Gender Equity in Latin American and Caribbean Firms
Authors: Basco, Ana Inés ; Barral Verna, Ángeles ; Monje Silva, Andrea ; Barafani, Magdalena ; Sant Anna Torres, Natalia ; Oueda Cruz, Stephanie.
Executive Summary
This study seeks to understand whether gender gaps exist within Latin American and Caribbean firms according to their export profile, and examines the extent to which firm characteristics, as well as economic and social factors at the country level, influence gender inequality in companies across the region.
The report highlights the existence of both vertical and horizontal segregation within firms and identifies the main determinants of gender equity at the firm level. The presence of women in senior decision-making positions enhances women’s opportunities for professional advancement and access to leadership roles. The study also finds that workforce training, the use of advanced technologies, and an inclusive corporate culture contribute positively to women’s participation and advancement in the workplace. Finally, the report offers a set of policy recommendations aimed at promoting greater gender equity in the region.
The main findings are summarized below:
- Low Female Representation in Ownership and Leadership: Only 14% of firms are owned by women, 15% have women on their boards of directors, and just 11% have a woman serving as the chief executive or top manager. Female participation is higher in the services sector and in firms with at least one female owner.
- Horizontal Segregation: Women are concentrated in traditionally “soft” areas such as Human Resources and Communications, with limited representation in technical and STEM-related fields, including information technology, operations, and foreign trade, where they account for less than 35% of employees.
- Vertical Segregation: Although women represent 36% of employees in administrative and junior-level positions, their share declines to just 25% in senior and managerial roles.
- Limited Access to Technology: Women account for only 35% of employees working with advanced technologies, restricting their opportunities for professional development in more innovative and high-growth areas.
- Limited Monitoring of Gender Pay Gaps: Only 15% of firms analyze wage differences by gender. Furthermore, 28% acknowledge that women receive lower pay than men in equivalent positions. Export-oriented firms, large companies, and service-sector firms are more likely to monitor these gaps.
- Limited Family Leave Policies: Fifty-nine percent of firms do not provide leave benefits beyond those required by law. The most common additional leave policies include adoption-related maternity leave (25%), extended maternity leave in special circumstances (24%), and adoption-related paternity leave (22%).
- Positive Impact of Female Leadership: The presence of a woman as the top manager is associated with a higher gender equity index within the firm, with such companies employing approximately 7% more women. Female participation on boards of directors and in ownership structures is also linked to stronger gender equity outcomes.
- Training and Technology as Key Drivers: Firms that invest more heavily in employee training and make greater use of advanced technologies tend to exhibit higher levels of gender equity.
- Importance of Corporate Culture: Flexible work arrangements and the implementation of government-supported gender equality programs help create more favorable environments for women, encouraging both their retention and professional advancement within firms.