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Summary: The Gender Pay Gap

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Different factors were driving the decline of the gender pay gap: sectoral segregation, cuts in extra-wage components of pay and equal pay policy. While the first two may not outlast the crisis, the third factor might maintain longer-lasting progress. In this case, sectoral segregation refers to the uneven distribution of women and men between the private and public sector. The gender pay gap tends to be wider in private concerns, which diminished during the initial phase of the recession in favor of public concerns. Wage reductions typically come from cuts to the volatile components of pay packets, such as bonuses, premiums for overtime and other non-basic pay components, which are more often received by men. Together with the overall reduction …show more content…

Soon after the outbreak of the crisis policy commitment to gender equality disappeared from view, both at the European and the national level. This is especially hindering for progress toward gender equality outcomes, as they are still highly dependent on public policy (Rubery, 2015). Karamessini & Rubery (2014) argue that the implemented austerity measures jeopardize the success of past progress towards gender equality by undermining important employment and social welfare protections and implementing gender-neutral policies. Gender equality policies have become a victim of the recession. Leschke & Jepsen (2014) also criticize that gender-equality concerns have not been an issue when designing and implementing the stimulus and austerity measures. Therefore, men were supported disproportionately more regarding labor-market …show more content…

Still, I want to summarize some potential future developments in the following section. One possible long-term implication that employment protection and pay will be reduced for both, women and men, due to the severity and length of the recession and the austerity period. This would result in more flexible and less regulated labor markets and a downward convergence in the employment conditions for both genders – which can already be seen in the lower pay for men and the higher share of male part-time workers. Other implications could be a downgrading of status and pay of public sector employees, and a decrease of high quality social services to replace and support women’s domestic labor (Karamessini & Rubery,

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