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Wages

Trying to explain the gender pay gap in Europe

Gabriela Inchauste's picture
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Across European countries, women continue to earn less than men. Looking at data for full-time working women across 30 countries, we find that women would have needed an average raise of 19 percent of their hourly wage to match male wages. Take France, for example, where the gap is close to the regional average: this would mean going from 584 Euros to 697 Euros for a 40-hour work week. In fact, in some countries the gap was higher, reaching 1/3rd of women's salaries in 2015 (see Figure 1). However, the lowest observed gaps are not found in Scandinavia, as you might expect, but in Croatia, Greece, and Belgium, where women would require a 12% wage increase to fill the gap. And these gaps have persisted over time. Over a five-year period, the gap decreased in only 10 of the 30 European countries we looked at. The most notable decreases were in Estonia (10 percentage points), the Slovak Republic (5 percentage points), and Switzerland (7 percentage points). For others, the gap has increased, particularly in Poland, Bulgaria, Lithuania, and France, where the gap has doubled, while in some Scandinavian countries (Denmark, Finland, Norway) and Latvia, the gap has remained relatively constant.

Falling inequality: A Brazilian whodunnit

Francisco Ferreira's picture

Long one of the world’s most unequal countries, Brazil surprised pundits by recording a massive reduction in household income inequality in the last couple of decades. Between 1995 and 2012, the country’s Gini coefficient for household incomes fell by seven points, from 0.59 to 0.52. (For comparison, all of the inequality increase in the United States between 1967 and 2011 amounted to eight Gini points – according to this study.)