In 2024, women in South Korea earned just 63% of men’s wages, one of the widest gaps in the OECD. At the other end of the spectrum, Slovenia has narrowed its gap to below 5%. These striking disparities highlight how far the world still has to go in achieving pay equity.

The gender pay gap measures the difference between men’s and women’s earnings. It can be reported in several ways:

• Unadjusted pay gap: the raw difference in average or median wages between men and women.
• Adjusted pay gap: accounts for factors like occupation, education, and experience, showing how much of the gap remains after controlling for these.
• Median vs mean gap: median often better reflects “typical” earnings because it is less skewed by extremely high salaries.
• Full-time equivalent vs overall gap: part-time work, more common among women, can widen the overall gap.
  

The gender pay gap matters because it reflects persistent inequality in labor markets. Beyond fairness, it carries huge economic implications, as reducing the gap can boost GDP, labor supply, and family incomes. Socially, it ties into broader issues of justice, representation, and opportunity.

This article explores where the gap is smallest, where it is largest, what drives these differences, and which policy interventions are making a difference.

Section 1: How the Gender Pay Gap Is Measured

There is no single way to measure the gap, and methodology matters.

1. Unadjusted vs adjusted:
   
   • The unadjusted gap can exaggerate disparities in countries where women work more in part-time or low-paying industries.
   • The adjusted gap reveals structural or discriminatory elements that persist even when comparing similar workers.
     
     
2. Data sources and limitations:
   
   • OECD, Eurostat, and ILO provide some of the most comprehensive data.
   • Surveys often miss workers in the informal economy, which is significant in regions like Africa, Latin America, and South Asia.
   • Self-reported surveys can also understate or misclassify certain jobs.
     
     
3. Median vs mean:
   
   • Median pay gaps are usually preferred as they avoid distortions caused by a few very high earners (often male-dominated executive roles).
     
     
4. Part-time vs full-time:
   
   • In countries with high female part-time work (e.g., Netherlands, Germany), the overall gap looks wider than the gap among full-time employees.

Thus, while statistics can differ, the patterns are consistent: women are underpaid relative to men across almost every country and sector.

Section 2: Countries with the Smallest Gender Pay Gaps

Some countries have managed to keep their pay gaps in the single digits. According to OECD and Eurostat (2023–2024 data), here are examples:

Why are these countries performing better?

• Labor protections: Strong wage-setting institutions (e.g., collective bargaining).
• Transparency rules: Many require companies to publish pay gap data.
• Public policy: Investments in childcare, parental leave, and flexible work make it easier for women to stay employed continuously.
• Cultural norms: Higher acceptance of women in full-time work and leadership roles.
  
  

Section 3: Countries with the Largest Gender Pay Gaps

On the other end, several countries—especially in Asia and the Middle East—show persistent double-digit gaps.

Why are gaps larger here?

• Cultural norms: Women often face stronger pressure to leave the workforce for caregiving.
• Long working hours: In Japan and Korea, demanding schedules penalize women with family responsibilities.
• Informal economy: In India and Mexico, much work is off the books, harder to regulate.
• Weak transparency: Fewer laws requiring disclosure or enforcement of pay equity.
• Occupational segregation: Women clustered in lower-paying sectors.

Regional Patterns & Trends

1. Europe:
   
   • The EU average gender pay gap is about 12.7%.
   • Eastern Europe (Slovenia, Romania, Poland) often has smaller gaps, partly due to wage compression and state legacies.
   • Western Europe (Germany, Austria, UK) shows wider gaps, reflecting more part-time work among women.
     
2. North America:
   
   • U.S. ~17% gap; Canada ~15% (StatsCan).
   • State-level variation: U.S. Northeast lower gaps; Southern states wider.
     
3. Asia & Middle East:
   
   • Korea and Japan stand out with wide gaps.
   • Gulf states like UAE, Qatar, and Saudi Arabia report improving female participation but still face structural challenges.
     
4. Africa & Latin America:
   
   • Limited comparable data due to informality.
   • South Africa: ~20% gap. Brazil: ~17%. Mexico: ~18%.
   • Trend: some progress through targeted equality programs, but structural challenges remain.
     
5. Trends over time:
   
   • Most OECD countries have narrowed gaps modestly over the last two decades.
   • Nordic countries reduced faster due to strong policy frameworks.
   • The global pace remains slow; at current trends, the World Economic Forum projects full parity will take over 130 years.

Drivers Behind Pay Gaps & Structural Causes

• Occupational & sectoral segregation: Women overrepresented in education, health, retail; men dominate finance, tech, and senior management.
• Experience & interruptions: Motherhood leads to career breaks, part-time work, slower progression.
• Discrimination & bias: Glass ceiling effects limit women in leadership roles.
• Pay secrecy: Lack of transparency makes it harder to challenge inequities.
• Unionization & collective bargaining: Stronger unions often mean smaller gaps.
• Legal frameworks: Countries with enforced equal pay laws, audits, and reporting see narrower gaps.
• Informal economy: Where informal work dominates, pay equity is harder to enforce.
  

Policy Interventions & Best Practices

Closing the gender pay gap requires coordinated policy action, workplace reforms, and cultural change. Many countries that have successfully narrowed their gaps have combined legislation with strong enforcement and supportive social policies.

Some effective approaches include:

• Pay Transparency Measures: Laws requiring companies to disclose pay data or conduct pay audits can highlight inequalities and push employers toward fairness. The EU Pay Transparency Directive is a recent example.
• Mandatory Reporting & Auditing: Regular gender pay gap reporting, such as in the UK, ensures accountability and public awareness.
• Parental Leave & Childcare Support: Affordable childcare and equal parental leave allow women to remain in the workforce without long career breaks. Nordic countries stand out in this regard.
• Union Strength & Collective Bargaining: Strong labor unions often push for equal pay agreements, reducing discrepancies in heavily unionized countries.
• Promoting Women in Leadership: Gender quotas, mentorship programs, and leadership training initiatives help break the glass ceiling and reduce structural inequalities.
• Training & Bias Reduction Programs: Encouraging organizations to address unconscious bias, improve negotiation training, and create inclusive career pathways can gradually shift workplace cultures.

Case studies show that Iceland, Belgium, and Luxembourg have seen progress by combining transparency, strict laws, and supportive family policies. These examples underline that lasting change often requires tackling both direct pay discrimination and the wider structures that reproduce inequality.

Conclusion

The gender pay gap is a persistent global challenge, though its size varies widely across regions. Countries like Slovenia, Luxembourg, and Belgium demonstrate that progress is possible, while Korea, Japan, and parts of the Middle East highlight structural and cultural barriers.

The drivers are complex: occupational segregation, discrimination, career interruptions, and policy failures all play roles. Yet evidence shows that policy interventions matter. Pay transparency, mandatory reporting, childcare support, and active promotion of women into leadership all contribute to progress. Ultimately, the gender pay gap is not just a women’s issue but an economic and social priority. Closing it could unlock billions in productivity, reduce poverty, and promote fairer societies.

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