In this article, we take a look at the 25 most gender and income-equal countries in the world. If you want to skip our detailed analysis of the impact of gender and income equality on the national economy, you can directly look at the 5 Most Gender and Income-Equal Countries in the World.
According to various studies, the participation of women in the job market can significantly improve the economy. A study by CFR showed that closing the gender gap could lead to an additional $28 trillion in the global GDP. However, this can only happen if policymakers and those in authority are aware of what steps to take. Multiple international indices are utilized to compare the living standards between various countries, each focusing on an equally important parameter. Gender and income equality are both essential metrics to determine when it comes to countries because they each give us a different set of information regarding the living standards in that particular state.
Gender equality is usually measured through the Gender Inequality Index or the Gender Development Index, both of which are calculated by the United Nations Development Programme or UNDP. The GII focuses on any disparities between the genders in terms of the labor market, health, or empowerment. Each dimension is further measured by sub-factors that determine these differences. This index aims to determine how hurdles related to gender impact human achievements across various countries. Based on GII values, countries can further develop policy recommendations that may aid in alleviating gender disparities or at least accounting for them.
The GDI also works in a similar format, informing policymakers of the social areas that need more work to create equality across genders. While there is no one standard for measuring income equality across households, various international methodologies are deployed by different sources, one of which is the Gini Coefficient. The purpose behind each of these is to understand how income is spread across different economic classes and how this impacts other standards of living within a society.
Determining income equality is essential because it helps policymakers understand the wealth distribution in society, enabling them to determine points of contention across the economy. In order to curate a more egalitarian society for all population segments, both income, as well as gender equality are critical factors to be determined. Economic standing and gender are both elements that may disadvantage particular groups from advancing forward in life. Hence, policymakers need to be aware of where their country stands in both these regards.
In addition to the impacts of gender equality on the economy, income equality has also shown a direct relation with economic growth. An OECD research has shown that economic growth tends to fall when income inequality arises. This happens because many of the poorer members of society find themselves unable to invest in their education, as a result of which, many potentially productive members fail to enter the workforce.
Working to achieve income equality across various classes can significantly improve how our local and international economies are structured. Even as we rank some of the most income-equal countries in the world, it’s important to note that research has shown that income inequality has risen worldwide in the past few decades amongst advanced economies and the developing world. Research has also shown that a higher number of women in managerial roles can bring in better profits for a company.
As much as gender and income equality are essential for national economies, they also play a significant role in business decisions across big corporations. A meta-analysis by the Stern School of Business involving a 1000 studies on ESG showcased that ESG and corporate financial performance showcased a positive correlation for 58% of the studies, with corporate investments in sustainability also being advantageous in the long term. Companies are now much more adamant about complying with ESG standards as these make them look much better off in the eyes of socially and environmentally concerned investors.
One of these companies is Citigroup Inc (NYSE:C), which increased the gender diversity on its board from 50% to 58% in 2022. The corporation has six different board committees, each with at least one female member. This diversity is not limited just to the board members; Citigroup Inc (NYSE:C) has also achieved a broader goal of having 40% of their global leadership roles belong to female employees. Numbers like these were achieved because Citigroup Inc (NYSE:C) prioritized ESG compliance, with a specific committee that focused on improving ESG performance headed by a woman. The corporation is also ranked top in the banking industry for its treatment of workers as stakeholders.
Another multinational corporation that has performed well in terms of gender equality is the industry leader, Procter & Gamble Co (NYSE:PG). With 50% of its board members being women, this corporation also has an ESG-specific committee chaired by a female board member. Procter & Gamble Co (NYSE:PG) also ranks second in its industry for customer privacy. 71% of the employees at Procter & Gamble Co (NYSE:PG) have mentioned that the company is a great place to work, which is a significant number as compared to the national US average of 57%. The corporation has also recently launched multiple initiatives that focus on improving the mental well-being of its employees.
