## Assessing Gender Gaps in Malta

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**Canonical URL:** [Assessing Gender Gaps in Malta](https://www.imf.org/-/media/files/publications/selected-issues-papers/2025/english/sipea2025009.pdf)

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---

### A. Malta’s Progress Towards Greater Gender Equality — Participation, Education, and Representation

- Labor force participation and demographics:
  - Female labor force participation increased from 36 percent in the early 2000s to 73 percent today, above the EU27 average.
  - Participation for women aged 25-49 rose from 38 percent in 2004 to 86 percent in 2023.
  - Participation for women aged 50-64 increased but remained at 54 percent.
  - By 2023, foreign women represented approximately one-third of employed women.
- Policy actions and estimated impacts:
  - The 2014 National Employment Policy introduced measures including free childcare, tax incentives for returning women, and employment schemes for inactive persons.
  - Micallef (2018) estimates the reforms account for half of the increase in female participation between 2008 and 2015 and contributed to an estimated increase in potential GDP growth by around 0.3 percentage points during this period.
- Major policy measures:
  - Free childcare services.
  - Tax credit for women returning to work after having children.
  - Tax deductions for childcare expenses, school fees, and medical expenses, and the long-standing child allowance.
  - 2022 work-life balance entitlements: extended paternity leave, parental leave, carers' leave, right to request flexible working arrangements.
  - Paid maternity leave increased from 14 weeks to 18 weeks; unpaid parental leave increased from three months to four months.
  - In-Work Benefit Scheme (2015) — means-tested benefit for low-income working families and single parents.
  - 2019: maternity benefit rate of self-employed women raised to the national minimum wage.
- Educational attainment and initiatives:
  - Share of women with tertiary education rose to 34 percent, up from 10 percent two decades ago.
  - Share of men with tertiary education is 27.6 percent.
  - Women are well represented in social sciences, humanities, and education; underrepresented in STEM.
  - Initiatives: scholarships, mentorships, partnerships with industry leaders, inclusive education policies, gender equality programs, professional development and flexible working support.
- Representation and legal/financial frameworks:
  - Women are well represented in senior public administration roles but are underrepresented in leadership roles across government and businesses.
  - Malta introduced a gender-equalizing mechanism in the national parliament in its most recent election.
  - World Bank WBL Index: Malta’s legal frameworks score was 77.5; supportive frameworks for implementing these laws scored 58.3; expert opinions scored 87.5.
  - Financial access gaps in 2022:
    - Female share of outstanding household loans with commercial banks: 26.9 percent; male share: 73.1 percent.
    - Female share of household deposits: 42 percent; male share: 58 percent.
  - Possible contributors to financial gaps: women less likely to work, have lower incomes, and own fewer assets, leading to lower collateral base.

### B. An Empirical Study of Gender Income Gaps

- Data and scope:
  - Approximately 20,000 anonymized micro observations from Labor Force Surveys in 2013 and 2023 from Malta’s National Statistical Office (NSO).
  - Real yearly incomes increased for both men and women between 2013 and 2023.
  - Median gender income gap: about 14 percent in 2014, narrowing to about 4 percent in 2023.
- Methodology and limitations:
  - Dependent variable: yearly salary (real yearly salary); OLS regressions use log of real yearly salary.
  - Controls: 7 age groups, 4 education levels, 3 different birth places, 10 industries, 10 occupations, and a part- vs full-time indicator.
  - Standard errors computed with the Huber/White/sandwich estimator.
  - Quantile regressions estimate gender gap at selected percentiles (including median).
  - Formula used to obtain exact percentage differences from estimated coefficients: %Diff = 100*(exp(β̂) − 1).
  - Limitations: lack of controls for household composition (marital status, number and age of children) and job characteristics (job tenure, work experience, overtime hours, managerial responsibilities).
- Key regression findings:
  - OLS (Model 1):
    - Mean pay gap dropped from 11.1 percent in 2013 to 5.8 percent in 2023, controlling for similar characteristics.
    - Median gap declined from 10.4 percent in 2013 to 6.0 percent in 2023.
  - Quantile regressions (Model 2):
    - In 2013, women in the 90th percentile earned approximately 14 percent less than men; at the 10th percentile the gap was around 10 percent.
    - By 2023, the 90th percentile gap decreased to 7.5 percent; the 10th percentile gap dropped to about 6 percent.
    - Overall, the gender pay gap increases with income levels but narrowed over time across the income distribution.
  - Interaction-term regressions:
    - Gender pay gaps shrank across all age groups between 2013 and 2023.
    - Significant reduction in gaps for those with tertiary education; gaps persist among those with lower educational attainment.
    - Gaps declined across places of birth, with non-EU workers driving much of the progress.
- Overall assessment:
  - While the overall gender income gap has decreased over the last decade, gender income gaps remain pervasive in Malta after controlling for characteristics impacting incomes.
  - Persistent issues include occupational segregation, underrepresentation of women in higher-paying sectors and senior roles, and incomplete translation of higher educational attainment into equivalent career outcomes for women.

