IPP Policy Briefs n°68
Authors : Thomas Breda, Paul Dutronc-Postel, Joyce Sultan Parraud, Maxime Tô
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Gender pay gaps within companies
Although they have narrowed, gender pay inequalities remain significant : in 2018, women on average have salaries that are 25% lower than men. The size of this gap, however, varies from 5% to 25% depending on how it is measured.
The use of different inequality indicators is necessary : Each has its own logic and the comparison of different measures offers useful keys to understanding for the design of relevant public policies. We show here that a substantial part of inequality is explained by segregation between firms, with women on average working in firms offering lower wages. To eliminate gender pay inequalities, it is therefore not sufficient to impose equal pay on rms; other policies will be needed.
To synthesize these different measures of gender pay gaps, the IPP has launched a new online tool that allows users to make their own methodological choices and to visualize in a few clicks the evolution of pay gaps over time according to different modalities and in different groups of employees and companies.
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