Paraguay’s economy has grown steadily in recent decades, bringing new opportunities and improving living conditions as a result for many people across the country. Yet one challenge continues to affect women in the workforce: the gender wage gap in Paraguay.

Even as more women enter the labor market and pursue careers across a wide range of industries, many still earn less than men performing similar – often the same – work. From offices in Asunción to farms and factories across the countryside, the pattern repeats itself: women contributing equally to Paraguay’s growth whilst taking home less at the end of the month.

Understanding the Gender Wage Gap in Paraguay

Households across Paraguay experience the gender wage gap directly. As the number of women taking on careers once dominated by men grows, the paychecks rarely reflect this. Despite completing the same work as their male colleagues, women receive paychecks that are often 20-30% smaller depending on the sector and region.

Looking closer, the gender wage gap in Paraguay reflects more than just differences in wages. Women also encounter fewer opportunities during their careers, and many cannot move up the career ladder, influence workplace policies, or take on higher-paying roles. In fact, women occupy only around 20 % of managerial positions even though women make up nearly half of Paraguay’s labor force.

The gender wage gap in Paraguay is not only a matter of paychecks – it reveals a workplace environment where women are not equally valued or recognized.

Factors Behind the Wage Gap

Several factors contribute to Paraguay’s persistent gender wage gap. One of the issues is occupational segregation. Women are more likely to be employed in lower-paying sectors such as domestic service, retail or caregiving roles in Paraguay, resulting in a lack of access to roles that come with a higher salary.

Care responsibilities also play a major role, especially in rural Paraguay. As women often carry the majority of childcare and household duties, many are unable to work full time. Furthermore, women in rural areas face fewer work opportunities with limited access to external childcare. As a result, many women are unable to pursue higher-paying positions or grow their careers.

The lack of education and training opportunities available also influences the wage gap. Although Paraguay has made progress in expanding access to education, barriers still prevent many women from entering technical and specialized professions that require advanced training. Many high-paying industries like engineering, technology and construction are still male-dominated and offer women fewer opportunities to access some of the best-paid jobs.

Government and International Efforts

The Paraguayan government has started to address the gender wage gap, along with other inequalities that women face, in the workplace. Equal opportunity and workers’ rights policies are now part of national development strategies. Furthermore, government institutions have strengthened labor regulations, with the aim to improve workplace conditions for women. The Paraguayan Parliament approved Law No. 5777 on Comprehensive Protection for Women Against Violence in 2016 to improve legal protections against gender-based discrimination.

The government also established the IV National Plan for Equality between Women and Men, which spanned from 2018 to 2024. Increasing women’s economic participation, improving access to employment opportunities and promoting women’s leadership were all key aims of this initiative.

Additionally, a number of international bodies have been supporting initiatives aimed at bridging the gender pay gap. One of these bodies is UN Women, which work in conjunction with different bodies in Paraguay aimed at enhancing gender equality in different workplaces. In Paraguay, UN Women has supported programs that promote women’s economic empowerment, entrepreneurship and leadership training. These initiatives include partnerships with government agencies and civil society groups to provide skills training, mentoring and policy support designed to increase women’s participation in employment and decision-making positions.

Global institutions such as the World Bank and the Inter-American Development Bank have helped in the formulation of such programs. The focus of these institutions in Paraguay is to improve access to education, improve the quality of job training and improve women’s participation in the workforce.

Community and NGO Initiatives

In addition to government programs, nonprofit organizations are working to empower women economically. Many of these initiatives focus on entrepreneurship and financial inclusion.

Several organizations actively promote gender equality in Paraguay’s workplaces. Some of these programs offer women business training and mentoring, enabling them to start their own businesses. Other programs focus on enhancing women’s access to financial services, such as micro-loans.

Nonprofit education programs also contribute to the promotion of gender equality. Fundación Paraguaya provides entrepreneurship programs, financial programs and assistance to women across the country who want to start their own businesses. Similarly, Pro Mujer runs programs in Latin American countries, including Paraguay, to offer women access to business programs, mentoring and financial programs to enable them to establish sustainable businesses.

Signs of Progress

Despite ongoing challenges that women in Paraguay are facing, there are signs of improvement. The number of women in Paraguay’s labor force has grown. More women are becoming entrepreneurs and business owners, contributing to economic growth at both local and national levels as a result.

As the public’s awareness of wage inequality grows, efforts to establish fair pay and equal opportunities for women are gaining traction across Paraguay. The gender wage gap shapes more than salaries; it shapes lives.

– Celine Heath

Celine is based in Portsmouth, UK and focuses on Good News and Politics for The Borgen Project.

Photo: Unsplash