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The unadjusted gender pay gap in the EU. Didier Dupré, Eurostat unit F2 didier.dupre@ec.europa.eu UNECE Work Session on Gender Statistics SESSION I: Gender differences in economic security Sub-session A. Gender Pay Gap. The Framework.
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The unadjusted gender pay gap in the EU Didier Dupré, Eurostat unit F2 didier.dupre@ec.europa.eu UNECE Work Session on Gender Statistics SESSION I: Gender differences in economic security Sub-session A. Gender Pay Gap
The Framework • 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 Eurostat – The unadjusted Gender Pay Gap in the European Union
The Definition • 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 Eurostat – The unadjusted Gender Pay Gap in the European Union
The unadjusted GPG, whole economy*, 2008, % * NACE Rev 2 B to S excluding O Eurostat – The unadjusted Gender Pay Gap in the European Union
The non-adjustment effect (1) Eurostat – The unadjusted Gender Pay Gap in the European Union
The non-adjustment effect (2), 2008 Eurostat – The unadjusted Gender Pay Gap in the European Union
GPG by educational attainment, 2006 Eurostat – The unadjusted Gender Pay Gap in the European Union
GPG by age groups, 2006 Eurostat – The unadjusted Gender Pay Gap in the European Union
Detailed breakdowns from SES: GPG calculator (*) (*) Other characteristics required: sector of economy, occupation, size enterprise Eurostat – The unadjusted Gender Pay Gap in the European Union
http://ec.europa.eu/social/main.jsp?catId=835&langId=en Eurostat – The unadjusted Gender Pay Gap in the European Union
Towards an adjusted GPG ? • 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 Eurostat – The unadjusted Gender Pay Gap in the European Union
Some results from the 2008 econometric study (%) (*) 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 Eurostat – The unadjusted Gender Pay Gap in the European Union
Complementary analysis: dispersion, e.g., low wage earners* * full-time employees having annual gross earnings lower than two thirds of the annual full-time median gross earnings Eurostat – The unadjusted Gender Pay Gap in the European Union
Conclusions: How to improve the pay gap analysis / monitoring ? • 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) Eurostat – The unadjusted Gender Pay Gap in the European Union