Women are concentrated in underpaid, precarious occupations involving the 5 Cs: caring, clerical, catering, cashiering, and cleaning. While sex discrimination in pay has been prohibited by law for decades, it persists. The opportunity structure for discrimination. The average gender pay gap of all firms that reported in the past financial year is 10.4% - the same as the average of all firms reporting in 2019-20. The pay gap exists in every sector of the economy. Given Canadas rapidly aging population, this is another cause for concern (The Vanier Institute of the Family, 2017). The data that's emerged shows the gender pay gap across the OECD narrowed from 19% in 1996 to 12% in 2021, based on median earnings for women and men. Sex discrimination in pay has been against the law for decades. We use data from approximately 10years in each country, beginning in 2005 where possible and continuing through the most recent year available (for information on the most recent year available to us in each country, see Table 1). Six stubborn myths about equal pay between men and women Men do not face similar penalties after becoming fathersin fact, they tend to experience an increase in earnings. Women make 7% less than their male counterparts doing the same work for the same company in Denmark and France, and 26% less in Japan. Tabular materials presented in this paper were approved for release by the US Census Bureaus Disclosure Review Board (CBDRB-FY18-258). Perhaps you think of a man and woman who work exactly the same job at exactly the same place, but he gets paid more than she does. 118. This has encouraged the adoption of low-wage business strategies that pay part-time, seasonal, casual and temporary agency workers significantly less sometimes as much as 50% less than the full-time workers working alongside them doing the same job. National Office: 1920 Yonge St., Suite 302, Toronto, Ontario M4S 3E2, Canadian Womens Foundation 1. The controlled gap measures the difference in pay between men and women performing the same job, with the same experience and qualifications. Gender pay gap - Wikipedia and JavaScript. Even when comparing the sexes with the same job title at the same company and using similar education and experience, the gender pay gap persists: Men earned 2.4 percent more than women on average, down slightly from last year, PayScale said. 1:44 Gender pay gap persists in Canada WATCH: Gender pay gap persists in Canada - Mar 27, 2019 The gender pay gap is alive and well in Canada and many other advanced economies,. © 2019 Global News, a division of Corus Entertainment Inc. WATCH: Gender pay gap persists in Canada Mar 27, 2019, Money 123: Why its harder to save for retirement if youre a woman, Interacting with a woman at work post-#MeToo, Ontario family files $9M lawsuit after toddler nearly drowns in ice-covered pool, Wage gap continues to separate men from women, 5 takeaways from the Competition Bureaus study into Canadas grocery sector, Young Canadians more frequent targets of financial fraud. Despite great advances in gender equality, women earn less than men in all advanced industrialized countries. 2 Surely women and men are paid the same for the same job . Women generally but particularly women of colour predominate in these most precarious, low-paid forms of work and so they bear the brunt of this pay inequality. On average, Ontario women face a gender pay gap of 30%. ), the Independent Research Fund Denmark (grant number 5052-00143b; L.H. Meyersson Milgrom, E. M., Petersen, T. & Snartland, V. Equal pay for equal work? While gender pay differences are shrinking over time, it might still take decades to eliminate them completely, Glassdoor said. Explaining the 'unexplained' gender pay gap - DW - 12/14/2022 To address concerns regarding the comparability of full-time versus part-time workers, we consider full-time versus part-time status a defining characteristic of a job and include this axis in constructing fixed effects for all of our core models. The slow pace at which the gender pay gap . Where previous research1,2,3 found that sorting into occupations is substantially more important for gender inequality than sorting into establishments, we find evidence that sorting into both occupations and establishments plays an important role in producing gender differences. was responsible for conducting the Swedish analyses; L.F.H. In this Article, we contribute to this literature by using linked employeremployee data to provide recent estimates of the levels and change in within-establishment, within-occupation and within-job differences in earnings across 15 countries: Canada, Czechia, Denmark, France, Germany, Hungary, Israel, Japan, the Netherlands, Norway, Slovenia, South Korea, Spain, Sweden and the United States. For example, even when work is substantially the same, differences in pay have been permitted for any other factor other than sex.. This is usually referred to as the gender pay gap. When employers are open about their payscales and criteria for evaluating raises and promotions, employees can make informed decisions