If you decline the use of cookies, this website may not function as expected. Using a cross-country sample of corporate executives, we exploit differences in cultural beliefs and attitudes to examine their relations with gender wage differentials. Understanding the Three Types of Income: Earned, Investment, and Passive, https://www.britannica.com/topic/gender-wage-gap. Please do not hesitate to contact me. Size of the gender wage gap One of the most important economic trends of the late 20th century was the dramatic increase in the number of women entering the paid labour force. Copy the URL to open this chart with all your selections. Here's how, How skills-based organizations can use AI to create the jobs of tomorrow, 5 ways we can develop the digital skills our economy needs, Defining Education 4.0: A Taxonomy for the Future of Learning, Why learning to code should be a central part of the global education system, These are the 4 skills youll need in the workplace of the future, In Egypt, these Kids are Learning About Renewable Energy through Lego. There exists a significant gender pay gap worldwide, that is pervasive across countries, sectors, and job roles. For that context, check out the World Economic Forum's Global Gender Gap Index, which ranked 144 United Nations member countries on gender equality using wage data, level of education, economic participation and opportunity, health, and political empowerment. There is also a racial wage gap. In the US, the national gender pay gap gets a lot of coverage there's even an Equal-Pay Day, which fell on April 10, 2018 this year, to raise awareness about the US gender wage gap. , based on OECD's findings. Get the latest tips you need to manage your money delivered to you biweekly. Taylor received his Bachelor of Arts degree fromHaverford Collegeand a master's degree in economics fromStanford University. There are two distinct numbers regarding the pay gap: non-adjusted versus adjusted pay gap. Please select which sections you would like to print: How much a woman earns for every dollar a man does in the United States. The gender pay gap is the difference in average gross hourly earnings between women and men. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Industry-specific and extensively researched technical data (partially from exclusive partnerships). In most countries, men and women doing the same work earn different amounts. What's most disappointing is that not only do most women are tired at work, many like myself have high stress management roles yet we're still expected to do most of the housework. In 2015, average hourly wages for black and Hispanic men were $15 and $14, respectively, compared with $21 for white men. For example, family leave policies in Denmark and Italy appear similar on the surface. In most other countries, it seems that motherhood has a long-term effect: once the participation of women declines at around the age of 2530 years, the proportion of women who stay in (or out) of the labour market across all other age groups thereafter remains constant until approximately retirement age. There exists a significant gender pay gap worldwide, that is pervasive across countries, sectors, and job roles. Some people have argued that the lack of women in upper positions is the result of a cohort effect, reflecting differences in skill levels and experience between men and women in previous generations. Tied with Finland, Mexico has the ninth most significant gender pay gap among OECD countries, with women earning 16.5% less than the median male wage, according to data from, is classified as "high income" by The World Bank, while, 's GDP per capita is about $43,000 US dollars, while, As of 2017, Finland has a higher female workforce-participation rate of 55%, which is comparable to the US, based on, But from a gender pay-gap perspective, women in both Mexico and Finland fare about the same, with the average woman earning, Although the UK is geographically smaller than places like Canada and the US with a GDP of about, , women there still only earn about 83.2% of what the average man makes, leaving them with a gender pay gap as large as. There are large differences between member states: in 2020, the biggest gender pay gap was recorded in Latvia (22.3%), while the EU country with the lowest gender pay gap was Luxembourg (0.7%). Timothy Tayloris anAmericaneconomist. "[T]he share of women in the lower occupational categories (unskilled, low-skilled or semi-skilled) is almost everywhere much higher than the share of women in the top occupational categories (CEOs and corporate managers). It's a measure of inequality and captures a concept that is broader than the concept of equal pay for equal work. The gender pay gap is also found to vary by age. Vertical segregation, also known as hierarchical segregation, or the authority gap, refers to the fact that men are much more likely than women to be in positions of authority. Only the hourly earnings of Asian men ($24) outpaced those of white men. To use individual functions (e.g., mark statistics as favourites, set Access your favorite topics in a personalized feed while you're on the go. Since female labour market participation often differs from that of men, and employers' decisions to hire may also be influenced by gender . Although the UK is geographically smaller than places like Canada and the US with a GDP of about $2.6 trillion US dollars, women there still only earn about 83.2% of what the average man makes, leaving them with a gender pay gap as large as 16.8%. The fourth edition of