Gender Inequality

Many countries are making progress towards achieving gender equality, but the gap remains wide in many areas. For example, women continue to be underrepresented in top income groups, with men dominating those at the top. They also lag behind men in education, and have less access to jobs and leadership positions (Duflo et al., 2022). In addition, the COVID-19 pandemic exacerbated existing gaps by making it harder for girls to stay in school and further limiting women’s choices.

Gender inequality is pervasive throughout the world, affecting every aspect of people’s lives and societies. The gap has both economic and social dimensions, and its implications extend beyond household income to health, livelihoods and power. In the short term, the gender pay gap is largely explained by women’s higher family and care responsibilities, a tendency to take on lower-paying jobs and a propensity to work fewer hours. Longer-term trends, however, are more complex and suggest that biological differences between the sexes might play a role.

The extent of the gap varies by country, and it changes over time. As countries develop, for instance, the gap tends to close more rapidly in OECD members than in non-members. As the OECD has pointed out, this is due to a range of factors, including higher levels of education and better infrastructure, but it is not entirely explained by greater economic efficiency and innovation.

While it is a good thing that gender gaps are shrinking, the current rate of closing suggests it will take another 118 years to reach parity. To speed up the process, gender perspectives must be integrated into national policies and budgets. This will require strong political leadership and investments, as well as addressing cultural norms and discriminatory stereotypes that limit options for both men and women.

Changing these norms will be challenging. It requires a profound shift in how society views women’s rights and their role in the home and in the community. It means recognizing that there are disadvantages and costs to families from patterns of gender inequality, as well as the ways in which these affect men’s own needs and roles in society.

Equally important, it will mean ensuring that women have the opportunity to pursue careers and to achieve economic prosperity. In doing so, they will provide a vital source of innovation and growth for their families, communities and countries. In addition, advancing gender equality will benefit everyone. For example, research shows that girls who remain in school are more likely to marry later and have fewer children, and are more resilient in the face of crisis – such as natural disasters or conflict. Moreover, each year that a girl stays in school increases her eventual income by up to 20%. So, why would we want to put that at risk? (For more on this, see this McKinsey Global Institute report). Moreover, girls who have more choices are healthier and happier, and societies are stronger and more stable when they fight gender oppression.