### Summary findings on gender pay gaps (Section 2)

- Among full-time workers, the gender pay gap halved, while it remained statistically insignificant for part-time workers.
- The services sector led the way in closing wage gaps.
- Higher-skilled jobs demonstrated the strongest progress in pay equality.
- The Oaxaca-Blinder decomposition indicates the total average pay gap decreased from 0.209 log points in 2013 to 0.092 log points in 2023, with the explained portion falling from 43% to 10% and the unexplained portion rising from 57% to 89%.

### Key statistics (selected)

- Age groups (average marginal effects of being a woman; robust standard errors in parentheses):
  - 10-19: 2013 -0.122** (0.055); 2023 -0.079 (0.084)
  - 20-29: 2013 -0.112*** (0.016); 2023 -0.068*** (0.024)
  - 30-39: 2013 -0.102*** (0.018); 2023 -0.032 (0.024)
  - 40-49: 2013 -0.114*** (0.021); 2023 -0.075*** (0.024)
  - 50-59: 2013 -0.143*** (0.022); 2023 -0.072*** (0.027)
  - 60-69: 2013 -0.165*** (0.061); 2023 -0.102** (0.045)
  - 70-79: 2013 -0.515*** (0.139); 2023 -0.107 (0.293)
- Education levels:
  - No formal education, primary or lower secondary education: 2013 -0.149*** (0.015); 2023 -0.118*** (0.024)
  - Upper secondary education: 2013 -0.070*** (0.018); 2023 -0.085*** (0.021)
  - Post-secondary education: 2013 -0.047* (0.027); 2023 -0.012 (0.055)
  - Short-cycle tertiary education, Bachelor's, Master's or Doctoral level or equivalent: 2013 -0.141*** (0.019); 2023 -0.024 (0.021)
- Place of birth:
  - Malta: 2013 -0.114*** (0.009); 2023 -0.076*** (0.013)
  - Other EU-27 country: 2013 -0.097 (0.075); 2023 -0.010 (0.058)
  - Other non-EU-27 country: 2013 -0.248*** (0.063); 2023 -0.046 (0.030)
- Job type:
  - Full-time job: 2013 -0.128*** (0.009); 2023 -0.064*** (0.014)
  - Part-time job: 2013 -0.055 (0.039); 2023 -0.024 (0.057)
- Industry examples:
  - Agriculture, forestry, and fishing: 2013 -0.214** (0.102); 2023 0.007 (0.064)
  - Trade, transport, accommodation, and food services: 2013 -0.138*** (0.020); 2023 -0.075*** (0.028)
  - Information and communication: 2013 -0.125*** (0.047); 2023 0.029 (0.071)
  - Public administration, education, health, and social work: 2013 -0.115*** (0.013); 2023 -0.060*** (0.019)
- Occupation examples:
  - Managers: 2013 -0.131*** (0.035); 2023 -0.015 (0.049)
  - Professionals: 2013 -0.145*** (0.022); 2023 -0.055** (0.026)
  - Plant and Machine Operators, and Assemblers: 2013 -0.156*** (0.030); 2023 -0.121*** (0.046)
  - Elementary Occupations: 2013 -0.200*** (0.031); 2023 -0.195*** (0.044)
- Note: The numbers depict the average marginal effects of being a woman conditional on belonging to the relevant characteristic group. Robust standard errors calculated using the Delta method in parentheses. *** p<0.01, ** p<0.05, * p<0.1.