about whether they are being paid fairly and whether it is appropriate to negotiate for a higher salary or promotion. A.S.H. While the gender pay gap and pay equity are related, they are not interchangeable. Women who graduate university with a bachelors degree earn an average of $69,063 annually, while men who graduate with a bachelors degree earn $97,761 (Statistics Canada, 2016). It is prohibited under the Human Rights Code, the Employment Standards Act and the Pay Equity Act. Negotiation Tips and Strategies To Close the Gender Pay Gap The study focused on white men due to pay gaps between racialized and white men (Fuller and Cooke, 2018). Among full time employees the gender pay gap in April 2021 was 7.9%, continuing the downward trend; this was 7.0% in April 2020 and 9.0% in April 2019 and we recommend looking at the longer-term trend. 1. In 2018, the largest factors explaining the gap were the distribution of women and men across industries, and womens overrepresentation in part-time work. But nearly two-thirds of the gap was unexplainedfor this portion, possible explanations include gender differences in work experience, as well as unobservable factors, such as any gender-related biases (Pelletier et al., Statistics Canada, 2018). Of the 500 occupations tracked by Statistics Canada, women are paid less than men in 469. In the U.S., if progress continues at the current pace, the gap would not be fully bridged until 2070. In 2022, American women typically earned 82 cents for every dollar earned by men. Within-job gender pay inequality in 15 countries, $${{{\mathrm{ln}}}}\,{\mathrm{earnings}}_{it} = \theta _{B,t}x_{it} + \eta _{ft} + \varepsilon _{it},$$, $${{{\mathrm{ln}}}}\,{\mathrm{earnings}}_{it} = \theta _{E,t}x_{it} + \eta _{eft} + \varepsilon _{it},$$, $${{{\mathrm{ln}}}}\,{\mathrm{earnings}}_{it} = \theta _{O,t}x_{it} + \eta _{oft} + \varepsilon _{it},$$, $${{{\mathrm{ln}}}}\,{\mathrm{earnings}}_{it} = \theta _{OE,t}x_{it} + \eta _{oeft} + \varepsilon _{it},$$, https://doi.org/10.1038/s41562-022-01470-z. Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. This bedrock principle has been enshrined in the Employment Standards Act (ESA) since 1968. In demanding equality, the impact Bill 148 could have on these womens lives is the difference between night and day. PDF Progress on the Gender Pay Gap: 2019 - Glassdoor J. Soc. The pay gap isn't the same as equal pay. Models 3 and 4 are analogous to model 2, but contain the fixed effects oft and oeft that refer respectively to the unique units formed by combining full-time versus part-time status with either occupation (oft) or occupationestablishment units (oeft). All racialized women made 59.3% of what white men made, Black women made 58.5% of what white men made, South Asian women made 55.1% of what white men made, and Chinese women made 65.4% of what white men made (Catalyst, 2022). Please read our Commenting Policy first. Pay inequity is so important because earnings are a key determinant of economic well-being in Canada. The reality that women earn less after becoming parents is connected to job shifts for positions with more family-friendly hours and policies. ), the European Social Fund and state budget of the Czechia (grant number CZ.03.1.51/0.0/0.0/15_009/0003702; A.K. Penner, A.M., Petersen, T., Hermansen, A.S. et al. J. Econ. Soc. Data that can identify women and men who do the same work for the same employer are rare, and research informing this crucial aspect of gender differences in pay is several decades old and from a limited number of countries. Within-job gender pay inequality in 15 countries - Nature Catalyst (2021) notes that both pay equity and increasing the representation of women in higher paying jobs need to be addressed to close the gap. Correspondence to It could be a significant breakthrough for women workers and especially so for Indigenous, racialized, immigrant, younger women and women with disabilities who predominate in precarious part-time, temporary, seasonal, casual and temporary help agency work. Toll Free: 1-866-293-4483 Most pay equity laws apply to the public sector (ADP). But job shifting may only be an option only for mothers in middle- to upper-level positions. Bill 148 takes an important step in the right direction by extending the same work/same pay principle so that part-time workers, workers with temporary, seasonal or casual status, and workers employed through temporary help agencies, must be paid the same as full-time and directly-hired employees who are doing substantially the same work. [Infographic] Yes, men do earn more than women on average, but not that much more when they work the same job and they have similar experience and abilities. Research on the US data was conducted by J.K. while J.K. was working for the US Census Bureau. How Much Less Are Women Paid Than Men? - The Washington Post Right now, Ontarios Bill 148 puts forward an equal pay initiative that, if done right, could make a real difference for women. On top of gender inequalities, American women are also facing race-related inequalities regarding their income. A Division of NBCUniversal. J. Soc. Women's share of the national income has increased from 25% to 42% since 1976, which equals a $240 billion raise, HuffPost Canada reported. The gender pay gap remains a human rights crisis that impoverishes women across Canada. PubMedGoogle Scholar. https://doi.org/10.1038/s41562-023-01523-x, http://creativecommons.org/licenses/by/4.0/. Charles, M. A world of difference: international trends in womens economic status. While the adjusted pay gap is considerably smaller in all countries studied, it can still make a significant difference over time. More information on the analysis of the gender pay gap can be found in the publication: The gender wage gap in Canada: 1998 to 2018. 