Why do women earn less?

Gender pay inequalities persist despite legislative progress: the gap still reaches 22.2% in France across all working hours combined. This complex reality results from structural factors, unconscious biases, and systemic obstacles that impact careers and organizations. Beyond social justice issues, these disparities represent growing legal risks for companies and a considerable economic loss. Discover the mechanisms that perpetuate these inequalities and concrete solutions for building a fair and high-performing compensation policy.

Key takeaways

• In France, the pay gap between men and women remains significant, standing at 22.2% across all working hours combined, and increases sharply with age and parenthood.
• This gap is primarily explained by structural factors (overrepresentation of women in part-time work and lower-paying sectors) and by unconscious biases that create a "glass ceiling."
• To reduce these inequalities, companies must go beyond legal obligations by adopting transparent pay scales and objective assessment tools based on skills to counter discrimination.

The state of women's pay in France and worldwide

The situation of women's pay in France is set against a global backdrop of persistent inequalities, despite notable improvement in recent decades. National and international statistics reveal significant disparities that require in-depth analysis to understand the current challenges of pay equity. This reality directly impacts human resources strategies and compensation policies of French companies, which must adapt their practices to attract and retain female talent in an increasingly competitive labor market.

Key figures on pay gaps between men and women

Analysis of women's pay in France reveals significant disparities that deserve particular attention. INSEE data shows that the pay gap reaches 22.2% across all working hours, decreasing to 14.2% for equal hours and 3.8% for comparable positions. This progression reflects significant improvement since 1995, when the gap was one-third larger. The average annual salary concretely illustrates these disparities: women earn an average of 21,340 euros annually compared to 27,430 euros for men. This difference of over 6,000 euros per year represents a major issue for women's financial independence and quality of life. The average monthly salary also reflects these structural gaps that impact the entire professional career.

The time trend shows an acceleration in gap reduction since 2019, with a decrease of approximately 1% per year. This positive trend is explained by several factors: strengthened legal framework, increased company awareness, and evolving mindsets. However, the current pace would still require several decades to achieve full parity across all sectors.The share of women in the highest income brackets remains particularly low. They represent only 24% of the top 1% earners, illustrating the persistence of the glass ceiling in leadership positions. This underrepresentation at senior levels significantly contributes to overall pay gaps and questions the effectiveness of internal promotion policies.The impact of age on pay gaps reveals a worrying progression: from 4.3% among 25-29 year-olds, the gap climbs to 24.9% among 50-54 year-olds. This trend suggests that inequalities worsen as careers advance, particularly due to maternity-related career interruptions and differences in professional advancement. The median salary of senior women particularly illustrates this structural issue.

The sectors most affected by pay inequality

Pay inequalities vary considerably across sectors, revealing dynamics specific to each professional field. Mixed services, particularly finance and real estate, show the largest gaps at 23.3% difference. These sectors, traditionally male-dominated in leadership positions, maintain hierarchical structures that favor men in accessing the highest-paying responsibilities.The construction sector presents a unique case with reversed gaps due to a selection effect. Women present in this field often hold qualified administrative or technical positions, creating a favorable statistical bias. However, this masks the overall low female representation in the sector and the difficulties in accessing traditionally male occupations.Retail shows a pay gap of 12.8% primarily linked to differences in working hours. Women overwhelmingly hold part-time positions, often out of necessity rather than choice. This gendered distribution of working hours directly impacts annual earnings and advancement prospects toward management positions.The public sector shows less pronounced gaps thanks to more transparent pay scales and formalized recruitment processes. However, even in this sector, disparities persist at senior levels, where women remain underrepresented despite their strong presence in overall headcounts. The private sector shows larger gaps due to the variability of pay practices.Company size also influences the gaps: from 7.2% in small businesses to 17.3% in large companies. This correlation is explained by the complexity of hierarchical structures and the multiplication of responsibility levels in large organizations. Large companies, despite more developed diversity policies, struggle to reduce gaps at strategic levels where the highest gross salaries are concentrated.Sectoral analysis reveals that "feminized" occupations such as education, healthcare, or social work have generally lower pay levels. This devaluation of sectors with high female presence contributes to overall gaps and questions the mechanisms for valuing skills and professional contributions in a changing economy.

