Progress On The Gender Pay Gap: 2019 - Glassdoor
Progress on the GenderPay Gap: 2019Andrew Chamberlain, Ph.D.,Chief EconomistDaniel ZhaoSenior Economist & Data ScientistAmanda StansellEconomic Research Analyst
PROGRESS ON THE GENDER PAY GAP: 2019Contents03KEY FINDINGS48GERMANY07I. INTRODUCTION52FRANCE08II. OUR APPROACH56THE NETHERLANDS13III. THE GENDER PAY GAP60CONCLUSION: PAY GAPSAROUND THE WORLD14UNITED STATES62IV. DO WOMEN ASK FOR EQUAL32UNITED KINGDOM36CANADA71V. CONCLUSION40AUSTRALIA74REFERENCES44SINGAPORE75END NOTESPAY FOR EQUAL WORK?2
PROGRESS ON THE GENDER PAY GAP: 2019Key FindingsThis study examines how gender pay gaps around the world The gender pay gap is narrowing. The U.S. adjusted pay gaphave changed since Glassdoor’s initial study in 2016. Leveraginghas steadily dropped from 6.5 percent in 2011 to 4.6 percent inhundreds of thousands of salary reports, including detailed2018. A tighter labor market, higher labor force participation byworker and job information shared voluntarily and anonymouslywomen and greater awareness of the gender pay gap all likelyby employees on Glassdoor, we estimate the gender pay gap incontribute to this progress. However, if these trends continueeight countries: the United States, the United Kingdom, Canada,at the same pace, the adjusted gender pay gap still may not fullyGermany, France, the Netherlands, Singapore, and Australia.close until the year 2070. The chart below shows two possiblescenarios for how long it may take to close the U.S. gender paygap based on the downward trend between 2010 and 2018.Using Glassdoor’s unique data, we project, given the currentrate, how long it could take to achieve gender pay equality in theU.S. Also, we consider whether a “salary confidence gap” existsTime to Close the U.S. Gender Pay Gapbetween the pay men and women seek when applying to jobs,and how this may contribute to the overall pay gap.8%7% Key takeaway. The gender pay gap persists in the UnitedStates and around the world. Men earn more than women on6%5%4%average in all eight countries we studied, even after applying3%statistical controls for worker and job characteristics to2%ensure an apples-to-apples comparison. Even though1%women do not receive equal pay for equal work yet, progress0%is slowly being made; the pay gap has narrowed since ourlast study in 2016.201020202030Actual20402050Conservative Estimate20602070Optimistic EstimateSource: Glassdoor Economic Research (Glassdoor.com/research).3
PROGRESS ON THE GENDER PAY GAP: 2019 How large is the gap right now? Based on over 425,000 How does the pay gap compare internationally? Across all eightsalaries shared by full-time U.S. employees on Glassdoor, mencountries we examined, the large unadjusted gender pay gapearn 21.4 percent higher base pay than women on average.shrinks to a smaller adjusted pay gap once statistical controlsHowever, comparing workers of similar age, education andare added. Germany has the largest unadjusted gap with womenexperience shrinks that gap to 19.1 percent. Furthermore,earning about 78 cents per euro men earn while France has theafter comparing workers with the same job title, employersmallest unadjusted gap with women earning about 88 cents perand location, the gender pay gap in the U.S. falls to 4.9 percenteuro men earn. Australia has the smallest adjusted gap with women(95.1 cents per dollar).earning 97 cents per dollar men earn, while the Netherlands hasthe largest adjusted gap with women earning 93 cents per euro.The Gender Pay Gap By Country“UNADJUSTED” BASE GENDER PAY GAP“ADJUSTED” BASE GENDER PAY GAPAverage Cents/Pence Earnedby Women Per Dollar/Pound/Euroof Male EarningsPercentage MalePay AdvantageAverage Cents/Pence Earnedby Women Per Dollar/Pound/Euroof Male EarningsPercentage MalePay 0.963.7%Canada0.8416.1%0.964.0%United States0.7921.4%0.954.9%United 6%Source: Glassdoor Economic Research (Glassdoor.com/research).4
