PAY DISCRIMINATION
Gender pay gap wider than previously thought
New government figures show that the gap between men's and women's earnings is greater than previously thought, according to research by IDS Diversity at Work.
Figures from the Office for National Statistics show that the gender pay gap -- the gap between average hourly earnings excluding overtime for full-time male and full-time female employees -- was 19.5% in 2003 rather than 18% as previously estimated.
In addition, the revised statistics show that the gender pay gap has not narrowed as quickly over the six-year period from 1998 to 2003 as earlier figures suggested. According to the new estimates, the gap narrowed over this period by 1.7 percentage points, rather than by two percentage points.
Commenting on these new figures Sally Brett, assistant editor of IDS Diversity at Work, said: "These new estimates, which provide a more accurate picture of the position of men and women in the labour market, show that the gap between men's and women's pay is wider than previously thought. They highlight the persistent inequalities both in pay levels and in access to higher paid managerial and professional jobs. They remind us that much still needs to be done to ensure women are paid fairly and treated equitably in the workplace."
New methodology
The latest statistics are derived by applying new methodology to the annual New Earnings Survey, which is the main source of earnings data in the UK, and it is believed they give a better reflection of the actual levels of earnings in the economy.
In particular, the sample used by the NES has now been weighted to make it more representative of the make-up of the actual workforce. This has an impact on the gender pay gap because survey returns from high earners in managerial and professional jobs, who are more likely to be male, are given larger weights because they tend to have lower response rates, and were therefore previously under-represented in the sample compared to people in other occupations.
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IDS Diversity at Work is a new monthly subscription journal focusing on diversity practice and discrimination law. To subscribe visit www.incomesdata.co.uk/diversity/diversity.htm
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. To find out more visit www.incomesdata.co.uk
Posted 27 October 2004