Recent trends in the labor market have also pushed corporations to treat blue-collar employees with better standards. Studies have shown that almost 80% of employees would perform better if they felt more appreciated in their workplaces, with this appreciation also including monetary benefits. Once gender and income equality is achieved at the level of private businesses, it can have a ripple effect on the rest of the economy at a national scale. For this reason, it is important to look into the most gender and income-equal countries in the world so one may take lessons from the policies they have implemented.
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Our Methodology
In order to generate the list of the most gender and income-equal countries in the world, we have taken three indices into consideration. The countries have been ranked based on the average of their performance in the Gender Inequality Index (GII), the Human Development Index (HDI), and the income equality list as determined by US News. Only the countries that have reached the top 25 rankings in at least two of these lists have been included in this article. For companies with equal averages across these lists, their GII values have been used as a tiebreaker since they contain elements of both employment and income equality. The ranking is in descending order, with 1 being assigned to the country with the most income and gender equality.
Based on this methodology, here are the 25 most gender and income-equal countries in the world:
25. Slovenia
Average Ranking: 21
The literacy rate for both men and women touches almost 100% in Slovenia, with the female literacy rate being slightly higher. The percentage of women subjected to intimate-partner violence is 3.4%, which is significantly low compared to many other nations worldwide. 91% of the legal frameworks promoting gender equality compared to SDG indicators are in place in the country. While there are data gaps in certain areas, the overall performance of Slovenia makes it one of the most gender-equal countries in 2023.
24. France
Average Ranking: 20.5
While income equality in France has increased a bit in the past few years, the country still showcases a significant position compared to others in the world. Currently, France ranks 19th in the list of the most income-equal countries in the world. The country also has a noteworthy record of gender-related legislation, with 67% of French individuals believing that investment in gender equality is worthwhile.
23. Japan
Average Ranking: 19.3
Income equality can be a complicated topic to sift through because there are a plethora of factors to look at. Despite that, the UN considers Japan to be one of the most income-equal countries in the world, with a high level of equal wealth distribution. While Japan still makes it to the list of the most gender-equal countries in the world, it has one of the lowest rankings amongst the G7 countries, with experts mentioning that the country still has significant gender-related issues to tackle.
22. Italy
Average Ranking: 18
Italy managed to achieve a much higher gender balance in domains of economic decision-making after a legislative quota of 33% women on company boards was introduced in 2011. Similarly, a legislative quota of 40% was introduced for the parliament in 2017. Despite such policies in theory, experts still consider Italy to be amongst the European countries that are least committed to gender equality policies.
21. South Korea
Average Ranking: 17.5
GII Ranking: 15th
South Korea has come a long way in terms of gender equality in the past few decades, achieving its place as one of the most gender-equal countries in Asia. The country has also earned a good position in the list of growing global economies, which is considered a success story due to its history of war and conflict. The size of the Korean economy has grown 800 times in the past six decades.
20. UAE
Average Ranking: 17.5
GII Ranking: 11th
Amongst Arab nations and the Gulf Cooperation Council, UAE is ranked the highest in terms of gender parity, especially across the labor force and higher education domain. The country performs significantly well on the World Economic Forum’s Global Gender Gap report as well.
19. United Kingdom
Average Ranking: 17
While the UK is not the best in the developed world regarding income equality, it has taken significant measures over the years that rank it as one of the most income-equal countries globally. Initiatives like raising the minimum wage, decreasing taxes, and increasing the minimum taxable income have somewhat improved inequality in the country.
18. Spain
Average Ranking: 16
GII Ranking: 14th
Spain has showcased 100% achievement in terms of putting in place legal frameworks that prevent violence against women, which makes it one of the most gender-equal countries in the world. The country has also showcased significant progress in terms of living conditions and benefits for all population segments by expanding many social welfare provisions.
17. Austria
Average Ranking: 16
GII Ranking: 12th
The Austrian labor market is known to have a high female employment rate, much of which was achieved after the National Action Plan (NAP) on Gender Equality in the Labor Market came out in 2010. The capital city of Vienna has especially deployed gender mainstreaming policies to create public spaces and infrastructure that are much more conducive to gender equality.
