Part-time work slows the narrowing of France’s lifetime gender earnings gap – CEPR

Report on Gender Pay Inequality in France: Emphasis on Sustainable Development Goals (SDGs)

Introduction

The EU Pay-Transparency Directive (2023/970) has underscored the ongoing issue of gender pay inequality in France, despite legal protections dating back to 1972 and reinforced by the 1983 “Roudy Act.” Official data reveal an hourly wage gap of approximately 12%. The Directive mandates firms to disclose detailed pay statistics and urges member states to monitor pay convergence throughout careers. This aligns with Sustainable Development Goal 5 (Gender Equality), which aims to achieve equal pay for work of equal value.

Research Overview

A recent study by Garbinti et al. (2025) analyzes lifetime earnings (LTE) of French workers from 1967 to 2019, comparing cohorts born between 1942 and 1964. The study compares France with the United States and decomposes LTE gaps into factors such as hours worked, education, occupation, and unexplained residuals, providing insights relevant to SDG 8 (Decent Work and Economic Growth).

Progress and Challenges in Gender Pay Convergence

Lifetime Earnings Gap Trends

1. In France, the female-to-male LTE ratio increased moderately from 63% to 70% across cohorts entering the labor market between 1967 and 1989.
2. In the US, the ratio rose more rapidly from 40% to 58% but remains below the French level for comparable cohorts.

Despite some progress, gender pay convergence has stalled in France, primarily due to disparities in working time, with women increasingly concentrated in part-time employment.

Key Findings

• Working time differences are the main barrier to convergence.
• Women’s increased labor force participation has largely been through part-time jobs, limiting earnings growth.

Decomposition of the Gender Lifetime Earnings Gap

Factors Influencing the Gap

1. Unexplained component (20–30% in recent cohorts) reflects social and institutional factors, including anti-discrimination laws and changing occupational access.
2. Working time differences account for an increasing share of the explained gap, rising from 28% to 77% across cohorts.
3. Education and occupation differences contribute less than 12%.

This analysis highlights the importance of addressing working time disparities to meet SDG 5 targets.

Distributional Patterns of Gender Earnings Gaps

U-shaped vs. J-shaped Gaps

• In France, the gender LTE gap exhibits a U-shape: smallest around the 70th percentile and largest at both tails.
• At the bottom, minimum wage policies help narrow disparities, while working time remains a key driver.
• At the top, a persistent unexplained gap suggests the presence of a glass ceiling.
• In the US, the gap is J-shaped, smallest at the bottom of the distribution.

Country-Specific Factors Affecting Gender Earnings Differences

Institutional and Cultural Influences

• France’s centralized wage-setting and strong minimum wage have maintained higher wage floors, benefiting women at the lower end of the earnings distribution (SDG 10: Reduced Inequalities).
• The US has experienced a decline in real minimum wage, contributing to wider but faster-narrowing gender gaps.
• Cultural norms, legal frameworks, motherhood penalties, and gendered returns to education also shape national patterns.
• Labor force participation increased in both countries, but in France, growth was mainly through part-time work, limiting earnings convergence.

Policy Recommendations to Reduce Gender Lifetime Earnings Gap

Key Policy Levers

1. Transparency and Reporting: Strengthen enforcement of the EU Pay-Transparency Directive by mandating annual, simple, and transparent pay gap disclosures from smaller firms to enhance accountability and promote SDG 16 (Peace, Justice and Strong Institutions).
2. Working Time and Childcare: Expand access to affordable, high-quality childcare to enable women to transition from part-time to full-time employment without adverse effects on children, supporting SDG 5 and SDG 4 (Quality Education).
3. Taxation Reform: Move towards individual taxation systems to remove disincentives for second earners, encouraging full labor market participation.

Broader Strategy

These targeted reforms should be integrated into a comprehensive strategy to eliminate gender inequalities across workplaces, society, and households, advancing multiple SDGs including SDG 5 (Gender Equality), SDG 8 (Decent Work), and SDG 10 (Reduced Inequalities).

Conclusion

Addressing the gender lifetime earnings gap in France requires focused policy action on working time disparities, transparency, and institutional reforms. Progress in these areas will contribute significantly to achieving the Sustainable Development Goals related to gender equality and inclusive economic growth.

