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The gender pay gap

A gap between the earnings of women and men is a pervasive problem across all countries. Although many countries have explicitly outlawed unequal pay, it remains the case that men out-earn women – by an average of 15 per cent across OECD countries. This has implications for individual outcomes; for example, women face a greater risk of poverty in old age. It also has macro-economic consequences to the extent that the best use is not made of women’s talent in the economy.

The gender pay gap is seen as arising as a result of several factors.

One is occupational segregation, i.e. the fact that men and women are often concentrated in different occupations with different levels of pay; engineers are overwhelmingly male, for example, while nurses are predominantly female.

A second key factor is childcare. Women typically take more responsibility for childcare, and the gender pay gap becomes more pronounced after the arrival of a woman’s first child.

Some see occupational choice and childcare as individual choices and argue that the gender pay gap is not a matter for public policy concern. But individual choices are shaped by social norms e.g. expectations about who should take responsibility for children and whether women should combine work and childcare.

The idea that social norms matter for the gender pay gap is reinforced by a growing body of research evidence that gender norms affect how men and women are treated in the workplace. Hypothetical male and female candidates with identical CVs are perceived in a different way, for example, indicating that men and women are not treated equally.

Policies to deal with the gender pay gap should take account of these underlying causes – dealing with the consequences of childcare, for example, and also tackling underlying social norms around gender.

The rise of the online gig: How can policy and the labour market adapt to modern gig work?

The rise of online platforms and apps means the nature of work is changing for many. Although the majority of workers in the UK are traditional employees, increasing numbers are turning to the gig economy, using widely accessible technology to reduce search frictions and connect workers with clients. Uber and Deliveroo are now household names, but the gig economy goes beyond transport and delivery services alone; performers, programmers, plumbers and proofreaders can all be found on the array of specialist platforms. Such arrangements offer flexibility to both firms and workers: workers can choose when and where to work, while firms can adapt their labour force to changing business needs. At the same time the instability of irregular employment can jeopardise workers’ ability to save, build a pension and cope with income shocks. Workers are not entitled to holiday pay or sick pay and can often work alone for extended periods of time. The UK government also faces lower tax revenue as a result of increased self-employment and firms lack incentives to invest in and train their workforce.

Is the gig economy a recent fad, or does it represent the future of work for many? Do the benefits outweigh the costs for workers, firms and government? Can the situation be improved for all parties? Does the gig economy feed inequality or does it help reduce it? Are the young more or less vulnerable to the gig economy than others? Can a country solve these problems alone or does it require wider cooperation? Do solutions lie in policy, technology or elsewhere?

The gender pay gap

A gap between the earnings of women and men is a pervasive problem across all countries. Although many countries have explicitly outlawed unequal pay, it remains the case that men out-earn women – by an average of 15 per cent across OECD countries. This has implications for individual outcomes; for example, women face a greater risk of poverty in old age. It also has macro-economic consequences to the extent that the best use is not made of women’s talent in the economy.

The gender pay gap is seen as arising as a result of several factors.

One is occupational segregation, i.e. the fact that men and women are often concentrated in different occupations with different levels of pay; engineers are overwhelmingly male, for example, while nurses are predominantly female.

A second key factor is childcare. Women typically take more responsibility for childcare, and the gender pay gap becomes more pronounced after the arrival of a woman’s first child.

Some see occupational choice and childcare as individual choices and argue that the gender pay gap is not a matter for public policy concern. But individual choices are shaped by social norms e.g. expectations about who should take responsibility for children and whether women should combine work and childcare.

The idea that social norms matter for the gender pay gap is reinforced by a growing body of research evidence that gender norms affect how men and women are treated in the workplace. Hypothetical male and female candidates with identical CVs are perceived in a different way, for example, indicating that men and women are not treated equally.

Policies to deal with the gender pay gap should take account of these underlying causes – dealing with the consequences of childcare, for example, and also tackling underlying social norms around gender.

The rise of the online gig: How can policy and the labour market adapt to modern gig work?

The rise of online platforms and apps means the nature of work is changing for many. Although the majority of workers in the UK are traditional employees, increasing numbers are turning to the gig economy, using widely accessible technology to reduce search frictions and connect workers with clients. Uber and Deliveroo are now household names, but the gig economy goes beyond transport and delivery services alone; performers, programmers, plumbers and proofreaders can all be found on the array of specialist platforms. Such arrangements offer flexibility to both firms and workers: workers can choose when and where to work, while firms can adapt their labour force to changing business needs. At the same time the instability of irregular employment can jeopardise workers’ ability to save, build a pension and cope with income shocks. Workers are not entitled to holiday pay or sick pay and can often work alone for extended periods of time. The UK government also faces lower tax revenue as a result of increased self-employment and firms lack incentives to invest in and train their workforce.

Is the gig economy a recent fad, or does it represent the future of work for many? Do the benefits outweigh the costs for workers, firms and government? Can the situation be improved for all parties? Does the gig economy feed inequality or does it help reduce it? Are the young more or less vulnerable to the gig economy than others? Can a country solve these problems alone or does it require wider cooperation? Do solutions lie in policy, technology or elsewhere?

The gender pay gap

A gap between the earnings of women and men is a pervasive problem across all countries. Although many countries have explicitly outlawed unequal pay, it remains the case that men out-earn women – by an average of 15 per cent across OECD countries. This has implications for individual outcomes; for example, women face a greater risk of poverty in old age. It also has macro-economic consequences to the extent that the best use is not made of women’s talent in the economy.

The gender pay gap is seen as arising as a result of several factors.

One is occupational segregation, i.e. the fact that men and women are often concentrated in different occupations with different levels of pay; engineers are overwhelmingly male, for example, while nurses are predominantly female.

A second key factor is childcare. Women typically take more responsibility for childcare, and the gender pay gap becomes more pronounced after the arrival of a woman’s first child.

Some see occupational choice and childcare as individual choices and argue that the gender pay gap is not a matter for public policy concern. But individual choices are shaped by social norms e.g. expectations about who should take responsibility for children and whether women should combine work and childcare.

The idea that social norms matter for the gender pay gap is reinforced by a growing body of research evidence that gender norms affect how men and women are treated in the workplace. Hypothetical male and female candidates with identical CVs are perceived in a different way, for example, indicating that men and women are not treated equally.

Policies to deal with the gender pay gap should take account of these underlying causes – dealing with the consequences of childcare, for example, and also tackling underlying social norms around gender.

The rise of the online gig: How can policy and the labour market adapt to modern gig work?

The rise of online platforms and apps means the nature of work is changing for many. Although the majority of workers in the UK are traditional employees, increasing numbers are turning to the gig economy, using widely accessible technology to reduce search frictions and connect workers with clients. Uber and Deliveroo are now household names, but the gig economy goes beyond transport and delivery services alone; performers, programmers, plumbers and proofreaders can all be found on the array of specialist platforms. Such arrangements offer flexibility to both firms and workers: workers can choose when and where to work, while firms can adapt their labour force to changing business needs. At the same time the instability of irregular employment can jeopardise workers’ ability to save, build a pension and cope with income shocks. Workers are not entitled to holiday pay or sick pay and can often work alone for extended periods of time. The UK government also faces lower tax revenue as a result of increased self-employment and firms lack incentives to invest in and train their workforce.

Is the gig economy a recent fad, or does it represent the future of work for many? Do the benefits outweigh the costs for workers, firms and government? Can the situation be improved for all parties? Does the gig economy feed inequality or does it help reduce it? Are the young more or less vulnerable to the gig economy than others? Can a country solve these problems alone or does it require wider cooperation? Do solutions lie in policy, technology or elsewhere?