The gender pay gap or gender wage gap is the average difference between the remuneration for men and women who are working. Women are generally considered to be paid less than men. There are two distinct numbers regarding the pay gap: non-adjusted versus adjusted pay gap. The latter typically takes into account differences in hours worked, occupations chosen, education and job experience. In the United States, for example, the non-adjusted average female's annual salary is 79% of the average male salary, compared to 95% for the adjusted average salary.
The reasons link to legal, social and economic factors, and extend beyond the 'equal pay for equal work'., in which case the full-time equivalent is used to obtain the remuneration for an equal amount of paid hours worked. by city, by job, or within a single organization.
Adjusting for different causes cus on a specific factor, by controlling for other factors. For example, to eliminate the role of horizontal and vertical segregation in the gender pay gap, salary can be compared by gender within a specific job function. To eliminate transnational differences in the job market, measurements can focus on a single geographic area instead.
Reasons
The non-adjusted gender pay gap is not itself a measure of discrimination. Rather, it combines differences in the average pay of women and men to serve as a barometer of comparison. Differences in pay are caused by occupational segregation, vertical segregation, ineffective equal pay legislation, women’s overall paid working hours, and barriers to entry into the labor market .
Some variables that help explain the non-adjusted gender pay gap include economic activity, working time, and job tenure.
Eurostat estimated in 2016 that after allowing for average characteristics of men and women, women still earn 11.5% less than men. Since this estimate accounts for average differences between men and women, it is an estimation of the unexplained gender pay gap.
Industry sector
Occupational segregation or horizontal segregation refers to inequality in pay associated with occupational earnings.
In Jacobs, Boyd et al. refer to the horizontal division of labor as "high-tech" versus "high-touch" with high tech being more financially rewarding. Men are more likely to be in relatively high-paying, dangerous industries such as mining, construction, or manufacturing and to be represented by a union. Women, in contrast, are more likely to be in clerical jobs and to work in the service industry. In 1998, adjusting for both differences in human capital and in industry, occupation, and unionism increases the size of American women's average earnings from 80% of American men's to 91%.
A 2017 study by the US National Science Foundation's annual census revealed pay gaps in different areas of science: there is a much larger proportion of men in higher-paying fields such as mathematics and computer science, the two highest-paying scientific fields. Men accounted for about 75% of doctoral degrees in those fields, and expected to earn $113,000 compared with $99,000 for women.