References

• Bailey, M. J., Helgerman, T., & Stuart, B. A. (2024). How the 1963 Equal Pay Act and 1964 Civil Rights Act Shaped the Gender Gap in Pay. Quarterly Journal of Economics.
• Bennedsen, M., Simintzi, E., Tsoutsoura, M., & Wolfenzon, D. (2020). Pay transparency and its effect on the gender pay gap. VoxEU.org.
• Bierbrauer, F. J., Boyer, P. C., Peichl, A., & Weishaar, D. (2023). The road to individual taxation. VoxEU.org.
• Breda, T., Dutronc-Postel, P., Sultan, J., & Tô, M. (2020). Gender inequality within firms: What does the professional equality index measure? IPP Policy Brief No. 52.
• Doepke, M., Foerster, H., Hannusch, A., & Tertilt, M. (2025). Protection for whom? The political economy of protective labor laws for women. NBER Working Paper.
• Garbinti, B., Garcia-Peñalosa, C., Pecheu, V., & Savignac, F. (2025). Explaining the dynamics of the gender gap in lifetime earnings. CEPR Discussion Paper 20177.
• Givord, P., & Marbot, C. (2015). Does the cost of child care affect female labor market participation? An evaluation of a French reform of childcare subsidies. Labour Economics.
• Goldin, C., Kerr, S. P., Olivetti, C., & Barth, E. (2017). The expanding gender earnings gap: Evidence from the LEHD-2000 Census. American Economic Review, 107(5), 110-114.
• Guvenen, F., Kaplan, G., Song, J., & Weidner, J. (2022). Lifetime earnings in the United States over six decades. American Economic Journal: Applied Economics, 14(3), 70–105.
• Hermes, H., Krauss, M., Lergetporer, P., Peter, F., & Wiederhold, S. (2023). How early childcare can boost the labour market success of lower-educated mothers. VoxEU.org.
• Meurs, D., & Pora, P. (2019). Gender equality on the labour market in France: A slow convergence hampered by motherhood. Economics and Statistics.
• Mulligan, C. B., & Rubinstein, Y. (2008). Selection, investment, and women’s relative wages over time. Quarterly Journal of Economics, 123(3), 1061–1110.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 5: Gender Equality
   • The article focuses extensively on gender pay inequality and lifetime earnings gaps between men and women in France and the US.
   • It discusses legal frameworks, pay transparency, and labor market participation—all central to achieving gender equality.
2. SDG 8: Decent Work and Economic Growth
   • The article addresses labor market issues such as part-time work, wage disparities, labor force participation, and employment conditions.
   • It highlights the importance of fair wages, equal pay, and inclusive economic growth.
3. SDG 10: Reduced Inequalities
   • The article examines income inequality by gender and discusses institutional factors affecting wage gaps.
   • It touches on social and economic inequalities related to gender in the workforce.

2. Specific Targets Under Those SDGs Identified

1. Under SDG 5: Gender Equality
   • Target 5.1: End all forms of discrimination against all women and girls everywhere.
   • Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life.
   • Target 5.A: Undertake reforms to give women equal rights to economic resources, including access to ownership and control over land and other forms of property, financial services, inheritance, and natural resources.
2. Under SDG 8: Decent Work and Economic Growth
   • Target 8.5: Achieve full and productive employment and decent work for all women and men, including young people and persons with disabilities, and equal pay for work of equal value.
   • Target 8.8: Protect labor rights and promote safe and secure working environments for all workers, including migrant workers, particularly women migrants, and those in precarious employment.
3. Under SDG 10: Reduced Inequalities
   • Target 10.3: Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies, and practices.

3. Indicators Mentioned or Implied to Measure Progress

1. Gender Pay Gap Indicators
   • Hourly wage gap (around 12% in France as per official data).
   • Ratio of female-to-male lifetime earnings (LTE) at median and across cohorts.
   • Decomposition of earnings gap by factors such as working time, education, occupation, and unexplained residual.
   • Gender ratios in lifetime earnings along the earnings distribution (U-shaped in France, J-shaped in the US).
2. Labor Force Participation and Working Time
   • Average number of years worked by gender.
   • Proportion of part-time versus full-time employment among women.
3. Compliance and Transparency Measures
   • Firm-level reporting compliance with pay-transparency directives (e.g., Professional Equality Index in France).
   • Disclosure of mean and median pay gaps by firms.
4. Policy Impact Indicators
   • Changes in female promotions and job access linked to transparency and reporting.
   • Impact of childcare availability on female labor market participation and transition from part-time to full-time work.

4. Table: SDGs, Targets and Indicators

SDGs	Targets	Indicators
SDG 5: Gender Equality	5.1: End discrimination against women and girls 5.5: Ensure women’s participation and equal opportunities 5.A: Equal rights to economic resources	Hourly wage gap (12% in France) Female-to-male lifetime earnings ratio Gender pay gap reporting compliance
SDG 8: Decent Work and Economic Growth	8.5: Full and productive employment and equal pay 8.8: Protect labor rights and promote safe working environments	Years worked by gender Part-time vs full-time employment rates Firm-level pay gap disclosures
SDG 10: Reduced Inequalities	10.3: Ensure equal opportunity and reduce inequalities of outcome	Unexplained residual in earnings gap decomposition Impact of anti-discrimination legislation

Source: cepr.org