The root causes of gender pay disparities

Disparities in women's pay result from a complex set of structural and cultural factors that intertwine to create persistent inequalities. These mechanisms, often invisible, operate at different levels and require in-depth analysis to identify effective levers for action. Understanding these causes enables companies to develop targeted strategies to reduce gaps and improve the attractiveness of their employer brand.

Structural factors impacting women's pay

Structural factors form the foundation of observed pay gaps in the labor market. These elements, embedded in social and economic organization, create unfavorable conditions for pay equity and require systemic interventions to be corrected.

• Women's 9.3% lower annual work volume represents the primary gap factor
• Part-time work affects 78% of women, of whom 42.9% cite family reasons
• Professional segregation limits women to only 4 occupations in common out of 20 with men
• Underrepresentation in leadership positions maintains a persistent glass ceiling
• The impact of age widens gaps from 4.3% to 24.9% depending on age bracket
• Parenthood deepens gaps from 5.8% to 28.2% depending on the number of children

Part-time work represents a major issue: contrary to popular belief, it often results from constraints rather than free choice. Women frequently find themselves compelled to reduce their working hours to balance professional and family life, due to a lack of suitable childcare solutions or flexible work arrangements. This situation directly impacts the average net income of women.Horizontal and vertical professional segregation keeps women in sectors and positions that are less financially valued. This gendered distribution of occupations perpetuates stereotypes and limits career advancement opportunities. Technical and scientific sectors, which are better paid, remain predominantly male, creating a vicious cycle that perpetuates itself from generation to generation.Parenthood is a major discriminating factor. The pay gap widens with the number of children, revealing the impact of career interruptions and professional adjustments related to maternity. This "motherhood penalty" contrasts with the "fatherhood bonus" often observed among men, illustrating the persistence of gender stereotypes in professional evaluation.

The influence of stereotypes and unconscious biases on pay

Stereotypes and unconscious biases constitute invisible yet powerful obstacles to pay equity. These psychological and social mechanisms influence recruitment, evaluation, and promotion decisions, creating subtle but persistent pay discrimination that requires a proactive approach to be identified and corrected.Gendered career orientation begins in childhood and continues throughout the educational and professional journey. Girls are unconsciously steered toward literary and social tracks, while boys are encouraged toward science and technology. This early segregation limits career choices and directly influences future salary prospects, creating inequalities that crystallize over equal working hours.The glass ceiling largely results from unconscious biases in promotion processes. Leadership qualities are often associated with traits considered masculine, disadvantaging women in accessing leadership positions. This biased perception directly impacts career advancement opportunities and associated pay levels, particularly visible in the gap between men's salaries and women's in leadership positions.Men in positions of power tend to reproduce patterns of male co-optation, perpetuating exclusivity in governing bodies. This social homophily keeps women away from networks of influence and promotion opportunities, limiting their access to the highest-paying positions and strategic salary negotiation processes.The devaluation of "feminized" sectors reflects deep societal biases. Care, education, and social work occupations, predominantly held by women, are systematically less financially valued than technical or commercial sectors. This gendered hierarchy of skills contributes to overall pay gaps and questions the mechanisms for recognizing professional contributions.The "unexplained" pay gap of 3.8% for comparable positions reveals the persistence of direct discrimination. This difference, not justified by objective factors, reflects the impact of unconscious biases in pay decisions and highlights the need for more objective evaluation tools to ensure equity in compensation processes.

