Gender Economics

The debate on gender equality has many facets. From an economic perspective, participation in the labor market is an important factor for economic growth. Fewer women participate than men – to a decreasing degree. There are many reasons for this: societal norms are one of them, but incentives from the tax system or insufficient childcare places also play a role.

Männer und Frauen in einer Einkaufsstraße
Männer und Frauen in einer Einkaufsstraße

From Gender Gap to Gender Pay Gap

In Germany, the gender gap is 45%, i.e., women earn on average 45% less than men, and is one of the widest in Europe. The decision to work part-time plays a major role here, as does the primary gender pay gap. This describes how much less women earn when they work full-time than men and is also influenced by career choice, which in turn is driven by gender-specific prejudices.

Women in Management Positions: Germany Is Behind

The proportion of women in management positions in German companies is low by international comparison. Men also dominate management positions in politics, science, and the public sector. In addition to individual decisions, state institutions play a role in this development. These include the tax and social security system (tax splitting for married couples, noncontributory coinsurance), care services, employee law, and divorce law.

Latvia's leading positions are filled by more women than men - Germany is far behind
Line chart 2004-2018 Development of employment overall and in the first and second management levels
Bar and pie chart of the gender distribution in the current German Bundestag
Proportion of women in Europe's VWL university landscape
Many female students, fewer female PhDs and even fewer professorships: Women at Germany's universities
How do differences in pay between men and women in Europe occur?

Tax Splitting for Married Couples Cements Traditional Distribution

By international comparison, the German tax system is one of the few that has a tax-splitting policy for married couples. The progressive tax rate maximizes the splitting advantage for a single-earner household. This system does not encourage the other spouse, usually the woman, to take up work. State institutions thus inhibit men and women from participating equally in the German labor market.

Girls Wear Pink – Boys Are Pirates

Societal norms encourage gender inequality, which begins in early childhood in the social environment. A strong emphasis on gender or gender-specific prejudices has far-reaching consequences and impairs children and young people in their cognitive and socioemotional development. Their resulting choice of profession, career, and family planning perpetuate a potential disparity in salaries between the different genders.

Current studies show that in boys, the negative effects manifest themselves in reduced reading and social skills. In addition, only boys are punished when their behavior deviates from gender expectations in their social environment. In girls, the negative effects of unequal treatment manifest themselves in reduced spatial and mathematical-technical skills. Girls are more likely to develop less interest and self-confidence in the abovementioned areas than boys.

Sensitization Necessary

Gender-neutral pedagogy or measures that counteract such prejudices could mitigate these negative influences. These include, for example, adapting training and further training to sensitize crèche and kindergarten teachers, sensitizing parents, redesigning (school) books, and more gender-neutral toys.

Videos on Gender Economics

Video

ifo Podcast: Equality at a Snail’s Pace - How Can Germany Get into the Fast Lane?

Equal work, equal pay? No. According to the Federal Statistical Office, women earn on average 18% less than men. Why is the gender gap even significantly larger and where do we need to make further improvements in Germany in terms of gender equality?

Video

Staatliche Institutionen als Hemmnis für gleichberechtigte Teilhabe von Frauen und Männern in Deutschland (State Institutions as an Obstacle to the Equal Participation of Women and Men in Germany)

Video

The Labor Supply of Married Women

Contact
Prof. Dr. Andreas Peichl

Prof. Dr. Andreas Peichl

Director of the ifo Center for Macroeconomics and Surveys
Tel
+49(0)89/9224-1225
Fax
+49(0)89/907795-1225
Mail