Iceland Leads The Way In Closing The Gender Pay Gap

Iceland Leads The Way In Closing The Gender Pay Gap


June 13, 2023 | Eul Basa

Iceland Leads The Way In Closing The Gender Pay Gap


With movements like #MeToo taking over social media and celebrities lobbying for salary transparency, the wage gap between men and women is getting more scrutiny than ever. But is it getting better?

A few years ago, sports fans were surprised to learn that even internationally-acclaimed athletes have to fight for fair play. After winning the World Cup, the U.S. Women’s Soccer Team took the league to court demanding they be paid the same amount as the men's team—but it’s already revealed that in terms of equal pay rights for women, the U.S. is losing the game.

railway-1758208_1920-300x91.jpgPixabay

Iceland, on the other hand, is winning. The country made a bold step forward by promising government enforcement of laws requiring equal pay, and as of 2021, it has closed 89.2% of its gender wage gap. Iceland also tops lists of overall gender equality, safest places for women to travel alone, and happiest countries in the world. Could these things be related? We’re going to risk an educated guess and say yes. So why hasn’t the rest of the world followed suit? The answer is, unsurprisingly, complicated.

Equal pay for equal work

That headline might seem like a simple, almost juvenile, maxim, but the truth is that the gender pay gap is still running rampant. Multiple acts have been passed trying to curb it. The U.S. passed the Equal Pay Act in 1963 and the UK instituted the Equality Act as recently as 2010. Still, these laws tend to lack actual teeth. That all changed in 2018 when Iceland committed to actively enforcing equal pay. Now, they require companies to submit paperwork proving that people in equivalent roles receive equivalent pay, no matter their gender, race, or background. One year later, no other country has followed suit, a disappointing anticlimax to what should, by now, be a matter of fact.

ice-4053056_1920-300x169.jpgImage by Tabita Lopez from Pixabay

Advertisement

Progress, but not perfection

We’ve come a long way, baby—or at least that’s what the mega-corporations that benefit from unequal pay standards want you to think. But according to recent studies, in 2018 women still made 82 cents for every dollar men made for the same amount of work. The gap only gets larger when differences of color and nationality are factored in. It’s estimated that the world will have to wait at least another 100 years before the gap closes. That's a long time when you consider that the average woman loses over half a million dollars during the span of a lifetime, compared to what her male counterpart makes.

stefan-stefancik-nTwgHtTycF8-unsplash-300x200.jpgPhoto by Štefan Štefančík on Unsplash

Advertisement

Taking responsibility

What's the reason for the lag? A major issue is that countries have different opinions on whose responsibility it is to make sure women workers get paid the same. In the UK for instance, the onus is on the employee to bring discrepancies to light, usually via their unions. There are a host of reasons why employees might choose not to do this, such as peer pressure, fear of reprisal, and simple apathy. Furthermore, once the information is in the union’s hands, it’s up to them how to deal with it. Past efforts, like lobbying and protests, have shown to be less than miraculous.

alex-iby-4Znav1etTmU-unsplash-300x200.jpgPhoto by Alex Iby on Unsplash

Advertisement

Leaving it to the law

Other than Iceland, only six countries in the world have laws that protect women’s rights in the workplace as well as men’s: Belgium, Sweden, Luxembourg, Latvia, Denmark, and France. Even in those countries, enforcement remains outside of the purview of the law. Some companies, like Citibank in the U.S. for example, have stated that they’re waiting for government mandates to light the way for equal pay. That’s exactly what the government of Iceland decided to do, and it seems to have helped; Iceland now has the lowest pay gap in the world, followed by Norway, Sweden, and Finland. Way to go, Scandinavia. 

agnieszka-boeske-cFdH_t5xBxk-unsplash-300x199.jpgPhoto by Agnieszka Boeske on Unsplash

Advertisement

Seeing it in action

Though considered a human right by the UN, equal pay continues to evade most of the world. However, that's changing. One way you can show your support is by spending your tourism dollars on countries that are making gender equality a priority. As if there weren’t enough reasons to visit Iceland, now you have one more.

