The term “gender pay gap” refers to the percentage difference in average hourly wages between men and women. This is a global metric used to measure gender pay inequality. It shows the extent to which women earn less compared to men. What does the gender pay gap look like in Germany?
Two concepts of the gender pay gap
It is important to understand that there are two different concepts of the gender pay gap: the unadjusted and the adjusted gender pay gap. The unadjusted gender pay gap compares the average gross hourly earnings of women and men without taking into account differences in qualifications, professional experience or working hours. This value shows the “raw” difference in average earnings between men and women. It is usually around three times larger than the adjusted value.
The adjusted gender pay gap, on the other hand, attempts to calculate the “wage gap” that remains when all measurable factors influencing wages are taken into account, such as: B. Education, professional experience, industry and working hours. This “adjusted” gap is intended to give a better impression of the extent to which women earn less than men for the same work, qualifications and employment history.
The gender pay gap situation in Germany
In Germany, the unadjusted gender pay gap averaged 18 percent in 2022. This means that, with an average of 20.05 euros, women received gross hourly earnings that were 4.31 euros lower than men (24.36 euros). A clear regional differentiation can be seen here. In the new federal states, i.e. those federal states that were part of the GDR before the reunification of Germany in 1990 (Brandenburg, Mecklenburg-Western Pomerania, Saxony, Saxony-Anhalt and Thuringia, as well as East Berlin), the wage gap was significantly smaller at seven percent in the old federal states.
The term “old federal states” refers to the federal states that belonged to the Federal Republic of Germany (FRG) before reunification, i.e. the western federal states and the entire West Berlin area. In these federal states the gender pay gap was 19 percent.
The adjusted gender pay gap in Germany was seven percent in 2022. This means that even when comparable qualifications, activities and employment histories are taken into account, women earned on average seven percent less per hour than their male colleagues.
These sectors are particularly affected
According to a study by kununu, which was carried out on the basis of over 360,000 salary details, the gender pay gap is growing particularly strongly in the consulting, nursing and pharmaceutical sectors. In the consulting industry, the gender pay gap increased by an average of 14 percentage points to 27 percent after six to ten years of professional experience. In the health/social/care sector, the gender pay gap increased by 11 percentage points to 23 percent for people with professional experience of six to ten years, even though this sector has a high proportion of female employees. In the medical and pharmaceutical industries, the gender pay gap rose by ten percentage points to a difference of 22 percent for six to ten years of professional experience. In the financial industry, men with six to ten years of professional experience earn on average almost a third (32 percent) more than their equally experienced female colleagues.
The reasons for the gender pay gap and what is being done about it
The reasons for this wage inequality are varied. One of the main reasons, as an article in the Stuttgarter Nachrichten reports, is that women are more likely to work in industries, professions and skill levels that are paid less. In addition, women are more likely to work part-time, which is often associated with lower average gross hourly earnings. It is also emphasized that discriminatory factors could also play a role. How can you combat this?
To combat wage inequality, several measures have been taken. Some companies in Germany have conducted voluntary salary audits to uncover and correct inequalities. There are also political initiatives to promote equality between women and men in companies. For example, in 2023 a law was passed requiring companies to disclose their salary structures to ensure greater pay transparency.
Editorial team finanzen.net