The Gender-Poverty Gap: What We Can Learn from Other Countries

Abstract

In this study gender differences in poverty rates among the population 18-57 years are examined in 8 industrialized countries: Australia (1985-86) Canada (1987) Germany (1984) the Netherlands (1987) Sweden (1987) the UK (1986) and the US (1985). The aim was to assess the extent to which the gender poverty gap was due to differences in family characteristics and human capital. Data were obtained from the Luxembourg Income Study (LIS) on age educational attainment marital status and employment. Poverty was determined as disposable household income that is less than 50% of the median disposable income for all households in that country. It was expected that within-country demographic differences would account for the same cross-country differences. The logistic regression results revealed that the US had the highest poverty rates for females (18% for women and 13% for men) and Sweden Germany and the Netherlands had the lowest rates. In all countries except Sweden women had lower poverty rates. The US again had the highest gender poverty ratio; women were 41% more likely to live in poverty than men. Australia followed with the next highest ratio and was followed by Germany and Canada and then Great Britain Italy the Netherlands and Sweden. Italy and the Netherlands had equal poverty rates for men and women. Gender differences in age education and marital status were not found to be responsible for the gender differences except for education in the US and Canada which reduced the poverty gap by 18% and 10% respectively. Differences in parenthood and single parenthood reduced the gender poverty gap in all countries. Gender differences in employment status were strongly related to differences in poverty rates. In the US and Great Britain the gap would have been reduced by 70%. Using Sweden as the standard substituting age marital status or parental status would not reduce the gap but employment did significantly reduce or eliminate the gap. The same substitutions were performed for Italy and the Netherlands; the exercise showed that countries differ in the relative importance of human capital vs. family marriage and for the Netherlands it was unclear. There appear to be multiple ways of achieving gender equality in poverty rates.