Concept:

This indicator is the main indicator for measuring the gender pay gap and monitor progress. The pay gap is a key indicator on the list of structural indicators and is one of the indicators used for monitoring of the European Union's Lisbon strategy and Employment strategy. This is, therefore, a high-profile indicator.

The indicator is the pay gap calculated on the basis of the gross earnings of men and of women, working full-time and part-time. The gender pay gap is calculated as ratio of the difference between male and female pay and male pay:

(average gross male pay - average gross female pay)

Gender pay gap= ------------------------------------------------------------------------ x 100

average gross male pay

This indicator includes six sub-indicators, gender pay gaps by sectors and working time and employment rate for women and men. The list of sub-indicators follows.

F8a: Gender pay gap based on gross hourly male and female wages, full-time and part-time employees of all sectors
F8b: Employment rate women and men
F8c: Gender pay gap based on gross hourly male and female wages, full-time and part-time employees of all sectors and separate for the private and public sectors
F8d: Gender pay gap based on gross yearly male and female wages, full-time and part-time employees of all sectors and separate for the private and public sectors
F8e: Gender pay gap based on gross monthly male and female wages, full-time
F8f: Gender pay gap based on gross monthly male and female wages, full-time and part-time

Notes:

F8a: The Structure of earnings survey (SES) data covers all Member States and latest data are available for 2006. This survey is organised every four years in a harmonised manner at European level and for the other years, national statistical institutes provide figures based on the SES — if it has been conducted — and/or based on other sources. In the report of the Belgian Presidency, only microdata from the 2006 SES for available countries was used and there might be slight differences between these calculations and Eurostat data because of adjustments to the figures, data being rendered anonymous, the analysis method or the availability of data at country level. Some indicators were not calculated for all the Member States. In principle, the figures relate to the Member States; many of the indicators, however, could not be calculated for Denmark, Malta or Austria as microdata about those countries were not available to researchers.

The gender pay gap in terms of gross hourly earnings is calculated for all full and part-time paid employees for all sectors. This is the global indicator which is most often used to compare the pay of women and men and to calculate the pay gap between them. It provides a more representative indicator for a large number of women than is provided by a calculation based only on the monthly earnings of full-time workers. Part-time employees need to be taken into account because part-time work has become a major component, in some cases the dominant component, of female employment.

F8b: The data cover all EU Member States and the oldest data are available from 1983 (but not for all Member States). The data were updated annually until 2000: since then, the data have been updated quarterly.

It should be pointed out that comparisons of headcount measures of employment by gender overestimate women's employment and underestimate the gender employment gap in all countries, as they take no account of the higher incidence of part-time employment and absence from work of women. Another way of looking at gender gaps in employment is to calculate them on a full-time-equivalent basis. Such a measure takes into account the gender distribution of part-time work which could be considered a key indicator of gender equality. In some ways, the availability of part-time work has facilitated the reconciliation of work and parenthood. However, in most countries, part-time work remains ‘women's work', reinforcing the traditional gender division of labour.

The employment rate of women and men aged between 15 and 64 for the same reference year as gender pay gap indicators should be analysed in the context of this indicator. The employment rate is important, because a narrow gender pay gap may be explained by the fact that the female employment rate is low, and that those who are working are also those who have the personal characteristics (level of education, profession, etc.) associated with higher salaries. This effect, known as the ‘selection effect' may give the mistaken impression that there is great equality on the labour market. This is confirmed when female employment rates and pay gaps are compared.

F8c: The Structure of earnings survey (SES) data covers all Member States and latest data are available for 2006. This survey is organised every four years in a harmonised manner at European level and for the other years, national statistical institutes provide figures based on the SES — if it has been conducted — and/or based on other sources. In the report of the Belgian Presidency, only microdata from the 2006 SES for available countries was used and there might be slight differences between these calculations and Eurostat data because of adjustments to the figures, data being rendered anonymous, the analysis method or the availability of data on country level. Some indicators were not calculated for all the Member States. In principle, the figures relate to the Member States; many of the indicators, however, could not be calculated for Denmark, Malta or Austria as microdata about those countries were not available to researchers.

