The unadjusted gender pay gap in the EU
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Transcript of The unadjusted gender pay gap in the EU
26 April 2010
The unadjusted gender pay gap in the EUDidier Dupré, Eurostat unit F2
UNECE Work Session on Gender StatisticsSESSION I: Gender differences in economic securitySub-session A. Gender Pay Gap
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Inequality in pay between men and women remains high in EU
05/03/2010 (Women’s Charter): the European Commission
announced its goal of significantly reducing the pay gap between
men and women over the next five years
In the EU the unadjusted Gender Pay Gap (GPG) is:
– A key indicator in the framework of the Commission Strategy for
equality between women and men
– A European Structural Indicator (Lisbon strategy)
– A Sustainable Development Indicator (SD Strategy)
Defined at macro level for monitoring policies
The Framework
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Agreed with DG EMPL and the NSIs - the GPG is:– Unadjusted (no consensus / scientific evidence on adjustment method)
– Calculated using average gross hourly earnings:
• Hourly earnings: eliminates effects of differences in use of part time
work, includes paid overtime (but excludes non-regular payments)
• Average: arithmetic mean
– Based on the EU harmonised four-yearly Structure of Earnings Survey
(SES) + national estimates for the years between the SES benchmark
years - NACE Rev 2 B to S excluding O, enterprises 10 employees
average gross hourly earnings of male paid employees average gross hourly earnings of female paid employees
GPG (%) = ------------------------------------------------------------------ average gross hourly earnings of male paid employees
The Definition
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The unadjusted GPG, whole economy*, 2008, %
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
EU
-27
EA
-16
EE
CZ AT
NL
DE EL LT CY
UK
SK FI FR CH
HU
NO SE
ES IE DK
BG LV LU PL
PT
MT
RO BE SI IT
* NACE Rev 2 B to S excluding O
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The non-adjustment effect (1)
Country « X » Average gross hourly earnings €
GPG %
Share of total employment %
Men Women Men Women
Industry, energy, construction
10.0 7.0 30.0 50 15
Trade, transport, business, finance
14.0 11.0 21.4 35 35
Education, health, social, personal services
18.0 15.0 16.7 15 50
Whole economy (NACE Rev 2 B to S excluding O)
12.6 12.4 1.6 100 100
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The non-adjustment effect (2), 2008
0
5
10
15
20
25
30
15 20 25 30 35 40 45 50 55 60
employment rate of women with lower education %
GP
G %
EE
CZ
IT
SIBEPL
NO DK
PT
ROMT
LU
NL
LVBG
UK
SE
AT
LTSK
EL
HU IE
CY
DE
FI
ES
EU-27 / EA-16FR
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GPG by educational attainment, 2006
0
5
10
15
20
25
30
35
EU-27 EA-16 BE BG CZ EL FR LT UK
%
Lower education Higher education
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GPG by age groups, 2006
-5
0
5
10
15
20
25
30
35
EU-27 EA-16 DK ES HU PL PT SK SE
%
<30 years 30-39 years 40-49 years 50 years+
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Detailed breakdowns from SES: GPG calculator (*)
(*) Other characteristics required: sector of economy, occupation, size enterprise
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http://ec.europa.eu/social/main.jsp?catId=835&langId=en
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Controlling for observable characteristics (in the SES) of workers and
enterprises can provide a first indication of the contributions from different
factors to the size of the GPG and of elements for possible adjustments
Self-selection effects (i.e. when only those women that can expect high
earnings participate in the labour market) can be also modelled based on
observable variables (in the SES)
Study on the "Development of econometric methods to evaluate the
Gender pay gap using Structure of Earnings Survey data" launched by
Eurostat in 2008 (Maastricht University)
However, any survey provides only a limited number of observable
variables and an adjusted GPG would not provide a fully comparable
measure
Towards an adjusted GPG ?
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Some results from the 2008 econometric study (%)
Raw(*) GPG OLS(**) GPG OLS(**) + self-selection(***) GPG
DK 21.3 (17.1) 12.0 12.3
DE 27.0 (23.2) 15.1 16.2
IE 17.8 (17.1) 15.7 7.7
EL 21.7 (22.0) 11.0 5.7
ES 18.4 (17.1) 19.4 16.2
IT 4.3 ( 4.9) 13.4 9.0
NL 23.4 (23.6) 12.1 5.1
AT 26.9 (25.5) 16.9 17.2
PT 8.1 ( 9.2) 20.2 15.7
FI 21.6 (20.0) 15.8 19.4
UK 25.3 (21.4) 13.5 16.1(*) Unadjusted and from SES but using slightly different calculations as the (Eurostat unadjusted GPG) (**) Based on age, education, occupation, FT/PT, term of contract, private/public and size enterprise(**) Based on age, education, gender and its interactions with the 2 other variables
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Complementary analysis: dispersion, e.g., low wage earners*
0
5
10
15
20
25
30
35
%
Men Women
* full-time employees having annual gross earnings lower than two thirds of theannual full-time median gross earnings
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Concept of equal pay for equal work: mainly at micro level
Adjusted GPG: would not provide a fully comparable measure
How to progress ?– Supplementary indicator to the unadjusted GPG: measuring an
unadjusted gender pay gap using the median instead of the mean
– Complementary analysis: e.g., wage dispersion
– Further developments: access for researchers to the SES microdata in the Eurostat Safe Centre and to the SES anonymised microdata (CD-Rom)
Conclusions: How to improve the pay gap analysis / monitoring ?