Every year, the World Economic Forum (WEF) compares the economic participation and opportunity, educational attainment, health and survival, and political empowerment of men and women across the world. The latest report, published on 14 June 2024, shows a shrinking gap between Swiss men and women.
This year, Switzerland scored 0.785 and ranked 20th, up from 0.783 and a rank of 21st in 2023. The scores for educational attainment (0.992) and health and survival (0.964) were not far off perfect equality – 1.000 represents equality. However, scores for economic participation and opportunity (0.720) and political empowerment (0.464) showed large gaps.
Switzerland’s poor score on political empowerment largely reflects the design of the scoring system. Unlike most elements of the overall calculation, political empowerment is historical. It looks at the last 50 years’ of presidents. Over this time span, Switzerland has had only 8 female presidents. If the time frame is shortened to 20 years, a period better reflecting how Switzerland now operates, the ratio is 8 women to 12 men. This simple adjustment in methodology would propel Switzerland towards the top of the ranking. Choosing of a 50-year historical period for a score to map progress is odd.
On economic participation and opportunity, Switzerland scores poorly on estimated earned income (0.579).
According to Switzerland’s Federal Statistical office, median pay is 9.5% lower for women than it is for men. This figure obviously does not compare pay for the same positions. When the data is broken into groups based on the seniority of the job, the median pay difference rises to 14.7%.
It is easy to assume gender discrimination drives all of this pay difference. However, early educational choices play a significant role. School subjects like mathematics and physics, that often lead to well paid careers, tend to be top choices for boys and relatively unpopular choices for girls. By the time university rolls around, these school subject choices mean men dominate STEM (78% vs 22%), engineering (84% vs 16%), IT (90% vs 10%) and business (55% vs 45%). While women tend to be overrepresented in humanities and arts (61% vs 39%), social sciences and journalism (69% vs 31%), and health and welfare (74% vs 26%). Those armed with arts or social science degrees then struggle to yield the same salaries as those with degrees in computer engineering, finance or pharmacological chemistry.
There are also many other factors that come into play. Mothers typically spend more time out of workforce than fathers, and typically shoulder more of the burden of childcare generally.
Pay negotiation also plays a role in the size of pay packets, especially in more senior positions. Men on average seem to be more active negotiators than women.
Time is another factor. Workers over 50 reflect the sexist recruitment culture of the 80s and 90s. When those entering the job market in less sexist times become the majority, overall gender percentages will shift. An example of this can be seen in the medical profession. Overall, 43% of doctors are women. However, while women make up only 39% of doctors over 45 they make up 61% of doctors under 45. In a few more years female doctors will out number male ones as older doctors retire and new ones come on line.
Of course sexism still exists along side these factors. And it is often difficult to identify. No recruiter will admit they chose a particular applicant based on their gender. In addition, there are clear incentives to discriminate. For recruiters hoping to save on maternity pay and staffing disruptions, hiring a young man over a young woman will tilt the odds in their favour. Rather than hoping employers will do the right thing, countering this inherent economic incentive should be a key focus for policy makers.
In an interview with RTS, Anne Donou, who works for the recruiting firm Rundstedt, explains some of the reasons behind the gender pay difference, especially for more senior roles. These include the impact of being a mother and the structure of the economy. The Swiss economy employs a lot of people in finance and pharmaceuticals, well paid fields where more men are found. And as people rise up in seniority, negotiation plays an increasingly important role in determining pay. At the same time, Donau did acknowledge that there is sexism, which is hard to identify due to a lack of transparency. However, she can see progress, but it will take time for some of it to show. The recruiter also said she would prefer to see a greater focus on rewarding competence and experience rather than pay decisions based on gender.
More on this:
WEF report (in English)
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