Gaps in female labor participation and pay equity: the impact of cultural variables

Purpose – This study aims to address gender gaps in labor participation and earned income. The paper assesses the role of education and cultural dimensions in impacting female labor indicators. The paper tests two separate models predicting female labor participation as a percentage of male participation (FPM) and female earned income as a percentage of male earned income (FIM) across 59 nations. Design/methodology/approach – Data were taken from those published by World Bank and International Labor Organization, in addition to the GLOBE study. The paper relies on relationships among such data to assess the hypotheses under investigation. Findings – FPM was explained by institutional collectivism, gender egalitarianism, and education. FIM was explained by gender egalitarianism and institutional collectivism. Contrary to expectations, in-group collectivism was not found to be a predictor in this model. Based on earlier research and this study, the paper presents the “female labor indicators model”. Research limitations/implications – More data need to be collected about gender-related attitudes and behaviors from a larger number of countries. There is also a need to collect culture data at the individual level not only at the country level. The model that the paper presents – explaining gaps in female participation and pay – deserves additional research support. Practical implications – There is a need for practitioners to be conscious of hidden forces that work against women who aspire to work despite their high educational levels. Improving women's labor conditions requires a concerted effort from many parties including government and private sector. Originality/value – The link between GLOBE's cultural dimensions and female labor indicators has not been sufficiently addressed in prior research. The paper suggests that explaining deficits in female labor indicators requires looking past economic and demographic variables into institutional and cultural factors. The paper presents a comprehensive model that helps in explaining gender gaps in participation and pay.