According to results of the 2006 structure of earnings survey, the gross hourly earnings of women were 23% below those of men. This does not mean that women earned 23% less for the same work in the same enterprise. The reasons for the pay differential are manifold. There are differences between women and men with regard to the occupations and lines of business they choose and in their careers. These differences are included in the 23% differential. Therefore, the difference in earnings is also called unadjusted gender pay gap.
Badly paid jobs are mostly for women
There are considerable differences between the sexes when it comes to choosing a profession. Traditional women’s and men’s jobs can be identified which are hardly ever done by the other sex. There are many more men than women in jobs with high gross annual earnings such as aviation professions. So well-paid jobs still are for men. In turn, mostly women do badly paid jobs, working for instance as hairdressers or cleaners.
Interruptions of gainful activity for child-rearing purposes are detrimental to the career
When they begin their working life, the pay differential between men and women is comparatively small. In 2006 it amounted to 8% for the 25 to 29-year-olds. It had more than doubled for the 35 to 39-year-olds with 21%, and with 30% it was largest for those who were sixty and over. In 2006, women were on average almost 30 years old when their first child was born. Here it shows that women fail to keep up with men in the development of pay during and after interruptions of their gainful activity due to pregnancy, maternity protection and because of related child-rearing periods. If women returned to work after interruptions of their gainful activity due to child-rearing activities, for many of then this meant changing from full-time to part-time employment. The share of women working full time fell significantly with increasing age. 65% of all working women aged between 25 and 29 years were employed on a full-time basis. For the 30 to 34-year-olds, the figure was 57%, and for the 35 to 39-year olds only 46%. In turn, the share of women working part-time increased. 20% of the 25 to 29-year-old women worked part-time. With the 35 to 39-year-olds, this share had already more than doubled (41%).
In contrast to that, men’s working lives were as a rule without interruptions and always with full-time employment. So the share of men working full time remained almost constant with increasing age. While between 30 and 54 years, more than 90% of the male employees on average worked on a full-time basis.
Reductions of working hours involve pecuniary losses. The hourly earnings of part-time employees are lower than those of full-time employees. This affects mostly women. A markedly higher share of women (35%) worked part-time in 2006 than of men (5%). In turn, many more men (82%) than women (46%) had full-time jobs, which are better paid than part-time jobs.
Women more seldom in leadership positions
Another reason for men earning more might be that they are better qualified. However, when one looks at the distribution of working men and women based on their educational attainment, the differences are quite small. According to results of the 2006 structure of earnings survey, men were in the vanguard as graduates from specialised colleges of higher education (Fachhochschulen). There were only marginal differences as regards school-leavers with higher education entrance qualification, secondary general and intermediate school leaving certificates.
Although no great differences could be identified regarding educational attainment, leadership positions were nevertheless occupied mostly by men. In 2006, 70% of senior executives were male. While the average gross hourly earnings of all employed were EUR 16.20, these executive employees received EUR 30.87. That is nearly 91% more than the average earner got.
There is no economic sector where women earn more than men
The gender pay gap varies considerably among the different economic sectors. In 2006 it was largest in business services (30%), the credit and insurance industry (29%) and in manufacturing (28%). There were small gender pay gaps in mining (5%), transport and communication (9%) and hotels and restaurants (13%). In total, only 7% of all women worked in those economic sectors. There is no economic sector where women earned more than men.
Pay gap only 6% in the new Länder
The gender pay gap varies considerably between regions. While the pay differential in the former territory of the Federal Republic was 24% in 2006, it amounted to a mere 6% in the new Länder. This comparison is based on significantly higher earnings of men in the former territory of the Federal Republic than in the new Länder. The gross hourly earnings of men in the former territory of the Federal Republic amounted to EUR 18.67 and were thus 46% higher than those of men in the new Länder (EUR 12.76). For women the difference was only 18%: EUR 14.20 compared with EUR 12.05.
Author: Ralf Droßard - Federal Statistical Office
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