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Nordic project identifies several paths towards pay equity

The project ‘Pay equity in the Nordic region’ is now crowned with a third publication focusing on the undervaluation of women’s work in the Nordic region. This marks the end of the two-year equal pay project, which has covered topics such as legislation and policy, Nordic labour market models, structural factors and how to measure gender pay gaps.

Today, women in the Nordics are among the most active labour market participants in the world, but the goal of equal conditions in the labour market is far from being achieved. With this in mind, the Nordic Council of Ministers initiated the project ‘Pay equity in the Nordic region’ in 2022. A crucial issue for the project was to broaden the focus from equal pay for equal work, to equal pay for work of equal value. The overall aim of the project was to promote dialogue and the exchange of experiences and knowledge on how to address pay gaps between the Nordic countries and the social partners. 

The latest report released under the project is Towards pay equity: Explaining the undervaluation of women’s work in the Nordic countries.  

The publication discusses various explanations for the undervaluation of women’s work in a gender-segregated labour market, based on a survey of social partners and other key actors in the Nordic countries. By combining different statistics on gender pay gaps with theoretical approaches and survey responses from key stakeholders, the report provides a deeper understanding of the complex mechanisms underlying the gender pay gap. 

Jimmys Sand is an analyst at the Swedish Secretariat for Gender Research and author of the report: 

Unequal pay is based on a combination of structural factors, in particular the high degree of gender segregation, and social norms on, mainly, skills and caring responsibilities. Tackling this requires a combination of policy reforms as well as measures under the control of the social partners. These include efforts to promote gender equality in unpaid care work, as well as paid work in the labour market. 

It is hoped that the three publications, together with the Nordic network that has been formed, can promote further work to reduce pay gaps and the gender-segregated labour market in the Nordic region.  

Jimmy Sand sees an important role for the social partners in particular: 

“In the Nordic countries, there is a strong norm that employers and trade unions are responsible for wage formation without political interference. They therefore have a great responsibility not only to stand up for gender equality as a principle, but also to take action through co-operation to bring about real change. 

The project is part of the Secretariat's focus area  â€˜An equal Nordic region’, where most projects are run by NIKK, Nordic Information on Gender. NIKK is a collaborative body under the Nordic Council of Ministers, located at the Swedish Secretariat for Gender Research, University 91̽»¨.

Key messages from the three reports
  • There is a need to develop tools and templates to meet the various analysis and reporting requirements of the EU Pay Transparency Directive. Methods for assessing labour requirements as well as measures to reduce costs and the administrative burden on employers fall within this field.
  • Collective agreements have a central role in promoting the equal pay principle. The Nordic labour market model gives the social partners a strong autonomy to manage wage formation, with minimal government interference. It is therefore crucial that their commitment to gender equality is followed by concrete measures to bring about change.
  • The EU Pay Transparency Directive emphasises the importance of taking into account intersectional discrimination. More categories than gender need to be used in comparisons of pay between women and men, but national statistics have some limitations in this respect.
  • Given the importance of working time for actual earnings, and the fact that women are more likely than men to work part-time in the Nordic countries, it is important to also analyse the impact of part-time work on pay and pay differentials between different occupations. In particular, the way in which part-time and full-time wages have been made comparable should be considered.
  • There is a need for more research on why men do not enter female-dominated occupations and industries. This is under-researched compared to the question of why women do not enter male-dominated occupations and industries.