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Gender Equality in the Labour Market - Summary Report - Lessons Learned

Human Resources Development Canada

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Introduction

This study is part of the Lessons Learned series produced by Human Resources Development Canada (HRDC). The studies use previous evaluations and research findings to identify what works and what does not in the development of public policies and programs.

One of the most significant social and economic developments of the twentieth century was the entry of women into the paid labour force. While the past thirty years have witnessed significant improvements to women's labour market position, women continue to compete in the workforce on an unequal terrain with men, and to experience unequal labour market outcomes as a result. Eliminating barriers to gender equality in the labour market is a policy goal of governments in all industrialized countries.

This report highlights what is known about policies and programs affecting gender equality in the workforce. It summarizes findings from the last thirty years of research in Canada, the United States, Australia, New Zealand, and selected European nations, with a view to identifying what works, and for which groups of women.

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Background

A wide range of policies may affect women's position in the labour market. This report focuses on five important categories of policy/program initiatives.

Employment standards

Employment standards are designed to protect workers from possible exploitation through unregulated labour markets. These standards typically govern wages, working conditions, benefits and leaves, hours of work, vacations, and protection from unjust dismissal. They may be set out in legislation, in collective bargaining agreements, or through voluntary codes of conduct.

Equal opportunities policies

Equal opportunities policies such as employment equity (in Canada) and affirmative action (in the United States) are designed to improve women's chances in recruitment, training, and promotion. Although most industrialized nations have formal equality and sex discrimination legislation in place, there is growing recognition that the prohibition of discrimination is not always enough to eliminate it in actual practice. Equal opportunities policies go a step further in seeking to bring about substantive change through positive measures.

Policies that affect pay

Policies that affect pay may include initiatives specifically designed to address the gender earnings differential, such as equal pay for equal work legislation and pay equity. But women's earnings can also be influenced by the overall structure of wages in the economy and by the mechanisms used to determine wages.

Labour market training

Labour market training aims at improving the job prospects and earnings potential of unemployed or underemployed individuals by developing their employment skills. In many countries, income support is increasingly contingent on participation in employment and training programs, a development which has major implications for low-income women who make up a large proportion of income assistance recipients.

Policies to reconcile work and family responsibilities

Policies to reconcile work and family responsibilities may either attempt to help women balance work and family duties with greater ease, or to facilitate the reallocation of some of the responsibility for unpaid work to men. These include policies for maternity or parental leave, child care policies, and flexible work arrangements.

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Lessons Learned

The lessons learned from this study of policies and programs are summarized below.

  1. The effectiveness of employment standards legislation is constrained by difficulties in protecting individuals engaged in non-standard work, and enhanced by the existence of strong and effective monitoring and enforcement mechanisms.
  2. Effective enforcement of basic employment standards is required to protect the large and growing number of women engaged in non-standard forms of employment. An effective enforcement strategy may include legislative reforms, broadly-based collective bargaining, and voluntary codes of conduct and monitoring systems.

  3. Equal opportunities policies that state goals and timetables and include enforcement mechanisms can yield positive results.
  4. There is some evidence to demonstrate that equal opportunities policies have increased women's employment and earnings and improved employee retention. However, to be effective, these policies must clearly state the type and magnitude of the changes expected, include timetables for their achievement, and specify penalties accruing to organizations that fail to achieve the required results. In addition, close monitoring and enforcement, including attention to wage data, can help to ensure that promotions do not occur without a corresponding increase in pay, status, or responsibility.

  5. Pay equity policies and legislation can be effective in reducing the gender gap in pay.
  6. Pay equity legislation, which is designed to address pay differentials arising from occupational sex segregation, is effective in reducing the gender gap in pay by about 10-20% within a given organization. However, a number of factors can restrict the impact of pay equity to close the gender gap in pay. These include the restriction of pay equity to the public sector in most jurisdictions and the fact that pay equity does not apply to women in male-dominated or mixed occupations.

  7. Policies that narrow the overall earnings distribution narrow the gender earnings gap.
  8. Compressed wage structures arising from centralized systems of wage determination, usually associated with a dominant union sector and/or strong collective bargaining, lead to higher relative wages for women. This is the case because women in all countries are concentrated at the low end of the earnings distribution. Therefore, any policies that serve to narrow the overall earnings distribution will also narrow the gender gap in pay.

  9. Successful training programs provide adequate supports to participants, are tailored to individual needs, and are sensitive to obstacles to training.
  10. Although their gains tend to be modest and can decay over time, most training programs, regardless of the type of intervention, increase women's employability and earnings. For training programs to succeed, several factors are important.

    • Training allowances covering child care, transportation, and any additional costs women may incur as a result of their participation in training are essential.
    • Training is more successful when it is tailored to the individual needs and circumstances of women.
    • Sensitivity to the possible obstacles to training posed by cultural attitudes and traditional gender roles may be required.

  11. Bridging programs can help women to overcome barriers to labour market participation.
  12. Bridging programs are designed to help women overcome any personal, cultural, or systemic barriers they may face to labour market participation and advancement. These programs do not always lead to immediate employment, but they do meet a variety of training needs that may be overlooked by programs geared toward immediate employment.

  13. Training should be linked to areas of high demand or further training opportunities.
  14. Training frequently prepares women for jobs that are most vulnerable to disappearance or declining quality in the coming years. Labour market policy focused on training women in areas suffering a shortage of qualified individuals, such as trades and other technical fields, will lead to improved earnings, better prospects for career advancement, and a reduced likelihood of return to income support. A more sequential training system that develops closer linkages between training levels and/or existing job vacancies in the private sector can help women to climb the "job ladder."

  15. The consequences of leave are poorly understood and further research in this area is required.
  16. The economic repercussions of taking leave are not well understood. Limited evidence suggests that leave promotes women's employment and increases pay, but may reduce pay at longer durations. Further research in this area is necessary.

    Leave policies have not promoted a notable diversification of gender roles. Women in all countries are far more likely to take leave, and to take it for substantially longer periods than men. The barriers preventing a more extensive male involvement in parental leave may include financial considerations and traditional cultural attitudes. However, further research is required in this area.

  17. Access to affordable child care is critical to women's labour force participation.
  18. Child care is critical to women's ability to participate in the workforce on an equal footing with men. Maternal rates of labour force participation are highest in countries having an extensive system of public child care. However, maternal employment is also influenced by prevailing attitudes about the proper role for women. In some countries a substantial majority of mothers work in spite of the poor availability of child care, while in others the majority does not work despite the fact that public child care is widely available.

    Employer support for child care does not address the cost and availability of child care. Furthermore, only large firms can afford to offer child care. The need for an increased supply of affordable child care services is not likely to be addressed satisfactorily if left to the private sector alone.

  19. Systematic research into the labour market impact of flexible work arrangements is necessary.

Little systematic research has been done so far into the repercussions for women of flexible work arrangements. However, it appears that fear about career damage is restricting employees' use of these policies.

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Conclusion

The introduction of measures designed to equalize women's labour market opportunities and outcomes has been a feature of public policy in all industrialized countries over the last three decades. Most of these measures have succeeded at improving women's labour market position, although results are at best preliminary. A great deal more research is required before we have an adequate understanding of the effects these policies have on women's labour market position.

Most of the measures reviewed in this study require fairly significant public expenditure and regulation of the economy. This is true of employment standards legislation, equal opportunities policies, pay equity policies, labour market training programs, leave policies, and child care policies. It is also true of structural features of the labour market, such as centralized wage setting, which have benefited women.

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