Gender pay gap drives global financial inequality and higher credit costs for women

UN Women has called for decisive action to address the global gender pay gap, noting that women earn an average of 20 percent less than men worldwide. This disparity leads to reduced lifetime earnings, diminished financial security, and lower pensions, which can perpetuate inequality across generations. The gap is often more pronounced for women with migration backgrounds, disabilities, or those from racial and ethnic minorities.

In Germany, the financial consequences of the gender pay gap are evident in the credit market. An analysis by Verivox reveals that women pay an average of 6 percent more in interest for installment loans than men. Additionally, women face a 15 percent higher rejection rate for credit applications. These discrepancies are attributed to lower average net incomes—approximately 2,443 euros for women compared to 3,000 euros for men—and higher rates of part-time work, which banks view as lower creditworthiness.

To combat these structural issues, UN Women is working with the International Labour Organization and the OECD. Recent efforts include the adoption of ILO Convention No. 193, which establishes international labor standards for the platform economy to protect workers from unfair pay and discrimination.