27th February 2013

Closing the Gender GapACT NOW

Ana LLENA-NOZALEconomist, Social Policy Division, OECD

OUTLINE

• The economic costs of gender inequality

• Policies to promote gender equality

In labour force participation gender gaps persist

Source: OECD (2008), Growing Unequal?

Gender gap in labour force participation (male rates minus female rates), population aged 15-64

Finla

nd

Icela

nd

Estoni

a

Israe

l*

Slove

nia

Franc

e

Unite

d Sta

tes

Austri

a

Hunga

ry

Switzer

land

Unite

d Kin

gdom

Polan

d

Slova

k Rep

ublic

Irela

nd

Czech

Rep

ublic

Japa

n

Korea

Mex

ico0

10

20

30

40

50

60

12.0 14.0

2010 2000 1990 1980

Percentage points

Even larger gaps persist in other employment outcomes: prevalence of part-time…

Percentage of men and women in part-time employment, 2010

Slo

vak

Rep

ublic

Hun

gary

Rus

sian

Fed

era.

..

Cze

ch R

epub

licE

ston

iaS

love

nia

Pol

and

Por

tuga

lG

reec

eK

orea

Finl

and

Uni

ted

Sta

tes

Sw

eden

Spa

inIs

rael

*Fr

ance

EU

-21

Turk

eyO

EC

DC

hile

Den

mar

kIc

elan

dC

anad

aM

exic

oN

orw

ayLu

xem

bour

gIta

lyB

elgi

umA

ustri

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ew Z

eala

ndJa

pan

Ger

man

yIre

land

Aus

tralia

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ted

Kin

gdom

Sw

itzer

land

Net

herla

nds

0

10

20

30

40

50

60

70

7.3 8.2

Men Women

Percentage points

… career progression in the private sector…

Women’s shares in the labour force and senior management, 2010

Turke

y

Indo

nesia Ita

ly

Greec

e

Czech

Rep

ublic

Luxe

mbo

urg

Spain

Slova

k Rep

ublic

Belgi

um

Austra

lia

Germ

any

Switzer

land

Unite

d Kin

gdom

Austri

a

New Z

eala

nd

Sweden

Denm

ark

Portu

gal

Franc

e

Russia

n Fed

erat

ion

0

10

20

30

40

50

60

31.6 32.0

Senior manager share Labour force share%

Gaps in employment outcomes are reflected in the gender pay gap…

Gender pay gap for full-time workers

The gender pay gap increases with age and during childbearing…

Gender pay gap by presence of children, 25-44 years old

Differences in take-home pay are even larger because women work fewer hours…

Gender pay gap for full-time and all workers (part-time and full-time)

Hungary

Belgiu

m

Slove

nia

Irela

nd

France

Netherla

nds

Sweden

Czech

Repu...

United S

tate

s

Austria

Slova

k Repu...

Luxem

bourg

Germ

any

Korea

0

5

10

15

20

25

30

35

40

45

50

Full-time workers All workers%

And pay gap contributes to lower pensions

Gender pension gap, mandatory schemes, selected OECD countries, 2009

2. Policy considerations

Policy levers

• Gender equality policies.

• Family policies

• Tax/benefit policies

• Monitoring

• Cooperate with developing and emerging countries to address the gender dimensions of poverty through women’s economic empowerment

Provide paid employment-protected parental leave and promote more equal use among parents

Paid parental leave (supplementary to paid maternity leave), 2008• Provide paid parental leave. Evidence

suggests that :– extending parental leave entitlements

had a small positive effect on the female-to-male employment ratio but only up to two years of leave; a longer leave has a negative effect on both the female employment rate;

– extending paid parental leave had a small positive effect on weekly working hours among women but it was associated with an increase in the gender pay gap among full-time workers;

• Encourage fathers to take available parental leave, also by reserving part of the parental leave entitlement for the exclusive and non-transferable use by fathers.

AUS

AUT

BEL

CAN

CZE

DEU

DNK

FIN

GBRIRL

JPN

KOR

NOR

NZL

SVK

USA

R² = 0.604

0

5

10

15

20

25

30

0 50 100 150 200Number of paid weeks of parental leave

Gender pay gap age 30-34 %

Invest in childcare

The OECD gender report shows that:

• Higher enrolment in formal childcare increases female employment on a full-time and part-time basis, and reduces pay gaps. AUS

AUT

BEL

CAN

CZE

DEU

DNK

FIN

GBR

IRL

JPN

KOR

NOR

NZL

SVK

USA

R² = 0.564

0

5

10

15

20

25

30

0 20 40 60 80Enrolment rates of children in formal care, 2008 %

Gender pay gap age 30-34 %

Gender pay gaps and enrolment rates in formal childcare 2008

Sources: OECD Family database (www,oecd.org/els/family/database) and OECD Earnings database.

Tools: corporate governance codes, target-

setting for leadership positions, disclosure and monitoring of progress in both public and private sectors;

Some countries have introduced quotas for women in executive and supervisory boards of listed and public companies;

campaigning and raising awareness to encourage greater participation and representation of women in politics.

Increase the representation of women in decision-making positions

Share of women on boards inlisted companies, 2009

Source: OECD (2012), Closing the Gender Gap Act Now. (www.oecd.org/gender)

THANK YOU and FURTHER READING!

“Closing the Gender Gap: Act Now”(17 December 2012 at www.oecd.org/gender)