Ever since the 1957 Treaty of Rome, equal pay for equal work has been one of the key objectives and foundational principles of the European Union (EU), back then the European Economic Community (ECC). More than half a century later, the Gender Pay Gap (GPG) still constitutes a glaring symbol of deep-rooted inequality, with women on average earning 12,7% less per hour than men. Though the GPG has been consistently decreasing over the past decade – in 2014, the gap was still at a staggering high, with many EU countries reporting disparities exceeding 20% – it remains a persistent issue and seems to continuously elude the efforts of various stakeholders.
A comparison of EU countries’ data reveals stark differences in the GPG among member states. Countries such as Estonia and Austria present the highest disparities, while Italy and Luxembourg, for instance, report a significantly lower GPG. Before delving into explanations for these differences – and shedding light on why things might not be as they appear – it is crucial to dig into the root causes and drivers of the GPG.
Defining the GPG
The GPG is shaped by an intricate web of multifaceted factors. Sectoral, or horizontal, segregation is first among
them. This refers to career choice, as women are more frequently employed in low-paying sectors, like healthcare or education. These female-dominated professions tend to grapple with low prestige and account for 24% of the overall GPG. The other driver of the GPG is vertical segregation – the glass ceiling. Despite higher levels of tertiary education, with more than 36% of women and 31% of men achieving this level as of 2021, women are less likely to attain leadership positions. Women’s unpaid domestic labour and child care responsibilities are often associated with lower employment rates among women, with career breaks further intensifying the GPG. While disproportionate unpaid care work may not be the only factor, it contributes to high levels of female part- time work. A frequent result is women receiving lower pensions than men, contributing to old-age poverty. These underlying causes of gender-based inequalities in payment are further exacerbated by gender bias and societal expectations, pushing women into lower-wage industries or excluding them entirely from paid labour.
Significant differences in the data suggest that EU member states vary in how effectively they address the causes of the GPG. But why is the gap between countries that wide? While some nations may indeed offer women greater chances to break through the glass ceiling and encounter less gender discrimination, a closer look at the data reveals that the way of reporting data can mask reality. Looking at Austria and Italy, for instance, it looks like Austria, with a GPG of 18,4% (2022), lags far behind in terms of equalising pay disparities, while Eurostat data portrays Italy, with a GPG of merely 4,3% (2022), as a paragon of pay equality.
But does a narrower GPG truly equate to more gender equality? Not necessarily. A smaller GPG can often be observed in countries with lower female employment rates. As the women who do work are usually those with higher qualifications, they secure better-paying jobs, which in turn reduces the GPG. Conversely, a larger GPG may imply high levels of female employment in low-paid sectors or part-time jobs. These nuances cast doubt on how much progress some countries have really made toward true gender parity and payment equality. This, however, should in no way diminish the efforts of numerous EU and national initiatives – their success but also their potential for refinement is proven by the narrowing GPG.
DESPITE ALL EFFORTS, SYSTEMIC POLICIES MUST BE COMPLEMENTED BY A SOCIAL SHIFT TO EFFECTIVELY NARROW THE GPG.
Combating the GPG – but how?
The EU and its member states have implemented a range of initiatives to combat the GPG. On a global scale, the UN’s Beijing Declaration (1995), the formation of UN Women (2010), and the Sustainable Development Goal 5 (2015) set a standard for the promotion of gender equality. In the European context, the EU has introduced a variety of interventions, such as the EU Pay Transparency Directive (2023), which mandates that companies with over 250 employees report on their gender pay gaps, and a holistic EU Action Plan (2017-2019) directed towards the root causes of the GPG. Policies on paternity and parental leave as part of the Work-Life Balance Directive (2019) further aim to increase women’s employment rates by promoting a balanced division of caregiving responsibilities.
Despite all efforts, systemic policies must be complemented by a social shift to effectively narrow the GPG. Merely promoting gender equality across the EU is insufficient, as achieving true gender parity requires addressing not only systemic factors, such as pay transparency but also cultural factors, like gender norms with regard to women’s roles (in and outside the workplace).
The EU’s Gender Equality Strategy 2020-2025, with its push to challenge the gender biases that fuel the GPG, reveals the EU’s commitment to tackling the underlying causes. To encourage cultural shifts, international initiatives like the UN Women’s HeForShe campaign (2014) and the Global Equal Pay Platform of Champions by the ILO in 2019 engage both genders in the advocacy for equality. On a national level, programmes such as Austria’s Girls’ Day and Girls in Politics encourage young women to explore fields traditionally dominated by men while amplifying the visibility of female role models. Campaigns like #BanBossy by Lean In and the #LikeAGirl Campaign by Always work to reshape language and perceptions that reinforce inhibitive gender norms. There is compelling data demonstrating that these initiatives are more than merely awareness-raising campaigns; they bear the potential to foster tangible change.
To achieve lasting change, all these efforts have to be matched by further action. Policy suggestions need to allow for an equal and flexible division of care responsibilities. Enhancing the accessibility and affordability of childcare services would further increase women’s full participation in the workforce. By challenging preconceptions around women’s career ambitions and enhancing linguistic sensitivity concerning gender biases through gender-sensitive educational initiatives, the perspectives of the future workforce toward greater gender equality can be shaped.
While these relentless efforts are vital to narrowing and ultimately closing the GPG, the EU must bridge the gap by moving beyond the scope of policies. Global, European, and national initiatives have been fruitful – as indicated by the steady decline of the GPG – but gender-based disparities in pay remain an obstacle and require further intervention. For meaningful progress, stakeholders must emphasise making the GPG an everyday conversation, ensuring that equality is woven into the fabric of society because real change happens not just in legislation but in day-to-day interactions.
