Claudia Goldin’s Nobel Prize in Economics celebrates her research on women’s earnings and labor market participation, shining a light on both the historical trajectory and current challenges of pay equity. The prize committee summarized her contribution, stating, “Her research reveals the causes of change, as well as the main sources of the remaining gender gap.”
Randi Hjalmarsson of the Economic Prize committee highlighted the societal implications of Goldin’s findings. Building upon Goldin’s words, “By understanding the problem and naming it, we can find a better way forward,” her work has a far-reaching influence on economic paradigms and policy frameworks.
Current data from the Pew Research Center indicates that women in the U.S. earned, on average, 82% of what their male counterparts did last year. In Europe, data from the European Commission showed women earning 13% less per hour than men in 2021. These figures carry an economic toll:
Reduced Spending
With diminished earnings, women have less disposable income, affecting consumer expenditure and economic activity.
Lower Tax Revenues
Lesser earnings lead to reduced income tax contributions, impacting public service funding.
Productivity Concerns
A persistent gender pay gap can influence workplace productivity due to perceptions of inequity potentially demotivating employees.
Furthermore, the gender pay gap costs the EU economy €372 billion annually, and by 2050, bolstering gender equality could enhance the EU’s GDP per capita by 6.1 to 9.6%, equating to an increase of €1.95 to €3.15 trillion.Harmony offers a unique approach to measuring gender and equal opportunity. By consistently assessing over 11,000 companies on the same issues, Harmony provides valuable insights into the company’s potential for long-term growth and profitability. More importantly, the platform enables users to benchmark a company’s profile against its peers, allowing them to identify risks and opportunities for development. If you’re interested in learning more about these insights or seeing how they might benefit your organization, we invite you to reach out. Learn more about our solutions by connecting with the Harmony team.
