The global gender gap in labour income

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Abstract This article introduces a new measure of economic gender inequality (EGI) based on the ratio of women’s share of national labour income to men’s. This measure captures both the principles of equal pay for equal work and nondiscrimination. Importantly, it can be calculated from existing data and is comparable between countries and over time. If we simply consider an unweighted average of our measure of EGI, there has been an improvement between 1994 and 2014. However, once we weight countries by population, average EGI has been increasing. Much of the higher EGI in poorer, more populous, countries is explained by the lower rates of female employment in those countries.