The consequences of pay inequality on businesses and society

The consequences of pay inequality extend far beyond the individual level to impact society and organizations as a whole. These multiple repercussions create vicious cycles that perpetuate disparities and weaken social and economic cohesion. Analyzing these impacts enables companies to measure the hidden costs of inequality and identify the benefits of a more equitable pay policy.

Economic and social impact of pay gaps

The social impact of pay inequality is particularly evident during relationship breakdowns. Statistics reveal that 20% of women fall into poverty after a separation, compared to only 8% of men. This economic vulnerability is a direct result of income gaps accumulated during the relationship and illustrates the fragility of women's financial situations.The situation of single-parent families dramatically illustrates these inequalities: 40% of them live below the poverty line, and 82% are headed by women. This precariousness directly affects children and compromises their chances of upward social mobility, perpetuating inequalities across generations. Full-time work then becomes a crucial issue for these families who must juggle professional and family responsibilities.Financial dependence constitutes a vulnerability factor in the face of domestic violence. Women with insufficient income struggle to leave dangerous situations, lacking the financial means to ensure their independence. This dimension reveals how pay gaps impact people's safety and dignity, creating dependency situations that can become dire.Women's financial emancipation remains limited by these pay disparities. Access to property ownership, entrepreneurship, or investment is restricted by lower incomes, limiting opportunities for wealth building and economic independence. This situation also impacts life choices and personal projects, creating inequalities that are passed on to future generations.At the macroeconomic level, pay inequalities represent a considerable loss for the national economy. The underutilization and undervaluation of women's skills deprive the country of significant growth potential. Economic studies estimate that reducing gaps could increase GDP by several points, demonstrating the economic impact of inequality.The impact on household consumption and savings is also notable. Women, with lower incomes, adapt their purchasing and investment behaviors, influencing market dynamics. This reduction in women's purchasing power affects certain economic sectors and limits domestic demand, creating cascading effects across the entire economy.

Legal and reputational risks for employers

Employers face growing legal risks related to pay inequality. The EgaPro index, although imperfect, exposes companies to financial penalties and compliance obligations. Penalties, still limited with only 42 sanctions in five years, tend to increase with evolving regulations and heightened awareness among oversight authorities.European Directive 2023/970 on pay transparency will considerably tighten obligations for companies. This new regulation, which must be transposed into French law by 2025, imposes a maximum threshold of 5% gap and strengthens employees' rights to pay information. Companies will need to adapt their information systems and salary management processes.The concept of "work of equal value" broadens the notion of pay equity beyond strictly identical positions. This legal evolution allows comparison of different but equivalently valued positions, opening new avenues of recourse for disadvantaged employees and increasing risks for employers. Implementing this concept requires sophisticated evaluation tools.Intersectional discrimination, recognizing cumulative discrimination based on gender, origin, or age, further complicates companies' obligations. This comprehensive approach requires more sophisticated HR policies and more refined analysis tools to prevent legal risks and ensure equity across all talent management processes.Companies exposed to pay inequality also face significant reputational risks. In the age of social media and transparency, pay disparities can quickly become major reputation crises. This media exposure impacts employer attractiveness and can affect business relationships, particularly with clients sensitive to societal issues.The evolving expectations of consumers and investors toward greater corporate social responsibility (CSR) make pay equity a strategic issue. Companies neglecting this aspect risk losing market share and funding, particularly from stakeholders sensitive to ESG criteria who increasingly integrate these considerations into their investment decisions.

Solutions and tools for reducing pay gaps

Reducing pay gaps requires a multidimensional approach combining compliance with the legal framework, innovative tools, and cultural transformation. Companies today have concrete levers to progress toward pay equity and develop lasting competitive advantages.

