International Equal Pay Day: UvA EB research on the gender pay gap and beyond

On 18 September it’s International Equal Pay Day-a day to reflect on the global fight for equal pay between men and women. At UvA Economics and Business, this topic is examined from a variety of angles. From fatherhood bonuses and diversity issues in tech startups to the impact of contraception on women’s careers-these studies shed light on the hidden dynamics behind the gender gap.

Multinational enterprises and the parental wage gap

Professor Ans Kolk’s study analyses wage gaps related to parenthood in multinational enterprises (MNEs) versus domestic firms. It finds that men benefit from a ’fatherhood bonus’, especially in MNEs, while women face a consistent ’motherhood penalty.’ The study challenges assumptions about gender pay inequality and highlights that existing policies like flexible hours aren’t enough. Addressing this issue requires addressing the overvaluation of masculine traits in corporate culture.

The Netherlands and the Global Gender Gap Index

Professor Henk Volberda’s research examines the stagnation of gender equality progress in the Netherlands, which currently ranks 28th on the Global Gender Gap Index. By analysing factors such as economic participation, education, health, and political empowerment, his work highlights the key issues slowing the country’s progress toward gender equality. Notably, in the category of ’Income equality for the same work,’ the Netherlands has dropped 7places in the rankings compared to 2023, falling from 58th to 65th place.

How diversity debt in tech startups affects women’s representation

Associate Professor Yuval Engel and Assistant Professor Tanja Hentschel studied why women are underrepresented in tech startups, focusing on ’joiners’--non-founder employees. They found that women are less likely than men to apply for startup jobs, especially when companies already have low female representation (diversity debt) to begin with. This is due to worries about the prospect of being singled out, disrespected, stereotyped, marginalised, or mistreated. Their findings suggest a ’vicious cycle’ whereby existing underrepresentation discourages more women from applying.

As the new pay equity report by Ravio points out, such underrepresentation may also explain a portion of the gender pay gap within tech companies because the scarcity of women, particularly in senior and higher-paying roles, means that women’s average salaries are lower overall, contributing significantly to the unadjusted gender pay gap. According to the report, women in the European tech industry still earn 25% (median, unadjusted) less than men.

Assistant Professor Esmée Zwiers investigated the link between the availability of the birth control pill in the Netherlands and the economic position of women in society. Her study reveals that access to the pill allowed women to delay childbirth, pursue higher education, and achieve better outcomes in the labour market. While not directly addressing the wage gap, the research highlights a significant improvement in women’s working conditions and economic opportunities, which is closely tied to discussions on gender equality and fair pay.

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