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General Studies 2 >> International reports

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GLOBAL GENDER GAP

GLOBAL GENDER GAP

 
 
1. Context
 
Financial inclusion is essential for a nation’s sustained development and growth. Its importance in building a sustainable and inclusive future is evident from the significance attached to financial inclusion in the UN’s Sustainable Development Goals (SDGs). Financial inclusion is seen as an enabler of eight out of the 17 SDGs
 
2. What is the Global Gender Gap?
 

The Global Gender Gap refers to the measurement of gender-based disparities across various aspects of life, including but not limited to economic participation and opportunity, educational attainment, political empowerment, and health and survival. It is commonly assessed and reported by the World Economic Forum (WEF) through its annual Global Gender Gap Report.

The Global Gender Gap Index ranks countries based on their progress towards gender parity. It measures the gap between women and men across four key areas:

  • Economic Participation and Opportunity: This includes indicators such as labor force participation, wage equality for similar work, and the ratio of women to men in leadership positions and skilled roles.

  • Educational Attainment: This assesses the gap in access to and completion of education between women and men at all levels, from primary to tertiary education.

  • Health and Survival: This measures differences in life expectancy and sex ratio at birth, reflecting disparities in health outcomes between women and men.

  • Political Empowerment: This evaluates the gap in political representation and participation between women and men, including the ratio of women to men in decision-making positions and parliamentary representation.

The Global Gender Gap Report serves as a tool to assess progress and identify areas where interventions are needed to address gender disparities. It highlights both achievements and challenges in achieving gender equality globally and provides policymakers, businesses, and civil society organizations with data-driven insights to inform their efforts toward gender equality and women's empowerment

3.What explains the gender pay gap?

 

The gender pay gap refers to the difference in average earnings between men and women in the workforce. Several factors contribute to the gender pay gap, including:

  • Occupational Segregation: Women are often concentrated in lower-paying industries and occupations compared to men. This occupational segregation is influenced by various factors, including social norms, discrimination, and differences in educational and career choices.

  • Unequal Pay for Equal Work: Even within the same occupation and industry, women may earn less than men for performing similar roles. This can be due to factors such as discrimination in hiring, promotion, and compensation decisions, as well as negotiation disparities.

  • Motherhood Penalty: Women who become mothers often experience a reduction in earnings compared to women without children and men with children. This can be attributed to factors such as career interruptions, decreased work hours, and bias against working mothers in the workplace.

  • Lack of Representation in Leadership Positions: Women are underrepresented in senior leadership roles and executive positions, which typically come with higher salaries and bonuses. This lack of representation contributes to the gender pay gap at the highest levels of organizations.

  • Unpaid Care Work: Women are more likely to take on a disproportionate share of unpaid care work, such as childcare and eldercare responsibilities. This can limit their ability to work full-time or pursue higher-paying career opportunities.

  • Gender Stereotypes and Bias: Societal stereotypes and biases about gender roles and capabilities can influence hiring, promotion, and compensation decisions, leading to disparities in pay between men and women

4. Global Gender Gap Report 2023-What are the Key Findings?
 
  • The International Labour Organization (ILO) defines the gender pay gap as the disparity between the average wages of all women and all men in the labor market, regardless of whether they receive monthly salaries, hourly wages, or daily pay rates. It clarifies that this gap differs from the concept of "equal pay for equal work," which stipulates that individuals with the same qualifications and performing identical tasks should receive equivalent compensation.
  • Moreover, there isn't a universally accepted method for calculating this discrepancy. For instance, while Pew Research found in 2012 that women earned 84% of men's earnings in the United States, the US Bureau of Labor Statistics reported a figure of 81 cents to the dollar shortly before that.
  • Several factors contribute to this gap. Firstly, women's lower participation in paid employment compared to men, influenced by societal perceptions of gender roles, is a significant factor, as indicated by the labor force participation rate.
  • The ILO states that globally, women's labor force participation rate stands at just under 47%, while for men, it is 72%. In India, according to the 2011 Census, only 25.51% of women participate in the workforce, compared to 53.26% of men.
  • Secondly, the types of occupations women enter upon joining the workforce play a role. According to the ILO's Women in Business and Management report, women are underrepresented in managerial and leadership positions, especially at higher levels. Additionally, when women do hold managerial roles, they tend to be concentrated in support functions such as human resources and financial administration, which typically offer lower salaries compared to more strategic roles occupied by men.
  • A survey conducted by Georgetown University in 2013 revealed that the top 10 highest-paying professions, predominantly in engineering and computer science, were dominated by men, whereas the 10 lowest-paying professions, primarily in fields like arts and education, were dominated by women.
  • Furthermore, in 73 countries (based on 2018 data), women outnumber men as part-time workers. The ILO suggests that women's opportunities for full-time employment may be constrained compared to men's, leading them to opt for part-time work, which often comes with fewer benefits and lower remuneration over time.
  • Institutional and socio-economic factors also contribute significantly to the gender pay gap, including the perception that men should be the primary breadwinners, unequal investments in women's education, and safety concerns during commute and in the workplace
5. How is the gender pay gap calculated?
 

