By Melissa J. Anderson (New York City)
Last month the Organization for Economic Co-operation and Development (OECD) released a new study examining the causes of the wage gap in its member countries.
According to the study, working mothers make less, and having a child can cost a family significantly. The average gender pay gap between men and women without children is seven percent. But for couples with one or more child, that gap widens to 22 percent.
At its very core, the issue is still the sinister and usually unconscious notion that the primary “job” of women should be childrearing. Women in the workforce make less, in large part, because our society encourages us to see female workers as non-breadwinners, as secondary income earners doing a secondary job. And because all women are viewed as potential mothers whether they have children or not, all women are subject to the penalty in some way.
It’s easy to write this viewpoint off as a relic of times past or a trait of so-called unenlightened geographies. But to do so would be wrong. After all, the research was done in 2012 and OECD countries tend to have relatively high incomes globally – in other words, they are mainly “developed” economies like Australia, Italy, Japan, Norway, Turkey, and the United States.
Nor is the wage gap an idiosyncrasy of the lower end of the income range. In fact, the gap between men and women’s income levels is widest for the rich. According to the study, female top-earners make 21 percent less than male top-earners.
All this aside, the wage gap is nothing new. But what is new is the OECD’s suggestion that continuing to ignore the gap could deplete the global talent pool at a time when retirement rates are rapidly rising in these countries. It’s also wasting the vast amounts of money spent to increase the educational attainment of girls in recent decades. The report states:
“Gender inequality means not only foregoing the important contributions that women make to the economy, but also wasting years of investment in educating girls and young women. Making the most of the talent pool ensures that men and women have an equal chance to contribute both at home and in the workplace, thereby enhancing their well-being and that of society.”
Ultimately, the OECD study indicates, the wage gap could slow down economic growth at a time when businesses – from the smallest entrepreneurial venture to the largest multinational – cannot afford it.