2023 Gender Pay Gap Report (GPGR) | Payscale Research When it comes to the gender gap in overall economic participation and opportunity, Canada ranks only 40 in the, Online Hate and Cyberviolence Against Women and Girls, Resetting Normal: Building Gender Equality in the Pandemic Recovery, Building the Field of Teen Healthy Relationships. An analysis of data from the Ontario Medical Association showed that, on average, male family physicians earn 30% more and male specialists earn 40% more than their female counterparts.32 Moreover, men earn more than women within every specialty ().A more sophisticated cross-sectional analysis of billing data showed that . The topic attracts significant investor interest, and regulation is also increasing, meaning this is both a brand and financial issue (Baker McKenzie). As is visible in the final column, within-job differences typically account for about half of the overall gender differences that we observe in our countries, ranging from just over a third of the overall gap (Israel) to over nine-tenths of the gender earnings gap in Hungary. Whats the scope of the gender pay gap in Canada? was responsible for conducting the Canadian analyses; A.K.M. Soc. Men are also well represented in higher-paid sectors and jobs compared to women. Why Is It So Hard to Close the Gender Wage Gap? The gender pay gap is the difference between the average earnings for men and women, expressed as a percentage of men's average earnings. If, however, differences arise overwhelmingly through sorting women and men into different jobs, policies should focus on the organizational hiring and promotion practices that match people to jobs, as well as on broader societal views regarding whose work is defined as valuable7,8,9. Pay gap between men and women fails to improve - BBC News The Gender Pay Gap | Pay Gap in Canada | The Facts - Canadian Women's ), Z.L. In the current context, however, our findings suggest that policies focusing on equal pay for equal work and policies attending to hiring, promotion and other job-sorting processes are both vital to establishing gender equality in the labour market. Equal pay - that men and women doing the same job should be paid the same - has been a . These 5 industries have the biggest gender pay gapshere's why - CNBC The gender pay gap still exists for a variety of reasons, even after accounting for non-gender worker characteristics. to close the economic gender gap worldwide, if present trends continue. Of the 500 occupations tracked by . J. Econ. the gender pay gap has translated into progress, we revisit the gender pay gap using new Glassdoor salary data collected from 2016 to 2018 We use the natural log of earnings as our dependent variable. Women are more vulnerable to low income than men in Canada, partially due to the gender pay gap (Fox and Moyser, Statistics Canada, 2018). We estimate these models separately by year for each country, allowing us to examine country-specific trends in these gender differences. Blau, F. D. & Kahn, L. M. The gender wage gap: extent, trends, and explanations. Comparing the results in the first and fourth columns (basic adjustment and within-job), we see that within-job gender differences remain a substantial source of the overall earnings gaps in all of our 15 countries. was responsible for conducting the German analyses; and E.M. and J.J. were responsible for conducting the South Korean analyses. On average, American working women are paid 82 cents for every dollar that working men make in the US. and O.G. Women in Canada earn less than men even for the same job: Glassdoor Moyser and Burlock, Statistics Canada, 2018, Institute for Gender and the Economy (2019), Longpr-Verret and Richards, Statistics Canada, 2021, Pelletier et al., Statistics Canada, 2018, Social Research and Demonstration Corporation, 2021, Macdonald, Canadian Centre for Policy Alternatives, 2018, Gender Wage Gap Strategy Sterring Committee, 2015, Institute for Womens Policy Research, 2020, Indigenous women working full-time, full year earn an average of 35% less than non-Indigenous men, or 65 cents to the dollar (, racialized women working full-time, full-year earn an average of 33% less than non-racialized men, or 67 cents to the dollar (, newcomer women working full-time, full-year earn an average of 29% less than non-newcomer men, or 71 cents to the dollar (. The Canadian estimates drew on around 21,000 data points. The earnings gap is wider and lasts longer for women in the 25 to 29 age range than those who have children later. You are using a browser version with limited support for CSS. 5 Facts About the State of the Gender Pay Gap - DOL Blog CAS What do you think of when you hear the phrase "gender pay gap"? A 2016 study prepared for Ontarios Ministry of Labour by Deloitte LLP calculated that, in Ontario alone, the gender wage gap represents $18 billion in foregone income each year. The finding echoes a 2016 study by Oxfam Canada and the Canadian Centre for Policy Alternatives, which found that female-dominated industries tended to have lower average pay compared to male-dominated sectors. Get the most important science stories of the day, free in your inbox. In legislation, pay transparency requires employers to disclose the wage structures in their workplaces, and helps to enforce existing human rights laws and promote gender equality (Ontario Equal Pay Coalition). Model 2 includes the covariates in xit (age, age-squared and education), as well as the fixed effects eft representing the unique units formed by combining the establishment and full-time versus part-time indicators. The global study is based on more than half a million salary reports shared anonymously by employees over the past three years. Although we sought to ensure that the analyses conducted in each country are comparable, factors like parental leave policies, the availability and prevalence of part-time work, and the relevance of occupations and firms differ across our 15 countries. Petersen, T. Multiplicative models for continuous dependent variables: estimation on unlogged versus logged form. The gender wage gap may not be closed until 2056, according to a new analysis. For example, in the U.S., for which Glassdoor produced the most granular analysis, women working in media, retail and the construction industry are likely to be most underpaid compared to their equally qualified male colleagues. The problem is that the law requires that jobs be substantially the same. Employers have adapted by creating insignificant differences between mens and womens jobs, or different job titles, that are then used to justify significant disparities in pay. And the law currently allows many exceptions to the same work/same pay principle. For example, women executives make about 56% less on average than men executives. Whats the motherhood penalty and fatherhood bonus? what women working full-time and part-time make for every dollar men make, 59.3% Gender-related differences in the career - Statistics Canada A 2019 report found that the motherhood earnings gap persists for at least five years after women return to work following the birth of a child. The disparity was largest nearly 30 percent between men and women in finance and insurance, without controlling for job title, education and years of experience, among other factors. Femi on Twitter: "The term 'gender pay gap' is widely used as 'proof Nature Human Behaviour Gender differences also increase in Hungary and Slovenia, where the increase is due not only to sorting processes, but also to an increase in within-job gender gaps. The y axis represents the average annual change in the overall gender gap in earnings (accounting only for basic adjustments, and corresponding to the first column of results in Table 1), and the x axis reports the average annual change in the within-job gender gap in earnings (corresponding to the fourth column of results in Table 1). Equitable pay-related legislation includes the Pay Equity Act, which applies to some federally-regulated employers and parliamentary institutions, the Employment Equity Act, the Canadian Human Rights Act, and various provincial and territorial human rights laws (Ontario Equal Pay Coalition). Want to discuss? [1] Failure to offer equal pay for equal work, where women are paid less than men for performing the same job, accounts for a ~95 cent wage gap. Yes, I want to invest in advancing gender equality! Key Points In 2020, women made 83 cents for every dollar earned by men, according to the U.S. Census Bureau. Are you surprised? You Cannot Reduce Poverty if Women Cant Work, Gender Pay Gaps, Plural with Hadiya Roderique, Equal Pay Day and Gender Pay Gaps: Infographic, How 8 trail-blazing women started the Canadian Womens Foundation, Equal Pay Day: Show us the Money - Canadian Women's Foundation, Critical Investment in Social Purpose Organizations by and for Women and Gender-Diverse People, Resources for Ending Anti-Indigenous Racism, Menopause With Dr. Shafeena Premji and Janet Ko, Menstrual Bleeding Disorders With Natalie Philbert and Dr. Meghan Pike, How Gender-Based Violence Impacts Mental Health. led analyses ensuring the robustness of results to the inclusion of person fixed effects. In subsequent models, we introduce a series of fixed effects so that we compare women and men working in the same establishment (model 2), the same occupation (model 3) and the same job (that is, occupationestablishment unit; model 4).