Italy is an interesting case study in Europe when exploring the intricate landscape of gender wage disparities. From the seemingly promising statistics, it seems to be performing quite well. The gender wage gap in Italy is around 5%, significantly lower than the general European average.

However, this encouraging figure masks a much different reality. The numbers do not consider many underlying key factors that shape the Italian labor market and, specifically, the wage difference. Italy stands out in the European Union for having an exceptionally low rate of female workforce participation, along with the lowest employment rate for women. Women make up just 42.8% of the workforce, ranking Italy at the lower end in comparison with other European countries.

At 51.7%, Italy has the lowest rate of female employment within the European Union, just recently surpassed by Greece (51.8%).

In fact, the persistent gender wage gap in Italy has roots in deep-seated structural imbalances. According to OECD, 60% of the Italian pay gap exists within companies due to men and women with comparable qualifications working in roles with differing responsibilities and tasks. An additional 40% arises from the concentration of women in lower-paying firms and sectors. Here are seven key factors responsible for the persistence of the gender wage gap in Italy today.

7 Key Factors Responsible for the Gender Wage Gap in Italy

1. Historical Workforce Segregation: In Italy, traditional gender roles have deeply influenced job segregation, where women have historically worked in specific sectors including lower-paying and part-time jobs and unp, exacerbating the gender wage gap. In 2019, about 26% of women found employment in fields such as education, health and social services, compared to just 7% of men. On the other hand, in science, technology, engineering and mathematics fields, only 6% of the workforce was female, compared to 31% being male.
2. Unequal Representation in High-Paying Industries: Women often have limited representation in high-paying sectors like technology, finance and upper management, which contributes to the overall wage gap. According to the World Bank, in 2020, women accounted for 23% of employees in senior and middle management positions in Italy. When compared to other countries, Italy’s proportion of women in these management roles places it in the second quintile internationally.
3. The Motherhood Penalty: Women often face a ‘motherhood penalty,’ where maternity leave and child-rearing responsibilities negatively impact their career progression and earning potential. Furthermore, even years post-childbirth, average earnings remain 40% lower than for women without children due to a decrease in working hours, often resulting from a transition to part-time contracts.
4. Part-Time Work Bias: A higher proportion of women in Italy work in part-time roles compared to men, which typically offer lower wages and fewer opportunities for advancement. According to EIGE, approximately one-third of women had employment in part-time roles in 2019, while this applied to only 9% of men. Women typically worked around 33 hours each week, in contrast to men who averaged 40 hours.
5. Lack of Flexible Working Arrangements: Insufficient flexibility in working arrangements for balancing work and family responsibilities, such as telecommuting and flexible hours, hinder women’s career progression and earning potential, perpetuating traditional gender roles. Women continue to bear the brunt of unpaid domestic work and childcare, reinforcing the stereotype that caregiving is primarily a woman’s responsibility. This societal expectation limits women’s participation in the workforce while also influences their choice of jobs.
6. Discrimination and Bias in the Workplace: Conscious and unconscious biases in hiring, promotion and pay decisions can lead to women receiving less pay than men for the same roles. The average annual total compensation for male workers in Italy in 2022 was €26,227, compared to €18,305 for their female counterparts. This is entrenched with deep-rooted cultural norms and stereotypes about gender roles, which continue to influence hiring practices, career progression and salary negotiations.
7. Education and Career Guidance: Differences in education and career guidance can steer women away from high-paying fields and towards traditionally ‘female’ careers that tend to be lower-paid. In 2019, only 36% of the students enrolled in STEM Bachelor’s Degree Programs in Italy were female while 41% enrolled for STEM Masters’ Programs.

Women in Poverty in Italy

The persistence of the gender wage gap in Italy not only reflects but also contributes to the broader issue of poverty among women. Today in Italy, women and single mothers are the groups most at risk of poverty. The annual ISTAT report, released in July 2022, uncovers stark gender disparities. Of the 11.7% of single-parent families living in absolute poverty, single mothers head 80.9%. Around 2.28 million women are living in poverty and merely having a job does not guarantee an escape from it. Approximately 30% of Italian women do not own a bank account and 40% rely financially on their spouses. 

National Recovery and Resilience Plan

The Italian government and various NGOs have been implementing initiatives to address this issue. One notable example is the government’s National Recovery and Resilience Plan, which allocates significant funding towards expanding childcare services and promoting women’s participation in the workforce. This plan recognizes the pivotal role of women in economic recovery and aims to create a more inclusive labor market.

One such initiative is the “Family Act” that the Italian government proposed, which aims to support families with children through various measures, including tax breaks and increased childcare services. This policy, particularly beneficial for working mothers, can help narrow the gender wage gap by providing better support for balancing work and family life.

Women in the Field and WeWorld

Additionally, NGOs including Donne in Campo (Women in the Field) focus on empowering women, particularly in rural areas. They provide training and resources to women, enabling them to start and sustain their businesses. Such initiatives not only address immediate financial needs but also build long-term economic resilience among women.

Another significant step is the work of NGOs including WeWorld, which focuses on supporting women in Italy who are facing poverty. It provides assistance through education programs, vocational training and advocating for women’s rights, thereby empowering women economically and socially. 

Looking Ahead

Furthermore, legislative reforms aimed at promoting gender equality in the workplace, such as enforcing equal pay for equal work, are crucial. Tackling gender disparities requires a multifaceted approach, implementing policies to challenge societal norms and encourage women to enter traditionally male-dominated fields, especially in countries with such rooted traditional roles such as Italy. Ultimately, the journey towards bridging the gender wage gap in Italy is about fairness in paychecks and building a society where women’s contribution is valued as equally as her male counterparts.

– Matilde Liboni
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