The legal framework and company obligations

The EgaPro index, despite its limitations, constitutes the current foundation of legal obligations regarding pay equity. However, this tool only covers 26% of salaried employment and has resulted in only 42 penalties in five years, revealing its insufficiency given the challenges. Its methodology, centered on strict comparisons, struggles to capture the complexity of pay inequalities and requires supplements for a more comprehensive approach.European Directive 2023/970 will transform the French regulatory landscape. This new, more demanding regulation requires companies to provide enhanced transparency on pay and establishes a maximum threshold of 5% pay gap. Companies will need to publish detailed information on their compensation policies and justify gaps exceeding the authorized threshold.The concept of "work of equal value" considerably broadens the scope of professional equality. This evolution allows comparison of different but equivalently valued positions, requiring more sophisticated evaluation grids and more in-depth salary analyses. Companies must develop objective tools for evaluating skills and contributions.Strengthened rights for victims of pay discrimination include more protective compensation mechanisms and simplified procedures. Employees now benefit from easier access to pay information and enhanced protections against retaliation. This evolution encourages companies to adopt preventive rather than corrective practices.The expected transposition by 2025 requires immediate preparation by companies. Organizations must anticipate these developments by implementing pay monitoring systems, transparent negotiation processes, and identified gap correction mechanisms. This preparation represents a strategic investment to avoid future penalties.

How AssessFirst contributes to pay equity through soft skills

AssessFirst is revolutionizing the approach to pay equity by offering an objective soft skills assessment that transcends traditional biases. Our behavioral competency assessment platform enables companies to base their pay decisions on objective and predictive criteria, significantly reducing the impact of gender stereotypes in talent management processes.AssessFirst's soft skills assessment relies on ethical algorithms that eliminate the unconscious biases present in traditional evaluation processes. This scientific approach identifies the real potential of employees regardless of their gender and bases revaluation decisions on objective data rather than subjective perceptions influenced by stereotypes.Our ethical artificial intelligence technology analyzes behavioral competencies according to standardized and scientifically validated criteria. This method allows companies to develop pay scales based on employees' predictive potential, fostering a meritocratic approach to compensation that naturally benefits professional equality and organizational performance.The integration of AssessFirst solutions into existing HR systems facilitates pay gap monitoring and bias identification in promotion processes. Our tools enable companies to measure the impact of their diversity policies and adjust their practices in real time to optimize pay equity and improve their attractiveness in the talent market.The personalized development programs offered by AssessFirst help women identify and develop their leadership skills, facilitating their access to better-paying leadership positions. This targeted development approach helps break the glass ceiling by preparing female talent for strategic responsibilities and reducing women's pay gaps at senior levels.Our platform also facilitates the implementation of HR decision optimization processes for diversity by providing managers with objective evaluation tools. This systemic approach enables companies to build diverse and high-performing teams while ensuring equity in pay and promotion decisions.AssessFirst's commitment to pay equity is part of a comprehensive vision of organizational performance where diversity and inclusion are strategic growth levers. Our solutions enable companies to transform their HR practices while complying with regulatory changes and meeting growing societal expectations for professional equity and corporate social responsibility.

Summary in questions

What is the average pay gap between men and women in France?

The pay gap between men and women reaches 22.2% across all working hours combined in France. This gap decreases to 14.2% for equal hours and 3.8% for comparable positions. In concrete terms, women earn an average of 21,340 euros annually compared to 27,430 euros for men, a difference of over 6,000 euros per year.

What are the main causes of gender pay inequality?

Pay inequalities primarily result from women's 9.3% lower annual work volume, part-time work (78% of women concerned), professional segregation limiting women to certain sectors, and the impact of parenthood which deepens gaps. Stereotypes and unconscious biases in promotion processes also contribute to maintaining a glass ceiling.

How can companies reduce pay gaps?

Companies can reduce gaps by implementing transparent pay scales, using objective assessment tools such as soft skills analysis, developing flexible work policies, and raising manager awareness of unconscious biases. European Directive 2023/970 will soon strengthen these obligations with a maximum authorized gap threshold of 5%.Sources:

• INSEE, "Women and men – Equality in question," 2024 edition.
• Ministry of Labor, "Professional and pay equality between women and men," 2024.