Gender pay gap

The gender pay gap or gender wage gap is the average difference between the remuneration for men and women who are working. Women are generally found to be paid less than men.[1] In the United States, for example, the average annual salary of a woman is 83% that of a man.[2] However, this figure changes when controlled for confounding factors such as differences in hours worked,[3] occupations chosen, education, job experience, and level of danger at work, [4] which has adjusted figures in the United States from 95%[5] to 99%.[2] At the global level, the World Health Organization has estimated women healthcare workers earn 28% less on average than men; after adjusting for occupation and hours worked, the gap is changed to 11%.[6]

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The reasons for the gap link to legal, social and economic factors.[7] These include topics such as discrimination based on gender, the motherhood penalty vs. fatherhood bonus, parental leave, and gender norms. Additionally, the consequences of the gender pay gap surpass individual grievances, leading to reduced economic output, lower pensions for women, and fewer learning opportunities.

The gender pay gap can be a problem from a public policy perspective in developing countries because it reduces economic output and means that women are more likely to be dependent upon welfare payments, especially in old age.[8][9][10]