In the UK, for example, the gap went down from almost 50% in 1970 to about 17% in 2016. In some cases the reduction is remarkable. Here we see that the gap is large in most OECD countries, but it has been going down in the last couple of decades. These estimates include OECD member states, as well as some other non-member countries, and they are the longest available series of cross-country data on the gender pay gap that we are aware of. How is the gender pay gap changing over time? To answer this question, let's consider this chart showing available estimates from the OECD. In most countries the gender pay gap has decreased in the last couple of decades This happens in some countries, such as Malaysia.) If it is negative, it means that, on an hourly basis, men earn on average less than women. By this measure the gender wage gap can be positive or negative. 1Īs we can see: (i) in most countries the gap is positive – women earn less than men and (ii) there are large differences in the size of this gap across countries. The estimates shown here correspond to differences between average hourly earnings of men and women (expressed as a percentage of average hourly earnings of men), and cover all workers irrespective of whether they work full time or part time. You can add observations by clicking on the option 'add country or region' at the bottom of the chart. The visualization here presents this data. In most countries there is a substantial gender pay gapĬross-country data on the gender pay gap is patchy, but the most complete source in terms of coverage is the United Nation's International Labour Organization (ILO). (You can read about discrimination and 'equal pay for equal work' in our post here). Both discrimination and inequality are important. The implication is that observing differences in pay between men and women is neither necessary nor sufficient to prove discrimination in the workplace. Similarly, it is possible to observe large pay gaps in the absences of discrimination in hiring practices – for example, if women get fair treatment but apply for lower-paid jobs. On the contrary, when the gap is calculated after accounting for underlying differences in education, experience, etc., then the result is the 'adjusted' pay gap.ĭiscrimination in hiring practices can exist in the absence of pay gaps – for example, if women know they will be treated unfairly and hence choose not to participate in the labor market. When the gender pay gap is calculated by comparing all male workers to all female workers – irrespective of differences along these additional dimensions – the result is the 'raw' or 'unadjusted' pay gap. It's a measure of inequality and captures a concept that is broader than the concept of equal pay for equal work.ĭifferences in pay between men and women capture differences along many possible dimensions, including worker education, experience and occupation. The gender pay gap (or the gender wage gap) is a metric that tells us the difference in pay (or wages, or income) between women and men. The gender pay gap measures inequality but not necessarily discrimination Here we try to answer these questions, providing an empirical overview of the gender pay gap across countries and over time. But what is it? What does it tell us? Is it different from country to country? How does it change over time? The 'gender pay gap' comes up often in political debates, policy reports, and everyday news.
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