Understanding Gender Pay Inequalities: A Comparative Analysis of Women and Male Salaries

Abstract

Gender equality is enshrined in the Italian Constitution, particularly in Article 3, which emphasizes both formal and substantive equality between genders. However, recent data from the Istituto Nazionale per la Previdenza Sociale (INPS, 2024) reveal that gender equality in Italy’s labor market remains elusive, especially regarding employment and pay. The employment rate for women is just 57%, significantly lower than the European average by thirteen percentage points. Moreover, while the gender pay gap appears modest, equal to 4.3%, this statistic can misleadingly suggest minimal wage disparity (INAPP, 2022). A more comprehensive measure—the gender overall earnings gap, which accounts for multiple factors—places the pay gap at a striking 43% (INAPP, 2022). In response to these persistent inequalities, Italy introduced Legislative Decree 198/2006, mandating gender reporting for companies with over 50 employees (Rapporti biennali sulla situazione del personale maschile e femminile). Our research uses these reports and adopts a cross-sectional approach to analyze the gender pay gap in Brescia (a province in Lombardy, Italy), through three different levels of analysis: the company's size, the sector to which the company belongs, and the type of contract implemented in the company, we offer an in-depth analysis of the firm factors influencing the existence of discriminatory practices. The results provide an up-to-date snapshot of gender inequality in one of Italy’s most economically advanced provinces and offer insights into potential compensatory measures and policies to address these imbalances.