Abstract

ABSTRACT This paper investigates the effects of eliminating Gender Pay Gap on income and poverty. Drawing upon the European Statistics on Income and Living Conditions for Portugal, we use econometric tools to estimate the counterfactual earnings. The results obtained over the period under study (2014, 2017 and 2019) show that the average hourly income of women would increase by around 38%; the average annual income of households with women in the labor market would be around 22% higher; the poverty indicators would fall by 5% points; single female households and Madeira region would show a more significant decline in poverty.

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