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Glassdoor Economic Research Pay Gap In Changing For Women

PeopleDoes a pay gap exist between men and women persist in Canada?  We came across the Glassdoor Economic Research which is a multi-country study on the state of the gender pay gap. A big reveal of the study found that women in Canada earn on average $0.84 per every $1.00 men earn. This 2019 study looks at gender pay gap data for Canada, the United States, United Kingdom, France, Germany, Australia, the Netherlands and Singapore, is based on more than half a million salary reports shared on Glassdoor by employees over the past three years.  

Glassdoor Economic Research Key Takeaways:

  • The gender pay gap persists in the United States and around the world. Men earn more than women on average in all eight countries we studied, even after applying statistical controls for worker and job characteristics to ensure an apples-to-apples comparison. Even though women do not receive equal pay for equal work yet, progress is slowly being made; the pay gap has narrowed since our last study in 2016.
  • How large is the gap right now? Based on over 425,000 salaries shared by full-time U.S. employees on Glassdoor, men earn 21.4 percent higher base pay than women on average.  However, comparing workers of similar age, education and experience shrinks that gap to 19.1 percent. Furthermore,vafter comparing workers with the same job title, employer and location, the gender pay gap in the U.S. falls to 4.9 percent (95.1 cents per dollar).
  • The gender pay gap is narrowing. The U.S. adjusted pay gap has steadily dropped from 6.5 percent in 2011 to 4.6 percent in 2018. A tighter labor market, higher labor force participation by women and greater awareness of the gender pay gap all likely contribute to this progress. However, if these trends continue at the same pace, the adjusted gender pay gap still may not fully close until the year 2070. The chart below shows two possible scenarios for how long it may take to close the U.S. gender pay gap based on the downward trend between 2010 and 2018.
  • How does the pay gap compare internationally? Across all eight countries we examined, the large unadjusted gender pay gap shrinks to a smaller adjusted pay gap once statistical controls are added. Germany has the largest unadjusted gap with women earning about 78 cents per euro men earn while France has the smallest unadjusted gap with women earning about 88 cents per euro men earn. Australia has the smallest adjusted gap with women earning 97 cents per dollar men earn, while the Netherlands has the largest adjusted gap with women earning 93 cents per euro

The unadjusted pay gap between men and women in Canada is 16.1 percent, meaning women earn, on average, $0.84 for every $1.00 men earn. When statistical controls are applied for worker and job characteristics, including worker age, education, years of experience, occupation, industry, location, year, company and job title, the adjusted pay gap in Canada shrinks to 4.0 percent, with women earning $0.96 for every $1.00 men earn.

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One of the most significant factors contributing to the pay gap is the industry and jobs that men and women sort themselves into, also known as “occupational sorting,” which explains about 52 percent of the overall pay gap in Canada. Eleven percent of Canada’s pay gap is due to differences in education and experience between men and women.

What factors drive the gender pay gap?

  • Industry matters. In the U.S., the adjusted gender pay gap is largest in media; retail; and construction, repair & maintenance industries. It is smallest in biotech & pharmaceuticals; education; and aerospace & defense industries. Since 2015, non-profit; health care; and real estate industries had the largest reductions in gender pay gaps whereas restaurants, bars & food service; travel & tourism; and oil, gas, energy & utilities industries have seen the largest increase. Although many tech jobs have large gender pay gaps, the overall information technology sector falls in the middle of the pack among industries.
  • Job titles matter. In general, many executive, tech and blue collar jobs top the list for largest gender pay gaps. In the U.S., the adjusted gender pay gap is largest for pilot, chef, C-suite executive, deputy manager, branch manager, retail representative, and driver occupations. The gender pay gap is smallest for merchandiser, research assistant, field services, inventory specialist, social worker, logistics manager and purchasing specialist occupations. Among jobs with the largest pay gaps, computer programmer saw the most improvement in its pay gap since our 2016 study
  • The pay gap grows with age. Younger workers face a smaller gender pay gap than older workers. In the U.S., workers aged 18 to 24 years face a small adjusted gender pay gap of 1.4 percent. By contrast, older workers aged 55 to 64 years face a gender pay gap of 12.3 percent, over twice the national average.
  • Differences in education and experience are shrinking. The percentage of the pay gap explained by differences in education and experience shrank from 14 percent to 7.9 percent since our last study, as women make up an increasing share of students at universities and workers gaining experience in the labor force.

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