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What is the Gender Pay Gap?

The Gender Pay Gap refers to the situation where women receive lower wages than men for performing the same work. In this article, we will explore the global status, issues, and improvement strategies of the Gender Pay Gap, a critical topic for achieving gender equality.― Q: What is the Gender Pay Gap? ― A: The Gender Pay Gap is the phenomenon where women, despite doing the same job as men, earn less on average. It's like in a marathon where female runners start a few hundred meters behind the starting line. In such an unfair race, women have to put in more effort to achieve the same results as men.In reality, women working full-time earn less than 80% of what men make. This gap occurs regardless of education level.This issue goes beyond just a monetary problem. It is deeply connected to fairness, equality, and the future of our society, and must be addressed to move towards a more equal society.― Q. What is the current state of the global gender pay gap? ― ● Status of the Gender Pay Gap in OECD Countries As of 2022, women in member countries of the Organisation for Economic Co-operation and Development (OECD) earned about 12.1% less than men (OECD Employment Outlook 2022).Belgium stands out with a gender pay gap of just 1.2%, essentially indicating no significant gap. This means women in Belgium are almost on an equal starting line with men in the marathon of employment.However, the scenario varies across regions:• In Australia, New Zealand, Colombia, and Costa Rica, women earn about 10% less than men.• In the Netherlands, the United Kingdom, Slovakia, and the Czech Republic, the gap is around 15%.• In the United States (17.0%), Canada (17.1%), and Mexico (-16.7%), women's earnings are about 17% lower than men's.(Source: OECD Gender Wage Gap Data) ● Progress and Limitations of the Gender Pay Gap Historically, when men earned a dollar, women's wages were 59 cents in 1963, increasing to 77 cents by 2010, improving at an average rate of about 0.5 cents per year.Despite these improvements, globally, women's income remains lower than men's.According to the World Economic Forum's Global Gender Gap Report 2023, at the current rate of closing the wage gap, it will take 162 years to achieve complete gender equality.Specifically, the gap in economic participation and opportunity is expected to take 169 years to close.Even in developed countries like the USA, the situation is similar. The Institute for Women’s Policy Research predicts that gender wage equality in the USA will not be achieved until 2059.For more on the global status of gender equality,check out the following article:↓↓↓Time to reach gender equality: 132 years ● Afghanistan, the Country with the Highest Gender Pay Gap in the World Afghanistan has the most significant gender pay gap globally. According to the World Economic Forum's Global Gender Gap Report 2022, as of 2021, women's average income in Afghanistan was less than 16% of men's average income.The primary reason for this gap is the low representation of women in higher education sectors and senior management positions. In Afghanistan, women hold only 4.1% of high-ranking and managerial positions and are 5 times less likely to work in fields requiring higher education than men.This trend is not unique to Afghanistan but is a major contributing factor to the gender pay gap in most developing countries.These statistics highlight the need for ongoing attention and solutions to the global issue of the "missing women" in higher education and top positions.― Q. What are the causes of the gender pay gap? ― A. The gender pay gap is influenced by a myriad of complex factors. Social and cultural biases, perceptions of traditional gender roles, career interruptions due to domestic and caregiving responsibilities, and differences in occupational fields by gender play significant roles. Let's explore these one by one: ● Gender Bias and Unequal Evaluation in the Workplace Employers tend to perceive men as more competent and undervalue women, negatively impacting women's career advancement and wages. ● Domestic Responsibilities and Career: The Double Burden for Women Women often take on the responsibilities of childbirth, childcare, and household duties, leading them to work regular hours only. This makes it challenging for them to work overtime or irregular hours, affecting their career progression and, consequently, their wage levels.Particularly, maternity leaves interrupt work continuity, which can lead to wage decreases. After career breaks, women often return to the workforce in lower-paid positions, further exacerbating the wage gap. ● Gender Occupational Segregation, The Difference in Occupations Reflects in Wages Women tend to be more concentrated in 'caring' professions such as education, nursing, and customer service. These fields often offer lower wages, widening the gender pay gap.On the other hand, jobs in STEM (Science, Technology, Engineering, Mathematics) fields, which are expected to be highly paid and increasingly significant in the future labor market, show a significant gender disparity. According to LinkedIn data across 163 countries, women constitute only 29.2% of the total STEM workforce.The participation of women in the promising field of artificial intelligence is also notably low. Despite a sixfold increase in AI job opportunities from 2016 to 2022, the proportion of women only rose by 4%, making up just 30% of the total. ● The Scarcity of Women in High-Level Positions A key factor in the gender pay gap is the lower number of women in high-ranking positions. Since higher positions typically offer higher wages, the underrepresentation of women in these roles tends to lower the average wage for women.A LinkedIn survey in 2023 revealed that although women comprised 41.9% of the overall employment market, they held only 32.2% of senior positions (director, vice president, or executive level), which is 10 percentage points lower than men.These multifaceted causes necessitate a comprehensive approach to bridging the gender pay gap, encompassing policy reforms, cultural shifts, and continuous efforts to challenge and change longstanding gender biases and structural inequalities in the workplace.― Q. What are the solutions to the gender pay gap? ―To effectively address the gender pay gap, several strategic approaches must be adopted: ● Equal Pay for Equal Work To bridge the gender pay gap, it is crucial to enforce laws prohibiting gender discrimination and actively implement policies that ensure equal pay for work of equal value. Transitioning the pay system from seniority-based to performance-based is also essential. ● Support for Parental Leave and Domestic Duties Enhancing childcare support and parental leave policies to allow women to harmoniously manage both work and home responsibilities is vital. Policies encouraging men to take parental leave are equally important, including providing programs for women's re-education and career retention.A flexible labor market is a priority. In Finland and Sweden, the introduction of flexible working arrangements has contributed to reducing the gender pay gap. In Finland, 92% of companies offer flexible working options, and in Sweden, 86% of companies actively implement this system. ● Promoting Women's Advancement in Senior Positions Fostering the advancement of women into leadership and high-level positions, especially in high-growth, high-income fields like STEM, is necessary. Supporting women's skill enhancement and career growth in these areas is critical.To explore more ways to create a gender-equal world,check out the following article!↓↓↓Creating a Gender Equal World“Achieving gender equality requires the engagement of women and men, girls and boys. It is everyone’s responsibility.”- Former UN Secretary-General Ban Ki-moon -Learn more : Time to reach gender equality: 132 years  Creating a Gender Equal WorldReference : World Economic Forum. (2023). Global Gender Gap Report 2023. World Economic Forum. (2022). Global Gender Gap Report 2022. PayScale. (2023). Gender Pay Gap Research and Insights. Forbes. (2023). Gender Pay Gap Statistics. OECD. (2022). Gender Wage Gap - OECD Employment Outlook 2022.Written by: Yeon Je Choi