Episode 51: Navigating Gender and the Economy

In this episode of the Pink Tax Podcast, Janine speaks with Sarah Kaplan, a professor at the University of Toronto’s Rotman School of Management and the founding director of the Institute for Gender and the Economy (GATE). Sarah brings decades of research to the table to explain why many of our common assumptions about women in the workplace are not only tired tropes but scientifically inaccurate.

Here are the key takeaways from their deep dive into systemic inequality and organizational innovation.

1. The Myth of Meritocracy

Most people believe they work in a meritocracy where the most talented person always wins. However, Sarah argues that we actually live in an "affirmative action system" for privileged groups [24:44].

• The Evidence: Research on blind orchestra auditions and resume studies shows that when qualifications are identical, people still select those who look like them [21:43].

• The Paradox: Believing you are in a meritocracy actually makes you more likely to act on bias, as it leads people to abandon necessary checks and balances [27:05].

2. Moving Beyond the "Business Case"

For years, advocates have tried to prove the "Return on Investment" (ROI) for diversity. While the business case is real—diversity leads to more innovation and less risk [07:04]—constantly having to prove it creates an unfair bar.

• The Trap: If you have to prove a woman will perform better than the status quo, you are setting a higher standard for her than for the people already in the roles [06:23].

• What Actually Works: Interestingly, Sarah’s research shows the moral or social justice case is more effective at motivating actual change within organizations than the business case [08:42].

3. Innovation in Process: "Opt-Out" Promotions

Instead of trying to "fix the women" by telling them to be more confident or "lean in," Sarah suggests fixing the systems. A powerful example is changing how promotions work:

• Opt-In (Standard): You must put your hat in the ring. This system often results in fewer women being considered due to societal pressures and biases [29:24].

• Opt-Out (Innovative): Everyone at a certain level is automatically considered for a promotion unless they choose to opt out. When this "choice architecture" is shifted, the gender gap in promotion consideration virtually disappears [30:15].

4. Opening the "Manbox"

Gender inequality isn't just a "women’s issue." Sarah emphasizes that the current system is failing everyone.

• The Happiness Gap: Research shows that after the first child, men often experience lower emotional well-being because they don't have the social "permission" to step back and be caregivers [35:50].

• The Solution: By allowing men to be caregivers and "opening the manbox," we build leadership skills like empathy and multitasking that are vital for the 21st-century workplace [39:42].

5. The Silver Lining of the DEI Backlash

While there has been a recent rollback of Diversity, Equity, and Inclusion (DEI) programs, Sarah sees a potential upside. This moment is "wiping away the pink-washers"—the companies that were only pretending to care about diversity [16:46]. The companies that truly understand that inclusion is central to innovation and talent attraction will continue to embed these practices into their foundation and ultimately win the long-term war for talent [17:05].

Final Thought: True change requires moving past "fixing women" and toward rigorously proven organizational interventions. As Sarah puts it, it’s time to stop debating if inequality exists and start focusing on what actually works to dismantle it.