Case Study

Evaluating Economic Policy Effectiveness

The table below shows the percentage difference in paid work hours ('hours gap') and hourly wages ('wage gap') between men and women for five countries.

CountryHours Gap (%)Wage Gap (%)
Australia4316
Netherlands4014
Sweden3012
United States2818
South Korea3634

An economic advisor in a country not listed above is tasked with reducing the gender disparity in total annual earnings. The advisor implements a successful policy that completely eliminates the difference in hourly wages between men and women. However, they are surprised to find that a significant disparity in total annual earnings persists. Using the patterns evident in the provided data, explain the most probable reason for this outcome.

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Updated 2025-10-05

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