PROGRESS ON THE GENDER PAY GAP: 2019What factors drive the gender pay gap? Comparing workers withpurchasing specialist occupations. Among jobs with the largestsimilar education, experience and job characteristics like occupation orpay gaps, computer programmer saw the most improvement inindustry helps us understand what drives the overall gender pay gap andits pay gap since our 2016 study.how much remains after statistical controls. The pay gap grows with age. Younger workers face a smaller Industry matters. In the U.S., the adjusted gender pay gap isgender pay gap than older workers. In the U.S., workers aged 18largest in media; retail; and construction, repair & maintenanceto 24 years face a small adjusted gender pay gap of 1.4 percent.industries. It is smallest in biotech & pharmaceuticals; education;By contrast, older workers aged 55 to 64 years face a gender payand aerospace & defense industries. Since 2015, non-profit;gap of 12.3 percent, over twice the national average.health care; and real estate industries had the largest reductionsin gender pay gaps whereas restaurants, bars & food service; Differences in education and experience are shrinking. Thetravel & tourism; and oil, gas, energy & utilities industries havepercentage of the pay gap explained by differences in educationseen the largest increase. Although many tech jobs have largeand experience shrank from 14 percent to 7.9 percent since ourgender pay gaps, the overall information technology sector fallslast study, as women make up an increasing share of students atin the middle of the pack among industries.universities and workers gaining experience in the labor force. Job titles matter. In general, many executive, tech and blue- Occupational and industry segregation continues to be thecollar jobs top the list for largest gender pay gaps. In thelargest driver of the gender pay gap in the U.S. The singleU.S., the adjusted gender pay gap is largest for pilot, chef,biggest cause of the gender pay gap is the tendency of men andC-suite executive, deputy manager, branch manager, retailwomen to sort into jobs and industries that pay differently. Inrepresentative, and driver occupations. The gender pay gap isthe U.S., occupational and industry sorting explains about 56.5smallest for merchandiser, research assistant, field services,percent of the overall pay gap—by far the largest factor.inventory specialist, social worker, logistics manager and5
PROGRESS ON THE GENDER PAY GAP: 2019Does a “salary confidence gap” contribute to the gender pay gap?from equally-qualified men and women seeking similar jobs,A confidence gap—men being more self-confident in the workplacethe “salary confidence gap” drops to less than one percent (0.7than women—could translate into a gender pay gap if women seekpercent). That means a gap in pay expectations between men andlower pay than men when they apply to new jobs. In this study, wewomen doesn’t likely explain much of today’s gender pay gap.examine the salary confidence gap using real-world job applicationsfrom Glassdoor, to see whether women and men seek out equal payfor equal work. Women and men seek the same percentage raises whenswitching jobs. When aiming for new jobs, men and womenboth seek similar percentage pay raises on Glassdoor, about 33 Overall, men do apply to higher paying jobs than women. Menpercent. Since women start from a lower average base pay, thatapply to jobs that pay 18.3 percent more on average than jobscan propagate pay gaps from early in a woman’s career as theywomen apply to on Glassdoor. However, this is largely becauseadvance from job to job—a key reason many policymakers arewomen are often looking for different kinds of jobs than men,considering banning employers from asking about salary history.with different pay scales, and have different levels of educationand experience.How can we close the gap? Understanding key drivers of the pay gapis critical to identifying the best ways to fix it. Research shows that The gap disappears when we compare similar men andwomen looking for jobs. When we compare job applicationssalary transparency and better information sharing are powerfultools in helping to achieve equal pay in the workforce.6
