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Bilateral Fund – The initiatives

THE INTIATIVESALL ABOUT DOCUMENTATION

Reducing the child penalty of mothers in the Greek labour market: Lessons from Norway

Increasing the employment rate of women was a critical condition for improving living standards, both individually and nationally. Across Europe—and beyond—there had been significant potential to boost overall employment by activating women who remained economically inactive.

In Greece, women’s employment had risen markedly over the past four decades, increasing from 35.8% in 1981 to 57.8% in the first quarter of 2024 among women aged 20–64. Institutional reforms, such as changes to family law, together with the favourable economic environment following Greece’s accession to the European Union in the late 1980s, had contributed substantially to women’s increased labour market participation.

Despite this progress, Greece’s female employment rate remained below the EU average of 70.3% (Q1 2024). Moreover, although the gender employment gap had narrowed over time, it still stood at 20 percentage points, compared to 10 percentage points across the EU.

Project Focus

This research project drew on the Norwegian experience—characterised by high female employment rates and an almost non-existent “child penalty”—as well as international evidence. Its aim was to identify effective policy measures that could alleviate barriers to women’s employment in Greece.

The importance of this issue could not be overstated: the persistent underemployment of women limited Greece’s economic growth potential, delayed progress toward gender equality and empowerment, and constrained women’s opportunities for personal development and well-being.

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