Taylor'sPrinciples of Economicstextbook was published by Textbook Media in 2017. It's also worth noting that Korea has about the same work-participation rate for women as the US (about 56%). In such cases, the jobs will not be precisely "equal" in a way that the principle of "equal pay for equal work" can readily address.2) Some countries like Germany and the United Kingdom have passes laws requiring larger companies to publish data on the size of gender wage gaps across the company.3) A substantial portion of the wage gap is likely to be related to gender-based division of family responsibilities, which includes a pattern of women being more likely to spend time on care of children and grandchildren, care of older parents, and household tasks.4) The ILO report suggests that government support for childcare and eldercare might increase women's labor force participation. * Our sample consists of top executives across 31 countries over the 2004-2016 period. Corrections? For perspective, that's like earning $32,500 a year while a comparable male counterpart earns an annual salary of $50,000. "Gender Pay Gap in Oecd Countries as of 2020. Staying in the study, the European countries featured in this study were: Russia, Hungary, Poland, Slovenia, Czech Republic, there are reports that under leftism in mainly Eastern European countries and and countries that were apart of the Soviet Union the government vouched for equal work opportunities between gender and is very set on making the gender gap not even be a problem and topic in their own countries, interestingly women were actually pushed to join the workforce based off these laws welcoming them to those fields, Brainerd (2000). . Required fields are marked *, You may use these HTML tags and attributes:

. Surprising facts. Women carry out at least 2.5 times more unpaid work than men. The gender wage gap is defined as the difference between median earnings of men and women relative to median earnings of men. Accessed January 18, 2023. https://www.statista.com/statistics/934039/gender-pay-gap-select-countries/, OECD. Get a Britannica Premium subscription and gain access to exclusive content. On the Caribbean island of Barbados, women's and men's income is also relatively similar, the Forum finds in its Global Gender Gap 2021 report. with the biggest gender pay gaps, ranked least to worst: , which is better than the average pay gap in the European Union of about 19%. But the effect of such policies in Denmark is to support higher labor force participation of women, while the effect in Italy is to support a substantial amount of exit from the labor force for women. Top 10 Countries with the Highest Gender Equality (2021 World Economic Forum) Iceland 89.2%; Finland 86.1% Where in the world is gender pay inequality most and least pronounced? The gender pay gap has reduced since 1998 (16.3 percent), but has stalled in the last decade. include Korea, Estonia, Japan, Latvia, and Chile, but other countries have significant gender pay disparities as well. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. Companies that cannot prove pay equality will be fined close to $500 a day that the gap continues to exist. On average, women around the world are paid 15.6% per hour less than men. The most appropriate mix of policy responses will differ acrosscountries, depending on which factors have the largest impact on the gender paygap in each national context.". . In 1993, 44.5% of women in South Africa were working; a number that rose to 48.9% by 2018. as well as other partner offers and accept our. The size of the gender wage gap can also be influenced by race and ethnicity. Beyond gender taste-based discrimination, explanations for these pay gaps based on economic factors include time in the workforce, the motherhood penalty, human capital differences, avoidance of competition, and job choice. In the United States, for example, although womens earnings as a percentage of mens earnings increased by about 20 points between 1979 and 2004 (62.3 percent to 80.4 percent), they increased by only 1.5 points between 2004 and 2016 (80.4 percent to 81.9 percent). This post is based on a recent paper by Professor. Although the US implemented the Equal Pay Act of 1963, which requires that men and women are given equal pay for equal work in the same job, American women also earn 18.2% less than the median wage of American men. He has published multiple lectures on economics throughThe Teaching Company. Conducting a Blinder-Oaxaca decomposition analysis we determine that when we add the cultural norm variables to a model with previous explanatory variables such as executive role, tenure, and firm characteristics, the models explanatory power for the executive gender compensation gap increases from 44% to 95%. Currently, you are using a shared account. Then you can access your favorite statistics via the star in the header. According to the report, it will take India close to 100 years to bridge the gap in areas of politics, economy, health and education. The industry where you'll find the smallest gap is currently the Public Administration and Safety industry, where the gap is 5.1%. A second process that also fuels the gender wage gap is vertical segregation. In particular, over the last couple of decades most high-income countries have seen sizeable reductions in the gender pay gap. , physical ability, and whether or not they have children) earns almost 82 cents for every dollar the average American man does an 18.2% difference in pay compared to the male median wage. ", the cross-country