Gender wage gap in small islands: Effect of a policy framework in Mauritius

Mauritius is classified as a high‐income small island country. However, gender inequalities are still prevalent and therefore need to be addressed. This paper analyses the attempts made by the country to improve gender parity through the adoption of a national gender policy framework (NGPF) in 2008, using difference‐in‐differences with pooled cross‐sectional data from Household Budget Surveys 2007, 2012 and 2017. The results indicate that no significant gender wage gap changes occurred in 2012 after controlling for human capital, industry, and occupation. On a longer run, the interaction of the gender and year variable was significant in 2017 only when controlling for industry and occupation. This study shows that the NGPF can help women climb the economic ladder within their occupation but does not help them increase their occupational prestige by moving to a higher‐paying occupation. More focused policies with clear action plans, for instance, those that will promote the inclusion of women in high‐level positions, will reduce the gender wage gap. Encouraging women to participate in the knowledge‐based, high‐income economy of Mauritius by overcoming the skills mismatch that pervades in sectors with fastest growth is a potential strategy for improving gender wage parity.