The Nobel Prize in Economics has been awarded to Claudia Goldin, an American economist renowned for her pioneering research on income inequality between men and women, commonly referred to as the gender pay gap.
As the world turns its attention to this crucial issue, many are asking whether Belgian women continue to earn less than their male counterparts. The answer is "yes," but Belgium's efforts to address this disparity have shown significant promise.
The European Union defines the gender pay gap as the difference in average gross hourly earnings between women and men across all industries. Eurostat, the statistical office of the European Union, provides data that sheds light on the current state of this gap in Belgium. Presently, the difference between the average hourly wage for men and women in Belgium stands at 5%, a striking contrast to the European average of 13%.
Petra Foubert, a professor of social law and the dean of the Faculty of Law at Hasselt University, told RTBF that Belgium's progress in narrowing the gender pay gap is commendable, particularly when compared to the situation several decades ago. Foubert attributes this improvement to several key factors.
Key to measuring success
Firstly, women today are more likely to acquire higher education and professional qualifications, enabling them to compete for higher-paying roles. Secondly, the trend of women having fewer children than in previous generations has provided them with more time and flexibility to pursue career opportunities.
One significant contributing factor in Belgium's ability to limit the gender pay gap is the existence of wage scales established within different sectors. These scales set both minimum and maximum wages, which are further tied to an individual's experience and seniority. However, within these wage scales, discrepancies in compensation for the same work may persist, largely due to a culture of wage secrecy.
Regarding wage transparency, Foubert emphasises that it remains a challenge in Belgium. "In Flanders, we don't readily discuss our salaries, often unaware of what our colleagues earn," she told RTBF.
There are multifaceted reasons behind the emergence and persistence of income inequality between men and women. Foubert highlights two critical aspects: occupational choices and caregiving responsibilities, particularly childcare.
Women are often concentrated in sectors where lower wages prevail, such as education and healthcare. These fields consistently offer lower remuneration compared to other industries. Moreover, the impact of motherhood continues to contribute to the gender pay gap, as women frequently make career-altering decisions to balance work and family responsibilities.
Factors like part-time employment and taking extended caregiving leaves also impact women's earnings negatively. Part-time jobs tend to be less well-paid, and caregiving leave can disrupt career trajectories, flattening the earning curve for women.
A research report published by the EU Agency for the improvement of living and working conditions (Eurofound) during the COVID-19 pandemic dealt with the impact of the crisis on gender equality in the EU, including teleworking, work-life conflict and the gap in unpaid work.
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Addressing the gender pay gap necessitates tackling the issue of childcare. Foubert emphasises the importance of encouraging men to take an active role in parenting, thereby levelling the playing field for women. Research has shown that men's early involvement in parenting leads to continued engagement as children grow. This, in turn, provides women with greater opportunities to advance their careers.
Belgium has made strides in this area, offering 20 days of maternity leave. However, it remains predominantly women who take advantage of this benefit. To make further progress in reducing the gender pay gap, promoting shared caregiving responsibilities and fostering an environment of wage transparency are essential steps forward.
As the world celebrates Claudia Goldin's Nobel Prize win and acknowledges Belgium's progress in narrowing the gender pay gap, it is clear that continued efforts and awareness are needed to create a more equitable future for women in the workplace.
