What is the gender divide?
The gender divide, or gender gap, describes the disparity between different genders in society, and in turn the labor market and business world, including inequality of opportunity, pay, progression, and benefits. Many women have worked full-time for decades, and in all OECD countries, young women are more likely to hold a tertiary (university) qualification than young men. Nevertheless, women are still under-represented in executive suites and board rooms as well as in higher levels of firm hierarchies, which could reflect a huge loss of talent and educational investment to both firms and economies.
With women still taking on more caring and housework responsibilities in the home than men, even in unprecedented times like during the recent Covid-19 pandemic, policymakers may need to focus on getting a more balanced gender division of careers within the family alongside other equal opportunity and affirmative action policies if they are to improve gender equality within the labor market.
For new academic research on this topic, see IZA's discussion papers on gender.
Despite major efforts at equal pay legislation, gender pay inequality still exists—how can this be put right?Solomon W. Polachek, October 2019Despite equal pay legislation dating back 50 years, American women still earn 18% less than their male counterparts. In the UK, with its Equal Pay Act of 1970, and France, which legislated in 1972, the gap is 17% and 10% respectively, and in Australia it remains around 14%. Interestingly, the gender pay gap is relatively small for the young but increases as men and women grow older. Similarly, it is large when comparing married men and women, but smaller for singles. Just what can explain these wage patterns? And what can governments do to speed up wage convergence to close the gender pay gap? Clearly, the gender pay gap continues to be an important policy issue.MoreLess
Gender diversity in teams Updated
Greater representation of women may better represent women’s preferences but may not help economic performanceGhazala Azmat, May 2019Women's representation on corporate boards, political committees, and other decision-making teams is increasing, this is in part because of legal mandates. Evidence on team dynamics and gender differences in preferences (for example, risk-taking behavior, taste for competition, prosocial behavior) shows how gender composition influences group decision-making and subsequent performance. This works through channels such as investment decisions, internal management, corporate governance, and social responsibility.MoreLess
Gender quotas for women on boards of directors improve female share on boards but firm performance effects are mixedNina Smith, December 2018Arguments for increasing gender diversity on boards of directors by gender quotas range from ensuring equal opportunity to improving firm performance. The introduction of gender quotas in a number of countries has increased female representation on boards. Current research does not justify gender quotas on grounds of economic efficiency. In many countries the number of women in top executive positions is limited, and it is not clear from the evidence that quotas lead to a larger pool of female top executives, who are the main pipeline for boards of directors. Thus, other supplementary policies may be necessary if politicians want to increase the number of women in senior management positions.MoreLess
- Program evaluation
- Migration and ethnicity
- Labor markets and institutions
- Demography, family, and gender
A mix of policies could be the solution to reducing discrimination in the labor marketMarie-Anne Valfort, May 2018Discrimination is a complex, multi-factor phenomenon. Evidence shows widespread discrimination on various grounds, including ethnic origin, sexual orientation, gender identity, religion or beliefs, disability, being over 55 years old, or being a woman. Combating discrimination requires combining the strengths of a range of anti-discrimination policies while also addressing their weaknesses. In particular, policymakers should thoroughly address prejudice (taste-based discrimination), stereotypes (statistical discrimination), cognitive biases, and attention-based discrimination.MoreLess
Transitioning across gender is related to greater life and job satisfaction but also affects acceptance in one’s societyNick Drydakis, September 2017Acceptance of one’s gender identity and congruence between one’s gender identity and outward appearance are associated with less adverse mental health symptoms, and greater life and job satisfaction. However, trans people are subject to human rights violations, hate crimes, and experience higher unemployment and poverty than the general population. Trans people often feel that they are citizens who are not allowed to be themselves and practice their authentic identity. Many biased treatments of trans people could be attenuated if legal protections and inclusive workplace practices were in place.MoreLess
Harnessing the benefits of diversity is essential for encouraging entrepreneurship in the transition regionElena Nikolova, May 2017Entrepreneurship is an important lever for spurring transition in the economies of the former Soviet Union and Central and Eastern Europe. Utilizing diversity, in terms of religion or gender, can positively affect entrepreneurial development. Programs that encourage entrepreneurial initiatives (such as business start-ups) in culturally diverse localities should rank high on the policy agenda. Prompting women to start a business, along with female-friendly measures (including targeted legislation), can positively affect entrepreneurial behaviour and the performance of existing enterprises.MoreLess