When we talk about equality in the workplace, one statistic should raise a red flag for everyone: women are paid, on average, 20% less than men for the same work. This figure, although slightly varying depending on the country and industry, has remained stubbornly consistent for decades. While the gender pay gap has narrowed in some places, it still exists, and it’s time we understand why and what it really means for women across the globe.
Understanding this statistic
The 20% gap refers to the median earnings of full-time working men and women, which are compared across similar roles and industries. While this figure doesn’t account for all variables—such as differences in industry, experience, or job title—it highlights a glaring inequity in how labor is compensated based on gender alone.
But here’s the thing: the wage gap isn’t just about women being “underpaid” for equal work. It’s about a systemic undervaluing of women’s contributions. This statistic doesn’t mean that women are paid less because they’re doing less valuable work. In fact, research consistently shows that women perform as well, if not better, than their male counterparts in similar roles. The difference in pay is rooted in biases, societal expectations, and a long history of women being excluded from top-paying roles.
The Systemic Causes Behind the Gender Pay Gap
The reasons behind this wage disparity are deeply rooted in both conscious and unconscious biases.
Here’s what we know:
01
Bias in Hiring and Promotion
Studies show that women are often judged more harshly than men, especially when it comes to leadership positions. They are less likely to be hired for leadership roles, and even when they are, they are often given less credit for their achievements. Men, on the other hand, tend to receive higher salaries, even for comparable levels of experience.
02
The “Motherhood Penalty”
While men’s earnings tend to increase after having children, women face a “motherhood penalty” that contributes to the wage gap. Research shows that mothers are often paid less than their childless counterparts because of assumptions that they are less committed to their careers.
03
Financial Planning
Women are still underrepresented in the highest-paying fields like tech, engineering, and finance. Meanwhile, they’re overrepresented in lower-paying sectors like caregiving, education, and administrative roles. This segregation contributes to the overall wage gap across different industries.
04
Negotiation Disparities
A significant barrier to closing the gender pay gap is the difference in how men and women negotiate salaries. Studies show that women are less likely to negotiate their salaries or ask for raises, often due to fears of being perceived as “aggressive” or “difficult.” Men, on the other hand, are often encouraged to negotiate and are rewarded for doing so.
More Statistics That Should Concern You
The 20% figure is just the start. Let’s dive deeper into the broader picture of gender inequality:
Women of Colour Face a Larger Pay Gap:
According to the National Women’s Law Center, Black women earn just 63 cents for every dollar a white man makes. Hispanic women earn only 54 cents. The disparity is even more extreme for Indigenous women and other marginalised groups.
Source: National Women’s Law Center, “The Wage Gap“
The Gender Wealth Gap is Even Larger:
While the pay gap measures salaries, the wealth gap between men and women is even more striking. A report by the Institute for Women’s Policy Research found that women hold just 32% of the nation’s wealth, and the wealth disparity grows when race and ethnicity are factored in.
Source: Institute for Women’s Policy Research (IWPR), “The Gender Wealth Gap“
The Global Gender Pay Gap:
On a global scale, the World Economic Forum’s Global Gender Gap Report 2023 estimates that the gender pay gap won’t close entirely until 2059. This is more than 30 years away. In some regions, particularly in the Middle East and North Africa, the gap is even wider and may take longer to bridge.
Source: World Economic Forum, “Global Gender Gap Report 2023”
The “Glass Ceiling” Effect:
According to McKinsey’s Women in the Workplace report, while women enter the workforce in equal numbers to men, they are significantly less likely to be promoted to senior leadership positions. Women make up just 24% of executive positions in the United States, despite representing 47% of the workforce.
Source: McKinsey & Company, “Women in the Workplace 2023“
What This Means for Women’s Empowerment
The gender pay gap is not just a financial issue—it’s an issue of empowerment. Financial independence and equal pay are central to the broader feminist agenda, because they enable women to have more control over their lives. Pay inequality contributes to the broader system of gendered oppression, reinforcing stereotypes about women’s value in the workplace and beyond.
When women earn less than men for the same work, it has ripple effects throughout their careers and lives. It impacts their retirement savings, their access to healthcare, their ability to invest in their children’s future, and even their mental and physical well-being. It also perpetuates the idea that women are somehow less capable or deserving than men, further entrenching gendered power structures in society.
women are paid, on average, 20% less than men for the same work.
The Path Forward: Closing the Gap
Addressing the gender pay gap requires action on multiple fronts
Policy Changes:
Governments need to implement policies that enforce pay transparency and mandate companies to report on pay disparities. In some countries, such as Iceland, it is already illegal to pay women less than men for the same work, and this kind of legislation should be globally adopted.
Source: International Labour Organisation (ILO), “Gender Pay Gap Report“
Workplace Equity:
Companies must implement more equitable hiring, promotion, and salary review processes. This means confronting unconscious biases and ensuring that women, especially women of color, are given the same opportunities for career advancement as their male counterparts.
Source: LeanIn.Org and McKinsey & Company, “Women in the Workplace 2023“
Education and Empowerment:
Governments need to implement policies that enforce pay transparency and mandate companies to report on pay disparities. In some countries, such as Iceland, it is already illegal to pay women less than men for the same work, and this kind of legislation should be globally adopted.
Source: Catalyst, “The Power of Mentorship“
Societal Shifts:
We need a cultural shift in how we view women’s work—both inside and outside the home. Women’s contributions must be valued equally to men’s, and this will require challenging outdated stereotypes about gender roles.
Source: Center for American Progress, “Closing the Gender Pay Gap“
Final Thoughts
The 20% pay gap is just one symptom of a much larger issue. The inequality women face in the workplace is a complex problem that requires a multifaceted solution. As we continue to push for gender equality, we must remain steadfast in our fight to not only close the pay gap but to eradicate the systemic barriers that hold women back in every aspect of society.
As individuals, we can support policies that promote fairness, advocate for our own value in the workplace, and encourage the next generation of women to step into leadership roles with confidence. Together, we can move closer to a world where gender equality is no longer a statistic, but a reality.
