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Iceland’s first full-day women’s strike in 48 years aims to close pay gap
(www.theguardian.com)
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As someone from a third world country living in a first world country, yeah the difference is still there and depending on where you are in the third world, it's not decreasing.
I think it's mostly the term that is being criticised. It originated from the capitalist/communist/irrelevant categorization of countries during the cold war. As such it does not actually describe much. No one would call Russia a second world country. The definition and colloquial use has diverged.
The term developing country is in my opinion much more descriptive.