Intersectionality of Gender, Wage and Labour: Unpacking the Systemic Inequalities

Unless we actively and intentionally include women, the system will unintentionally exclude them”.

-Elizabeth Broderick, Founder of Male Champions of Change

Introduction: The Gendered Nature of Wage Inequality

The issue of wage inequality is deeply intertwined with gender dynamics, revealing systemic biases that have persisted across cultures and economies. As we navigate the complexities of a post-pandemic world, it’s essential to examine how the pandemic exacerbated these inequalities, as traditional gender roles significantly influenced economic realities, particularly in the business sector. Grappling with the vulnerabilities and challenges of the Covid-19 pandemic highlighted the deep rooted existence of traditional gender notions and systemic inequalities within the system which were exacerbated by the health crisis. In light of the pandemic and the emergence of the new normal in the form of ‘work from home’, phrases like ‘‘husband and wife both work, but it’s the wife’s responsibility to cook and care’’, echoed far too frequently and loudly within the domestic space. The lock-down immediately impacted women, with 37.1 percent losing jobs (compared to 27.7 per cent for men) between April 2020 and April 2021, as per data from the Centre for Monitoring Indian Economy (CMIE)^[1]. Women disproportionately bore the brunt of societal expectations, often managing household responsibilities alongside their professional responsibilities. This long existing glorification of women’s care giving roles, alongside the dual burden of labour not only reinforces existing inequalities but also highlights the urgent need for a gendered perspective in discussions about equitable wages. Therefore, the goal of women’s empowerment, a critical element for achieving gender equality and sustainable development, was severely challenged during the outbreak and continues to challenge us now.

We’ve all heard it before – “Women aren’t as dedicated as men to their careers,” or “Hiring men is cheaper because maternity leave is a company headache.” And who can forget the classic, “Women are too emotional for high-pressure jobs.” The gender pay gap in India is a narrative that demands our attention with an urgent need to challenge the status quo. In light of the above, it becomes essential to understand the traditionally existing socio-cultural and gender dynamics which necessitates an ‘intentional’ inclusion of women within the debate for equal wages as pertinent for ensuring gender equality within the business landscape. As we collectively strive towards a fairer economy, it’s crucial to understand how systemic inequalities shape the conversation around wage and why a gendered lens is indispensable for meaningful progress.

The Gender Pay Gap: More Than a Number

In the daily grind of work life, there’s a hush-hush topic that’s been around forever, quietly affecting women in the workplace – the gender pay gap. One-size-fits-all solutions often fail to capture the complexities of the intersectional nature of gender-based wage disparities across the globe. The narrative surrounding the gender pay gap is surrounded by traditional stereotypes and misconceptions as evidenced in the context of India, which ranks 129 out of 146 in the World Economic Forum’s (WEF) Global Gender Gap Index (2024)^[2]. Adding onto the same, according to the estimates of the World Inequality Report 2022^[3] , men earn 82 per cent of the labour income in India, whereas women earn 18 per cent. Such gender pay gap is a stark indicator of inequality, showing the disparity in earnings between men and women across various industries. This gap persists despite advances in gender equality and reflects the broader complexities within the issue of wage inequality.

To unpack the root cause for this, it is pertinent to note that several factors contribute to the disadvantages women face in the wage landscape. They are often subjected to lower paying roles, rendering them vulnerable to financial instability. Additionally, in India, women are predominantly engaged in the informal sector and choose home-based employment options that allow them to balance domestic duties. This is not merely a statistical anomaly but a reflection of deep-seated systemic biases. Women, especially those from marginalized communities, face intersectional marginality and compounded wage disparities that standard approaches to wage equality might overlook. Addressing this gap requires a nuanced, gender inclusive wage initiative that strategically integrates women as equals in the workforce.

Implementing Gender-Inclusive Wage Initiatives

Addressing the gender pay gap necessitates a multifaceted approach. Effective implementation of pay equity initiatives can significantly benefit women who are disproportionately affected by low wages. These initiatives not only enhance women’s participation rates but also act as benchmarks for broader economic growth and promote inclusivity.

In light of the above, United Nations Global Compact (UNGC) has developed an Action Guide on Gender Equality as part of its Forward Faster Initiative, reinforcing the necessity of implementing equitable wage initiatives along with equal representation of women in the business domain. With a targeted approach on “ Equal pay for work of equal value by 2030” , this guide equips organizations with a structural framework and practical tools to promote gender equality in the workplace. By aligning business practices with gender equality principles, organizations can establish a more equitable wage structure and ensure women are adequately represented and compensated in the business landscape.

Conclusion: A Call to Action

Gender equality is an urgent imperative. Crises, conflict, and global trends such as climate change, natural resource scarcity and technological transitions exacerbate existing inequalities. The path towards achieving gender equality and fair compensation for all calls for actively including women in the conversation and addressing systemic inequalities through a gendered lens. Only by recognizing and addressing these intersecting issues around wage inequality, we can aspire to a world where everyone, regardless of gender, receives a fair and equal wage that truly supports a dignified life.

Within the contemporary framework of increased focus on gender lens investing, it is pertinent to look at the economic pay gap from a gendered viewpoint to unpack the narrative of inequality in the business domain. As we navigate through this journey of gender equality, I get reminded that personal experiences are not isolated incidents but part of a broader narrative. The demand for equal pay is not a story, but it is a collective tale of women striving for equality, challenging the naturalization of societal norms and reshaping societal expectations.

This calls for embracing this challenge and working towards a future where equal wage initiatives not only uplift all workers but also rectify the systemic disparities that have long plagued our economic systems. Together, we can forge a more inclusive and equitable future for all.

^[2] Global Gender Gap Report- Insight Report, July 2024, World Economic Forum

^[3] World Inequality Report, 2022