February 02, 2023

Estonia struggles to close its gender pay gap

topic:	Women's rights
located:	Estonia
editor:	Katarzyna Rybarczyk

Gender equality entails not only guaranteeing women the right to make decisions regarding their own lives, but also ensuring their economic empowerment. Despite the progress that has been achieved towards reducing discrimination of women at the workplace, gender gaps in Estonia’s labour market persist.

Although Estonia's female employment rate of 72 percent is above the OECD average (61 percent), women earn, on average, 21.1 percent less than men who have equivalent qualifications, according to Eurostat statistics. This figure is representative of a significant gender pay gap, which refers to the difference in average gross hourly earnings between men and women.  

Studies have shown that women in Estonia are typically employed in low-paid sectors such as education, retail and services. The disadvantaged position of women in Estonia’s labour market is also manifested through their scarce representation in leadership positions and high-paying occupations. 

While individual factors such as education, skills or experience can partially explain the wage disparities, the problem is also linked to gender discrimination. The gender pay gap means that “even though the work itself may require equal or more effort and skills, women’s work is valued and remunerated less,” UN Women observed.

What are the consequences for women? Making little money themselves, many are unable to break away from financial dependency on their spouses. In turn, they have limited power to change their circumstances. Additionally, the gender pay gap reduces women’s job satisfaction and has harmful effects for their mental health and self-esteem. 

Stereotypes about gender roles, which are entrenched in Estonia’s society and which confine women to the domestic realm, are also a major driver of the gender pay gap. “Estonians in general have very clear gender-stereotyped attitudes to women and men’s roles,” the European Institute for Gender Equality pointed out and added that “gender stereotypes influence young people’s educational and career choices, inhibit economic growth, and create gender gaps.” Traditionally, Estonian society expects women to focus on housework and childcare, shifting the responsibility of advancing careers and providing for their families to men. 

In addition to putting women at a disadvantage, gender inequalities in the labour market are detrimental to the country’s economy. “Small but persistent gender gaps mean that Estonia is missing out on a substantial boost to economic growth that could be unleashed if men and women had the same engagement and chances in the labour market,” reported the OECD. 

To address the issue, Estonia should introduce laws guaranteeing that men and women are paid equally for the same work. Pay transparency measures can help identify wage differences and provide insights necessary to develop policies that would hold employers accountable for determining their employees’ salaries based on gender. Additionally, Estonia should create equal opportunities for professional development for men and women, and ensure an increase in representation of women in senior positions. 

Closing the gender pay gap is crucial for economic prosperity and sustainable community development. Although Estonia appears committed to creating an inclusive society where women are free to pursue whatever career they wish without discrimination, as long as women are paid less than their male counterparts, gender equality will not be achieved. 

Photo by Kate Sade 

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