The Power of Disclosure
Employers in emerging markets are actually doing a better job of disclosing their gender pay gap than their counterparts in developed nations.
ALSO IN THIS POST…
Writing for The Persistent
The tragedy of Harvey Weinstein’s overturned conviction
WOMEN MONEY POWER meets Harvard and more
It may not surprise you that gender inequality remains systemic and rampant across corporations based in the emerging markets. There are different reasons for this, not least that cultural and social norms frequently still dictate who should earn money and who should predominantly engage in unpaid labor, for example.
Indeed, new research published last week by Equileap, a provider of gender equality, diversity and inclusion data, shows that—at 32%—the average gender equality score of companies based in countries classified as emerging markets is more than ten percentage points lower than the score across developed economies. (You can learn more about how that score is calculated here.)
But that same research also shows us something perhaps much more surprising: broadly speaking, employers in emerging markets are actually doing a better job of disclosing their gender pay gap than organizations in developed nations.
Equileap found that across emerging markets, 38% of companies publish enumerated gender pay data compared to just 33% of organizations in developed markets. And 14 companies in emerging markets have succeeded in closing their gender pay gap altogether—defined by Equileap as publishing a mean, unadjusted pay gap of no greater or less than 3%. In the U.S., a mere six companies have accomplished that.
Over the past decade, gender pay gap reporting mandates and guidelines have been introduced in a growing number of countries and regions around the world. In 2017, the U.K., for example, introduced a sweeping gender pay gap reporting mandate, requiring all companies with 250 or more employees to publish annual data, by pay quartile, on their gender pay gap.
I covered the latest Equileap research for Forbes and noted that, interestingly, there still seems to be no real consensus on whether pay gap reporting mandates directly lead to smaller pay gaps.
According to research by the OECD, “national-level pay gap reporting rules do not have a consistently positive effect on closing gender pay gaps across all countries with these systems.” But separate evidence indicates that—especially at a company-level— transparency and reporting mandates can lead to a narrowing of the gender pay gap, and can counteract systemic inequities. At least that latter point suggests that the relatively high disclosure rate across emerging markets might be a precursor to progress towards smaller pay gaps.
The results of one study from 2019 showed that, from 2003 to 2008, the gender pay gap at firms which were compelled to report their gaps fell by 7%, from 18.9% to 17.5%, while the gap at control firms stayed the same at 18.9%.
“Transparency around the gender pay gap is not merely a matter of corporate disclosure or compliance; it's a catalyst for progress,” Diana van Maasdijk, CEO of Equileap, told me. “By shedding light on disparities in compensation, companies not only foster a culture of accountability but also lay the groundwork for meaningful change. Equileap's commitment to disclosing public information on gender equality stems from our recognition of its transformative potential,” she added.
“Transparency around the gender pay gap is not merely a matter of corporate disclosure or compliance; it's a catalyst for progress.”
—Diana van Maasdijk, CEO of Equileap
The Equileap research found that only 13% of companies in the U.S. currently disclose gender pay information, compared to rates as high as 65% and above in India and Taiwan. In South Korea, 88% of companies publish gender pay information without any legal obligation to do so, according to Equileap. Overall, eight emerging markets in the data set had a gender pay gap disclosure rate of over 50%.
To be sure, though, notable progress is likely to be slow. Equileap’s research also found that fewer than 1% of the companies in the emerging markets studied indicated that they had actually come up with explicit strategies to close to close or narrow their gender gaps. Many also fell short in terms of providing the types of parental leave and flexible working policies that tend to be correlated with smaller pay gaps and better overall workplace gender equity. So much more still to be done, but transparency famously creates accountability so perhaps that’s not a bad place to begin.
Something New and Exciting…
Elsewhere this week, a bit of personal news.
I’m excited to introduce you to a project I’ve been working on for the past year. The Persistent is a new editorial publication, brought to you by award winning journalists, editors, broadcasters and illustrators, to tell women’s stories—for a change.
Francesca Donner, formerly gender director at The New York Times, is the founder and CEO, and it’s been a privilege working with her as a founding editor to create a space for rich storytelling and evocative reportage. The Persistent brings together a community of like-minded readers; of people who are committed to telling and hearing women’s stories, and of individuals who are prepared to persist in order to make the media landscape and wider society more inclusive of, and receptive to, all voices.
Initially, The Persistent will offer two weekly emails: an analysis of the biggest news story moving, shaping, challenging, angering, troubling or inspiring women; and a reported essay by one of our writers. One of our core principles at The Persistent is to draw on a multitude of voices and to celebrate and elevate women from all different walks of life. When it comes to the essay, you won’t read the same writer every week. Instead, you’ll be exposed to a highly curated spectrum of views and perspectives.
If you’ve enjoyed my writing—perhaps you’ve enjoyed my book?—I would encourage you to sign-up to The Persistent here. I’m excited to be embarking on this long overdue tribute to women’s voices with Francesca and the team. I’d be thrilled if you came on this journey with me.
A quick note on WOMEN MONEY POWER. This Substack will of course continue to land in your inbox once a week, every Monday. As it always has, it will cover stories, developments and research at the complex intersection of gender, the economy and power. I can’t wait to keep growing and learning from you. Thank you, again, for your support and solidarity at this tremendously important time.
Harvey’s Second Chance
…but speaking of The Persistent, I wrote one of my first pieces for the brand new website last Thursday: a reaction to news that New York’s highest court had overturned Harvey Weinstein’s sex crimes conviction.
The case had gone to trial mostly based on the allegations made by two women. But the judge had permitted additional women to be brought to the stand. The Court of Appeals on Thursday said that the judge should never have allowed those women—who weren’t directly and explicitly related to the case—to testify. In criminal trials, the defendant must be judged solely on the precise acts with which they are being charged.
Thursday’s 4-3 decision is a really clear example of a judicial system working the way it theoretically should: according to the laws of the land that have—for better or for worse—withstood the test of time. And Weinstein’s lawyer, Arthur Aidala, speaking to The New York Times in the minutes after the decision was announced, praised the court for “upholding the most basic principles that a criminal defendant should have in a trial.”
But at the same time, it’s imperative that we see this for what it is: a broader story about immense human suffering. Anyone referring to Thursday’s decision as a “tremendous victory”—as Aidala did—is forgetting what’s actually happening here. This is not a cause for celebration.
Read my full take for The Persistent here.
(…and if you need something a little less more pensive—perhaps a little lighter, even—I also wrote an essay about the cultural history of pockets. That’s here. Please pay special attention to the gorgeous illustration by the marvelous Jenny Kroik. It’s always been a dream of mine to have my work illustrated by her.)
WOMEN MONEY POWER: The Book
And finally, as usual, a quick look back on what’s been going on in book land. I’ve had more fun doing more book talks at more prestigious institutions, including for the Women’s Caucus at Harvard Kennedy School.
Elsewhere, I was really happy with this thoughtful review of WOMEN MONEY POWER published by The Spectator, a magazine to which—for full disclosure—I am a regular contributor.
I’ve got a slew of book events lined up for May. I’ll be speaking at Worth Magazine’s Groundbreaking Women Summit at the offices of SAP in Hudson Yards on May 9. You can register here. I’ll also be doing a talk at the United Nations Association of New York. That’s happening at Steelcase near Columbus Circle on May 23 from 6pm. You can buy tickets here.
One final, shameless request. If you’ve read the book, I would massively appreciate it if you could take just thirty seconds to post a review on Amazon using this link. If Goodreads is your jam, that’s just as great and you can leave a review it here. Thank you so much for your support, as ever!