16. New Zealand
Average Ranking: 15
GII Ranking: 25th
According to US News, New Zealand ranks sixth in terms of the most income-equal countries in the world. The export industry, tourism, and manufacturing are the most significant contributors to the national economy in New Zealand. The country showcases a high per capita income and has some of the highest educational expenditures when seen as a percentage of the national GDP.
15. Portugal
Average Ranking: 15
GII Ranking: 15th
Portugal has showcased a rapid progress of women in the domain of formal education, with the number of female PhD holders surpassing the average of other EU countries. Compared with the past few decades, the country has also achieved an increasing proportion of women as part of the economically active population. A report by the European Commission praised Portugal for its ‘extraordinary success’ in incorporating women into the field of science.
14. Ireland
Average Ranking: 14.3
Ireland has managed to achieve net income equality close to the EU average due to policies of social transfers and low taxation. These initiatives show that the country is aware of where it falls short in income distribution and is actively fighting those disparities.
13. Canada
Average Ranking: 14
Canadian provinces perform very well in terms of intergenerational income mobility, with eight of them scoring A grades. A high income mobility is a good measure of equal opportunities. In Canada, the relationship between a family’s background and the adult income of its children is much lower when compared with many of the country’s peers. The intergenerational income elasticity in Canada is only 0.19, which is highly appreciable compared to countries like the US, where it goes up to 0.47.
12. Luxembourg
Average Ranking: 13
GII Ranking: 9th
Women in Luxembourg tend to have higher education levels than men, meaning the country’s highly specialized service sector favors women. On average, the gender pay gap in Luxembourg is pretty low, with women earning more than men in certain domains as well. Women have a significant presence in many high-earning branches of the economy, such as health, finance, legal, etc.
11. Singapore
Average Ranking: 13
GII Ranking: 7th
Singapore has achieved significant milestones in terms of gender equality, so much so that the focus is now shifting towards gender equity, which is the next step. More women are taking up roles in leadership positions, with a higher number of fathers acquiring paternity leave as well. All in all, currently, 6 in every 10 Singaporean women are part of the economic workforce, which makes Singapore one of the most gender and income-equal countries in the world.
10. Germany
Average Ranking: 12.3
Even when we take a look at the gender ranking by WEF, Germany has improved its place in terms of gender equality over the years. Most of Germany’s gender empowerment comes through political measures, with the number of women in politically influential roles increasing significantly.
9. Belgium
Average Ranking: 11.6
One of the biggest ways that Belgium has implemented better gender equality is through the strict administration of legal quotas that favor women, especially in political roles. These steps have enabled female participation in political forums to rise significantly. The government has also extended these quotas to listed companies in the private domain.
8. Australia
Average Ranking: 10.6
The Australian government committed a whopping $65 million for gender equality initiatives for the year 2022-2023. The country has 100% of legal frameworks in place that promote gender equality in the domains of violence against women and economic benefits. This is why Australia is 8th on the list of the most gender and income-equal countries in the world.
7. Finland
Average Ranking: 6.6
GII Ranking: 6th
Finland is considered one of the top examples in the world regarding income and gender equality. Men and women have almost equal representation in the Finnish workforce, a statistic that can be seen due to policies like affordable and good-quality child care. Female decision-makers are also seen abundantly in positions of power in politics and business.
6. The Netherlands
Average Ranking: 6.6
GII Ranking: 5th
The Netherlands has one of the world’s most considerable funds to fight inequality across the genders, with a value of more than $500 million from 2021-2025. This is another country that deploys the policy of gender mainstreaming to improve gender parity. The Netherlands also recently announced a feminist foreign policy that strengthens its position as one of the most gender-equal countries in the world.
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Disclosure: None. 25 Most Gender and Income-Equal Countries in the World is originally published on Insider Monkey.