While you're there, visit places that are conscientious about the issue. The Reykjavik City Museum regularly runs exhibitions about the history of women in Iceland. For bookworms, the Women's Book Lounge has every book written by Icelandic women writer, many of them in English translation. The Women's History Archive is the place if you're into black and white photos of stern suffragettes, and who isn't?

While closing the wage gap is still a global issue, and a global struggle, at least it's moving in the right direction. We look forward to adding pins to the equality map as more countries follow suit.

ben-eaton-UbSDq89yUkA-unsplash-300x300.jpgJen Batler

Advertisement

READ MORE

Here’s How To Figure Out If You’re Paying Too Much For Car Insurance

Car insurance has a funny way of becoming invisible. You sign up, set the payment to auto-draft, and then forget about it—until your bank account reminds you every month. The problem is that many drivers end up overpaying not because they’re reckless or unlucky, but because their policy hasn’t kept up with their life. If you’ve ever wondered whether your premium feels a little too spicy for what you’re getting, these signs will help you figure it out.
January 9, 2026 J. Clarke

All the siblings need to sign forms to collect our inheritance. But my sister worries she’ll lose her disability payments if she signs. Now what?

When a family member stands to lose disability coverage over a sudden large inheritance, it's important for other family members to proceed with care.
January 9, 2026 Peter Kinney

The Sudden Rise And Steep Fall Of GoPro

GoPro grew an amazing brand, but branching into drone technology caused the company to fly off course.
January 9, 2026 Penelope Singh
Investment - Fb

I invested $8,000 in my friend’s “luxury candle business.” Now she’s ghosted me and posting vacations on Instagram. What are my options?

A friend launches a small business, and you decide to help because the idea sounds promising and the friendship feels strong. You hand over money with the hope that the business will grow, and you trust the person behind it even more than the plan. Then the updates slow down, while your friend seems to vanish from every conversation that involves the investment. Meanwhile, her social media shows sunny beach photos and pricey resorts that feel wildly out of sync with the story you were told. Well, that’s an uncomfortable place to stand. Luckily, there are practical paths forward; each one starts with understanding your true position.
January 7, 2026 Marlon Wright

My elderly mom’s basement tenant told neighbors he owns her house. He’s made unauthorized changes to the suite. Should I be concerned?

When a tenant begins telling neighbors that he is the building owner, the real owner needs to step in and set the record straight to prevent confusion.
January 7, 2026 Sammy Tran

A collection agency called me about my deceased dad’s credit card debt. I blocked them, but now I get calls from multiple numbers. What do I do?

If collection agencies are demanding that you pay back the debt of a deceased relatives, you need to know your rights before you do anything else.
January 7, 2026 Alex Summers


Disclaimer

The information on MoneyMade.com is intended to support financial literacy and should not be considered tax or legal advice. It is not meant to serve as a forecast, research report, or investment recommendation, nor should it be taken as an offer or solicitation to buy or sell any securities or adopt any particular investment strategy. All financial, tax, and legal decisions should be made with the help of a qualified professional. We do not guarantee the accuracy, timeliness, or outcomes associated with the use of this content.





Dear reader,


It’s true what they say: money makes the world go round. In order to succeed in this life, you need to have a good grasp of key financial concepts. That’s where Moneymade comes in. Our mission is to provide you with the best financial advice and information to help you navigate this ever-changing world. Sometimes, generating wealth just requires common sense. Don’t max out your credit card if you can’t afford the interest payments. Don’t overspend on Christmas shopping. When ordering gifts on Amazon, make sure you factor in taxes and shipping costs. If you need a new car, consider a model that’s easy to repair instead of an expensive BMW or Mercedes. Sometimes you dream vacation to Hawaii or the Bahamas just isn’t in the budget, but there may be more affordable all-inclusive hotels if you know where to look.


Looking for a new home? Make sure you get a mortgage rate that works for you. That means understanding the difference between fixed and variable interest rates. Whether you’re looking to learn how to make money, save money, or invest your money, our well-researched and insightful content will set you on the path to financial success. Passionate about mortgage rates, real estate, investing, saving, or anything money-related? Looking to learn how to generate wealth? Improve your life today with Moneymade. If you have any feedback for the MoneyMade team, please reach out to [email protected]. Thanks for your help!


Warmest regards,

The Moneymade team