Report examines factors that cause Australia’s gender pay gap
A new report out today reveals the biggest factors in pay disparity between men and women – discrimination is the biggest problem.
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Discrimination against women in the workplace is the biggest factor behind the persistent gap between men and women’s wages – and it’s getting worse, a new report warns.
South Australia has the smallest gender pay gap in the nation at 9.2 per cent, or about $141 a week.
The national difference between male and female average full-time weekly earnings remains about 14 per cent, or $241.50.
The She’s Price(d)less report, released today, examines the factors which have the most effect on this gap.
Prepared by KPMG for the Diversity Council Australia and the Workplace Gender Equality Agency, the report finds gender discrimination accounts for 39 per cent of the difference, up from 29 per cent five years ago.
Time spent out of the workforce, usually to care for children or parents, accounts for 25 per cent, while the concentration of women in certain lower-paid fields or roles contributes 17 per cent.
Factors such as the expectation for women to do more unpaid work at home, how long they remain with an employer, whether they work for government or non-government organisations and their age also play a part.
The report notes that women “have closed the gap (with men) in rates of higher education and labour force participation” but discrimination “persists”.
This commonly plays out during recruitment, wage setting and when decisions are made about which employees receive promotions or further training.
The report also notes research which found “there is an unexplained wage penalty associated with motherhood of around 5 per cent for one child and 9 per cent for two or more children”.
“This arises over time through reduced wage growth,” it says.
The report warns Australia still “has a highly gender-segregated labour market” and notes 21 per cent of workers are women in part-time roles.
