Exploring the Gender Wage Gap in Timor-Leste – The Borgen Project

Report on the Gender Wage Gap in Timor-Leste and its Implications for Sustainable Development Goals

Timor-Leste faces significant socio-economic challenges that impede its progress toward the Sustainable Development Goals (SDGs). A primary obstacle is the persistent gender wage gap, which undermines efforts to achieve SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), and SDG 1 (No Poverty). Addressing this disparity is critical for fostering an inclusive, resilient economy and ensuring equitable development for all citizens.

Employment Disparities and Economic Impact on SDG 8

Labor Force Participation Analysis

Data from the Labour Force Survey 2021 reveals stark disparities in employment, directly impacting the nation’s ability to achieve the targets of SDG 8. These imbalances constrain women’s economic independence, reduce household income, and limit national productivity.

• Labor Force Participation Rate: 36.9% for men versus 24.2% for women.
• Total Employed Population: Of 234,300 employed individuals, only 92,300 are women.
• Unemployment Rate: 5.9% for women compared to 4.6% for men.
• Employment Type: Women are more likely to be in vulnerable employment positions such as self-employed or contributing family workers, rather than formal wage employment.

Key Factors Hindering Progress on Gender Equality (SDG 5)

Several interconnected factors contribute to the gender wage gap, creating systemic barriers to achieving gender equality and decent work for women.

1. Educational Gaps and SDG 4 (Quality Education)

   Educational disadvantages, particularly in poorer regions, disproportionately affect women and girls, undermining SDG 4. The Timor-Leste Survey of Living Standards (TLSLS) indicates that the number of unschooled or illiterate females per household is nearly 30% higher than that of males. This educational divide limits women’s access to skilled employment and reinforces income inequality, hindering their long-term economic mobility.

2. Traditional Gender Roles and Unpaid Work (SDG 5.4)

   The persistence of traditional gender roles, which assign domestic and care duties primarily to women, is a major barrier. This aligns with the challenge addressed in SDG Target 5.4, which calls for recognizing and valuing unpaid care work. Over 50% of women outside the labor force cite family responsibilities as the primary reason, compared to only 32% of men. This unequal burden prevents women from entering or remaining in the paid workforce, directly contributing to the wage gap.

3. Social Norms and Economic Decision-Making

   Deep-rooted social norms that designate men as primary decision-makers and breadwinners limit women’s economic empowerment. While women often manage household finances, their economic roles are confined to the private sphere. This cultural dynamic discourages female entrepreneurship and participation in public life, reinforcing disparities in income and leadership opportunities and impeding progress on SDG 5.

National Efforts to Advance Gender Equality

The National Action Plan and Alignment with SDG 5 and SDG 16

Timor-Leste has demonstrated a commitment to gender equality through its second-generation National Action Plan on Women, Peace and Security (NAP 1325) for 2024–2028. This plan is a crucial instrument for advancing SDG 5 and SDG 16 (Peace, Justice and Strong Institutions).

• The plan aims to integrate gender equality across all levels of government, from community decision-making to security sector reform.
• It emphasizes women’s leadership and meaningful participation, reflecting the goals of SDG Target 5.5.
• Progress is evident with women holding 36.9% of parliamentary seats and the appointment of the nation’s first female military commander.

Recommendations for Future Action to Achieve SDGs

Continued and targeted efforts are essential to close the gender wage gap and accelerate progress towards the SDGs.

Strengthening Legal Enforcement for Decent Work (SDG 8)

While laws guaranteeing equal compensation for equal labor exist, inconsistent enforcement remains a challenge. Strengthening the enforcement of regulations related to fair pay, maternity leave, and employment discrimination is critical to achieving SDG Target 8.5 (equal pay for work of equal value) and improving women’s financial independence.

Enhancing Educational Opportunities for Women (SDG 4 & SDG 5)

To overcome the educational divide, targeted initiatives are required to improve women’s access to education and vocational training, particularly in male-dominated fields like STEM. Providing scholarships, incentives, and awareness campaigns will empower women with the skills needed for a more inclusive workforce, directly contributing to SDG 4 and SDG 5.

