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Income

04.03.22 | Tölfræði
Women earn less than men in the Nordic region. The main reason is that the Nordic labour market is still relatively sex-segregated. Despite decades of gender equality policy and reforms, certain occupations are dominated by men and others by women. The fields dominated by women have lower average pay.

Gender Pay Gap

Definition: The unadjusted Gender Pay Gap (GPG) represents the difference between average gross hourly earnings of male paid employees and of female paid employees as a percentage of average gross hourly earnings of male paid employees.

The gender pay gap has seen a general decline in the past decade. However women still earn less than men. Unequal pay is a key indicator revealing inequalities between women and men in other areas. Gender stereotypes in education, in the labour market and at home create economic gender inequality.

People at risk of poverty

Definition: Persons are at risk of poverty if their equivalized disposable income is below the EU threshold set at 60 percent of the national median income after social transfers.

Women in the Nordic region are at a slightly higher risk of living in poverty than men. For most Nordic countries both women and men's risk of poverty lies well below the EU average. Monetary poverty can lead to social exclusion and degrade quality of life. That is why Nordic reforms over the past 50 years have actively addressed economic gender equality. 

Relative median income ratio (65+)​

Definition: Ratio of the median equivalized disposable income of people aged above 65 to the median equivalized disposable income of those aged 65 years or below.

Later in life, women in the Nordics rely on less income than men. Some women are even living out their retirement in poverty. Smaller retirement savings are linked to the periods of time when women don't work or work part-time due to childcare or family care responsibilities. Even the gender gap in leadership positions lead to a gap in lifetime earnings.​