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Hub AI
Gender pay gap AI simulator
(@Gender pay gap_simulator)
Hub AI
Gender pay gap AI simulator
(@Gender pay gap_simulator)
Gender pay gap
The gender pay gap or gender wage gap is the average difference between the remuneration for men and women who are employed. Women are generally found to be paid less than men. There are two distinct measurements of the pay gap: non-adjusted versus adjusted pay gap. The latter typically takes into account differences in hours worked, occupations chosen, education and job experience. In other words, the adjusted values represent how much women and men make for the same work, while the non-adjusted values represent how much the average man and woman make in total. In the United States, for example, the non-adjusted average woman's annual salary is 79–83% of the average man's salary, compared to 95–99% for the adjusted average salary. The reasons for the gap link to legal, social and economic factors. These include having children (motherhood penalty vs. fatherhood bonus), parental leave, gender discrimination and gender norms. Additionally, the consequences of the gender pay gap surpass individual grievances, leading to reduced economic output, lower pensions for women, and fewer learning opportunities.
More recently, other factors (such as the burden of healthcare costs) have been incorporated in to the measurement of the adjusted pay gap. The World Bank has said that the gap increases even further when taking in to account these factors, and that previous studies may have under-estimated the size of the gender pay gap.
The global gender pay gap now stands at 68.5%. Recently, the pay gap has decreased most rapidly in Global South countries. In the European Union, there has been little change in the gender pay gap in the 21st century. In the United States, the pay gap has likewise held steady, although in 2023 the pay gap actually increased across all age groups, as men's wages have increased at a higher rate than women's.
The gender pay gap can be a problem from a public policy perspective in developing countries because it reduces economic output and means that women are more likely to be dependent upon welfare payments, especially in old age.
In the United States, women's pay has increased relative to men since the 1960s. According to US census data, women's median earnings in 1963 were 56% of men's. In 2016, women's median earnings had increased to 79% of men's. Analysis from the Institute for Women's Policy Research published in 2017 predicted that average pay would reach parity in 2059.
According to a 2021 study on historical gender wage ratios, women in Southern Europe earned approximately half that of unskilled men between 1300 and 1800. In Northern and Western Europe, the ratio was far higher but it declined over the period 1500–1800.
A 2005 meta-analysis by Doris Weichselbaumer and Rudolf Winter-Ebmer of more than 260 published pay gap studies for over 60 countries found that, from the 1960s to the 1990s, raw (non-adjusted) wage differentials worldwide have fallen substantially from around 65% to 30%. The bulk of this decline, was due to better labor market endowments of women (i.e. better education, training, and work attachment).
Another meta-analysis of 41 empirical studies on the wage gap performed in 1998 found a similar time trend in estimated pay gaps, a decrease of roughly 1% per year.
Gender pay gap
The gender pay gap or gender wage gap is the average difference between the remuneration for men and women who are employed. Women are generally found to be paid less than men. There are two distinct measurements of the pay gap: non-adjusted versus adjusted pay gap. The latter typically takes into account differences in hours worked, occupations chosen, education and job experience. In other words, the adjusted values represent how much women and men make for the same work, while the non-adjusted values represent how much the average man and woman make in total. In the United States, for example, the non-adjusted average woman's annual salary is 79–83% of the average man's salary, compared to 95–99% for the adjusted average salary. The reasons for the gap link to legal, social and economic factors. These include having children (motherhood penalty vs. fatherhood bonus), parental leave, gender discrimination and gender norms. Additionally, the consequences of the gender pay gap surpass individual grievances, leading to reduced economic output, lower pensions for women, and fewer learning opportunities.
More recently, other factors (such as the burden of healthcare costs) have been incorporated in to the measurement of the adjusted pay gap. The World Bank has said that the gap increases even further when taking in to account these factors, and that previous studies may have under-estimated the size of the gender pay gap.
The global gender pay gap now stands at 68.5%. Recently, the pay gap has decreased most rapidly in Global South countries. In the European Union, there has been little change in the gender pay gap in the 21st century. In the United States, the pay gap has likewise held steady, although in 2023 the pay gap actually increased across all age groups, as men's wages have increased at a higher rate than women's.
The gender pay gap can be a problem from a public policy perspective in developing countries because it reduces economic output and means that women are more likely to be dependent upon welfare payments, especially in old age.
In the United States, women's pay has increased relative to men since the 1960s. According to US census data, women's median earnings in 1963 were 56% of men's. In 2016, women's median earnings had increased to 79% of men's. Analysis from the Institute for Women's Policy Research published in 2017 predicted that average pay would reach parity in 2059.
According to a 2021 study on historical gender wage ratios, women in Southern Europe earned approximately half that of unskilled men between 1300 and 1800. In Northern and Western Europe, the ratio was far higher but it declined over the period 1500–1800.
A 2005 meta-analysis by Doris Weichselbaumer and Rudolf Winter-Ebmer of more than 260 published pay gap studies for over 60 countries found that, from the 1960s to the 1990s, raw (non-adjusted) wage differentials worldwide have fallen substantially from around 65% to 30%. The bulk of this decline, was due to better labor market endowments of women (i.e. better education, training, and work attachment).
Another meta-analysis of 41 empirical studies on the wage gap performed in 1998 found a similar time trend in estimated pay gaps, a decrease of roughly 1% per year.