Higher education is less associated with economic parity for women in highly hierarchical cultures

New research published in Applied Economics Letters suggests that deep-rooted cultural beliefs about hierarchy and gender roles can prevent highly educated women from participating fully in the workforce. The findings indicate that in societies that heavily favor strict social hierarchies, earning an advanced education does not help women close the economic gender gap. These cultural barriers tend to overpower the usual career benefits of a good education.

Scholars continue to document the persistence of workplace gender inequality as a global issue. According to a United Nations report cited in the study, no country has achieved full gender equality, and a staggering 90 percent of people worldwide hold some form of bias against women. The inequalities are glaring in terms of financial compensation, as women tend to earn less than men across the globe. Even in progressive economies like the United States, women earn roughly 84 cents for every dollar paid to men.

This disparity persists at higher levels of academic achievement. For instance, women with a bachelor’s degree have significantly lower median weekly earnings compared to men with the exact same educational background. The researchers highlight data from Barclays International, which reports an average gender pay gap of 48 percent that climbs to 79 percent when financial bonuses are included.

The gender gap tends to worsen as individuals move up the corporate ladder. Women are frequently assigned lower-paying and less prestigious roles, while men are promoted at much higher rates. A business report cited by the authors found that for every 100 women promoted, approximately 130 men advance. The researchers note that many women also face a motherhood penalty, which occurs when women reduce their working hours or miss out on promotions to handle family responsibilities.

Education is widely considered a primary tool for leveling the playing field. In theory, if women possess the same knowledge and technical skills as men, they should have equal opportunities to advance in their careers. Education serves as a strong indicator of an individual’s problem-solving abilities and provides access to professional networks. It also builds confidence, enabling women to negotiate for better positions.

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To understand why education sometimes fails to close this gap, Muge Yayla of the University of Texas at San Antonio and A. Melih Kullu of Florida Southern College examined the role of national culture. They suspected that deeply ingrained social norms might restrict women from utilizing their academic achievements in the labor market. These norms are often internalized from an early age through family structures and actively shape hiring practices.

The authors based their research on an established psychological framework that measures different cultural dimensions across nations. This framework originated from massive surveys initially conducted among corporate employees in over 50 countries. It provides standardized scores for cultural values, allowing researchers to compare societal norms on a global scale. Specifically, the researchers focused on a cultural trait known as power distance.

Power distance refers to how much the less powerful members of a society accept and expect that power is distributed unequally. In countries with high power distance, people tend to accept strict hierarchies where everyone has a designated place that requires no justification. In these cultures, authority is based on tradition, workplace decisions are centralized at the top, and older men typically hold the most power. The researchers theorized that these rigid power structures create work environments where women are disproportionately affected by power imbalances.

The researchers also looked at a second cultural dimension referred to as masculinity. In the context of cultural studies, a highly masculine society is one that places a strong emphasis on competitiveness, achievement, and distinct traditional gender roles. A society with low masculinity, often referred to as a feminine culture, tends to value cooperation, nurturing, and social equality.

Yayla and Kullu wanted to see how these two cultural dimensions interact with educational attainment to affect women’s economic opportunities. They reasoned that formal education might lose its power as an equalizing force in highly hierarchical and traditional societies where men occupy the dominant roles.

To explore these dynamics, the researchers analyzed data from 144 countries. They gathered societal norms data using the established global database, which scores countries on various cultural dimensions on a scale from zero to 100.

For their measure of workplace inequality, they used the Global Gender Gap Index published by the World Economic Forum. This comprehensive index evaluates differences between men and women across four key areas, which include educational attainment, health and survival, political empowerment, and economic opportunity. The researchers focused specifically on the economic participation and opportunity score. This metric captures data on labor force participation, wage equality, income levels, and the number of women in senior management roles.

The authors intentionally used data from 2017 to conduct their analyses. They chose this year to avoid the massive labor market disruptions caused by the global pandemic, which disproportionately forced women out of the workforce due to increased caregiving responsibilities. Using this timeline allowed them to observe long-term cultural influences during a period of relative global economic stability.

To ensure their results were accurate, the researchers also controlled for each country’s wealth using the Gross Domestic Product per capita. This step prevents differences in basic economic development from skewing the results. Wealthier nations typically have more resources to invest in social programs and enforce anti-discrimination laws. The final statistical models included data from 94 to 140 countries, depending on the availability of complete information across all the necessary variables.

The statistical analysis provided evidence that women’s economic participation is significantly lower in countries with high power distance. Specifically, the model predicts an approximate 8.5 percent decrease in women’s economic participation for every 60-point increase in a country’s power distance score. In places where strict social hierarchies are accepted as natural, inclusive economic opportunities for women shrink considerably.

When the researchers looked at educational attainment on its own, it did not have a direct, universal effect on closing the gender gap across all nations. Instead, the benefits of education depended heavily on the country’s level of power distance.

In countries with low power distance, high educational attainment strongly translated into better economic participation for women. In these more egalitarian societies, the labor market heavily rewards women for earning higher degrees. The path to promotion is generally based on merit, making it much more accessible to well-educated women.

As power distance increases, the positive association between education and economic participation begins to fade. In countries with very high power distance scores, which typically exceed 80 on the 100-point scale, the career benefits of education for women completely disappear. In some of these highly hierarchical environments, additional education actually showed a slight negative relationship with women’s economic participation.

The researchers suggest that in these high power distance societies, deeply entrenched hierarchical norms prevent educated women from leveraging their qualifications. Even with advanced degrees, women face structural barriers and traditionalist views that keep decision-making power concentrated among men. Older leaders in these societies are more likely to uphold traditional gender roles and resist reforms that promote equity.

The authors also found that a country’s level of masculinity plays a major role in this dynamic. In highly masculine societies, the interaction between power distance and education remains strong. The strict adherence to traditional gender roles in these cultures amplifies the structural barriers that educated women face. These societies tend to reinforce the idea of the male breadwinner, making it much harder for women to enter the workforce.

In contrast, societies with low masculinity scores showed a completely different pattern. In these more cooperative cultures, neither power distance nor educational attainment had a statistically significant influence on women’s economic participation. The researchers note that these feminine societies tend to prioritize social welfare, parental leave, and gender equality policies, which might override educational and hierarchical barriers.

While this study provides evidence that cultural norms shape economic outcomes for women, the authors note a few limitations to their work. The data used in the analysis is correlational, which means it cannot definitively prove that cultural traits cause the gender gap to widen. The theoretical framework strongly suggests that these cultural dimensions act as structural roadblocks to workplace equality, but other variables could be at play.

Another limitation is the use of an aggregate index to measure economic participation. A single national score can sometimes mask differences that exist within specific regions or specific industries in a given country. The index also focuses on formal employment and does not account for informal labor or unpaid caregiving work, which makes up a large portion of women’s daily activities in many parts of the world.

The researchers recommend that future studies explore other institutional factors that might interact with education, such as specific legal rights and the quality of government institutions. They also suggest using longitudinal data, which tracks changes over a long period. This approach could help scientists determine whether shifting cultural attitudes eventually lead to smaller gender gaps.

From a practical standpoint, the authors advise that multinational companies should tailor their management strategies based on local culture. In highly masculine and hierarchical societies, businesses should intentionally dismantle strict hierarchical practices and create transparent paths for promotion. In societies with strict hierarchies but a lower emphasis on traditional masculine competition, creating mentorship programs and flexible work arrangements could help educated women reach their full potential.

The study, “Power Distance and Gender Gap in Economic Participation: The Roles of Educational Attainment and Masculinity,” was authored by Muge Yayla and A. Melih Kullu.