PROGRESS ON THE GENDER PAY GAP: 2019I.IntroductionIn 2016, we released the first-ever study of the gender pay gap usingand the Netherlands on top of the five countries from our originalGlassdoor salary data. In that study, we added to the large body ofstudy, the United States, the United Kingdom, Australia, Germanyresearch confirming the existence of a gender pay gap, but we alsoand France.used Glassdoor’s unique data to explore the drivers of the pay gap bycontrolling for factors like education, experience, job title and industry.Lastly, we dive into a commonly discussed barrier to women’s successWe showed that, even after adding statistical controls for a variety ofin the workplace—the confidence gap. The conventional wisdom is thatworker and job characteristics, a persistent adjusted paya confidence gap between men and women in the workplace exists,gap remains.but it is not well understood how it may affect the gender pay gap. Weexplore how the confidence gap may act through a difference in theSince our study was released, awareness of the gender pay gap andpay that men and women aim for when they apply to jobs, answeringissues affecting women in the workplace have been elevated aroundthe question—do women seek out equal pay for equal work?the world from the new laws across Europe requiring companiesto disclose their pay gaps to the #MeToo movement against sexualWe’ve organized the remainder of this study as follows. Section IIharassment and assault. To examine whether increased awareness ofexplains our methodology for measuring the gender pay gap andthe gender pay gap has translated into progress, we revisit the genderidentifying factors that explain it. Section III presents our estimatespay gap using new Glassdoor salary data collected from 2016 to 2018of the gender pay gap in the U.S. by industry, occupation and age,to answer: what progress has been made on the gender pay gap in theand shows overall results for seven other countries: the UK, Canada,last 3 years?Australia, Singapore, Germany, France and the Netherlands. SectionIV presents the findings of the confidence gap in salary expectationsAdditionally, what is the state of the gender pay gap internationally?in the U.S. Finally, we conclude our findings and provide insight into:We expand the countries in our analysis to include Canada, SingaporeWhat does this mean for job seekers, employers and policymakers?7
PROGRESS ON THE GENDER PAY GAP: 2019II.Our ApproachIn this study, we provide an update on the state of the genderpay gap in Glassdoor salary data using three approaches. Measuring the Pay Gap: First, we show how the pay gaphas changed since 2015, both before and after accountingfor differences in men and women’s education, jobs andother factors. Explaining the Pay Gap: Second, we show how much oftoday’s pay gap can be explained by our data, compared tohow much can’t be explained—either due to unobservedfactors or gender bias in the workplace. Measuring the Confidence Gap in Salary Expectations:Finally, we examine real-world job applications onGlassdoor to test whether men and women systematicallyapply to jobs with higher or lower pay—a possible causeof gender pay differences that has never before beenstudied on Glassdoor.We explain each of these three approaches.8
PROGRESS ON THE GENDER PAY GAP: 2019Measuring the Pay GapThe first step in measuring the gender pay gap is to compare malewhere Y is the salary reported on Glassdoor for employee i, Male is aand female pay, both before and after adding statistical controls forbinary indicator equal to 1 for men and 0 for women, and X is a largedifferences in education, job titles and other factors aside from gendercollection of controls (known as “fixed effects”) for everything wethat affect pay.observe about workers, jobs and companies including: worker age,highest level of education, years of relevant work experience, industry,To do this, we follow the same methodology as our previous study.1occupation, company size, year, state, job title and specific employerWe use ordinary least squares (OLS) regression to measure the impactname. The term ε is the usual mean-zero error term for all otherof gender on pay after we’ve statistically controlled for differences infactors about workers and jobs we don’t observe in our