Women’s economic empowerment

The latest EU statistics indicate that gender gaps still exist in the economy

Christine Leșcu, 30.10.2019, 13:00

The latest EU statistics indicate that gender gaps still exist in the economy. And perhaps the most painful aspects are the ones related to womens access to jobs and incomes. In 2017, in the EU, mens incomes were 16% higher than womens, whereas in terms of pensions the figure goes up to 37%. The statistics indicate that women are still in a more vulnerable economic position than men. The situation has barely improved in the 25 years since the UN adopted the Beijing Platform for Action, seeking to promote and protect the full enjoyment of all human rights and the fundamental freedoms of all women.

For centuries, women have provided unpaid work, consisting in household and family responsibilities. The problem, obviously, is not that these activities should be remunerated, but that they should be shared, in a fair manner, by the two partners in a household, rather than being a burden for the women alone. But again, EU statistics clearly indicate an imbalance in this respect as well

According to the most recent report made public by the European Institute for Gender Equality this month, the Gender Equality Index for the labour market stands at 72 points out of 100. In Romania, this indicator is below the European average, standing at 68 points. More specifically, the employment rate among women is 61%, as against 79% for men. On the other hand, Romania has the smallest salary gap, with men earning on average only 3% more than women.

Not the same is true however when it comes to pensions. In 2017, mens pensions were 63% higher in the 65-79 age bracket. In fact, the economic situation of the elderly, irrespective of gender, was the topic of an analysis run by the Social Monitor, a project initiated by Friedrich Ebert Romania based on data provided by Eurostat. Victoria Stoiciu with the Ebert Romania Foundation told us more:

Victoria Stoiciu: “According to Eurostat figures, in 2018 in Romania 36.7% of the citizens over 65 years were subject to poverty risks. And women were the most affected. As many as 43% of the Romanian women were in this situation in 2018, as compared to 19% of the men. In fact, this is the highest poverty level among the elderly since 2009, when the economic crisis was fully felt. And this is very alarming. Although many have criticised the pension increases of the past few years, arguing that the national economy is unable to sustain them, data show that all these increases still fail to keep up with the needs of the elderly, and that poverty in this category is on the rise.

What could be the reasons for the gender pension gap in Romania? According to Victoria Stoiciu, they are not different from the ones at work in the EU as a whole:

Victoria Stoiciu: “This situation is caused by the gender differences in the labour market in Romania, which in turn are the result of structural disadvantages that Romanian women face and which reflect in their incomes after retirement. What are these structural disadvantages? First of all, women are less likely to participate in the labour market. The ratio of women who are employed has been systematically lower than the number of employed men. This is in part rooted in the traditionalist view that women should stay at home and take care of the family. But even when they have jobs, women work for shorter periods, and their salaries are constantly lower. And this obviously leads to discrepancies in terms of pension levels, because benefits are based on the amount contributed during the employment years. On the other hand, this also affects womens capacity to save money during their active years. And all these factors add to each other and womens systematic discrimination in the economy is the most evident after retirement.

(translated by: Ana-Maria Popescu)