Ontario’s Pay Equity Office released a new report today outlining global best practices for closing the gender wage gap, which stands at 13 per cent in the province and 20 per cent worldwide.
The report, called “Theory of Change for Achieving Equal Pay for Work of Equal Value,” serves as a roadmap for employers, unions, governments and other stakeholders working to address pay inequality between men and women.
“Through targeted, collaborative, and comprehensive approaches to address the drivers of the gender pay gap, governments and key stakeholders can drive systemic change where equal pay is the norm, not the exception,” said Kadie Philp, commissioner and chief administrative officer of Ontario’s Pay Equity Office.
The publication coincides with International Equal Pay Day and will be shared with the Equal Pay International Coalition, a global initiative working on pay equity issues.
Economic impact of pay gaps
Closing the gender pay gap could add up to US$7 trillion to the global economy and raise GDP per capita globally by 20 per cent, according to the report. The economic benefits also include increased global GDP by US$2 trillion, reduced poverty and higher women’s workforce participation.
The International Labour Organization found that women earn about 20 per cent less than men on average worldwide.
Seven key drivers identified
The Pay Equity Office identified seven main causes of the gender pay gap: undervaluing women’s work, lower levels of women’s participation in the labour market, educational and occupational segregation, discrimination, caregiving career impact, lack of pay transparency, and inadequate levels of unionization and collective bargaining.
Solutions in practice
The report highlights several approaches being used globally to address pay inequality:
- Gender-neutral job evaluation – Fair job classification systems that ensure pay reflects job value, skill, effort and responsibility
- Increased participation – Affordable childcare, tax incentives and programs encouraging women’s employment
- STEM pipeline – Education and skills programs for girls and women in high-paying technology fields
- Family-friendly policies – Paid parental leave and flexible work arrangements supporting career continuity
- Transparency measures – Mandatory pay reporting, audits, action plans and penalties for non-compliance
- Union action – Collective bargaining to standardize pay scales and improve workplace conditions
The Equal Pay International Coalition Secretariat called the publication a “substantive, field ready tool” that will support measurable progress toward equal pay for work of equal value.
The report launches during the Equal Pay International Coalition Technical Meeting, where global leaders are gathering to discuss policies and programs for closing gender pay gaps.
