- Labor market outcomes in Latin America and the Caribbean are shaped not only by individual talent, but also by rules that influence opportunities and pay.
- Even though women represent 60% of university graduates in the region, they earn on average 18% less than men, with care responsibilities and motherhood playing a central role in widening gaps over the work life cycle.
- Through the Gender Parity Accelerators, governments and companies are already changing workplace rules to move toward greater equality of opportunity and stronger collective performance.
As millions of people watch the World Cup, the debate over clear rules, competition, and fair play is once again taking center stage. Something similar happens in the labor market: results do not depend only on individual talent, but also on the rules that define opportunities and condition career paths.
According to Inter-American Development Bank (IDB) data, women earn on average 18% less than men in Latin America and the Caribbean, even though 60% of university graduates in the region are women. That is to say that, on average, they have educational levels equal to or higher than those of men.
To address these inequalities, the IDB has for a decade promoted dialogue and joint action between the public and private sectors through the Gender Parity Accelerators. In this blog post, we look at how rules can affect women differently than men, and what some countries and companies in the region are doing in response.
The wage gap is not only about remuneration but also about who is hired, who is promoted, who accesses and uses benefits, and who sustains a career path over time.
In the region, women are overrepresented in lower-income sectors and occupations, and underrepresented in high-paying areas, such as science and technology. The wage gap tends to widen at key moments, such as after childbirth.
Women spend more than twice as many hours as men on unpaid domestic and care work, reducing their availability for paid employment and resulting in more fragmented work trajectories. Different studies show that between 35% and 50% of the wage gap in the region is associated with motherhood.
Inflexible work schemes and the design of maternity and paternity leave can affect women's job continuity and their access to better-paid positions.
In the region, only 16 countries grant fathers full paid paternity leave, with an average duration of three days or less. In contrast, 26 countries offer paid maternity leave that lasts, on average, 14 weeks.
Companies can help improve the distribution of care tasks and job opportunities by providing better paternity leave conditions. However, even when these benefits exist, their impact may be limited if men do not make effective use of them.
Many men do not take leave or request flexible schemes, even when they are available, due to the weight of expectations on availability and work commitment. These can leave men removed from parenting responsibilities, even if they want to be involved.
Companies can respond by promoting co-responsibility in care through initiatives that promote men's role as caregivers.
In Latin America and the Caribbean, companies part of the Gender Parity Accelerators are advancing this agenda by reviewing and strengthening their internal processes. Among the actions they have implemented are:
- Measuring their wage gaps
- Reviewing and adjusting their compensation policies
- Adopting more equitable parental leave
- Initiatives to promote male parenting
Below are three regional examples included in an IDB guide to promoting equality between men and women in the private sector in Latin America and the Caribbean:
- Laboratorios Bagó, Chile
Since 2015, the company has obtained certification in the Chilean Standard 3262 for Gender Equality and Work-Life Balance, which requires annual evaluations of the wage gap. Between 2021 and 2023, it managed to reduce its pay gap from 13.7% to 9.2% through a systematic review of its compensation processes.
- Comfama, Colombia
In 2018, the organization created the Men Who Care program after identifying internal barriers that affected the promotion of women. Supported by senior management, the initiative creates dialogue around how to change preconceived ideas about roles in order to create a more equal workplace.
- Danone, Mexico
The company implemented a gender-neutral parental leave policy aimed at promoting co-responsibility in care. It adopts the concepts of primary and secondary caregiver and offers equivalent benefits for men, women, and adoptive couples, with leaves that exceed what is established by current legislation.
Reducing income inequalities in the labor market is a positive-sum game. Increased female participation in the labor force can contribute to better talent allocation, improve skill retention, and strengthen organizations. These advances also generate benefits for men. Just like in the World Cup, when the rules are clear and applied fairly, the best teams have a chance to shine.