The Gender Pay Gap – A Brief Analysis

This chart shows what most of us would regard as a generally positive trend – the decline in the gender pay gap – which is down to 9% for full-time workers, and even lower for part-time workers.

Gender Pay Gap 1 2014

However, there’s a lot more going on than this….

For starters, there is considerable variation by age – with women in their 20s and 30s actually earning more than men in the same age categories, with  a significant pay gap then emerging between older workers.

Gender Pay Gap by Age

The ONS notes that the gender pay gap between workers 40+ is probably down to women taking time off to become primary child carers, which to my mind is pretty bleak – Given the ‘negative’ gender pay gap between younger workers, this suggests women are getting into jobs which will give them the same (or better) wages than men (reflecting their higher educational achievement) but that this is then abruptly reversed when childcare responsibilities fall on the mother rather than the father.

It also seems that women in higher paid jobs lose out more compared to men in lower paid jobs – with the gender pay gap for the highest 10% of earners being near 20%, while it’s nearer 5% for the lowest 10% of earners (so rich women are less equal to rich men than poor women are to poor men, at least if we look purely at income). Of course this will also reflects the gendered age differences in the chart above.

Employment - gender pay gap

However to complicate matters there’s not a straightforward correlation between occupational class and the gender pay gap – it’s actually the traditionally masculine jobs which have the highest gender pay gap, not the highest income ‘professional and managerial’ jobs.

 gender pay gap occupation

There’s various explanations for this larger gender pay gap in traditionally male occupations – It could simply be the later entry of women into such occupations compared to women going into the professions – thus there are fewer older women than older men, so women on average earn less compared to men because older workers earn more than younger. An alternative explanation would be that women who go into these professions are less likely to return them after taking time out to raise children, in which case the question of whether this lack of return is due to gender-barriers, or genuine free-choice would arise. Of course, it’s probably a mixture of all three of these reasons.

Finally, it might be worth exploring what’s going in in Northern Ireland that’s led to such a significant reduction in the gender pay gap….. Whether this is down to social policy or just societal changes I don’t know, drop me a line if you do!

Employment - gender pay gap 1997 to 2014

 

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