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WORKING IN NORWAY

Working in Norway: Is there a gender wage gap?

Many describe Norway as a gender equality pioneer, but are women still paid less than men for doing the same job? 

Pictured is a work meeting.
Employees gather at a work meeting. Photo by Christina @ wocintechchat.com on Unsplash

Norway is often lauded for its progressive approach to the workplace and for being considered one of the most gender-equal countries in the world. 

The country has a broad set of legislation, which it frequently updates, to ensure parity between genders and other underrepresented groups in society. 

For example, Since 2004, state-owned company boards must be comprised of at least 40 percent women, with that rule being applied to publicly traded firms since 2008.

The government has moved to extend this rule further to apply to another 10,000-25,000 companies. Currently, women make up around 20 percent of boardrooms in Norway. 

Additionally, the Norwegian Gender Equality Act was aimed at reducing discrimination in Norway. Then in 2016, it was the first country globally to establish a gender equality ombud. 

So how does this all add up in terms of the gender pay gap? 

Unfortunately, for all the work Norway has done towards trying to end discrimination in the workplace (and society in general), men still get paid more than women for the same job. 

The World Economic Forum publishes an annual report on the state of men’s and women’s wages. In 2022, it found that Norway has a gender parity of 84.5 percent. 

This means that women in Norway get paid around 84.5 percent of what men earn. 

While this figure may be disappointing, Norway was one of the best-performing countries for gender pay parity in the world, according to the World Economic Forum. 

Only Iceland (90.8 percent) and Finland (86 percent) had a higher gender pay parity than Norway. 

Norway’s national data agency, Statistics Norway (SSB), also keeps data on the gender wage gap. It found in 2022 that women earned an average of 88 percent of men’s wages. This is up from 83.3 percent in 2001. 

Norway’s gender wage gap explained

One of the reasons it said that men earned more than women on average was that men were overrepresented in the highest-paying jobs, bringing the average wage up overall. 

“An important reason why women, on average, earn less than men is that men are overrepresented among wage earners who have the highest salaries. There are, therefore, few women compared to men at the top of the distribution. Correspondingly, there are more women than men in the middle of the distribution,” an earlier report on the gender pay gap reads. 

When the highest wage earners are removed from the equation, the pay gap in Norway is reduced from 87.9 percent to 96.2 percent. 

“When we remove the top 10 percent of salaries, the average salary for men drops considerably, while it does not for women. Among the jobs with the ten percent highest salaries, just under 30 percent are women. There are thus too few women at the top of the distribution for it to raise the average as much as it does for men,” SSB writes. 

 When using a median wage, which doesn’t get skewed by the presence of the highest and lowest earners, women earn 94.1 percent of what men do. 

Another explanation for the wage gap in Norway offered by Statistics Norway centres on where men and women choose to work. 

Men were more likely to be found in the private sector, where the highest-earning jobs were found- while 70 percent of women worked in the public sector.

Women in working and public life

Figures also point to women being underrepresented at the top level in both working and public life. Some 63 percent of management positions in Norway are held by men. When accounting for just the most senior and executive roles, women make up just over a quarter of senior management staff in Norway. 

While Norway’s governemnt cabinet has a majority of women serving, just 34 percent of local mayors in Norway are women. Women also make up just 40 percent of municipal councillors in Norway.  

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WORKING IN NORWAY

Why overqualified foreigners in Norway struggle to find work

Norway is one of the worst countries in Europe when it comes to overqualified foreign labour being stuck in jobs that don’t make the best use of their skills, a new analysis has found. 

Why overqualified foreigners in Norway struggle to find work

Norway is one of many European countries struggling with “brain waste”, which is where immigrants struggle to find suitable full-time work or are overqualified for their roles due to their education not being recognised. 

The findings are part of an investigation by Lighthouse Reports, the Financial Times, El País and Unbias The News that found that most European countries fail to provide good job opportunities to educated foreigners – potentially at the cost of their labour forces and economies. 

“While the results differ slightly between labour market outcomes, a consistent pattern emerges: immigrants lag behind natives everywhere, but brain waste is worst in Southern Europe, Norway, and Sweden,” the report read

Some of the metrics used to measure brain waste were the proportion of foreign residents who were overqualified for their role, underemployed (meaning they weren’t working as much as they could), or unemployed. 

In Norway, 27.6 percent of university-educated Norwegians were overqualified for their roles, according to the report. Meanwhile, just over half of the university-educated immigrant population were overqualified for their job. 

This figure made Norway one of the countries with the largest raw difference in the percentage of the native population being overqualified compared to the immigrant population. 

Furthermore, the number of immigrants who were underemployed, 3.9 percent, was more than double the rate of Norwegians in the same position. 

The investigation used figures from Eurostat between 2017 and 2022. 

Norway’s Directorate of Integration and Diversity has recently investigated the obstacles facing the country’s foreign population in the workplace. 

Its report found that immigrants faced barriers both when trying to progress their careers or simply trying to get their foot in the door. 

Immigrants working in Norway were also more likely to leave working life earlier or lose their jobs. 

READ ALSO: The biggest barriers foreigners in Norway face at work

Factors such as working in temp positions, physically taxing occupations, and industries exposed to economic turbulence contributed to this. 

However, a lack of Norwegian proficiency, a lack of relevant skills and poor health also played a part. 

Discrimination prevented immigrants from entering the workplace and affected those who were employed

“More and more people in the population have contact with immigrants in working life, and most experience that contact as mainly positive. At the same time, one in four immigrants has experienced discrimination in the workplace, and this discrimination can occur in different forms and in different working situations,” the report read.

The directorate also said that most companies didn’t have concrete measures to try and promote diversity.

One factor holding back immigrants in Norway was their Norwegian language skills, the report said. 

While Norwegian skills were moving in the right direction, less than half of foreigners in the country had advanced Norwegian language skills (level B2 according to the European framework) after completing language training.

Meanwhile, Lighthouse Reports’ investigation found that brain waste in Norway varied from profession to profession. For example, Norway was one of a number of countries where college-educated immigrants were more likely to be doctors. 

Immigrants with a university education in IT-related subjects were also far less likely to be overqualified. There, the difference between migrants being overqualified compared to natives was just 2 percent. 

However, physical and engineering science technicians, engineering professionals (excluding electrotechnology), and those who have studied education at a university level were the immigrant groups in Norway most likely to be overqualified. 

One thing to note is that immigrants who obtained their qualifications in Norway were far less likely to be overqualified than those who got their degrees outside of Norway, even if they still fared worse than natives overall. 

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