The gender pay gap

Abstract

The difference between salaries of male and female employees has been persistent despite the effort employed by government agencies in reducing it. The gender pay gap amounts to 16 % in the European Union (EU) and 23 % in the United States (US) in 2011, and has not varied substantially over the last 20 years. In this paper, we provide a detailed picture of the gender pay gap phenomenon by reviewing the contributions provided by previous literature. We also analyze the role played by the increasing globalization on gender wage inequality, and identify both positive and negative effects. Then, we provide a detailed picture of the regulatory interventions implemented so far to deter the gender pay gap, and identify some of the best practices that national governments could adopt as a response to this phenomenon. Finally, we propose alternative strategies and potential solutions aimed at progressively eliminating the gap.