IZA World of Labor
key topic

What is the gender divide?

The gender divide describes the disparity between men and women in society, and in turn the labor market and business world. Workplace diversity is a significant concern for companies, as they strive to increase the number of women in traditionally male-dominated positions and industries.

  • Female poverty and intrahousehold inequality in transition economies

    An unequal distribution of resources within the family is a special concern for female poverty

    Luca Piccoli, March 2017
    Transition to a market economy is accompanied by a period of greater economic uncertainty. Women are likely to suffer substantial disadvantages from this uncertainty compared to men as they are, for example, more likely to lose their job. This not only implies a monetary loss for the entire family, but also degrades female bargaining power within the household, possibly further aggravating their well-being. When intra-household inequality—an unequal distribution of resources among family members—exists, female poverty might be significantly larger than what can be deduced using standard household based poverty measures.
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  • Identifying and measuring economic discrimination

    Using decomposition methods helps measure both the amount and source of economic discrimination between groups

    Differences in wages between men and women, white and black workers, or any two distinct groups are a controversial feature of the labor market, raising concern about discrimination by employers. Decomposition methods shed light on those differences by separating them into: (i) composition effects, which are explained by differences in the distribution of observable variables, e.g. education level; and (ii) structural effects, which are explained by differences in the returns to observable and unobservable variables. Often, a significant structural effect, such as different returns to education, can be indicative of discrimination.
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  • Gender differences in wages and leadership

    Gender gaps in wages and leadership positions are large—Why, and what can be done about it?

    Mario Macis, January 2017
    Gender wage gaps and women’s underrepresentation in leadership positions exist at remarkably similar magnitudes across countries at all levels of income per capita. Women’s educational attainment and labor market participation have improved, but this has been insufficient to close the gaps. A combination of economic forces, cultural and social norms, discrimination, and unequal legal rights appear to be contributing to gender inequality. A range of policy options (such as quotas) have been implemented in some countries; some have been successful, whereas for others the effects are still unclear.
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  • Gender wage discrimination

    Does the extent of competition in labor markets explain why female workers are paid less than men?

    Boris Hirsch, November 2016
    There are pronounced and persistent wage differences between men and women in all parts of the world. A significant element of these wage disparities can be attributed to differences in worker and workplace characteristics, which are likely to mirror differences in worker productivity. However, a large part of these differences remains unexplained, and it is common to attribute them to discrimination by the employer that is rooted in prejudice against female workers. Yet recent empirical evidence suggests that, to a large extent, the gaps reflect “monopsonistic” wage discrimination—that is, employers exploiting their wage-setting power over women—rather than any sort of prejudice.
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  • Gender differences in competitiveness

    To what extent can different attitudes towards competition for men and women explain the gender gap in labor markets?

    Mario Lackner, February 2016
    Differences in labor market outcomes for women and men are highly persistent. Apart from discrimination, one frequently mentioned explanation could be differences in the attitude towards competition for both genders. Abundant empirical evidence indicates that multiple influences shape attitudes towards competition during different periods of the life cycle. Gender differences in competitiveness will not only influence outcomes during working age, but also during early childhood education. In order to reduce the gender gap in educational and labor market outcomes, it is crucial to understand when and why gender gaps in competitiveness arise and to study their consequences.
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  • Sexual harassment in the workplace

    Despite being illegal, costly, and an affront to dignity, sexual harassment is pervasive and challenging to eliminate

    Joni Hersch, October 2015
    Workplace sexual harassment is internationally condemned as sex discrimination and a violation of human rights, and more than 75 countries have enacted legislation prohibiting it. Sexual harassment in the workplace increases absenteeism and turnover and lowers workplace productivity and job satisfaction. Yet it remains pervasive and underreported, and neither legislation nor market incentives have been able to eliminate it. Strong workplace policies prohibiting sexual harassment, workplace training, and a complaints process that protects workers from retaliation seem to offer the most promise in reducing sexual harassment.
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