Conclusion: Linking Gender Equality to National Development

Closing the gender wage gap in Timor-Leste is fundamental to achieving broader national development objectives. By addressing the structural barriers that limit women’s economic participation, Timor-Leste can unlock its full economic potential, reduce poverty (SDG 1), and build a more resilient and equitable society. Achieving gender equality is not only a goal in itself (SDG 5) but a catalyst for the successful implementation of the entire 2030 Agenda for Sustainable Development.

Analysis of SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 5: Gender Equality

  This is the most central SDG addressed in the article. The entire text focuses on the economic and social disparities between men and women in Timor-Leste, including the gender wage gap, differences in labor force participation, the burden of unpaid domestic work, and unequal representation in leadership roles. The article explicitly discusses efforts to advance gender equality through national action plans.

• SDG 8: Decent Work and Economic Growth

  The article directly connects to this goal by analyzing labor market disparities. It provides specific data on labor force participation and unemployment rates for men and women, discusses the prevalence of informal work (self-employed or contributing family workers), and highlights the need for “equal compensation for equal labor,” which is a core principle of decent work.

• SDG 4: Quality Education

  This goal is addressed as a key factor behind the gender wage gap. The article points out that “educational disadvantage is higher in poorer regions with illiteracy and school non-attendance more prevalent among women.” It also suggests that enhancing women’s access to education, particularly in STEM fields, is a crucial solution.

• SDG 1: No Poverty

  While not the primary focus, this goal is an underlying theme. The article states that the gender wage gap “constrains women’s personal financial independence but also reduces household income.” By addressing these economic disparities, the nation can unlock its full economic potential, “reducing poverty and fostering a more resilient and equitable society for all.”

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 5.1: End all forms of discrimination against all women and girls everywhere.

  The article’s focus on the gender wage gap, higher unemployment for women, and social norms that limit women’s economic roles are all examples of economic discrimination that this target aims to end.

• Target 5.4: Recognize and value unpaid care and domestic work.

  This target is directly relevant as the article states that “more than half (50%)” of women outside the labor force are engaged in family responsibilities or housework, compared to only 32% of men, identifying this as a major factor for low labor participation.

• Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership in political, economic and public life.

  The article discusses this target by mentioning Timor-Leste’s National Action Plan, which has a “strong emphasis on women’s leadership and meaningful engagement.” It also notes the progress made, with women occupying “36.9% of parliamentary seats.”

• Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value.

  This is a core target. The article details the disparities in employment (142,000 men vs. 92,300 women) and explicitly mentions that despite laws to “guarantee equal compensation for equal labor,” enforcement remains a challenge.

• Target 4.5: By 2030, eliminate gender disparities in education and ensure equal access to all levels of education and vocational training.

  The article identifies educational gaps as a key problem, noting that the number of “unschooled or illiterate females per household… is almost 30% higher than that of males,” directly linking to the need to eliminate this disparity.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Labor force participation rate by sex: The article explicitly provides this data from the Labour Force Survey 2021, stating the rate is “36.9% for men and only 24.2% for women.” This is a direct indicator for measuring economic participation under SDG 5 and SDG 8.
• Unemployment rate by sex: The article states that unemployment among women was “higher at 5.9% compared to 4.6% for men,” providing a clear metric to track progress in achieving decent work for all (SDG 8).
• Proportion of seats held by women in national parliaments: This is a specific indicator for Target 5.5. The article provides the exact figure: “women already occupying 36.9% of parliamentary seats.”
• Gender wage gap: While not providing a specific percentage for the wage gap itself, the entire article is premised on its existence, stating women “frequently earn less than men.” This implies the use of Indicator 8.5.1 (Average hourly earnings of female and male employees).
• Proportion of time spent on unpaid domestic and care work: The article implies this indicator by reporting that “50% of women outside the labor force are engaged in family responsibilities or housework, compared with only 32% of men.” This data helps measure the unequal burden of unpaid work (Target 5.4).
• Educational attainment/parity index: The article implies the need for this indicator by highlighting that the “number of unschooled or illiterate females per household… is almost 30% higher than that of males.” This statistic serves as a proxy for Indicator 4.5.1, which measures gender parity in education.

4. Summary Table

Source: borgenproject.org