IAS Gyan

Daily News Analysis

Gender Pay Gap Report

20th March, 2024 Economy

Gender Pay Gap Report

Disclaimer: Copyright infringement not intended.


  • Recently, the World Bank released the Gender Pay Gap Report.

Findings of 2024 Report

  • Recent findings from the World Bank Group underscore a persistent global issue: women continue to earn significantly less than men, with the gap often cited as 77 cents for every dollar earned by men. This discrepancy, commonly referred to as the "gender pay gap," remains a critical issue in discussions surrounding workplace equality.

Defining the Gender Pay Gap:

  • The International Labour Organization (ILO) defines the gender pay gap as the disparity between the average wage levels of all working women and men.
  • It's crucial to note that this metric focuses on overall wage differences rather than comparing the pay of men and women in identical roles.

Calculating the Gap:

  • Various methodologies yield slightly different figures for the gender pay gap.
  • For instance, Pew Research and the US Bureau of Labor Statistics reported disparities of 84% and 81%, respectively.
  • These discrepancies arise due to factors such as the calculation method (e.g., hourly vs. weekly wages) and the inclusion criteria (e.g., full-time vs. part-time workers).

Factors Influencing the Gap:

  • Labour Force Participation: Women's lower participation in the workforce, influenced by societal norms and expectations, contributes significantly to the gap. Globally, women's labour force participation rates lag behind those of men.
  • Occupational Segregation: Women are often concentrated in lower-paying occupations and industries compared to men. Additionally, they face barriers to advancement into higher-paying roles, such as management and leadership positions.
  • Part-Time Work: Women are more likely than men to work part-time, which typically offers lower wages and fewer benefits than full-time employment. This disparity in work arrangements contributes to the overall gender pay gap.
  • Socio-Economic Factors: Institutional biases, limited investments in women's education and skills development, and safety concerns in the workplace and during commutes also play significant roles in perpetuating the gender pay gap.

Implications and Patterns:

  • The gender pay gap manifests in various patterns, including age-related earnings disparities.
  • Women, particularly those in their mid-30s and 40s, often experience a decline in earnings compared to men in similar positions.
  • Additionally, women face a "motherhood penalty," wherein career interruptions for childcare result in decreased earning potential.

Addressing the Gap:

  • Efforts to close the gender pay gap encompass a range of strategies, including policy interventions, workplace initiatives, and advocacy for gender equality.
  • Policies such as maternity and paternity leave, flexible work arrangements, and pay transparency measures aim to mitigate wage disparities and promote equitable treatment in the workforce.
  • However, progress toward closing the gap remains gradual, with estimates suggesting that achieving parity may require several decades of sustained efforts.


  • The gender pay gap serves as a stark reminder of the systemic challenges facing women in the workforce.
  • Addressing this disparity requires coordinated action across various sectors to promote workplace equality, dismantle barriers to advancement, and ensure fair and equitable compensation for all employees, regardless of gender.


Q. Discuss the concept of the gender pay gap and its implications for economic and social development. Analyze the factors contributing to the persistence of the gender pay gap and examine the effectiveness of policy measures in addressing this issue.