The gender pay gap in North Macedonia: Assessing the difference between low-paid and high-paid employees

Abstract

The labour market in North Macedonia is characterised by strong differences in terms of the vertical distribution of jobs and the higher probability of women being in low-paid and unpaid family jobs. Data from the EU-level Survey on Income and Living Conditions show that women are much more likely to be low-paid, while estimations of the earnings function indicates a significant gender pay gap and the potential for discrimination in the labour market against women. From a policy perspective, this article identifies the importance of the statutory minimum wage, particularly for low-paid workers, and that the high pay gap at the top end of the earnings distribution calls for supplementary interventions. In this context, we propose specific tailored programmes that target the female population in order to address the undervaluation of work typically done by women, as well as an extension of the duty on employers actively to promote gender equality. Moreover, an improvement in the position of low-paid workers, particularly women, may be achieved by upgrading the role of social dialogue and collective bargaining.