Education and experience fail to close gender wage gaps

According to the research, wage disparities are not fully explained by human capital variables such as education or experience. Instead, the analysis points to the pervasive influence of systemic discrimination, labor market segmentation, and socio-cultural norms that restrict women’s access to high-quality employment opportunities.

The long-standing issue of gender-based pay inequality continues to dominate labor market debates worldwide. A new cross-country study published in SAGE Open explores the structural and systemic roots of this issue in two economies with distinct social and economic frameworks.

The paper, "Gender and Wage Gap: Cross-Country Analysis," uses an advanced stochastic frontier approach (SFA) to examine labor market data from Germany and Turkey over a decade, from 2011 to 2021. The research uncovers how deep-seated factors, from education and contract types to cultural norms and policy environments, shape persistent wage disparities between men and women.

How gender and labor market structures shape wage gaps

The study provides a comparative analysis of the gender wage gap in Germany and Turkey, revealing significant disparities in both countries but with differing degrees of severity and drivers.

In Germany, women earn around 14% less than men, even when accounting for similar levels of education, work experience, and industry. While the country's advanced social policies, transparent pay systems, and stronger labor protections have moderated wage gaps over the past decade, systemic imbalances remain.

In Turkey, the findings are more severe. Women earn approximately 22% less than men, reflecting deeper structural challenges. Informal work is more prevalent, labor laws are less effectively enforced, and cultural expectations often constrain women's participation in higher-paying sectors or managerial roles. This environment exacerbates wage inequalities and limits opportunities for female workers to achieve upward mobility, regardless of their qualifications or experience.

According to the research, wage disparities are not fully explained by human capital variables such as education or experience. Instead, the analysis points to the pervasive influence of systemic discrimination, labor market segmentation, and socio-cultural norms that restrict women's access to high-quality employment opportunities.

Key drivers behind persistent inequality

The paper identifies several factors influencing wage gaps across the two countries. Education is a positive driver of earnings in both markets, but the benefits of higher education are not equally distributed. Even among highly educated women, wage disparities persist, indicating that systemic barriers, rather than individual qualifications, play a defining role.

Public sector employment offers more stability and equitable pay in both countries, but its impact is particularly pronounced in Turkey, where public jobs adhere to more regulated pay structures compared to the private sector. This contrast underscores the importance of institutional protections in reducing pay disparities.

Contract types also shape wage outcomes. Workers with permanent contracts earn significantly more than those in temporary or flexible roles, and this divide is especially stark in Turkey. For women, temporary or part-time employment often compounds wage disadvantages, limiting long-term earning potential and career progression.

The study also underscores the impact of experience and age. In Germany, seniority and long-term employment translate into greater wage progression, reflecting the structured nature of its labor market. In Turkey, however, the return on experience is less significant, with systemic inefficiencies and limited mobility dampening potential wage growth for women over time.

Policy, culture, and the path to equity

The findings highlight how policy environments and cultural frameworks interact to shape wage dynamics in each country.

In Germany, progressive measures such as wage transparency laws, parental leave policies, flexible work arrangements, and strong union representation have created a more inclusive labor environment. These initiatives have increased female labor force participation and narrowed the wage gap, though the persistence of a double-digit disparity indicates that deeper cultural and structural reforms are still needed.

In contrast, Turkey faces steeper challenges. Limited enforcement of labor regulations, insufficient childcare infrastructure, and entrenched cultural norms restrict women's full participation in the labor market. Informal employment remains widespread, and women in these roles often lack the legal protections and benefits necessary to close wage gaps.

The authors argue that achieving greater gender equity requires multi-layered reforms. Strengthening wage transparency mechanisms can hold employers accountable for disparities, while expanding access to affordable childcare and promoting flexible work models can enable more women to remain in or re-enter the workforce. Additionally, targeted education and upskilling programs could help women access high-demand, higher-paying sectors where they are currently underrepresented.

Cultural change is equally important, especially in Turkey. Initiatives aimed at challenging stereotypes and promoting equitable workplace norms are critical for breaking the cycle of systemic disadvantage. Public awareness campaigns and stronger advocacy from labor unions could accelerate shifts in workplace culture and practices, creating a more level playing field for women.

Building inclusive and fair labor markets

The study offers a clear call for action: policy, economic, and cultural interventions must work in tandem to eliminate wage gaps and foster inclusive labor markets. In Germany, enhancing pay transparency and addressing occupational segregation could help bridge the remaining gap, while in Turkey, the priority lies in strengthening enforcement mechanisms, reducing informal employment, and expanding access to formal financial and labor market systems.

By drawing attention to the structural nature of gender wage gaps, the research underscores the limitations of approaches that focus solely on individual qualifications or market dynamics. The persistence of significant disparities, even when controlling for education and experience, signals that systemic reforms are essential.

For policymakers, businesses, and advocacy groups, the evidence presented in this cross-country analysis serves as a foundation for designing effective, context-specific strategies. Greater collaboration between governments, private sector employers, and civil society will be key to ensuring that wage equality is not just an aspirational goal but a measurable outcome in the years ahead