PwC’s new report exposed gender pay gaps in italian fashion industry

M A Mohiemen Tanim September 19, 2024Last Updated: September 19, 2024

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The recent report titled “Unpacking Pay Equity in Fashion: Italy“, announced by PwC and supported by key data from Eurostat, sheds light on the persistent gender pay gap in Italy’s fashion industry, with critical implications for the global discourse on gender equality in the workforce. Despite Italy’s rich heritage as a global fashion hub, a deep-seated gender imbalance continues to undermine progress towards pay equity in one of its most essential industries. The report not only highlights the significant gender pay gap that persists but also outlines actionable steps that could potentially reduce the disparity in the future.

Key Takeaways

The report paints a comprehensive picture of the current gender pay gap in the Italian fashion industry. While Italy has made commendable strides in narrowing the gender pay gap over the past decade, the pace remains too slow. Without significant collective action from companies, institutions, and government bodies, it could take decades to achieve full pay equity.

Summary of Key Data:

5%: Italy’s gender pay gap in the fashion industry (unadjusted, 2022).
13%: The pay disparity between men and women in Italy’s fashion industry, with women earning €0.87 for every €1 earned by men.
50 years: Time estimated to close the gender pay gap in Italy.
45.2%: Apparel’s share of total revenues in the Italian fashion industry (2022).
12.7%: EU27 average gender pay gap, significantly higher than Italy’s gap.

This analysis dives into the key findings from the report, enriched with vital data points and perspectives that provide a comprehensive understanding of pay inequities in the Italian fashion industry.

**Figure:** Gender pay gap in unadjusted form, Italy & EU27

The State of Gender Pay Gap in Italy

According to PwC’s Women in Work 2024, Italy’s unadjusted gender pay gap was reported to be 5% in 2022, considerably lower than the EU27 average of 12.7%. This is a marked improvement, considering that a decade ago, in 2013, the gender pay gap in Italy stood at 7%. Although the country’s progress in closing this gap is notable, it still underscores that gender inequality in pay persists across various sectors, including fashion.

The gender pay gap in Italy is particularly pronounced in the fashion sector, where structural barriers, such as traditional gender roles and a lack of leadership opportunities for women, hinder equitable wage distribution. The report indicates that it will take 50 years for Italy to completely close this gender pay gap, as estimated by PwC’s Women in Work 2024, signaling the urgency for collective action to accelerate the pace of change.

**Figure:** Share of total revenues by segments of the fashion industry

Breakdown of Gender Pay Gap in the Fashion Industry

The Italian fashion industry is a key economic player, with various segments contributing significantly to the nation’s GDP. According to Cerved data, the fashion industry’s revenue distribution in Italy in 2022 was largely dominated by the apparel segment, accounting for 45.2% of total revenues, followed by footwear at 15%, leather and tanning at 14.2%, textiles at 14.2%, and accessories at 11.4%. However, despite the industry’s robustness, women continue to be underrepresented in leadership roles and experience a gender pay gap that mirrors broader national trends.

On average, women in the fashion industry earn €0.87 for every €1 earned by men, indicating a 13% pay disparity within the sector. This gap is more profound among lower-wage workers and those in non-managerial positions, which are predominantly occupied by women. The reasons behind this inequality can be attributed to cultural gender norms, the disproportionate burden of caregiving on women, and limited opportunities for career advancement.

**Figure:** Female share in the labor force

Call for Action: Collective Effort Needed

To address these challenges, the report calls for collective action from fashion companies, industry associations, and government bodies to implement pay equity initiatives. It stresses the need for:

Creating Inclusive Corporate Cultures: Companies must work toward establishing an inclusive workplace culture that values both parenthood and equal career advancement opportunities. Institutions must also implement modern and flexible parental leave policies to ensure that both men and women can balance family responsibilities while advancing their careers.
Ensuring Pay Equity in the Supply Chain: While some Italian fashion manufacturers have started implementing gender pay equity policies, more extensive efforts are required. Many of these companies lack standardized pay equity monitoring across their entire supply chain, particularly among subcontractors. Developing responsible purchasing practices and ensuring traceability in wage structures across the value chain are crucial for ensuring fair labor conditions and preventing exploitative practices.
Enhancing Transparency and Traceability: The report emphasizes the need for increased traceability and transparency in wage reporting, not just within companies’ own operations but also among their suppliers. A unified approach to gender pay gap monitoring and reporting is necessary to ensure that manufacturers and subcontractors are held to the same pay equity standards as brands and retailers.

**Figure:** Gender composition of job qualifications in Textile & Leather industry, Italy, 2024

The Need for Tailored Tools

One of the key recommendations from the report is the development of tools tailored to Italy’s fashion industry. These tools should consider the specific dynamics of the sector and foster the adoption of gender pay gap monitoring at all levels, especially among smaller businesses and micro-enterprises that often struggle with limited resources for wage transparency and compliance.

Barriers to Gender Pay Equity

Despite the progress outlined, significant barriers to gender pay equity remain, particularly in Italy’s fashion industry. These include:

Cultural Gender Norms: Traditional expectations about gender roles, especially regarding caregiving and domestic responsibilities, disproportionately affect women’s participation in the labor market and hinder their access to leadership roles.
Leadership Gaps: The lack of women in top executive positions and decision-making roles perpetuates wage disparities. Only a small percentage of women occupy senior roles in the fashion industry, which contributes to slower progress in achieving pay equity.
Underrepresentation in High-Paying Segments: Women are underrepresented in the higher-paying segments of the fashion industry, such as design and manufacturing management, while they are overrepresented in lower-wage positions like retail and customer service.