The Root Causes of Gender Inequality

Gender inequality has significant implications for society and human wellbeing. It hurts women and girls, leads to distortions in economic growth, and reduces overall social welfare.

While there are a number of reasons for this, research suggests that gender bias and social norms play the key role in creating these gaps. To tackle them, policies should focus on addressing the root causes rather than merely reducing their symptoms.

This is why a gender lens is important for companies to consider when investing in the workforce and developing their talent. By promoting more women into leadership roles, it is possible to diminish unconscious biases and negative stereotypes that can impede gender equality in the workplace and hinder performance.

The global commitment to achieve gender parity by 2030 is an important milestone. However, the current global crisis is set to make it much more difficult for countries to achieve their targets (World Economic Forum, 2023). The pandemic is disproportionately impacting women in different ways: the economic impacts are already visible; violence against women remains a major issue; armed conflict and climate change have exacerbated the risk of sexual and reproductive health problems and contributed to the spread of gender-based hatred; and the resurgence of male-dominated social norms has accelerated the erosion of women’s rights and safety.

Gender inequality is a complex and long-standing phenomenon, but there are many things that can be done to address it. The most important thing is to understand that gender equality must be looked at in a holistic way, considering the intersections of gender with other markers of identity, such as race, ethnicity, religion, class, ability and sexuality. Having a comprehensive understanding of the drivers of gender gaps can help policymakers and companies develop more effective interventions to address them.

A simple and powerful way to think about gender inequalities is to compare the share of people in top income brackets who are men vs. those who are women. The chart below shows available data on this measure for OECD member states and some non-members, but it is also possible to add observations by clicking on the ‘add country’ button at the bottom of the visualization.

The gap between the proportion of women and men in top income groups is large and varies by country. In addition to gender discrimination, there are a variety of other factors that contribute to this, including differences in preferences and comparative advantage between the sexes, as well as differences in human capital and family background. Nonetheless, it is clear that policies that are targeted at the root causes of these gaps can have immediate and significant impacts. This is why a gender lens is important when considering investments in the workforce and in developing company-wide diversity initiatives. By doing so, it is possible to reap the benefits of improved representation and a competitive edge in a future where gender equality will be a necessity for survival. As regulatory frameworks and transparency expectations around remuneration practices increase, companies that invest in women’s advancement now will likely benefit from lower compliance costs in the future.