Mind the (narrowing) gender gap: implications of labour market changes for EU pension sustainability

Gender disparities in the labour market in terms of employment rates and wages are widespread in EU countries. Historically, these gender gaps have been narrowing, significantly influencing the macroeconomy. This study employs a dynamic general equilibrium model populated by overlapping generations of men and women to evaluate the economic consequences of these trends continuing over the coming decades. We conduct a cross-country analysis focused on the fiscal sustainability of public pension systems. Our findings suggest that a continued reduction in gender gaps in the labour market could significantly mitigate the fiscal impact of population ageing. Quantitatively, the effects are comparable to reforms that increase the retirement age.

FERNANDEZ BASTIDAS Rocio;  PYCROFT Jonathan; 

2025-07-28

ELSEVIER

JRC142031

1873-6122 (online),   

https://www.sciencedirect.com/science/article/pii/S0264999325001804,    https://publications.jrc.ec.europa.eu/repository/handle/JRC142031,   

10.1016/j.econmod.2025.107185 (online),