Report on the Gender Pay Gap and Its Implications for Sustainable Development Goals

The persistent disparity in wages between genders represents a significant impediment to the achievement of multiple Sustainable Development Goals (SDGs). This report analyzes the causes and costs of the gender pay gap, framing the issue within the context of the 2030 Agenda for Sustainable Development, with a particular focus on SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities).

Analysis of Factors Hindering SDG Targets

Systemic Discrimination and Inequality (SDG 5 & SDG 10)

A substantial portion of the gender pay gap remains “unexplained” by quantifiable factors, suggesting that systemic discrimination is a primary cause. This directly contravenes the principles of SDG 5 (Gender Equality) and SDG 10 (Reduced Inequalities). The issue is compounded by intersectional factors, creating wider gaps for women of color and undermining SDG Target 10.3 to ensure equal opportunity.

• For every dollar paid to non-Hispanic white men, Black women earn 67 cents.
• Hispanic women earn 57 cents for every dollar paid to non-Hispanic white men.

These statistics indicate that antidiscrimination laws have not been sufficient to eliminate discriminatory practices that prevent the realization of equal pay for work of equal value.

Occupational Segregation and the Devaluation of Work (SDG 8)

The argument that pay disparities result from “career choice” is incomplete. Research indicates that occupational choice accounts for only 10% to 33% of the gap. The underlying issues align with challenges to SDG 8 (Decent Work and Economic Growth), particularly Target 8.5, which calls for equal pay for work of equal value.

• Societal norms and expectations often steer women toward lower-paying fields.
• Work sectors become devalued and average pay decreases as women enter them in greater numbers, a phenomenon known as “women’s work” undervaluation.

The Burden of Unpaid Care Work (SDG 5.4)

The disproportionate responsibility for caregiving placed on women is a critical driver of the pay gap and a direct challenge to SDG Target 5.4, which calls for the recognition and valuation of unpaid care and domestic work.

• Women frequently require lower-paying jobs with greater time flexibility to accommodate caregiving duties.
• Caregiving responsibilities often force women to exit the workforce temporarily, resulting in missed opportunities for promotions and raises.
• Employment rates for men show minimal variation based on the age of their children, whereas for women, 63% with children under 6 are employed, compared to 71% with children aged 6 or older.

Economic and Social Costs: A Setback for Development

Lifetime Economic Disadvantage and Poverty Risk (SDG 1 & SDG 8)

The cumulative financial impact of the gender pay gap has severe consequences, hindering progress towards SDG 1 (No Poverty) and SDG 8.

1. Lower Earning Trajectory: Lower starting salaries create a reduced base for future raises and earnings potential.
2. Retirement Insecurity: Time taken for caregiving leads to gaps in retirement savings. Combined with longer life expectancies, this increases the likelihood of women living in poverty during retirement.
3. Significant Financial Loss: Estimates suggest the employment-related cost of caregiving for women born between 1981 and 1985 amounts to approximately $295,000.

Household Inequality (SDG 5)

Even when the pay gap closes within a household, gender inequality persists, challenging the core aims of SDG 5. Research from the Pew Research Center shows:

• In marriages with equal earnings, women still perform more housework and caregiving.
• In marriages where wives are the primary earners, husbands’ leisure time increases, while their contribution to domestic work remains static.

Beyond the Binary: Intersectional Disparities (SDG 10)

Wage disparities extend beyond cisgender men and women, affecting transgender and nonbinary individuals and highlighting the need to address SDG Target 10.2, which promotes the social and economic inclusion of all, irrespective of sex or other status.

• Transgender and nonbinary workers earn 30% to 40% less than the typical worker.
• Consequently, LGBTQ+ individuals, particularly lesbian and bisexual women and people of color, face a heightened vulnerability to poverty, further impeding progress on SDG 1 and SDG 10.

Conclusion: The Path to Parity and Sustainable Development

The gender pay gap is an entrenched issue rooted in discriminatory social norms and systemic biases. The lack of significant progress over the past three decades undermines the global commitment to the Sustainable Development Goals. At the current rate of change, achieving pay parity will take an estimated 35 years. Closing this gap is not only a matter of gender equality (SDG 5) but is essential for fostering decent work (SDG 8), reducing inequalities (SDG 10), and eradicating poverty (SDG 1). Accelerated and targeted action is imperative for achieving the 2030 Agenda for Sustainable Development.

