Austria’s gender pay gap reached 18.3% in 2023, making it one of the highest in the European Union. This disparity is pronounced among young workers and reflects also systemic barriers such as occupational segregation, part-time employment and unequal care responsibilities. In contrast Luxembourg (-0.9%) has reduced these disparities through policies like pay transparency enforcement or childcare allowance.

This study compares the youth gender pay gap in Austria and Luxembourg between 2010 and 2023. In order to comprehend structural inequities, it examines studies on youth labour rights and policy using the intersectional and institutional theory approach. The research contrasts organisational and policy practices using policy analysis and qualitative case studies.

The research question asks how Austria can adapt successful youth-oriented policies from Luxembourg to tackle its structural and intersectional gender pay gap challenges. Findings suggest Austria’s youth-focused measures have been less eOective because of the weak policy implementation and failure to address intersectional factors such as migration status, education and sectoral segregation aOecting young women and LGBTQ+ workers.

The study offers targeted recommendations for institutional reform and youth-inclusive policy changes with the aim to narrow Austria’s gender pay gap and aligning with broader EU gender equality objectives.