Ukraine's new gender equality strategy: can reforms help reduce women's disadvantages?
In 2022, women earned an average of 82 cents for every dollar earned by men, according to Forbes. This 18% difference can be interpreted in several ways.
On the one hand, in 1963, women earned only 59 cents on the dollar earned by men, so the situation may not seem as negative as it once was. However, the situation could be better as the figure has only increased to 81 cents from 77 cents in 2010.
Can the situation be fixed? Some countries are making attempts, but it will take a significant amount of time. The Institute for Women's Policy Research predicts that gender pay equity will only become a reality in 2059.
In the United States, there is an 18.4% gender pay gap at entry-level positions. This pay disparity is also evident in entry-level positions, where research by the National Association of Colleges and Employers shows an 18.4% gap between the average annual salaries of women and men. In the United States, women earn an average of $52,266 compared to men's average of $64,022.
In the United States, women who face discrimination can file lawsuits, like Disney employees did, and receive compensation. This is not always possible in other countries.
The Global Gender Gap Report shows that the situation is gradually improving, especially in countries with significant wage disparities. Out of the 145 economies covered in the 2022 and 2023 editions, 42 improved their gender parity indicator by at least 1 percentage point compared to the previous release.
Economies with the most significant score increases (4 percentage points or more) include Liberia (76%, +5.1 percentage points compared to the previous edition), Estonia (78.2%, +4.8), Bhutan (68.2%, +4.5), Malawi (67.6%, +4.4), Colombia (75.1%, +4.1), and Chile (77.7%, +4.1).
The gender gap has decreased significantly in health and survival (by 96%), educational attainment (by 95.2%), and economic participation and opportunities (by 60.1%). However, political empowerment has only decreased by 22.1%. It is interesting to note that a small educational gap becomes a much larger difference when transitioning into the job market.
The reduction of the gap has been slow, averaging only 0.24 percentage points per year over the last 17 years.
If progress towards gender parity continues at the same average speed observed between the 2006 and 2023 editions, the overall global gender gap is projected to narrow in 131 years. This is one year earlier than the 132-year forecast in 2022, meaning it will happen by 2154.
Approaching our geographical realities, it is noteworthy that Europe has the highest gender parity among all regions – 76.3%. Iceland, Norway and Finland boast the best indicators both regionally and globally. Europe is predicted to achieve gender parity in 67 years based on current development rates.
Unfortunately, Ukraine may find itself ranked between Bulgaria and Slovakia in the overall table due to an 18.6% difference in earnings between women and men.
In 2012, women's wages were 78% of men's. By 2020, this had increased to almost 80%. The percentage dynamics show a stable trend.
The Ukrainian government has approved a strategy to reduce the gender pay gap from 18.6% to 13.6% by 2030. The strategy is called the National Strategy to Overcome the Gender Pay Gap and includes an action plan for 2023-2025.
The Ministry of Economy of Ukraine developed and presented this strategy in May of this year. On September 15, the government adopted it. The strategy aims to achieve three key objectives:
-improve legislation on equal pay;
-contribute to overcoming stereotypes and discrimination based on gender in professions;
-create favorable conditions for the convenient combination of family and professional duties.
Since May, the Ministry of Economy has implemented a strategy that has already yielded initial results:
-the Ministry of Economy has prepared a draft Labor Code;
-In partnership with the government, UN Women Ukraine will soon launch a nationwide communication campaign;
-the government has applied to join the OECD (the Organization for Economic Co-operation and Development) on ensuring gender equality in education, employment, and entrepreneurship;
-the Ministry of Economy is implementing the grant program 'eWork' to promote the involvement of women, including veterans' wives, in entrepreneurial development. Most of the program's winners are women.
What will women gain from the first set of results? The new Labor Code project is not the first attempt to change the legal situation in the labor market. Therefore, there is a high probability that it will suffer the same fate as its predecessors – either forgotten or rejected for implementation.
The next point is the communication campaign. It is indeed an important educational function, because currently many men believe that there is no reason to reduce the gender pay gap. Some even fear that this reduced gap will come at the expense of their earnings.
Joining the OECD is another step towards achieving gender equality in education, employment, and entrepreneurship. It is unlikely to change much in women's lives, but perhaps it is a strategic and coordinating step for Ukraine as part of the global community.
