World Bank report highlights gender pay gap issues facing Armenian women

Banking & Financial Services
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Ajay Banga, 14th president of the World Bank | World Bank website

Less than half of working-age women in Armenia are part of the labor force, primarily due to caregiving responsibilities for children and disabled family members. Those who do work earn, on average, 25 to 30 percent less than their male counterparts performing the same tasks. This is according to a new report released by the World Bank.

The "Armenia Country Gender Assessment" indicates that despite 68% of Armenian women pursuing tertiary education compared to 52% of men, women's participation in the labor market remains low. The report suggests actionable policy recommendations for systemic change.

“Armenia is foregoing important growth dividends by not encouraging more women to join the labor force,” said Carolin Geginat, World Bank Country Manager for Armenia. “Achieving gender parity in labor force participation alone could increase Armenia’s level of GDP by 4 to 6%. Ensuring equal wages should be an essential part of a strategy that encourages women to enter the workforce. Today, women are paid only around 70% of the hourly wage paid to a man in the same occupation.”

Men's enrollment in higher education has stagnated at about 44%, while women's enrollment is at 65%. Men also face higher mortality rates. Despite potential economic benefits from women's participation in decision-making roles, they remain underrepresented in positions such as ministers and community heads. Women make up 35.5% of the National Assembly but only account for 17% among ministers and 18% among deputy ministers.

Social beliefs about gender roles appear to influence labor market trends more than actual skills, despite women's higher educational achievements. Although there has been growth in women's share within STEM fields over time, they remain concentrated in traditionally lower-paid sectors like education and social work.

Gender-based violence continues as a serious issue with underreporting; for instance, 18% of ever-partnered women aged 15-59 have experienced domestic violence.

“The Armenia Country Gender Assessment offers the latest evidence on gender gap,” said Natsuko KisoNozaki, World Bank Economist and lead author of the report. “It also puts forward policy recommendations that can help close remaining gender gaps in Armenia such as addressing social norms, bridging gaps in the legal framework and policy implementation.”

Increasing female workforce participation would involve promoting equitable caregiving responsibilities and encouraging men's involvement through measures like raising awareness about employment benefits for women, providing adequate parental leave, offering incentives for fathers' childcare engagement, improving childcare service access and use, and offering vocational training where women are underrepresented.

Achieving gender parity requires encouraging men towards higher education for better opportunities and motivating women towards STEM fields at school while making training accessible and relevant for smooth transitions from school to work.

Promoting female leadership involves implementing gender-sensitive education policies, investing in developing female talent through training programs, and using role models to inspire community support.

The World Bank Group remains committed to accelerating gender equality through its projects under its newly launched Gender Strategy for 2024 -2030.