evidence on this conclusion is mixed, The New Life Cycle of Women's Employment: Disappearing Humps, Sagging Middles, Expanding Tops, Specialization Then and Now: Marriage, Children, and the Gender Earnings Gap across Cohorts, The Economic Consequences of Family Policies: Lessons from a Century of Legislation in High-Income Countries, How To Better Prepare To Combat Inflation, with Hermann Simon, What's Wrong with the EU? The gender pay gap was at 3.79 percent. While the gender pay gap in the federal workforce is smaller than the pay gap in the entire U.S. workforce, there is still a gap. France has the smallest unadjusted gap with women earning about 88 cents per euro men earn. Which jobs show the greatest pay gap between women and men in the United States. The corporate executive labor market is one in which the pool of people with appropriate talent and skill is limited relative to the demand, creating significant competition. Though Chilean women are entitled to 18 weeks of, , more than many OECD countries, Chile still has a. and a near-perfect school enrollment percentage, Japan may be somewhat surprising country to make an appearance on this list. Mark Wooden. Taylor has been a guest speaker for groups of teachers of high school economics, visiting diplomats from eastern Europe, talk-radio shows, and community groups. If you are an admin, please authenticate by logging in again. Even with slightly more than half of the female population in the workforce, women were still 20 percentage points behind the employment rate of Korean men, the, World Economic Forum's Global Gender Gap Index. Weve seen various laws set into place such as the Equal Opportunity Law (EEO), Civil Rights Act of 1994, and other discrimination laws mainly based in the United States, but in other countries it these laws in action may not be the same. At Minnesota, he was named a Distinguished Lecturer by the Department of Economics and voted Teacher of the Year by the master's degree students at the Hubert H. Humphrey Institute of Public Affairs. Show publisher information We find that the gender pay gap, even among top executives, is greater in societies with more acceptance of corruption, intolerance, in which religious beliefs are more dogmatic, and where there is greater acceptance of violence toward women. From 1989 to 1997, Professor Taylor wrote an economics opinion column for theSan Jose Mercury-News. Finally, in only a few of the countries shown here (Armenia, Australia, Mongolia, Philippines, Russian Federation, Ukraine) is there any bounce back into the labour market for women. With Rudolph Penner andIsabel Sawhill, he is co-author ofUpdating America's Social Contract(2000), whose first chapter provided an earlyradical centristperspective, "An Agenda for the Radical Middle". *Becker (1957), Arrow (1973), among others, argue that gender discrimination should be arbitraged away in a competitive market. The gender pay gap is a high-level indicator of the difference between women and men's earnings. Updates? However, men as a group continued to earn significantly more than women, a difference referred to as the gender wage gap. Tied with Finland, Mexico has the ninth most significant gender pay gap among OECD countries, with women earning 16.5% less than the median male wage, according to data from OECD. As soon as this statistic is updated, you will immediately be notified via e-mail. At the current rate, it will take 257 years to close the global gender pay gap. These inequalities have been narrowing across the world. The analyses of each country are intended to serve as a basis for designing effective measures for reducing gender gaps. Our editors will review what youve submitted and determine whether to revise the article. Additionally, Statistics Estonia reports that, as of 2017, nearly 80% of women are active workers in Estonia. Your email is never published nor shared. The general tone of the report sounds like this (citations omitted for readability): "[I]t is understood that while a simple measure of the gender pay gap servesto attract the attention of the general public and policy-makers to the problem ofunequal pay between women and men, it remains a very imperfect indicator ofinequality, needing to be further analysed and refined if it is to adequately informpolicy-making. Globally, the gender gap in labour force participation among adults (25-54) has stagnated over the past 20 years. Globally, women are still substantially less likely than men to participate in the labour market. As a Premium user you get access to background information and details about the release of this statistic. We focus on three primary culture categories. Register in seconds and access exclusive features. It is a phenomenon that affects women of all education levels, ages, and races. Order original paper now and save your time! reports that, as of 2017, nearly 80% of women are active workers in Estonia. The gender wage gap historically refers to pay disparities between men and women doing the same work. Based on the numbers such as Slovenia having .14% and Japan having a .84%, besides this huge comparison the countries taking the largest wage gaps are Switzerland and the United States, England and Russia, as previously stated in my writing the Eastern European countries worked hard on providing for women and helping them get engaged in the same opportunities the men of their countries do, which is why its not a surprise that they carry the lowest wage gaps globally. However, their ranking in "economic opportunities" is 5, only one spot higher . has about the same work-participation rate for women as the, (about 56%). Please refer to the appropriate style manual or other sources if you have any questions. The views expressed in this article are those of the author alone and not the World Economic Forum. Data refer to full-time employees on the one hand and to self-employed on the other. You only have access to basic statistics. We contribute to this accumulated research by demonstrating that a societys cultural norms can explain why women are paid less than men. When you add in other factors, like educational attainment, opportunities, and health, the rankings look a bit different. As of 2017, Finland has a higher female workforce-participation rate of 55%, which is comparable to the US, based on The World Bank's data. Korea on the other hand is the country with the highest gender pay gap of the OECD countries with a 31.5 percent difference between the. Over the period that these results were recorded the data stayed the same, the Eastern European countries that made consistent efforts to change their country instead of implementing a law and not putting pressure on it as such as the United States, those countries made it easier for the wage gap to simply decline and reiterate the hypothesis that was stated by the researchers prior to this study. Disparities in working hours could be influencing Israel's gender pay gap, as the. When we look at the first discoveries for the United States, we can look at the variables that incorporate in the reverting that are more than likely adequate to report for the higher sex pay gap that is higher in the United States than if we compared it with other countries set in the West. This illustrates vertical occupational segregation that is, the clustering of men at the top of occupational hierarchies and of women at the bottom.". The employment rate of women stands at 59.0%. "[T]the low labour market participation of women vis--vis men is a global phenomenon. In Latvia, if a man earns an annual salary of $50,000, his female counterpart is likely getting by with about $10,000 less each year for doing the same work, leaving the country with a 21.1% pay gap, according to data from the OECD. * Data from 2019 Scholars have argued that a glass ceiling prevents or reduces the promotions of women beyond a certain point, especially in fields where they are the statistical minority. [Online]. A number of researchers have found a significant pro-male bias in promotion decisions that is not attributable to differences in seniority (length of service), education, or nonwork responsibilities. . Another point that supports this statement is, based on the fact that in all countries worldwide, the average female salary differentials is very much underneath the male differentials , this can be linked to the multiple firm systems that continuously improve the minimum wage pay grade, not putting gender into account, which will lead to the dropping of malefemale wage distributions, Machin and Manning (1994); Card and Krueger (1995) ; Katz, Loveman, and Blanchflower (1995); DiNardo, Fortin, and Lemieux (1996) Dolado et al. Of the countries on that list, not one broke the 0.9 mark (out of the highest possible score of 1) and only five countries scored 0.8 or higher, based on OECD's findings. Others involve demand factors such as employers preferences, the demand for workers, economic pressures, discrimination, and personnel practices, which may lead to gender-differentiated treatment in the labour market. The main factors contributing . The amount of original essays that we did for our clients, The amount of original essays that we did for our clients. Another important question for scholars studying horizontal segregation is why workers in female-dominated occupations are lower paid than those in male-dominated fields. Luxembourg (6.49% gender wage gap) According to OECD, Luxembourg has a wage gap of 6.49%, slightly higher than Belgium's. The disparity in the wage gap is directly associated with the higher level of unemployment among women compared to men. Experts in their fields, worth listening to, are the ones who write our articles. For example, in Finland, only 20 per cent of CEOs are women, whereas about 70 per cent of semi-skilled jobs are occupied by women. A paid subscription is required for full access. statistic alerts) please log in with your personal account. Progress is being made. The gender wage gap appears to vary in size by education level, employment sector, occupation, and job title. 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Are active workers in Estonia based on a recent paper by Professor than women, a difference referred to the! Significant gender pay gap level, employment sector, occupation, and Chile, but other countries have sizeable. Please authenticate by logging in again Types of Income: Earned, Investment, and job roles:! Of men ; s earnings experts in their fields, worth listening to, are ones! You can access your favorite statistics via the star in the last couple of most! 31 countries over the past 20 years sources if you decline the use cookies! Get a Britannica Premium subscription and gain access to exclusive content has smallest! Url to open this chart with all your selections the past 20 years that the gap continues to.... Level, employment sector, occupation, and races paper by Professor a phenomenon that affects women of all levels... Between men and women doing the same work-participation rate for women as the difference median... 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