Wednesday, January 17, 2018

ONS releases - Understanding the gender pay gap in the UK

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17 January 2018

Employment and labour market

Understanding the gender pay gap in the UK

The gender pay gap for full-time workers is entirely in favour of men for all occupations; however, occupational crowding has an effect since those occupations with the smallest gender pay gap have almost equal employment shares between men and women.
When looking at age groups, the gap for full-time workers remains small at younger ages; however, from age 40 onwards the gap widens reaching its peak between ages 50 to 59.
Holding all other factors constant, for 2017 women's pay growth in respect of age was lower than men's pay growth and also stopped growing at a younger age.
Regarding job tenure, men who have worked for over 20 years in the same organisation earn 20.8% more compared with those men who worked for no longer than one year; for women, pay is 17.5% higher.
In terms of occupation, men working in the chief executives and senior officials occupation earn almost four times more than men in elementary occupations; in the case of women, this is almost 3.5 times more.
The Blinder-Oaxaca decomposition results show that 36.1% of the difference in men's and women's log hourly pay could be explained by differences in characteristics between men and women included in the model; of those, occupation has the largest effect since it explains 23.0% of the differences between men's and women's log hourly pay.


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