What lies behind the gender pay gap?

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The gender pay gap in the EU stands at 16 % and has barely changed in the last decade.

Situation of gender pay gap in EU

In most EU countries, the gender pay gap is slowly reducing but in Malta, Portugal and Slovenia, the gap has increased by more than 3.0 % since 2007. There are big differences across the EU, with the gender pay gap ranging from 3.5 % in Romania to 25.6 % in Estonia. The awards for the smallest pay gaps go to Belgium, Italy, Luxembourg, Poland, Romania and Slovenia, where the gap is smaller than 10.0 %.  The most room for improvement is in Czechia, Germany, Estonia and United Kingdom where the gap is more than 20 %.

What data tells?

This is the story that data tells about the gender pay gap and the economic situation of women across the EU, mainly based on data from 2018:

• A low gender pay gap does not necessarily indicate more gender equality. Rather, a lower gap can be a consequence of lower labour market participation of women. 68.2 % of women across the EU are active in the labour market compared to 79.2 % of men.
• However, lower pay gaps seem to have a connection with labour market participation. Data shows that in Member States with small gender pay gaps, women aged 20-64 have lower employment rates than men.
• In some countries, small gender pay gaps can be explained by the level of education of employed women. Higher educational attainment is associated with higher wages. This is very prominent in Romania, where the proportion of highly educated women in employment is 86.4 %. This rate is much higher than the 32.0 % employment rate for women with lower education. As a result, women’s average pay is skewed towards pay of women with higher educational attainment. This means that a relatively small proportion of highly educated women make the average wage for all women seem high and actually close to the level of men’s wages. The low gender pay gap also hides the fact that women with lower educational attainment are often being excluded from the labour market.
• Another reason behind the gender pay gap is that, on average, women spend fewer hours in paid work than men. This is the situation in all Member States, except for Bulgaria, Czechia, Greece, Croatia, Hungary, Poland and Romania. In the EU, the average number of weekly working hours for men is 40 hours, compared to 34 hours for women.
• In 2015, women in all Member States, except Bulgaria and Czechia, spent more time on cooking and housework than men. Women in Italy, Cyprus, Malta and Poland spent the most time: up to 3.2 hours per day. Women in France, Finland and Sweden spent the least time: 1.9 hours per day.
• Additionally, women are primary carers, which leads to lower employment rates for mothers than for fathers with young children in all Members States. The average employment rate for mothers aged 20-49 with a young child (younger than 6 years old) is 65.4 % in comparison to 91.5 % of fathers.
• 15.0 % of 15-to-64 year old inactive women are inactive for care reasons, i.e. looking after dependents (children or incapacitated adults), compared to only 1.4 % of men.
• Women are more likely to have non-standard work contracts, which are associated with lower pay.
• More women than men also work part-time: 31.3 % of women in the EU work part-time, in comparison to 8.7 % of men.
• The low proportion of women employees in managerial positions also contributes to the gender pay gap. In all Member States the proportion of women in managerial positions is lower than that of men. Data shows that women are systematically under-represented in decision-making positions: in the first half of 2019, on average, women accounted for only 6.9 % of CEOs, 17.6 % of executives, and 30.4 % of non-executives. In addition, women managers working in companies with 10 or more employees are paid less than men in all Member States. Women managers in the EU earn ten euros less than men per hour.
• These financial inequalities over the lifetime contribute to an even bigger gender pension gap. Data shows a higher risk of poverty for women pensioners in most Member States. The risk of poverty is highest in Bulgaria and the Baltic countries, ranging from 59.0 % in Estonia to 34.1 % in Bulgaria, compared to 43.1 % to 20.0 % for men in the same countries.

 

Más información

Noticia completa

Gender Statistics Database – Gender pay gap (GPG)