Unlocking Trillion-Dollar Potential: The Economic Benefits of Closing the Women’s Health Gap 

Background 

Despite progress over the last century in reducing social and health gaps between men and women, true gender equality is still out of reach, especially in developing countries. Even though women make up two-thirds of the world’s working hours, they receive only 10% of the world’s income. This, along with owning less than 1% of global property, highlights the significant inequality women continue to face (1). 

Women and girls have distinct health needs, yet health systems worldwide are not adequately addressing them (1). They encounter ongoing obstacles in accessing healthcare and preventing diseases, such as gender discrimination, limited education, and domestic violence.  

Healthier women lead to better-educated and more productive societies. Empowering women to control their fertility can accelerate economic growth and development. Maternal health is essential for future generations’ well-being and economic prospects due to its intergenerational effects. 

More research is needed to understand the connection between women’s health and overall household and societal productivity. While men are often seen as the primary breadwinners in the short term, making their health crucial for family welfare, women’s health is vital for the long-term health and development of future generations (2). 

Consequently, it is crucial to conduct a more in-depth analysis of the relationship between health and economic outcomes through a gender lens which this provided whitepaper aims to address.  

Figure 1. The women’s health gap equates to 75 million years of life lost due to poor health or early death per year, the equivalent of seven days per woman per year (3). 

Economic Impacts of Women’s Health 

Microeconomic Benefits 

Increased Productivity: The intersection of family planning and women’s economic empowerment is a critical area of research, revealing significant implications for national income and labor force participation.  

Recent research by Bloom and colleagues indicates that by addressing one-third of unmet family planning needs in Kenya, Nigeria, and Senegal, per capita income could rise by 8–13% compared to a scenario with no unmet contraceptive needs. Meeting all unmet needs could potentially increase per capita income by 31–65%.  

United States studies highlight that women’s control over their fertility, through access to family planning, is vital for their educational and employment opportunities. Family planning programs can enhance national income by improving household finances and education access. Children born in areas with better family planning access are 2–7% more likely to achieve higher education and live in higher-earning households. Access to contraception reduces the incidence of early motherhood, increases female labor participation by 8% among 26–30-year-olds, extends annual working hours, and speeds up the reduction in birth rates by up to 40%.  

Bloom et al. found that high fertility rates negatively impact female labor force participation, estimating that each additional birth decreases a woman’s lifetime labor supply by nearly two years (2, 4).  

Worldwide, only 52% of adult women participate in the labor market, which is 26% lower than men. Factors such as childbearing, illness, and complications from pregnancy and childbirth often lead to women’s absences from work.  

Traditional gender roles also restrict women’s labor market participation, as they are frequently assigned the extensive responsibility of child-rearing.  

Improvements in pregnancy and delivery safety have been shown to increase female labor force participation. For example, research by Albanesi and Olivetti reveals that decreased maternal mortality and access to high-quality infant formula in the United States allowed women to balance paid work with motherhood, leading to a 52% increase in work participation among women aged 23–33 from 1920 to 1970 (2, 5).  

Education and Empowerment: Quantitative research highlights that a 10% increase in women’s empowerment scores can lead to a 14% increase in per capita income, while simultaneously reducing income poverty by 0.99% and multidimensional poverty by 1.01%. The research emphasizes the importance of education and access to resources for women in reducing poverty and improving health outcomes in rural Bangladesh (6). 

Macroeconomic Benefits 

Gross Domestic Product Growth: A new Global Investment Framework for Women’s and Children’s Health demonstrates raising health expenditure by just $5 per person annually until 2035 in 74 high-burden countries could generate economic and social benefits up to nine times the investment. This includes higher gross domestic product (GDP) growth from increased productivity and the prevention of 147 million child deaths, 32 million stillbirths, and 5 million maternal deaths by 2035. Achieving these outcomes would require an additional $30 billion annually, representing a 2% increase over current spending levels (7).  

A study projected that preventable mortality due to insufficient healthcare could lead to a cumulative loss of $11.2 trillion in GDP across low- and middle-income countries between 2015 and 2030. This underscores the broader economic implications of inadequate women’s health services and the potential for substantial economic losses if these issues remain unaddressed (8).  

A WHO modeling study for the African Region (AFRO) estimates that reducing maternal deaths could have substantial economic benefits, as each maternal death reduces per capita GDP by $0.36 annually (2). Comparatively, the World Bank estimates that if the status quo remained, GDP growth could reach 2.7 percent, 2.9 percent, and 3.4 percent in 2023, 2024, and 2025, respectively (3). 

