56: Gendered career paths? Horizontal gender segregation in education and the labor market

Overview & Synopsis

The persistence of the gender pay gap is well documented in the literature. One of its most important drivers is the phenomenon of horizontal gender segregation – i.e., the tendency of women and men to sort themselves into different, gendered occupational areas. The underrepresentation of women in science, technology, engineering, and mathematics (STEM) is particularly striking. In countries part of the Organisation for Economic Co-operation and Development (OECD), women account for only 33% of STEM graduates, while making up over 77% of graduates from education, health, and welfare programs (OECD 2023). Beyond upholding the pay gap, the lack of women in STEM has negative outcomes for society at large. As we already face a lack of STEM professionals, mitigating horizontal gender segregation is crucial to meet the labor market demands of this rapidly growing sector. In addition, research has found that reducing gender gaps in STEM careers stimulates economic growth and higher employment rates (EIGE 2017).