### Oaxaca-Blinder decomposition (selected)

- Log annual income:
  - Men: 2013 9.839***; 2023 9.912***
  - Women: 2013 9.629***; 2023 9.821***
  - Gap: 2013 0.209***; 2023 0.092***
- Gap decomposition:
  - Explained: 2013 0.089***; 2023 0.009
    - Share: 2013 43%; 2023 10%
  - Unexplained: 2013 0.120***; 2023 0.082***
    - Share: 2013 57%; 2023 89%
- *** p<0.01, ** p<0.05, * p<0.1

### Conclusions and policy considerations

- Progress and remaining gaps:
  - Malta has made significant progress reducing gender gaps over the last two decades, but gaps remain in representation in senior positions and incomes.
  - The female participation rate has increased to 73 percent - above the EU average - due to active government policies and an inflow of foreign workers.
  - Despite a higher share of women with a tertiary education than men, representation of women in senior positions remains low in the private sector.
  - Income gaps persist especially for women with less than tertiary education, in technical functions, and across most age categories, although the overall income gap narrowed significantly during the last decade.
- Policy directions:
  - Continue enhancing parental leave and flexible work arrangements.
  - Promote women in leadership positions.
  - Maintain commitment to addressing structural and cultural gender inequalities in the labor market.
  - Implement the government’s Gender Equality and Mainstreaming Strategy and Action Plan, 2022-2027, to bring a gender perspective into all stages and sectors of policymaking and drive further narrowing of gender gaps.

*Source: IMF Selected Issues Paper No. SIP/2025/009 — "Assessing Gender Gaps in Malta", prepared by Thomas Gade, Agnese Carella, Diego Gomes and Jiajia Gu; completed December 17, 2024.*

### Section 1

### Assessing Gender Gaps in Malta

### A. Malta’s Progress Towards Greater Gender Equality — Participation, Education, and Representation

- Female labor force participation increased from 36 percent in the early 2000s to 73 percent today, above the EU27 average.
- Participation for women aged 25-49 rose from 38 percent in 2004 to 86 percent in 2023.
- Participation for women aged 50-64 increased but remained at 54 percent.
- By 2023, foreign women represented approximately one-third of employed women.
- Policy actions and estimated impacts:
  - The 2014 National Employment Policy introduced measures including free childcare, tax incentives for returning women, and employment schemes for inactive persons.
  - Micallef (2018) estimates the reforms account for half of the increase in female participation between 2008 and 2015 and contributed to an estimated increase in potential GDP growth by around 0.3 percentage points during this period.
- Major policy measures (Box 1):
  - Free childcare services.
  - Tax credit for women returning to work after having children.
  - Tax deductions for childcare expenses, school fees, and medical expenses, and the long-standing child allowance.
  - 2022 work-life balance entitlements: extended paternity leave, parental leave, carers' leave, right to request flexible working arrangements.
  - Paid maternity leave increased from 14 weeks to 18 weeks; unpaid parental leave increased from three months to four months.
  - In-Work Benefit Scheme (2015) — means-tested benefit for low-income working families and single parents.
  - 2019: maternity benefit rate of self-employed women raised to the national minimum wage.
- Educational attainment:
  - Share of women with tertiary education rose to 34 percent, up from 10 percent two decades ago.
  - Share of men with tertiary education is 27.6 percent.
  - Women are well represented in social sciences, humanities, and education; underrepresented in STEM.
  - Initiatives: scholarships, mentorships, partnerships with industry leaders, inclusive education policies, gender equality programs, professional development and flexible working support.
- Representation and legal/financial frameworks:
  - Women are well represented in senior public administration roles but are underrepresented in leadership roles across government and businesses.
  - Malta introduced a gender-equalizing mechanism in the national parliament in its most recent election.
  - World Bank WBL Index: Malta’s legal frameworks score was 77.5; supportive frameworks for implementing these laws scored 58.3; expert opinions scored 87.5.
  - Financial access gaps in 2022:
    - Female share of outstanding household loans with commercial banks: 26.9 percent; male share: 73.1 percent.
    - Female share of household deposits: 42 percent; male share: 58 percent.
  - Possible contributors to financial gaps: women less likely to work, have lower incomes, and own fewer assets, leading to lower collateral base.

