Women are being forcing to remain in more polluting industries despite wider pay gaps and health hazards. iStock
Governance

Green glass ceiling: Women are being left out of jobs in sustainable sectors, shows IMF analysis

This disparity has implications in closing the gender gap & effective transition to green economy

Preetha Banerjee

There are fewer women with jobs in sustainable industries despite growing employment opportunities in these ‘green’ sectors, according to a new analysis by the International Monetary Fund (IMF). This is not only keeping the gender gap from closing but may also slow down the world’s transitions to a greener economy.

The report highlighted that women are disproportionately left behind from jobs in sectors such as renewable energy, sustainable agriculture and waste management, forcing them to remain in more polluting sectors. 

The main reason behind this disparity is the significantly lower number of women graduating in fields of science, technology, engineering and mathematics (STEM) across economies, according to the findings of a recent IMF Staff Discussion Note. These streams are critical for accessing many green jobs. In countries like Brazil, Colombia and South Africa, for instance, the gender gap in STEM education and managerial positions accounts for a large share of the green employment gender gap among college-educated workers.

Green jobs, which play a vital role in reducing greenhouse gas emissions and improving environmental sustainability, are on the rise globally. However, men dominate this sector, holding about two-thirds of green jobs, while women occupy only one-third.

This gap is consistent across both advanced economies (AE) and emerging market and developing economies (EMDE). For instance, in AEs, green jobs account for 20 per cent of men's employment but only 6 per cent of women’s. A similar trend is observed in EMDEs, where 16 per cent of men’s jobs are green compared to just 4.6 per cent for women.

While green jobs are becoming more prevalent, polluting jobs, particularly in EMDEs, continue to grow. These jobs are predominantly held by men in advanced economies but are more evenly distributed between genders in low-income countries (LIC). Polluting jobs are typically concentrated in sectors such as manufacturing, fossil fuel extraction and heavy industry, which are major contributors to greenhouse gas emissions.

Despite the growth of polluting jobs in EMDEs, they remain concentrated in lower-skilled, middle-income segments. This concentration exposes women to the environmental and health hazards associated with polluting industries, particularly in LICs where 10.7 per cent of women are employed in these sectors compared to 8.6 per cent of men.

While the push towards green jobs may benefit the higher-earning segments of the workforce, middle- and lower-income workers — many of whom are women — remain trapped in traditional, polluting sectors.

Missing out on ‘green premium’

Green jobs tend to offer a wage premium for both men and women, with women enjoying a larger premium than men, the IMF analysis showed. Green jobs are associated with a wage premium of 7 per cent for men and 12 per cent for women, signalling higher demand for workers with the required skills. 

This wage premium also contributes to a narrower gender pay gap in green jobs compared to other sectors. The gender pay gap in green jobs, for instance, is 30 per cent narrower than in the broader economy, suggesting that green jobs could play a role in improving gender pay equality.

The underrepresentation of women in green jobs is not just a gender equality issue; it also has significant implications for the effectiveness of climate policies. Evidence shows that economies with a higher proportion of STEM-educated workers and more inclusive labour markets are better equipped to transition to a green economy. 

Countries with greater gender parity in the workforce experience larger reductions in greenhouse gas emissions intensity when energy taxes and other climate policies are introduced. The green transition, therefore, stands to benefit from a more diverse workforce, where the contributions of both men and women are fully realised.

To close these gaps, the experts suggested enhancing STEM education for women, promoting gender equality in the workforce, retraining workers in polluting sectors, addressing gender bias in recruitment and management.