Analysis of Sustainable Development Goals in the Article

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

• SDG 5: Gender Equality

  The entire article is centered on the gender pay gap, discrimination against women in the workplace, the burden of unpaid caregiving, and the underrepresentation of women in leadership roles. These are core issues addressed by SDG 5, which aims to achieve gender equality and empower all women and girls.

• SDG 8: Decent Work and Economic Growth

  The article directly discusses disparities in wages (“gender pay gap”), which is a key component of decent work. It highlights the economic consequences of this gap, connecting to the goal of achieving full and productive employment and decent work for all, including equal pay for work of equal value.

• SDG 10: Reduced Inequalities

  The article expands the discussion beyond the male-female binary, highlighting significant pay disparities for women of color, transgender, and nonbinary individuals. This directly addresses SDG 10’s aim to reduce inequality within and among countries by empowering the social and economic inclusion of all, irrespective of sex, race, or other status.

• SDG 1: No Poverty

  A direct link is made between lower wages and poverty. The article states that women have a higher likelihood of living in poverty during retirement due to the cumulative effect of the pay gap. It also notes that lesbian, gay, bisexual, and transgender people are more likely to be poorer than their heterosexual counterparts because they earn less, connecting the issue of wage inequality directly to poverty reduction goals.

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

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

   The article explicitly identifies discrimination as a major cause of the gender pay gap, stating that “it appears a large portion of the ‘unexplained’ pay gap is attributable to discrimination, whether it’s based on sex, race, or both.”

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

   The article highlights that “Women are still expected to do the lion’s share of caregiving” and that even in marriages with equal earnings, “women still spent more time on housework and caregiving.” This unequal burden is presented as a key factor forcing women into lower-paying, more flexible jobs.

3. Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making.

   The text points out that “women continue to be underrepresented in management positions,” which is a direct barrier to equal opportunity and a contributing factor to the pay gap.

4. Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.

   This is the central theme of the article. The entire discussion revolves around the disparity in wages between genders for performing work, with specific data points provided, such as Black women earning 67 cents and Hispanic women 57 cents for every dollar paid to non-Hispanic white men.

5. Target 10.2: By 2030, empower and promote the social and economic inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.

   The article addresses this target by discussing the economic exclusion and wage disparities faced not only by women but specifically by women of color and individuals who identify as transgender or nonbinary, who “earn 30% to 40% less than the typical worker.”

6. Target 1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions.

   The article connects the pay gap to poverty, noting that women’s lower retirement savings lead to a higher likelihood of living in “poverty during retirement.” It also states that “lesbian and bisexual women, as well as lesbian, gay, and bisexual people of color, are especially vulnerable to poverty” as a direct result of earning less.

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

• Indicator for Target 8.5: The article provides specific statistics that align with measuring the gender pay gap. For example, “For every $1 paid to non-Hispanic white men… Black women earned 67 cents, and Hispanic women were paid 57 cents.” This is a direct measure of the average earnings of female employees relative to male employees.
• Indicator for Target 5.5: The statement that “women continue to be underrepresented in management positions” implies the use of an indicator measuring the proportion of women in managerial roles. While no specific percentage is given, it identifies this as a measurable area of inequality.
• Indicator for Target 5.4: The article implies an indicator related to time use. The finding that “women still spent more time on housework and caregiving, while men took more time for leisure” suggests that progress could be measured by tracking the proportion of time spent on unpaid domestic and care work, disaggregated by gender.
• Indicator for Target 10.2: The article provides a clear quantitative indicator for wage disparity based on gender identity: “Those who identify as transgender or nonbinary earn 30% to 40% less than the typical worker.” This measures the economic inclusion (or lack thereof) of these groups.
• Indicator for Target 1.2: The article implies an indicator by stating that certain groups are “more likely to be poorer” and “especially vulnerable to poverty.” This suggests measuring the proportion of the population living below the poverty line, disaggregated by gender, race, and sexual orientation, to track progress.

4. Table of SDGs, Targets, and Indicators

Source: britannica.com