The Gender Pay Gap: How Canada can Lead at the G7

By Emanuela Heyninck and Sarah Kaplan

In June, Canada will lead the G7 meeting in Charlevoix, Que., and use its presidency of the Group of Seven to draw attention to gender inequality. One important indicator of the state of gender equality is the gender wage gap, which persists in all countries despite increased attention from governments and the private sector. The gap is different for different subsets of women and occurs in every sector.

Many of Canada's like-minded global partners and competitors have prioritized closing the gender wage gap as a way to achieve gender economic equality. These measures include laws that prohibit employers from asking about previous salaries, employer reporting on a number of equality metrics and requiring some form of pay transparency. Iceland's recent legislation to fine companies that did not achieve wage equality is the most recent to garner global attention. As yet, no country or jurisdiction has implemented a program that captures the full range of practices that would assure gender equality in the workplace, but Canada could be poised to set this agenda.

The gender wage gap has important impacts on the economy. In Ontario, a recent Deloitte report estimates that closing the gender wage gap could represent a 2.5-per-cent increase in Ontario's GDP – the equivalent of the combined contribution of the automotive and auto-parts sectors. When women's economic contributions are undervalued, there is a loss of productivity, as women are more likely to exit the work force and society loses the benefit of their diverse perspectives as employees and decision-makers. A wage gap also increases the likelihood that women will be living in poverty, both during their work years and in retirement.

Read the full op-ed in the Globe and Mail: The Gender Pay Gap: How Canada can Lead at the G7