The gender pay gap is typically calculated by comparing the average earnings of all women to the average earnings of all men within a specific workforce or labor market. Here's a basic outline of the calculation:

  • Collect Data: Gather data on earnings for both men and women within the chosen population, whether it's a particular company, industry, region, or country. This data can be obtained from payroll records, government databases, surveys, or other sources.

  • Calculate Average Earnings: Determine the average earnings for men and women separately by summing up the total earnings of each group and dividing by the number of individuals in that group.

  • Calculate the Gap: Subtract the average earnings of women from the average earnings of men to find the absolute difference.

    Gap = Average Earnings of Men - Average Earnings of Women

  • Express the Gap as a Percentage: To express the gap as a percentage, divide the absolute difference by the average earnings of men and then multiply by 100.

    Percentage Gap = (Gap / Average Earnings of Men) * 100

This percentage represents the gender pay gap, indicating the difference in average earnings between men and women as a proportion of men's average earnings

6.The Global Gender Gap Index and Gender Inequality Index (GII)

 

Subject Global Gender Gap Index (GGGI) Gender Inequality Index (GII)
Measurement Measures gender-based disparities across four key areas: Economic participation and opportunity, Educational attainment, Health and survival, Political empowerment. Measures gender inequality in three dimensions: Reproductive health, Empowerment, Labor market participation.
Focus Focuses on gender disparities and gender parity in various aspects of life, including economic, educational, health, and political participation. Focuses specifically on gender inequality, highlighting disparities in reproductive health, empowerment, and labor market participation.
Components Includes economic participation and opportunity, educational attainment, health and survival, political empowerment. Includes maternal mortality ratio, adolescent birth rate, women in parliament, educational attainment, labor force participation.
Data Sources Relies on data collected by the World Economic Forum (WEF) through its annual Global Gender Gap Report. Utilizes data from various sources, including United Nations agencies and other international organizations.
Ranking Method Ranks countries based on their progress towards gender parity in each component and overall. Ranks countries based on a composite index that combines indicators from the three dimensions of reproductive health, empowerment, and labor market participation.
Scope Covers a broad range of gender disparities and focuses on the gender gap within each country. Specifically targets gender inequality and highlights countries where women face significant barriers to equal rights and opportunities.
Policy Implications Provides policymakers with insights into areas where interventions are needed to address gender disparities and promote gender equality. Helps policymakers identify areas where targeted interventions are required to address gender inequality and improve women's rights and opportunities.
Global Rankings Provides a global ranking of countries based on their performance in closing the gender gap. Provides a global ranking of countries based on their level of gender inequality, highlighting countries with the highest levels of disparity.
Publication Frequency Published annually by the World Economic Forum (WEF). Published annually by the United Nations Development Programme (UNDP).
 
 
7. Way forward
 
One notable study conducted by the World Economic Forum (WEF) as part of its Global Gender Gap Report has consistently highlighted the gender wage disparity in India. The report typically provides an estimate of the gender wage gap based on the ratio of female to male earned income. In the most recent report available to me, India's gender wage gap was significant, with women earning substantially less than men. However, it's essential to note that this data may have changed since then, as gender wage gap figures can fluctuate over time due to various economic and social factors
 
For Prelims: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc
For Mains: 

General Studies I: Social empowerment

• General Studies II: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections.

• General Studies II: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources

 
 
Previous Year Questions
 
1.Which of the following gives 'Global Gender Gap Index' ranking to the countries of the world? (UPSC CSE 2017)
A.World Economic Forum
B.UN Human Rights Council
C.UN Women
D.World Health Organization
Answer (A)
Source: Indianexpress

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