Despite the Equal Remuneration Act of 1976, which prohibits discrimination in wages based on gender, India continues to grapple with a significant gender wage gap. This disparity not only undermines the principle of equal pay for equal work but also has far-reaching economic and social consequences for women and the nation as a whole.
The Data Behind the Disparity:
34%: The average wage gap between men and women in India, according to a report by the World Inequality Lab (WIL) based on national accounts data (2019). This translates to women earning 66 cents for every rupee a man earns. 28%: The wage gap based on labor force survey data from the National Sample Survey Office (NSSO) for the year 2018-19. This figure, while lower than the WIL report, still paints a concerning picture of the persistent disparity.
Understanding the Discrepancy:
Several factors contribute to this persistent gender wage gap in India:
Vertical Segregation: Women are overrepresented in lower-paying sectors like education, healthcare, and social work, while men dominate higher-paying sectors like manufacturing, construction, and finance. This occupational segregation contributes significantly to the overall wage gap. (Source: World Bank Report on Gender and Development 2021).
Horizontal Segregation: Even within the same occupation, women often earn less than men for similar jobs. This can be attributed to factors like unequal bargaining power, lack of negotiation skills, and implicit bias against female workers. (Source: International Labour Organization (ILO) Global Wage Report 2020-21).
Motherhood Penalty: Women often face a career penalty after childbirth due to reduced work hours or taking career breaks to care for children. This can significantly impact their earning potential in the long run. (Source: World Economic Forum Global Gender Gap Report 2023).
Limited Education and Skill Development: While educational attainment is increasing among women in India, it still lags behind men. This, coupled with limited access to skill development opportunities, restricts women’s ability to access high-paying jobs that require specialized skills. (Source: NITI Aayog India Skill Development Report 2021).
Consequences of the Gap:
The gender wage gap has significant economic and social ramifications:
Economic Impact: The underutilization of women’s skills and talent due to the wage gap leads to lost economic output for the nation. Studies by the International Monetary Fund (IMF) estimate that closing the gender gap could boost India’s GDP by up to 27% by 2025.
Women’s Empowerment: The wage gap hinders women’s financial independence, limiting their decision-making power within households and restricting their ability to contribute meaningfully to the economy and society.
Social Mobility: The wage gap perpetuates gender inequality and limits social mobility for women and their families. This can have a negative impact on the overall development of the nation.
Towards Bridging the Gap:
Achieving gender pay equity requires a multi-pronged approach:
Enforcing Legislation: Stronger enforcement of the Equal Remuneration Act and other anti-discrimination laws is crucial to ensure women receive equal pay for equal work.
Promoting Equal Opportunities: Addressing occupational segregation through career guidance, skill development programs, and promoting equal access to career opportunities across sectors is essential.
Support for Working Mothers: Implementing policies like parental leave and affordable childcare options can help women balance work and family responsibilities, preventing them from facing a career penalty due to motherhood.
Changing Mindsets: Raising awareness about gender equality through educational campaigns and challenging societal biases surrounding gender roles are critical to promote a shift in societal perspectives and combat implicit bias against women in the workplace.
By addressing the root causes of the gender wage gap and implementing effective policy measures, India can take significant strides towards achieving gender equality and unlocking the full potential of its female workforce. This will not only contribute to economic growth but also foster a more just and equitable society for all.
