Whether or not we believe that diversity, equity, and inclusion (DEI) is an issue, one fact remains: it’s a massive economic opportunity. Policies aimed at moving women forward don’t just benefit women; they uplift entire economies.
Take, for instance, the gender pay gap. Women earning less than their male counterparts costs American taxpayers an estimated $512 billion each year. Why? Because that loss in wages means lower tax revenues and higher dependence on social welfare programs. (Ninety-two percent of adult households relying on SNAP benefits are headed by women.) This isn’t about whether we support people; it’s about how we do it. Addressing the gender pay gap could reduce reliance on these programs while boosting the economy.
Historically, increasing women’s labor force participation has been a proven economic boon. Between 1970 and 2016, as more women joined the workforce, $2 trillion was added to the U.S. economy. Yet, as of January 2025, 684,000 women are still missing from the labor force compared to pre-pandemic levels. Closing this gap could resolve approximately 56 percent of the 1.2 million-person shortfall between job openings and available workers. This isn’t just a fairness issue; it’s an economic imperative.
Labor force participation and inflationary pressure
Women’s labor force participation isn’t only about filling jobs; it’s also tied to the Federal Reserve’s dual mandate of full employment and price stability. With unemployment at 4.1 percent and inflation hovering at 2.9 percent, the Fed is walking a tightrope. Increasing women’s participation in the labor force could help offset the potential inflationary pressures of changing immigration and trade policies.
Getting more women to work has long-term economic benefits, too. With U.S. birth rates declining, increasing women’s labor force participation could counterbalance the economic risks posed by an aging population and a declining replacement rate. The collateral gains are substantial: $1.9 trillion from increased labor force participation, $512 billion from closing the pay gap, and $699 billion from changing occupations — a total of $3.1 trillion added to the United States economy.
The collateral gains of inclusion
The economic benefits of intersectional gender equity ripple far beyond individual paychecks. For example, closing the gender pay gap could resolve a third of the Social Security shortfall. It would also reduce reliance on social welfare programs, freeing up taxpayer dollars for other priorities. Yet, the current system disproportionately penalizes women — and we all pay for it. They earn, on average, 83 cents for every dollar their male colleagues make, face double the inflation rate for goods and services marketed to them, shoulder a greater share of student debt, and face higher import tariffs.
Corporations have a critical role to play in realizing the economic opportunity of intersectional gender equity (or DEI). Organizations must shift from being inequitable by default to equitable by design. This isn’t just about doing the right thing; it’s about delivering results for shareholders. My research across 4,161 companies in 29 countries shows that for every 10 percent increase in gender equity, there is a 1 to 2 percent increase in revenue.
There are two key ways corporations can achieve equity by design — and reap the economic gains:
- Equity of Opportunity: While women comprise 58 percent of college graduates, 51 percent of the U.S. population, and 47 percent of the labor base, they make up only 10.4 percent of Fortune 500 CEOs. This 37-point gap between women’s labor force participation and representation at the highest levels of leadership highlights the need to address equity for opportunity. For instance, based on my research, I’ve found that men are promoted at a rate of 28 percent greater than women and receive twice as many resources, on average.
- Equitable Skilling: By 2030, 39 percent of key job skills will change due to digital acceleration and automation — a process sped up by the pandemic. Equitable skilling ensures that women not only have equitable access to skilling programs but also the opportunity to apply those skills. For instance, 50 percent of women leave STEM fields within 10 years due to hostile work environments. Addressing these barriers is crucial to retaining talent and unlocking the associated economic potential for shareholders.
Corporate champions leading the way
Despite increasing scrutiny and pushback, companies like JPMorgan Chase, Goldman Sachs, Cisco, Apple, Microsoft, and Costco are doubling down on their DEI commitments, demonstrating that inclusion isn’t just a social imperative but a business strategy. In fact, 98 percent of Costco’s shareholders struck down an anti-DEI proposal earlier this month stating that DEI had supported creativity, innovation and greater customer satisfaction.
JPMorgan Chase CEO Jamie Dimon recently reaffirmed the bank’s commitment to DEI, stating, “Bring them on,” in response to shareholder proposals challenging diversity initiatives. Dimon highlighted that investing in marginalized groups is not only good for communities but also drives the bank’s bottom line.
Goldman Sachs CEO David Solomon echoed similar sentiments, emphasizing that diversity is integral to meeting client expectations in areas like decarbonization, talent acquisition, and global competitiveness. Cisco’s CEO, Chuck Robbins — who also serves as chair of the Business Roundtable, one of America’s most powerful corporate trade organizations — defended DEI initiatives by highlighting the undeniable business value of a diverse workforce, noting that inclusive practices foster innovation and long-term success. Apple and Microsoft reaffirmed their
DEI commitments through leadership-backed stances and transparency in diversity reporting.
DEI is not only a social issue; it is an economic opportunity. The debate around DEI must shift beyond morality to focus on measurable economic gains. Increasing labor force participation, addressing inflationary pressures, and fostering innovation are some proven benefits. Companies like JPMorgan and Costco demonstrate that leaning into DEI isn’t just about fairness — it’s about building a competitive advantage. Backlash or not, equity is the smartest path forward — for businesses, workers, and the economy as a whole. And America can’t afford to leave $3.1 trillion on the table.
Katica Roy is a gender economist and the CEO and co-founder of Pipeline, a SaaS platform that leverages AI to drive economic gains through closing the gender equity gap.
