In current research, the extensive family policies of the Scandinavian countries have been problematized and described as hampering women’s careers. However, mechanisms have been little investigated and the Scandinavian countries are often regarded as a single policy model. Based on an account of institutional variety we study gender gaps in hourly wages and access to authority positions in Denmark, Finland, Norway and Sweden and explore the importance of segregation, skills and work interruptions. The analysis uses pooled cross-sectional data from the European Social Survey (ESS) for 2004 and 2010. The results show that gender gaps vary both in size and regarding the mechanisms producing them. In particular, we find that gender segregation has a radically different impact in the four countries. The analysis suggests that the mechanisms linking family policies to labour market outcomes are more complex than envisaged in the current debate and point to the importance of comparing seemingly similar countries.