data.education, job title, industry and other factors. Our basic estimatingThe estimated coefficient on the male dummy term β1 tells us theequation is:Yi M alei β1 X i β2 ϵiSalaryMaleYi Worker Job Xi β2 ϵiM ale βandi 1IndicatorCharacteristicsSalaryMaleWorker and JobIndicator CharacteristicsȲ Ȳ βˆ (X̄ X̄F ) X̄F (β̂M β̂F )M F M MGender“Explained”“Unexplained”ˆȲM ȲF βM (X̄M X̄F ) X̄F (β̂M β̂F )PortionPay y GapPortionPortionYi M alei β1 Xi β2 ϵiEstimatedYi Male MWorkeralei β1 and Job Xi β2 Salary ofIndicatorfor CharacteristicsJob Applicant Male for Worker and JobJob Applied EstimatedJob ApplicantSalaryofIndicatorforCharacteristicsTo OnlineforJob Applied Job ApplicantJobApplicantTo Online(1)salary advantage held by men over women once we’ve accounted forthe impact of other factors.2 Throughout this study, we refer to the rawdifference between male and female pay as the unadjusted pay gap.(1)By contrast, once we’ve accounted for all other factors, we refer to thegap as “adjusted.”(2)(2)(3)ϵi(3)9
PROGRESS ON THE GENDER PAY GAP: 2019Explaining the Pay GapAs a second approach, we perform a simple decomposition to showβF are regression coefficients for the impact of male and femalehow much of the gender pay gap is explained by differences in workercharacteristics on pay.4characteristics, and how much is unexplained by discrimination orother factors we can’t observe about workers and jobs. This is knownOn the left side of the above equation is the difference betweenas a Oaxaca-Blinder decomposition, and is one of the most widelyaverage male and female salaries in our data—the unadjusted pay gap.used methods to detect the presence of group differences in theOn the right, the pay gap is divided into two terms. The first shows how3Yi M alei β1 (1)X i β2 ϵilabormarket.SalaryMaleJob X βYi Worker ϵiM alei βand1 i 2IndicatorCharacteristicsOur estimating equation for the decomposition is given by theSalaryMaleWorker and Jobfollowing: IndicatorCharacteristicsȲM ȲF βˆM (X̄M X̄F ) X̄F (β̂M β̂F )(2)GenderȲ“Explained” Ȳ βˆ (X̄“Unexplained” X̄F ) X̄F (β̂M β̂F )Pay GapM PortionF M MPortionGender“Explained”“Unexplained”Pay GapPortionPortion M alei β1 Yi(3)Xi β2 ϵiEstimatedMWorkeralei β1 andYi Male Job Xi β2 ϵiSalary ofIndicatorfor YF areCharacteristicswhere YM andaverageXMpay for male andfemale workers,JobApplicantforJob Applied EstimatedMaleWorkerandJoband XF are characteristics of male and female workers, and βM andJob ApplicantIndicatorforCharacteristicsTo Online Salary offorJob Applied Job ApplicantJobApplicantTo Onlinemuch of the pay gap is due to differences between male and femalecharacteristics, XM - XF. This is known as the explained portion of the(1)gap, because it is due to gaps in experience, education or other factorswe can observe in our data between men and women.The second term shows how much of the pay gap is due to differences(2)in how the labor market rewards men and women, even when theyhave the same experience, education and other factors. This is calledthe unexplained portion of the gap, and is due to how male versusfemale regression coefficients differ in terms of how the job marketrewards male and female workers differently even when they have the(3)same characteristics. This may be due to discrimination, or simply tounobserved factors about workers we’re not able to see in our data.10
PROGRESS ON THE GENDER PAY GAP: 2019Measuring The Salary Confidence GapAs our third approach, we analyze online job application behaviorAn example of a typical job search on Glassdoor is shown in Figureon Glassdoor to understand the “confidence gap”. Past research1. In this case, a search for project manager jobs in New York Cityhas suggested women may suffer from a confidence gap in thereturns many open jobs, with the employer, company rating, andworkplace, but there are many ways this could translate into aGlassdoor salary estimate for the job. We then observe which jobsgender pay gap.5are applied to by men and women, allowing us to estimate the salaryconfidence gap before and after adding statistical controls to compareOne way a confidence gap could contribute to the overall pay gapsimilarly-qualified