The gender pay gap in Moldova. Recent trends and policy implications

The gender pay gap (GPG) represents one of the clearest indications of the persistence of gender inequalities in the labour market. Eradication of the GPG is included in target 8.5 of the Sustainable Development Goals in line with the ILO Equal Remuneration Convention, 1951 (No. 100), which calls for men and women to receive equal remuneration for work of equal value. A new statistical analysis from the ILO Office for Central and Eastern Europe shows that while the GPG in the Republic of Moldova has narrowed over the last decade, women continue to earn less than men for work of equal value - about 15 per cent less in terms of monthly wages.

The report "The Gender Pay Gap in Moldova: Recent Trends and Policy Implications" examines the underlying factors behind the pay gap and provides policy recommendations to reduce it. Looking at different wage distributions and worker categories, the report finds that the GPG is most pronounced for women in the 25-34 age group. This appears to be driven by women returning to the workforce after having children seeking more flexible but lower paid employment. Limited childcare options for many are likely contributing to this. The GPG is higher between men and women with high educational attainment, as women in Moldova tend to pursue post-secondary degrees in liberal arts subjects that yield lower returns than STEM subjects that attract more men. The GPG is however lower in the public sector, among formal employees and for trade union members. This reflects the importance of employment protection legislation and labour law compliance in limiting the GPG. The GPG is also relatively lower at the bottom of the wage distribution, which likely reflects the fact that the minimum wage, by compressing wages of low-income workers, reduces all types of wage inequalities, including those between men and women.

The report highlights the substantial progress that has been achieved over the last decade in terms of reforming the legislative and policy framework to reduce the GPG. Among others, changes to legislation introduced in 2022 have established the definitions of equal work as well as of work of equal value. Additionally, the legislation now includes the principles that should be followed in job evaluations to estimate the value of work using gender-neutral and objective criteria. The report concludes with several policy recommendations to inform discussions. These include, among others, providing new tools for enterprises for job evaluations to ensure equal pay for work of equal value; encouraging greater take-up of paternity and parental leave by fathers; increasing access to childcare services; promoting female enrolment in STEM post-secondary degrees; and leveraging minimum wage policies and collective bargaining tools.