Gender Gap in Italy: What is it and How Are We Doing?

In 2023, the Nobel Prize was awarded to Claudia Goldin, an American economist, who has dedicated much of her academic career to studying the Gender Gap.

More precisely, the Gender Pay Gap refers to the difference in average gross hourly earnings between women and men, which, as the data shows, is almost always in favor of the latter. (Sole 24 Ore)

According to Goldin herself, the Gender Gap is now in its "Last Chapter," as she predicts that in this century, the roles of women and men will increasingly converge, along with their respective wages.

However, a century is a long time, and we can’t afford to wait passively.

Let’s take a closer look at the current numbers on the Gender Gap and understand why, despite the positive trend, the gap is still quite significant.

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Gender Gap: The Wage Divide

INPS data paints a clear picture: the average earnings for men are €26,000 per year, while women earn only €18,000. (INPS)

This means that women earn, on average, €8,000 less per year than men.

This is not just a problem in Italy. Across the EU, the gender wage gap is 13%. This means that for every euro a man earns, a woman earns only €0.87.

While the wage gap in Europe is narrowing, in Italy, it has remained the same over the last few years, or at best, has slightly decreased.

Gender Gap: The Causes

The causes of the Gender Gap are multifaceted. Let’s explore them one by one:

Part-Time Employment

While only 2 million men have part-time jobs in Italy, this number reaches 3.5 million women.

The primary reason for this is that women often have a higher “unpaid” workload. This refers to all the household or family management work that is not compensated.

Inactive Individuals.

Another significant part of the problem lies in those who are neither employed nor unemployed but are outside the labor market.

This includes 26% of the male population, but a much higher 44% of the female population. (Eurostat 2021)

Promotions.

Promotions are easier for men.

Most women hold entry-level positions, with only one-third in leadership roles. (Corriere della Sera)

Lower-Paid Sectors.

Another factor contributing to the gender pay gap is the higher concentration of women in fields that generally offer lower wages, such as healthcare, education, and social assistance.

Gender Gap: A Problem for Everyone

According to OECD estimates, if women’s economic contribution were to reach parity with men’s by 2025, the global GDP would increase by 26%, corresponding to $28 trillion.

An increase in female participation in the workforce would not only be a major social milestone but also a huge economic boost!

This is also known as the "Potential GDP Reserve," the sum of all activities that could be developed if all people of working age were employed.

If we were to reach the target set by the Lisbon Treaty – a 60% female employment rate – Italy’s GDP would grow by 7%.

If Italy were to raise its female employment rate from the current 46.1% to the Eurozone average of 58.1%, it would generate a national wealth increase equivalent to what we accumulated over twelve years, from 1998 to 2010.

Conclusions

In her research, Claudia Goldin expressed confidence in the narrowing of the Gender Gap, even stating, "Women have already won" because change is inevitable.

One solution she proposes is to rethink the "greedy work" model, which is the most prevalent work model today, where long hours and 24/7 availability are required.

This type of work doesn’t allow for a healthy family life or a proper work-life balance. And unfortunately, this often falls disproportionately on women.