PAY DISCRIMINATION
Gender pay gap - why it widened in 2002
Despite recent government initiatives to tackle unequal pay between men and women, the gender pay gap actually widened in 2002 against the long-term trend. This was entirely due to the high pay rises received by senior male executives, says a report by Incomes Data Services.
The IDS analysis of government figures shows that over the last 20 years the gap between men and women's earnings has narrowed at a steady rate of about 0.5 percentage points a year. In 2002, however, it widened by 0.3 percentage points.
Women's average hourly earnings excluding overtime in 2002 were £10.22 compared to £12.59 for men. Using this measure, the gender pay gap widened from 81.5% in 2001 to 81.2% in 2002.
Increases paid to highest-earning men widen gender pay gap
So, why did the gender pay gap widen? It seems that lavish pay rises for the top 5% of male employees pulled the average for all men upwards and further away from the average for all women.
Within the bottom 95% of the workforce, women's average hourly earnings actually grew at a faster rate than men's. "So had it not been for the rises received by the most highly-paid men the gender pay gap would have actually narrowed in 2002," says IDS.
Want to know more?
Title: "The gender pay gap", IDS Report 873, January 2003.
Availability: For subscription details, contact IDS in London, tel: 020 7324 2599.
Incomes Data Services is a leading UK information and research service on employment issues, providing a range of publications for employers, unions, government departments and other agencies. For more information visit www.incomesdata.co.uk.
Posted 24 January 2003