Cost Savings: There is limited evidence on how women’s health affects savings, but complications and death related to maternal health can adversely affect household finances. Poor households frequently cover most health care costs out-of-pocket, and when women fall ill, it can lead to decreased productivity, increased debt, and lower savings, which can push already struggling households deeper into poverty. A systematic review highlights the costs and potential savings associated with mobile health (mHealth) interventions for pregnant women. It reports that direct intervention costs ranged from $7.04 to $86 per woman, with total program costs between $241,341 and $331,136. The cost-effectiveness of these interventions suggests that they could lead to significant savings in healthcare costs, thereby reducing economic burdens associated with untreated health issues during pregnancy (5, 8).  

Global Impact of Women’s Health Support 

On average, a woman will experience nine years of poor health, impacting her ability to contribute effectively at home, work, and in the community, and diminishing her earning potential. Reducing the 25 percent longer duration women spend in poor health compared to men could enhance the well-being of millions of women and potentially increase the global economy by at least $1 trillion per year by 2040 (3). 

Globally, the effective treatment of ten conditions—such as premenstrual syndrome (PMS), depressive symptoms, and migraines—could account for over 50 percent of the economic impact. This highlights the importance of prioritizing certain health issues worldwide. For instance, addressing premenstrual syndrome (PMS) could potentially add $115 billion to the global economy. Instead of accepting PMS as an inevitable part of life, symptoms can be managed effectively. A 2020 analysis showed that women who took calcium supplements had fewer PMS symptoms, like anxiety and water retention, compared to those who took a placebo. Similarly, a study in Iran found that providing education and coping strategies significantly reduced the severity and frequency of PMS symptoms. By effectively managing PMS, women could experience less pain, improve their quality of life, and be more productive at work (3). 

Figure 2. The relative share of gender gap GDP impact of women’s GDP per capita across different levers and geographies (3) 

Investing in women’s health not only enhances their quality of life but also boosts their participation and productivity in the workforce. Globally, the economic benefits from increased female economic participation and productivity are estimated to exceed the costs of implementation by a ratio of $3 to $1. This calculation is based on the annual costs of interventions needed to close the women’s health gap, which are considered cost-effective in each context. 

The economic return varies by region, with higher-income areas seeing a return of $3.50 for every $1 invested. In lower-income countries, more investment may be needed to build the necessary health infrastructure and create better economic opportunities for women. However, even in these regions, the benefits are expected to outweigh the costs, with a return of around $2 for every $1 invested. 

While the analysis focuses on the immediate costs of improving care delivery, the long-term benefits could be even greater, as enhancing women’s health positively impacts the well-being and resilience of their families and communities (3). 

Conclusion 

Investing in women’s health offers significant economic and social returns. By addressing women’s health issues, countries, governments, and also companies can enhance female workforce participation, improve productivity, and boost global economic growth. The benefits of these interventions far outweigh the costs, with potential returns ranging from $2 to $3.50 for every dollar invested, depending on the region. In the long run, improving women’s health not only empowers women but also strengthens the resilience and prosperity of families and communities worldwide. 

References: 

1. Davidson PM, McGrath SJ, Meleis AI, Stern P, DiGiacomo M, Dharmendra T, et al. The health of women and girls determines the health and well-being of our modern world: A white paper from the International Council on Women’s Health Issues. Health care for women international. 2011;32(10):870-86. 

2. Onarheim KH, Iversen JH, Bloom DE. Economic benefits of investing in women’s health: a systematic review. PloS one. 2016;11(3):e0150120. 

3. Kweilin Ellingrud LP, Anouk Petersen, and Valentina Sartori. Closing the Women’s Health Gap: A$1 Trillion Opportunity to Improve Lives and Economies. McKinsey Health; 2024. 

4. Bloom DE, Canning D, Fink G, Finlay JE. Fertility, female labor force participation, and the demographic dividend. Journal of Economic growth. 2009;14:79-101. 

5. Albanesi S, Olivetti C. Gender roles and medical progress. Journal of Political Economy. 2016;124(3):650-95. 

6. Wei W, Sarker T, Żukiewicz-Sobczak W, Roy R, Alam GM, Rabbany MG, et al. The influence of women’s empowerment on poverty reduction in the rural areas of Bangladesh: Focus on health, education and living standard. International journal of environmental research and public health. 2021;18(13):6909. 

7. Stenberg K, Axelson H, Sheehan P, Anderson I, Gülmezoglu AM, Temmerman M, et al. Advancing social and economic development by investing in women’s and children’s health: a new Global Investment Framework. The Lancet. 2014;383(9925):1333-54. 

8. Carrandi A, Hu Y, Karger S, Eddy KE, Vogel JP, Harrison CL, Callander E. Systematic review on the cost and cost-effectiveness of mHealth interventions supporting women during pregnancy. Women and Birth. 2023;36(1):3-10.