The social and economic benefits of equal pay for women and men

Project facts

Project promoter:
ISEG - School of Economics & Management(PT)
Project Number:
PT-WORKLIFE-0011
Status:
Completed
Final project cost:
€49,900
Donor Project Partners:
EDDA – Research Center(IS)
Other Project Partners
CEMAPRE(PT)
CESIS - Centro de Estudos para a Intervenção Social(PT)

Description

This project covers four main goals. Firstly, it is intended to determine the benefits of the elimination of pay gaps between men and women in terms of income and poverty. The project approach will highlight the benefits of wage equality between men and women at both the national and across different geographical contexts in the country, as well as among different groups of women, by integrating an intersectionality analytical lens. Secondly, the project aims to estimate the possible macroeconomic benefits, resulting from the elimination of pay gaps between men and women, in terms of the GDP. Thirdly, the project is aimed at developing an economic case by shedding light on the results of the economic analysis and on the benefits that cannot be determined by a mathematical formula, such as: the improvement in women’s quality of life, in autonomy and decision-making capabilities, in empowerment and greater protection against all forms of vulnerability throughout their life courses.
The economic case will be presented and debated in the context of various focus groups, including with academic peers, policy makers, employers, trade union’s representatives, directors and senior officers from national government-based bodies and representatives from NGOs, in particular from those focused on Women’s Rights. Finally, relying on this consultation process, the research team will draw up a set of recommendations aimed at informing and qualifying future developments at the public policy level, as well as eliciting concrete interventions to be taken by the key actors in the labour market, particularly by the social partners and the specialized government-based agencies.

Summary of project results

The Social and economic benefits of equal pay for women and men (Gender Pay Gap-E) project aimed to estimate the potential increase in women''s wages and the income of women and families in Portugal by eliminating pay inequality between men and women. At the same time, it intended to assess the consequences of this in the reduction of poverty in the country. It also intended to analyze the effect of the pay differential in Portuguese territories. This should highlight the territorial contexts in which mitigation of pay discrepancies will be more beneficial to the economy.

 

This project estimated the benefits of eliminating the gender wage gap in terms of income and protection against poverty, as well as the potential macroeconomic benefits that closing the wage inequality between women and men could generate for GDP. An Economic Case for the elimination of the gender wage gap was developed and disseminated. Based on a collaborative and participatory methodological approach, a policy brief with recommendations for public policy and intervention proposals was also produced.

Risk of poverty rate; statistics related to poverty intensity and poverty severity at the national level, disaggregated by respective subgroups and territorial units;

• Calculation of the Gender Pay Gap for the year 2018

• Calculation of Counterfactual Women''s Salaries assuming no wage gap between men and women and its impact on Monetary Poverty indicators, at the national level and disaggregated by population and territorial subgroups

Estimation of the national GDP per capita growth rate and for respective territorial units;

• Calculation of the Impact on economic growth/GDP, at the national level and disaggregated by NUTS II regions, if women earned the same income as men

Summary of bilateral results

The Icelandic partner, EDDA Center of Excellence at the University of Iceland, participated in Activities 0, 1, 2, 3, 4, and 5. The Promoting Entity indicated that there was regular email contact with the EDDA team member. They attended the Zoom meeting on September 10, 2021, and the Project''s Final Conference on March 14, 2022.

Information on the projects funded by the EEA and Norway Grants is provided by the Programme and Fund Operators in the Beneficiary States, who are responsible for the completeness and accuracy of this information.