A distinction is made between the public sector and the private sector, since the expectation is that wage formation in these sectors may vary markedly, with divergent consequences for the pay gap. It is generally supposed that pay gaps will be less in the public sector, since the mechanism for setting pay is highly regulated and established in pay scales with few individual salary components. The public sector is heavily represented in female employment.

To calculate these indicators, the distinction between the private and public sectors is based on Sectors C to K and Sectors M, N and O. Sector L (public administration) — the public sector in the strict sense of the term — is not covered in this analysis because of a lack of data.

F8d: The Structure of earnings survey (SES) data covers all Member States and latest data are available for 2006. This survey is organised every four years in a harmonised manner at European level and for the other years, national statistical institutes provide figures based on the SES — if it has been conducted — and/or based on other sources. In the report of the Belgian Presidency, only microdata from the 2006 SES for available countries was used and there might be slight differences between these calculations and Eurostat data because of adjustments to the figures, data being rendered anonymous, the analysis method or the availability of data on country level. Some indicators were not calculated for all the Member States. In principle, the figures relate to the Member States; many of the indicators, however, could not be calculated for Denmark, Malta or Austria as microdata about those countries were not available to researchers.

A distinction is made between the public sector and the private sector, since the expectation is that wage formation in these sectors may vary markedly, with divergent consequences for the pay gap. It is generally supposed that pay gaps will be less in the public sector, since the mechanism for setting pay is highly regulated and established in pay scales with few individual salary components. The public sector is heavily represented in female employment.

To calculate these indicators, the distinction between the private and public sectors is based on Sectors C to K and Sectors M, N and O. Sector L (public administration) — the public sector in the strict sense of the term — is not covered in this analysis because of a lack of data.

F8e: The Structure of earnings survey (SES) data covers all EU Member States and latest data are available for 2006. This survey is organised every four years in a harmonised manner at European level and for the other years, national statistical institutes provide figures based on the SES — if it has been conducted — and/or based on other sources. In the report of the Belgian Presidency, only microdata from the 2006 SES for available countries was used and there might be slight differences between these calculations and Eurostat data because of adjustments to the figures, data being rendered anonymous, the analysis method or the availability of data on country level. Some indicators were not calculated for all the Member States. In principle, the figures relate to the Member States; many of the indicators, however, could not be calculated for Denmark, Malta or Austria as microdata about those countries were not available to researchers.

The calculation of the pay gap on the basis of hourly earnings does not take into consideration the pay differences between women and men which result from different working time. To highlight this aspect of the pay gap, the gap on the basis of annual or indeed monthly earnings should be calculated, for full-time and part-time workers taken together. If there are more women than men working part time, the pay gap will increase. This indicator reveals what women earn on average per year, or per month, by comparison with men; which comes closer to revealing the gap as experienced by women.

F8f: The Structure of earnings survey (SES) data covers all Member States and latest data are available for 2006. This survey is organised every four years in a harmonised manner at European level and for the other years, national statistical institutes provide figures based on the SES — if it has been conducted — and/or based on other sources. In the report of the Belgian Presidency, only microdata from the 2006 SES for available countries was used and there might be slight differences between these calculations and Eurostat data because of adjustments to the figures, data being rendered anonymous, the analysis method or the availability of data on country level. Some indicators were not calculated for all the Member States. In principle, the figures relate to the Member States; many of the indicators, however, could not be calculated for Denmark, Malta or Austria as microdata about those countries were not available to researchers.

The calculation of the pay gap on the basis of hourly earnings does not take into consideration the pay differences between women and men which result from different working time. To highlight this aspect of the pay gap, the gap on the basis of annual or indeed monthly earnings should be calculated, for full-time and part-time workers taken together. If there are more women than men working part time, the pay gap will increase. This indicator reveals what women earn on average per year, or per month, by comparison with men; which comes closer to revealing the gap as experienced by women.

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