in an Aging Society (2020).
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Seo, H. (2020, April 16). 아이낳지 않는 이유는...기혼·미혼 모두 “경제적 불안정” 첫손 [Why people are not having children... married·unmarried both point to ’economic instability’]. Yonhap News. https://www.yna.co.kr/view/AKR20200416149000017
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Øresunddirekt. (2023, January 2). Rules for taking care of a sick child. Øresunddirekt. https://www.oresunddirekt.dk/en/find-a-job-in-sweden/start-working-in-sweden/your-child-is-sick-and-you-work-in-sweden
Empowering Change: Ways to Increase Female Leadership in Japan
Elif Koc
Introduction
Japan is renowned for its strong economy, modernity, vibrant pop culture, and polite society. However, despite its status as a global economic powerhouse, Japan faces significant gender inequality issues, particularly in leadership positions. Women are notably underrepresented in senior roles across various sectors, including business, politics, and academia. According to a recent OECD ranking, Japan was identified as having one of the worst working environments for women among developed nations, with only 18% of executive positions held by females, significantly below the OECD average of 33%. Moreover, Japan has the lowest percentage of women in managerial roles at 14.6%, nearly 20% less than the OECD average of 34.2%. These figures are alarming and highlight the severe underrepresentation of women in leadership roles, which challenges principles of equality and fairness and impedes Japan's social and economic development. The benefits of diverse leadership teams, such as enhanced organisational performance and better decision-making, are well-researched and widely known. However, entrenched cultural norms, institutionalised workplace practices, and systemic barriers continue to prevent women from ascending to top leadership roles in Japan. Therefore, this policy brief proposes strategies and policies to promote greater inclusion of women in leadership, addressing the root causes of this disparity and its broader implications for the Japanese economy.
1. Governmental Change
The ruling Liberal Democratic Party (LDP) has played a dominant role in shaping Japan's political and economic landscape since its formation in 1955. Despite being heavily male-dominated, the LDP must lead by example and set fixed quotas and requirements for the representation of women in workplaces. These can include the introduction and enforcement of gender quotas for higher positions in both public and private sectors. Additionally, the government should implement laws and policies against gender discrimination in the workplace, unequal pay, and biased recruitment practices. Ensuring higher representation of women in political appointments and cabinet positions is also crucial. Women face significant disadvantages due to discrimination and the challenges of balancing career and family responsibilities after childbirth. Implementing and promoting policies that support work-life balance, such as improved parental leave, flexible working hours, and affordable childcare services, are essential. Encouraging men to take parental leave and protecting parents' rights to return to work can help women balance career and family responsibilities. The government should offer incentives, such as tax benefits or public recognition programs, to accelerate these processes. Moreover, investing in educational policies that encourage young girls and women to pursue careers in underrepresented fields like STEM (Science, Technology, Engineering, and Mathematics) is vital. Collaborations with NGOs and international bodies can help Japan learn from global best practices and incorporate successful strategies for gender equality.
2. Legal Reforms
To ensure the successful implementation of these measures, Japan urgently needs legal reforms to create the necessary framework for gender-oriented policies. The country's weak anti-discrimination laws must be strengthened to prohibit gender-based discrimination in all facets, including recruitment and promotion. Robust equal pay legislation that mandates equal pay for equal work and mechanisms for women to challenge pay disparities are urgently needed. Adopting flexible working conditions and hours, which have become more common globally since the COVID-19 pandemic, can help women balance their professional and personal lives.
3. Cultural and Societal Change
The most challenging but essential change is altering societal perceptions and cultural norms regarding women's roles. Deeply ingrained cultural expectations in Japanese society must be addressed through proper education and awareness campaigns across all age groups. Integrating gender equality education into primary education and promoting it through nationwide campaigns is crucial. Utilizing Japan's fast internet and social media platforms for effective campaigns can help shift public perception. Encouraging the conservative Japanese media to highlight women's potential and successes can amplify these efforts. Government and corporate initiatives should offer leadership training and mentorship programs to support women.
4. Controlling mechanisms
Transparency and accountability are crucial. While it is important to implement abovementioned policies, proper mechanisms have to be in place to control their effectivity. Companies and institutions must therefore openly disclose their gender statistics and provide transparency in hiring and promotion processes. Conducting gender audits to assess equality between men and women and identifying areas for improvement can be beneficial. Making the results of these audits public can ensure that companies and politicians are held accountable. Lastly, Corporate Social Responsibility (CSR) initiatives can be particularly effective. Companies should be incentivized and rewarded for implementing programs targeting gender inequality in leadership roles. Public recognition and rewards can motivate companies to promote gender equality more vigorously.
5. Conclusion
A combination of these policies and initiatives can help Japan tackle its gender issues and enable women to ascend to higher positions. Gender equality is a critical and timely issue, and Japan must make significant commitments to address it. Empowering women in leadership roles will not only advance equality but also contribute to the country's social and economic development.
References
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Harvard Business Review. (2022). The Benefits of Promoting Gender Diversity in Leadership. https://professional.dce.harvard.edu/blog/benefits-of-promoting-gender-diversity-in-leadership/
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Human Rights Watch. (2023). Japan: Strengthen anti-discrimination laws. https://www.hrw.org/world-report/2023/country-chapters/japan#d91ede
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International Labour Organization. (2023). Equal pay for equal work: Policy measures. https://www.ilo.org/resource/article/equal-pay-work-equal-value-where-do-we-stand-2023.
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International Labour Organization. (2023). Women in leadership positions in Japan. https://www.ilo.org/resource/world-needs-more-women-leaders.
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Gender Equality Bureau, Cabinet Office, Government of Japan (2022). Current Status and Challenges
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of Gender Equality in Japan. https://www.gender.go.jp/english_contents/pr_act/pub/status_challenges/pdf/202205.pdf
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Global Compact Network Japan (2023). Gender Equality Initiatives in Japan Interviews with 24 Companies on Diversity & Inclusion. https://www.ungcjn.org/objective/gender/files/Gender_Equality_Initiatives_en.pdf
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Government of Japan (2021). The Fifth Basic Plan for Gender Equality. https://www.gender.go.jp/english_contents/about_danjo/whitepaper/pdf/5th_bpg.pdf
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The Japan Times (2023). Japan makes gains in political empowerment in gender equality report. https://www.japantimes.co.jp/news/2024/06/12/japan/society/japan-gender-gap/
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The Japan Times (2024). Japan passes law on flexible work for parents with young children. https://www.japantimes.co.jp/news/2024/05/24/japan/child-care-leave-law/
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Kawaguchi, Akira (2013). Equal Employment Opportunity Act and Work-Life Balance: Do Work-Family Balance Policies contribute to Achieving Gender Equality. Japan Labor Review, 10 (2), https://www.jil.go.jp/english/JLR/documents/2013/JLR38_kawaguchi.pdf
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The World Economic Forum (2023). How Japan is encouraging more women into STEM. https://www.weforum.org/agenda/2023/07/japan-encouraging-women-into-stem/
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OECD (2023). Joining Forces for Gender Equality. What is holding us back?. https://www.oecd.org/japan/Gender2023-JPN-En.pdf
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The World Economic Forum (2023). Global gender gap report. https://www.weforum.org/publications/global-gender-gap-report-2023/