Perspectives on Business and Economics.Vol41

43 MARTINDALE CENTER FOR THE STUDY OF PRIVATE ENTERPRISE fact, 58% of Danes think that there are equal numbers of women and men in leadership roles, yet the actual number of women in these spots is much lower. Interestingly, in Sweden, only 38% of the general public thinks that there are an equal number of women and men in leadership roles, when in actuality, Sweden, at 43%, has a higher participation rate for women in management positions than Denmark, at 29% (Diversity Council, 2022). Since Swedes think their businesses are more unequal than they actually are, they may have taken more initiatives toward fixing the gap. One response emerging from the larger awareness spotlight is the use of quotas to promote higher rates of inclusion. Comparing Denmark with the other Nordic countries reveals that many of the latter have gender quotas, whereas Denmark does not. Larger Danish firms are encouraged to achieve 40% women on boards of directors, but there is no formal rule that requires they achieve this level (Smith & Smith, 2015). In contrast, other Nordic countries have more explicit quotas and rules. For example, in 2006, with a twoyear grace period, Norwegian law stated that for public corporate boards, women must represent at least 40% of the makeup (Seierstad & Huse, 2017). Since this legislation was implemented, the number of Norwegian women on these boards has increased and is now above the 40% marker (Kantar Public, 2021). The Norwegian system also contains better sanctions. If a company does not meet the quota, it can be denied registration as a business and may have to dissolve (Birkvad, 2016). Clearly, the idea of company disbandment is a large threat to the jobs of many, so they have complied, such that none have had to be removed thus far. One of the major decisions faced by both women and men is the choice to start a family. Despite most Danish women holding jobs, there may still be implications for the child-bearing decision that can fall more heavily on women. As of 2015, despite having 52 weeks of parental leave in total, Danish fathers took an average of 25 days off, whereas mothers took 300. Fathers employed in the private sector took even less time for paternity leave than those in the public sector (Nørtoft, 2018). More recently, in 2020, of those who took parental leave, fathers took an average of 35 days of parental leave and women an average of 280 days of parental leave (Gender Equality in Denmark, n.d.). The Danish parental leave policies have changed since 2020, still giving parents the same number of weeks of leave but attempting to distribute them more equally. All parents with babies born after August 2, 2022, are entitled to 24 weeks of parental leave, with 13 weeks transferable to the other parent (Aftale om implementering…, 2021). This policy may begin to reduce the gap of time taken off between mothers and fathers, yet, considering previous practices, it may be that Danish fathers end up transferring many of their available weeks. Aside from caring for children when they are born, the imbalance of the mother spending more time working at home is consistent throughout her life: 39% of female managers are the main worker of chores at home, whereas only 12% of male managers are similarly responsible (Diversity Council, 2022). If women are expected to do many more chores, not only will they have less time for professional work but also more likely burned out and stretched thin. Analysis of the “why” The gap between the number of men and women in management positions can be grouped into two broad categories: culture and policy. There appears to be a cultural bias in Denmark, as in many countries, where women work in public service–oriented roles and men work in positions of corporate power. For women who do choose to work in the corporate world, this culture may also explain why women either do not apply for higher positions or are not chosen. Clearly, there are enough women pursuing business in school, yet they are not represented in the upper-level jobs. This same culture also leads women to spend more time caring for their children, which inevitably allows their male counterparts more time to advance. While Denmark is known for being a relatively “equal” society, this culture persists due to a lack of widespread recognition. Denmark has made strides to improve gender inequality, but it appears, at least at the management level, that the public does not recognize that there is a lack of women, suggesting a cultural shift is warranted. In the political arena, there are two significant areas ripe for further consideration—gender employment quotas and parental leave policies. Because there is no uniform quota system in place for Danish businesses regarding the number of women at certain levels, change is not enforced. If the current ways of bringing in talent are working for companies, and there is no backlash for not including enough women, there is no reason for more women to be hired. Thus, further consideration of quota policies should be a high priority. The generous parental leave policy prior to 2022 has had the unintended consequence of exacerbating the gap between men and women in terms of the amount of time they take off for the birth of a child. It is possible that the new policy, permitting less transfer of leave between parents,

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