candidates applying to similar jobs.is if women and men with similar backgrounds apply to similarjobs but with unequal pay. In that case, men and women maybe inadvertently fueling the overall pay gap by having differentFigure 1: Example Screenshot of Glassdoor’s Job Search,including Salary Estimatesexpectations on what salary they deserve—a phenomenon we call a“salary confidence gap” in this study.Our research leverages Glassdoor’s unique ability to answer thisquestion. Past research on the salary confidence gap has mostlyrelied on surveys or self-reporting which may not accurately reflectreal-world behavior.6 Also, most other job search settings do notreveal salary to job seekers before they decide to apply. By contrast,when candidates search for jobs on Glassdoor, they are shownestimated base pay for job listings, allowing them to incorporatesalary expectations into their decisions, and allowing us to seewhether men and women actually apply to jobs with different pay.Source: Glassdoor Economic Research (Glassdoor.com/research).11
PROGRESS ON THE GENDER PAY GAP: 2019Yi M alei β1 X i β2 ϵiSalaryMaleWorker and JobYi CharacteristicsXi β2 ϵ M alei β1 Indicatorthe salaryjobapplicants, iTo estimateconfidencegap forSalaryMaleWorker and Jobwe follow the same statistical approach outlined above forIndicator CharacteristicsȲM ȲF measuring X̄ X̄β̂ β̂aFlinear) regression of theβˆ (X̄ thepayWe(performF )gap.M MF Msalary for jobs applied to on a binary male-femaleGender estimated“Unexplained”“Explained”ˆMsetȲ Ȳ(X̄ X̄F for) age,X̄ education,(β̂ β̂Fjob) βPay Gap indicator,alongwithaofPortioncontrolsMFMPortionF Mtitle andother factors.“Explained”Our estimating equationis given by:Gender“Unexplained”Pay GapPortionPortionYi M alei β1 Xi β2 ϵiEstimatedMaleWorker and JobM alei β1 Yi for CharacteristicsXi β 2 Salary ofIndicatorJobApplicantforJob AppliedEstimatedJobMaleApplicant Worker and JobTo OnlineSalary ofIndicator forCharacteristicsforJob Applied Job ApplicantJobApplicantTo Online(1)How(1)to Interpret Our Pay GapsIt’s conventional to use the natural logarithm of salaries inregressions rather than raw dollar amounts. Why? Because it(2)makes for easy interpretation of statistical results.(2)When the log of salary is regressed on worker characteristics (asin equation 1) the estimated coefficients give the approximate(3)ϵipercentage change in salary from a one-unit change in theexplanatory factor.(3)Thus, the coefficient on the “male” dummy variable in equation1 gives the approximate percentage gender pay gap betweenmale and female pay, holding all other worker characteristicsconstant.7 For this reason, we estimate all of our regressions inthe log of salary.The estimated coefficient on the male dummy term β1 tells usRather than using the approximations given in this study,the approximate percentage difference between the salarysome readers may want the exact percentage difference infor jobs applied to by men compared to women, after addingpay between male and female workers. That’s given by e β - 1,statistical controls for worker and job chara
PROGRESS ON THE GENDER PAY GAP: 2019 7 In 2016, we released the first-ever study of the gender pay gap using Glassdoor salary data. In that study, we added to the large body of research confirming the existence of a gender pay gap, but we also used Glassdoor’s unique data to explore the drivers of the pay gap by
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3. Statutory Gender Pay Gap Report 2019 In this section is reported the Statutory Gender Pay Gap, the Gender Pay Gap (Excluding Casual Staff), and a review of Bonus Pay. A positive black number, means that there is a pay gap in favour of men, whereas a negative red number means that there is a pay gap in favour of women. 3.1. Statutory Gender .
924 pay bands across all agencies were analyzed by gender for pay disparities. Of the 924 pay bands analyzed, 503 pay bands include both genders (Diagram 1). The remaining pay bands contain only one gender, so no gender comparison is possible. Of the 503 pay bands with both genders, 237 pay bands, or 47%, reflect no gender wage gap (Diagram 2).