The last point, the eWork grant project, is indeed a practical and accessible step to increase women's involvement in the labor market and the opportunity to earn more.
Unfortunately, this list lacks practical steps that would prevent, for example, different pay for professionals in the same position or a real algorithm for holding employers accountable for refusal or gender-based discrimination.
Legislative initiatives often overlook an important point: the wage gap between women and men may not be solely due to different salaries for the same positions, but also due to differences in approach to choosing work. In some cases, this difference is compulsory.
Historically, most household responsibilities, childcare, and care for the sick are usually considered women's duties. Even the quarantine, which was imposed on everyone, showed that women again ended up with more unpaid household chores.
As evidenced by the 2020 PricewaterhouseCoopers (PwC) Women in Work Index, women lost their jobs more frequently than men in 17 out of 24 wealthy countries. Additionally, women spent an average of 7.7 more hours per week than men on unpaid childcare work, which is almost equivalent to a full-time job.
...The COVID epidemic may have ended, but Ukrainian women continue to face challenges due to the ongoing war. Women are still burdened with a significant portion of household chores, childcare, and care for elderly relatives, which makes it difficult or impossible for them to pursue certain professions or jobs that are not compatible with these responsibilities.
In 2017, only 3% of men took childcare leave. Unfortunately, the situation has not improved over the years. A 2020 study by the United Nations Population Fund in Ukraine found that fathers primarily cared for children under 3 years old in only 2% of families, while mothers did so in 85% of families. In 4% of families, the father did not work, but the mother still took care of the children. Only 11% of parents (9% mothers and 13% fathers) reported an equal sharing of responsibilities.
Many men do not consider taking parental leave, even when it is economically favorable, due to gender stereotypes. According to a survey, 42% of respondents believe that childcare is solely a woman's responsibility, while 34% think that women should not provide for the family. As a result, women face challenges in working in offices, holding managerial positions with irregular working hours or business trips. Women often face the difficult decision of choosing between flexible schedules, remote work, or jobs near their home, which may not always offer high salaries.
This is one of the reasons why women's financial expectations are lower than those of men.
Is it possible to address this situation? Yes, it is. Some European countries have successfully implemented solutions. For instance, in Sweden, every parent who takes parental leave receives a payment, retaining 78% of their earnings and an additional 45 days with a fixed rate of about $19 per day. If one of the parents refuses, the family simply loses this money.
In Norway, parents are required to take 10 weeks of leave for their child. The remaining time can be divided between them in any proportion. In 2007, Germany introduced the 'parental money' law, which provides a monthly payment to young parents equal to two-thirds of the average monthly earnings. These payments can be received for at least one year after the child's birth and are not subject to taxes or insurance contributions. If the father takes at least two months of parental leave, in addition to the mother's leave, the parental leave period is extended by two months (12+2). The father can take these two months either after the mother's maternity leave or concurrently with her.
We also have a trend that will only strengthen over the years – the aging of our society and the necessity of caring for the elderly. As COVID has shown, this is also a female prerogative, which reduces their competitiveness in the labor market.
Due to the underdevelopment of caregiving services and geriatric medicine, elderly care is often provided at home by close relatives, particularly female relatives. However, Ukraine lacks strategies or programs in this area, unlike countries such as Australia, which has the Aged Life Care program
Unfortunately, Ukrainians still do not have access to state facilities for elderly care or centralized state assistance. Even global programs have not been able to prevent the spread of diseases like Alzheimer's, which affects 5% of the population aged 60+ and manifests in 30-40% of people aged 85 and older. The trend is concerning. In 2015, there were approximately 50 million patients. By 2030, this number is expected to increase to 82 million, and by 2050, it is projected to reach 152 million.
Not to mention the physiological aging, which also requires qualified care or basic support. Ignoring these trends and not planning a reform of healthcare and social support, women risk turning into unpaid caregivers for their loved ones.
Perhaps this is a normal situation, and there is no need to worry about it? From an economic point of view, increasing the employment rate of women can bring about 21% additional economic growth. This is if we talk about involving women who are currently engaged in household work. If we add women who will have to quit or switch to part-time work to balance work and care, the figure will be even more significant.
Gender pay inequality has many factors and nuances. However, a systematic approach to the problem will not only establish justice but also improve the economic situation through greater involvement and, consequently, the productivity of women.
Considering the current chronic shortage of personnel, addressing this issue is very timely.