### B. An Empirical Study of Gender Income Gaps

- Data and scope:
  - Approximately 20,000 anonymized micro observations from Labor Force Surveys in 2013 and 2023 from Malta’s National Statistical Office (NSO).
  - Real yearly incomes increased for both men and women between 2013 and 2023.
  - Median gender income gap: about 14 percent in 2014, narrowing to about 4 percent in 2023.
- Methodology:
  - Dependent variable: yearly salary (real yearly salary); OLS regressions use log of real yearly salary.
  - Controls: 7 age groups, 4 education levels, 3 different birth places, 10 industries, 10 occupations, and a part- vs full-time indicator.
  - Standard errors computed with the Huber/White/sandwich estimator.
  - Quantile regressions estimate gender gap at selected percentiles (including median).
  - Formula used to obtain exact percentage differences from estimated coefficients: %Diff = 100*(exp(β̂) − 1).
  - Limitations: lack of controls for household composition (marital status, number and age of children) and job characteristics (job tenure, work experience, overtime hours, managerial responsibilities).
- Key regression findings:
  - Model 1 (OLS):
    - Mean pay gap dropped from 11.1 percent in 2013 to 5.8 percent in 2023, controlling for similar characteristics.
    - Median gap declined from 10.4 percent in 2013 to 6.0 percent in 2023.
  - Model 2 (quantile regressions):
    - In 2013, women in the 90th percentile earned approximately 14 percent less than men; at the 10th percentile the gap was around 10 percent.
    - By 2023, the 90th percentile gap decreased to 7.5 percent; the 10th percentile gap dropped to about 6 percent.
    - Overall, the gender pay gap increases with income levels but narrowed over time across the income distribution.
  - Interaction-term regressions:
    - Gender pay gaps shrank across all age groups between 2013 and 2023.
    - Significant reduction in gaps for those with tertiary education; gaps persist among those with lower educational attainment.
    - Gaps declined across places of birth, with non-EU workers driving much of the progress.
- Overall assessment:
  - While the overall gender income gap has decreased over the last decade, gender income gaps remain pervasive in Malta after controlling for characteristics impacting incomes.
  - Persistent issues include occupational segregation, underrepresentation of women in higher-paying sectors and senior roles, and incomplete translation of higher educational attainment into equivalent career outcomes for women.

*Source: IMF Selected Issues Paper No. SIP/2025/009 — "Assessing Gender Gaps in Malta", prepared by Thomas Gade, Agnese Carella, Diego Gomes and Jiajia Gu; completed December 17, 2024.*

### Section 2

### Section 2

### Summary findings on gender pay gaps
- Among full-time workers, the gender pay gap halved, while it remained statistically insignificant for part-time workers.
- The services sector led the way in closing wage gaps.
- Higher-skilled jobs demonstrated the strongest progress in pay equality.
- The Oaxaca-Blinder decomposition indicates the total average pay gap decreased from 0.209 log points in 2013 to 0.092 log points in 2023, with the explained portion falling from 43% to 10% and the unexplained portion rising from 57% to 89%.

