Aware that the causes of the gender wage gap, while complex, inter-related and likely to vary over time, can for analytical simplicity be grouped into two main factors, namely explained (human capital or labour market factors) and unexplained characteristics;
Noting that such effects may occur not just in the selection by employers of men over women into higher-paying jobs, but may also form a complex part of the decisions women and men make around study, career, family and labour market participation;
Considering findings of recent studies about the determinants of the gender wage gap that generally only around one-fifth of the wage gap between men and women can be explained by human capital or labour market factors;
Recognising that occupational segregation contributes to the pay gap between men and women, and may also result in an under-utilisation of women's and men's skills, decreased labour mobility, with subsequent negative impacts on economic productivity and economic growth;
THE INTERNATIONAL COUNCIL OF WOMEN calls upon its National Councils to urge their governments to commit to closing the gender wage gap by:
• removing barriers to women working in all trades and occupations regardless of gender stereotypes
• ensuring girls receive appropriate careers advice, mindful of the myths and mis-information about gender and trades
• promoting greater flexibility in workplaces, including family friendly policies
• valuing work done traditionally by women, particularly in caring and service industries
• encouraging men into occupations dominated by women
• promoting the sharing by men of unpaid work
• undertaking research into the causes of the gender wage gap within nation states, and monitoring progress in closing the gap.
Notes:
• The gender wage gap (in most western developed economies) has persisted over the past twenty years. The size of the gap depends on the country and ranges between 12 and 17 percent.
• The key determinants of the wage gap are difficult to define but it is clear from previous studies that a large proportion of the wage gap cannot be explained simply by the differing characteristics or endowments of men and women. These unexplained differences in wages may be due to direct discrimination, or to other unmeasured differences between men and women.
• Using this simulation methodology, the key determinants of the gender wage gap in Australia include industrial segregation (25 per cent), labour force history (seven per cent), under-representation of women with vocational qualifications (five per cent) and under-representation of women in large firms (three per cent). However, being a woman accounts for 60 per cent of the wage gap. This finding is in line with other literature and represents that part of the wage gap which is due to discrimination or other differences between men and women not captured by differences in their measured characteristics.
• The gender wage gap has a substantial effect on economic performance. Closing the wage gap would stimulate GDP to grow significantly, enhancing economic performance and national well-being.
Reference: Australian Government: Department of Families, Housing, Community Services and Indigenous Affairs
http://www.fahcsia.gov.au/sa/women/pubs/general/gender_wage_gap/Pages/p6.aspx
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Source: International Council of Women (ICW-CIF) — 33rd General Assembly, Seoul, Republic of Korea, September 2012. Resolution No. 4.
