Summary
Highlights
The gender pay gap is the percentage difference in salaries between men and women, with women globally earning approximately 20% less than men. In 95% of occupations, men out-earn women, making it a significant global reality rather than a myth.
Australia has become the latest country to introduce legislation requiring companies with over 100 employees to disclose their gender wage gaps. In Australia, women earn about 23% less than men, translating to a loss of at least one million dollars over a woman's working life.
Australia ranks 43rd on the Global Gender Pay Gap Index. Transparency in wages has been shown to reduce the pay gap, with one survey indicating a 50% reduction. It also tends to make employees work harder. Countries like the UK, Japan, and the EU are also pushing for greater wage transparency.
Denmark's legislation, requiring firms to show gender statistics, resulted in a 7% reduction in its gender pay gap, though this came at the cost of slower wage growth for men. In the US, despite efforts for wage transparency, the pay gap has remained stagnant for two decades, with women still earning 82% of what men do.
While reporting the pay gap is a crucial first step, changing mindsets and reshaping attitudes are more difficult. At the current rate, it will take over 100 years to eliminate the global pay gap. Women have increased their education, workforce participation, and senior roles, making it imperative for governments and firms to do their part to address this inequality.