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Gender Pay Gap: How bad Germany really is?

International women’s day, we look at the salary gap between men and women in Germany. Here, one can see that Even here it is a matter of perspective.

Imagine the following scenario in your workplace: a man and a woman sitting opposite you in the office and do the same job. The man gets more money than his colleague, and equal to one-fifth! That would be about as if the woman would have worked the first months, free of charge, and it was not until the middle of March also paid for it.

This scenario is of course fictitious. The “free” work days at the beginning of the year, represent the wage gap in Germany. With 21 per cent, it is the second-largest Gender Pay Gap in the European Union.

From second worst to second best

 However, the gap differs greatly, depending on how it is measured. If one takes into account factors such as education, work experience, company size and industry, the wage gap in Germany is only six percent. This is called the “adjusted wage gap.” With this measure, Germany is almost at the top, in second place.

These results were presented in a report by the Institute of German economy (IW). The report is based on data from the EU-Commission and Eurostat, the adjusted and unadjusted pay gap compare in the years 2010 and 2014.

The good news: the data also show that both the unadjusted and the adjusted gender pay gap decreases in the EU, with 1.1 percent and 1.4 percent.

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The Same Wage. But not for all

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The Same Wage. But not for all

Explains the inequality, or hidden?

The sum of all the factors that can influence the pay gap and the reasons given, is called the “explained difference.” Germany has the largest said difference in the EU. According to the report, 72 percent of the pay gap in Germany, the various above-mentioned criteria, justify and explain.

The adjusted wage gap is not just a number that makes Germany look better, says Jörg Schmidt, Economist from the Institute of the German economy and author of the report. A closer look at the factors behind the calculations can give an insight into the Situation and help to find a political approach.

“For me, the instructions where you could start, if the policy now would be to think about options for action,” said Schmidt. “If you take into account that women and men are distributed differently across industries, this explains to a certain extent also the average wage difference between women and men .”

For Yvonne Lott of the Union-affiliated Hans-Böckler-Foundation, the adjusted wage gap is a rather misleading indicator. “The Problem with this indicator is that it ignores the dimensions of gender inequality in the labour market in some way,” she says.

“You can conduct a study, the reasons to stress, but to come to the conclusion that the Gender Pay Gap is only six percent, because anything could others be explained? For me, this is not a correct result.”

Six Percent Of Discrimination?

“If you really think about it, what it means, it’s still a lot,” says Lott. “This six per cent, are really only due to the fact that the employers say, when the viewing of the workers, that women get less because they are women, and men get more because they are men”.

The authors of the study, the EU-Commission, from which the original data via the adjusted wage gap, however, say that “the adjusted gap may not be discrimination, since the study also takes into account unmeasured pay-relevant gender-specific differences, such as actual experience, vocational preferences or Negotiation skills”.


On the EU level

While in Germany, the wage differences in “adjusted” viewing are low, the Situation is in other EU countries is quite different. In Romania, Poland and Lithuania, the wage gap between women and men is even more drastic. In these countries, women are not able to offset the wage inequality by, for example, a good training in the field. On the contrary, Even if a woman has several University degrees, they still earn less than a man.

Not only the size of the explained gap is important, but also the factors that contribute to this, argues Schmidt. According to the report, three main aspects of unequal pay in Germany. These are the unequal distribution of men and women in different industries, the question of part-time employment, and finally the experience.

Like the studies show, is the unequal distribution of men and women in different industry sectors in all EU countries there is a Problem. In Romania, Hungary and Poland, the aspects such as education and occupation play a large role. In Estonia, Latvia and Lithuania, the size of the company also has an impact on the wage gap.

“Because the conditions in the countries are very different, you can not give all States a blanket recommendation,” says Schmidt. The report also criticized the plans of the EU Commission, the specific measures for pay transparency at the EU level.


 

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