Same age, same experience, less pay. But it’s not for the reasons you might think

Even with the same qualifications, age, ethnicity and the same work experience, women are paid less than men for the same job.

Research from economic institute e61 found that differences in pay within the same occupations between men and women made up the bulk of the gender pay gap.

New research shows there is a pay gap between men and women working in the same occupations.Credit: Louie Douvis

Research manager at e61 Silvia Griselda said Australians regularly heard the pay gap was driven by women working part-time or in lower-paid occupations, but the data showed otherwise.

“This research busts the outdated myth that the gender pay gap exists because more women are nurses, carers and administrators while more men are lawyers, bankers and pilots,” she said.

“What the data shows is that most of the gender pay gap is because women are paid less than men within the same occupation.”

When e61 compared men and women of a similar age, education, marital and employment status and number of children, it found women’s hourly wages were 15 per cent lower than men’s.

Griselda said being married and having children imposed a pay penalty on women, but not men. It echoes research by Treasury economists on the so-called “motherhood penalty”, which found women suffered a decade-long financial hit after having a child, while men did not.

Nationally, the median base salary pay gap is 14.5 per cent. But when all payments, including bonuses and superannuation, are included, the pay gap grows to 19 per cent, according to the Workplace Gender Equality Agency.

In February, the agency released a breakdown of pay data from all large Australian companies, showing pay disparities within businesses as well as broader industry differences.

Many companies responded by saying they paid women and men the same for the same job, and the agency’s chief executive, Mary Wooldridge, said the data showed higher-earning roles tended to be more male-dominated while lower-paying roles were more feminised.

But the e61 research found that 80 per cent of the gender pay gap was driven by women and men being paid different amounts for working in the same occupation.

The institute’s research economist, Elyse Dwyer, said there were several potential reasons for the discrepancy and fixing the issue required a different approach.

“One potential reason for the pay gap for men and women working in the same occupation is the type of firms that men and women are working for,” she said.

“Men may be more likely to work in high-paying firms, which require less flexibility and longer working hours. e61 Institute is currently undertaking research to understand this.”

Dwyer said the research suggested the best way for companies to reduce the pay gap was to foster a work environment where all employees were encouraged to take on parental responsibilities.

“This could include being more flexible as to when or where work tasks are completed, encouraging job-sharing in leadership positions and diversifying hiring practices,” she said.

“Simply focusing on encouraging women into higher-paying occupations, such as pilots or lawyers, will not be enough to end the pay gap. The bulk of the gains will more likely come from improved workplace flexibility that allows more women to take on higher-paying positions.”

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