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Pay Transparency Tools to Close the Gender Wage Gap

image of Pay Transparency Tools to Close the Gender Wage Gap

Women continue to earn less than men, in spite of major societal changes over decades and many labour market, educational and public policy initiatives that have targeted the gender wage gap. To address this persistent challenge, many governments are now mandating promising new pay transparency tools like employer pay gap reporting, equal pay audits, and gender-neutral job classification systems.

These policies hold considerable allure. Pay transparency offers a relatively simple and intuitive way to identify and address gender wage gaps when they occur in a workplace. These policies can function well in publicising wage gaps and incentivising employers to address the inequalities they find – but only with the right policy design and implementation. This report presents the first stocktaking of pay transparency tools across OECD countries and explores how such policies can help level the playing field for women and men at work.

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Foreword

The OECD has long promoted gender equality in the workplace and in society at large. Recent OECD reports, such as The Pursuit of Gender Equality: An Uphill Battle (2017); Dare to Share: Germany’s Experience Promoting Equal Partnership in Families (2017); and Part-Time and Partly Equal: Gender and Work in the Netherlands (2019),have shown that countries have, in recent years, implemented smart policies that have helped to close some gender gaps. Women have made tremendous gains in educational attainment and labour force participation, and men are taking a more active role in unpaid caregiving following expansions of paternity and parental leave systems.

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