### Key statistics (Table 1: Gender Income Gaps in Malta for Selected Worker Characteristics)
- Age groups (average marginal effects of being a woman; robust standard errors in parentheses):
  - 10-19: 2013 -0.122** (0.055); 2023 -0.079 (0.084)
  - 20-29: 2013 -0.112*** (0.016); 2023 -0.068*** (0.024)
  - 30-39: 2013 -0.102*** (0.018); 2023 -0.032 (0.024)
  - 40-49: 2013 -0.114*** (0.021); 2023 -0.075*** (0.024)
  - 50-59: 2013 -0.143*** (0.022); 2023 -0.072*** (0.027)
  - 60-69: 2013 -0.165*** (0.061); 2023 -0.102** (0.045)
  - 70-79: 2013 -0.515*** (0.139); 2023 -0.107 (0.293)
- Education levels:
  - No formal education, primary or lower secondary education: 2013 -0.149*** (0.015); 2023 -0.118*** (0.024)
  - Upper secondary education: 2013 -0.070*** (0.018); 2023 -0.085*** (0.021)
  - Post-secondary education: 2013 -0.047* (0.027); 2023 -0.012 (0.055)
  - Short-cycle tertiary education, Bachelor's, Master's or Doctoral level or equivalent: 2013 -0.141*** (0.019); 2023 -0.024 (0.021)
- Place of birth:
  - Malta: 2013 -0.114*** (0.009); 2023 -0.076*** (0.013)
  - Other EU-27 country: 2013 -0.097 (0.075); 2023 -0.010 (0.058)
  - Other non-EU-27 country: 2013 -0.248*** (0.063); 2023 -0.046 (0.030)
- Job type:
  - Full-time job: 2013 -0.128*** (0.009); 2023 -0.064*** (0.014)
  - Part-time job: 2013 -0.055 (0.039); 2023 -0.024 (0.057)
- Industry:
  - Agriculture, forestry, and fishing: 2013 -0.214** (0.102); 2023 0.007 (0.064)
  - Manufacturing, energy, and utilities: 2013 -0.087*** (0.022); 2023 -0.097** (0.040)
  - Construction: 2013 -0.092 (0.065); 2023 -0.140* (0.076)
  - Trade, transport, accommodation, and food services: 2013 -0.138*** (0.020); 2023 -0.075*** (0.028)
  - Information and communication: 2013 -0.125*** (0.047); 2023 0.029 (0.071)
  - Finance and insurance: 2013 -0.051 (0.039); 2023 -0.046 (0.051)
  - Real estate: 2013 -0.257** (0.118); 2023 0.063 (0.111)
  - Professional, business, and support services: 2013 -0.158*** (0.041); 2023 -0.029 (0.040)
  - Public administration, education, health, and social work: 2013 -0.115*** (0.013); 2023 -0.060*** (0.019)
  - Arts, entertainment, and other services: 2013 -0.123** (0.055); 2023 -0.062 (0.053)
- Occupation:
  - Managers: 2013 -0.131*** (0.035); 2023 -0.015 (0.049)
  - Professionals: 2013 -0.145*** (0.022); 2023 -0.055** (0.026)
  - Technicians and Associate Professionals: 2013 -0.069*** (0.024); 2023 -0.019 (0.031)
  - Clerical Support Workers: 2013 -0.017 (0.023); 2023 -0.022 (0.033)
  - Service and Sales Workers: 2013 -0.146*** (0.020); 2023 -0.067*** (0.026)
  - Skilled Agricultural, Forestry, and Fishery Workers: 2013 -0.214** (0.100); 2023 0.013 (0.064)
  - Craft and Related Trades Workers: 2013 -0.035 (0.052); 2023 -0.162 (0.131)
  - Plant and Machine Operators, and Assemblers: 2013 -0.156*** (0.030); 2023 -0.121*** (0.046)
  - Elementary Occupations: 2013 -0.200*** (0.031); 2023 -0.195*** (0.044)
  - Armed Forces Occupations: 2013 0.086*** (0.027); 2023 0.220*** (0.044)
- Note: The numbers depict the average marginal effects of being a woman conditional on belonging to the relevant characteristic group. Robust standard errors calculated using the Delta method in parentheses. *** p<0.01, ** p<0.05, * p<0.1.

### Oaxaca-Blinder decomposition (Table 2)
- Log annual income:
  - Men: 2013 9.839***; 2023 9.912***
  - Women: 2013 9.629***; 2023 9.821***
  - Gap: 2013 0.209***; 2023 0.092***
- Gap decomposition:
  - Explained: 2013 0.089***; 2023 0.009
    - Share: 2013 43%; 2023 10%
  - Unexplained: 2013 0.120***; 2023 0.082***
    - Share: 2013 57%; 2023 89%
- *** p<0.01, ** p<0.05, * p<0.1

### Conclusions and policy considerations
- Progress and remaining gaps:
  - Malta has made significant progress reducing gender gaps over the last two decades, but gaps remain in representation in senior positions and incomes.
  - The female participation rate has increased to 73 percent - above the EU average - due to active government policies and an inflow of foreign workers.
  - Despite a higher share of women with a tertiary education than men, representation of women in senior positions remains low in the private sector.
  - Income gaps persist especially for women with less than tertiary education, in technical functions, and across most age categories, although the overall income gap narrowed significantly during the last decade.
- Policy directions:
  - Continue enhancing parental leave and flexible work arrangements.
  - Promote women in leadership positions.
  - Maintain commitment to addressing structural and cultural gender inequalities in the labor market.
  - Implement the government’s Gender Equality and Mainstreaming Strategy and Action Plan, 2022-2027, to bring a gender perspective into all stages and sectors of policymaking and drive further narrowing of gender gaps.

*Source: sipea2025009 - Section 2*

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_Source: https://www.imf.org/-/media/files/publications/selected-issues-papers/2025/english/sipea2025009.pdf_