International Equal Pay Day

In every country across our world, employers pay women less than men for work of equal value. Some standouts, like Iceland, have led the world for years. Other countries, such as war-torn Yemen, need lots of help.

On September 18, the United Nations observe International Equal Pay Day to draw attention to this crucial issue and urgent need to address the gender pay gap.

We’ve come a long way – and we have a long way to go.

The Gender Wage Gap

Researchers and activists often express this “gender wage gap” as a percentage. On average (globally), women are paid 68% of what men earn for work of the same value. In some countries, this number is as low as 40%.

But, what does that really mean to women in homes and workplaces across the globe?

Let’s get to the heart of the matter. Women are still working harder to get ahead - and falling further behind their male colleagues - each and every year.

So, let’s talk about the gender gap in a way that shows the progress we’ve made (however slowly) and the work we still need to do to give every person in the world a fair wage for honest work.

International Equal Pay Day

To illustrate the full impact of this enduring inequity, the UN established September 18 as International Equal Pay Day.

257 Years – that is how long it will take to close the pay gap between the salaries of men and women, as per the World Economic Forum. Currently on a global average, women are earning 23% less than men for work of the same value.

By shining a light on this enduring injustice in its 2030 sustainable development goals, the UN took another important step towards global income equality. Tell your friends and colleagues September 18th is International Equal Pay Day and join the global effort for change!

Country by Country

Along with its Nordic sisters, Iceland leads the way in gender equality. Other champions of gender wage equality include Rwanda, Namibia, Nicaragua, Ireland, New Zealand, and The Philippines. Countries like Britain and Australia are working hard to catch up with these leaders. Canada has made substantial progress but is still struggling with the wage inequality caused by women’s unpaid time off from work due to child care.

Iceland elected the world’s first female Prime Minister in 1980 and the world’s first openly gay female Prime Minister in 2009. In 2020, all Icelandic companies of over 25 employees must prove they compensate women and men equally for work of equal value – or pay a daily fine. According to the Harvard Business Review, this changes the power dynamic in the workplace by shifting the burden of proof from the employee to the employer.

As of 2018, the worst countries for women include Yemen, Pakistan, and Iraq – along with many other war-torn and impoverished areas of the Middle East and Africa.

Is the United States the Worst of the Best?

After World War II, the U.S., Canada, and their European allies founded the Organization for Economic Cooperation and Development (OECD) to distribute aid and rebuild damaged economies (such as Japan). In 2020, the OECD reported that the U.S. has the fifth-worst gender wage gap out of its 38 member countries. In that same year, the World Economic Forum ranked the U.S. gender gap 53rd out of 153 countries.

The U.S. wage gap is ahead of the international average, but we aren’t yet the global leader in freedom and equality that we claim (or hope) to be.

Certain American women face far worse wage discrimination than others. In Hollywood, for example, film studios pay top female actors only 38% of what they pay males. However, Latina, African-American, and Native American women face the greatest wage injustice. Mothers from these groups have an especially hard time in the workplace, making 46-52 cents for every dollar a white man makes (for equal work). Remarkably, though, researchers at the Federal Reserve have found that mothers (especially of two children) are more productive than women without children!

In the United States, National Equal Pay Day is held on a different day each year, to demonstrate the progress (however slow) we are making towards gender pay parity. In 2021, we recognized U.S. Equal Pay Day on March 24th, a week earlier than 2020’s date of March 31st. This means progress, but also demonstrates the slow rate of corporate cultural change.

One glimmer of hope in these statistics is generational. According to the Pew Research Center, Female workers aged 25-34 earn 93% of the pay men do. The average wage for women of all ages, as compared to their male peers, is only 84%. This may represent a sea change in workplace equality, as younger women grow expecting to be treated with respect and dignity – and viewed as workplace leaders. Punching a hole in this “confidence gap” could go a long way toward ending the wage gap once and for all.

The Road Ahead

In its sustainable development goals, the UN highlights the progress we’ve made as a species toward gender equality. A greater number of girls are attending school, fewer are marrying early/against their wills, and many countries are enacting stronger gender-equality laws.

Covid 19 has pushed many women back into unpaid caregiving roles as schools have closed and older people have needed more help. Of course, women in frontline healthcare roles – and mothers working multiple “essential worker” jobs have borne the brunt of this epidemic. It will take special efforts to recover from the gender equality setbacks of this pandemic – including female participation and leadership in Covid 19 response planning.

Because women invest so much more of their earnings in their families than men do, gender wage equality means sustainable economic development. It can break the cycle of poverty – especially in countries where men can forbid their wives from working. Closing the wage gap will mean better nutrition, health care, and education for upcoming generations – and more resilience in the face of a changing global climate.

Here at Harper & Gray, we connect talented people with companies that truly value inclusion and diversity. Join us in putting the over 2 million women who left the paid economy during the pandemic back to work – for good.