MILL VALLEY, Calif., March 27, 2019 /CNW/ -- With global attention on the gender pay gap over the past several years, does a pay gap between men and women persist in Canada? Today, Glassdoor Economic Research published a new multi-country study on the state of the gender pay gap, Progress on the Gender Pay Gap: 2019, revealing that women in Canada earn, on average, $0.84 per every $1.00 men earn. This 2019 study, which offers gender pay gap data for Canada, the United States, United Kingdom, France, Germany, Australia, the Netherlands and Singapore, is based on more than half a million salary reports shared on Glassdoor by employees over the past three years1, and seeks to understand both the "unadjusted" and "adjusted" pay gap in each country. The unadjusted pay gap explains the overall difference between pay for men and women, while applying statistical controls for a more apples-to-apples comparison is known as the adjusted pay gap.
The unadjusted pay gap between men and women in Canada is 16.1 percent, meaning women earn, on average, $0.84 for every $1.00 men earn. When statistical controls are applied for worker and job characteristics, including worker age, education, years of experience, occupation, industry, location, year, company and job title, the adjusted pay gap in Canada shrinks to 4.0 percent, with women earning $0.96 for every $1.00 men earn.
"Over the past several years, company leaders, politicians, celebrities and more around the world have called to put an end to the gender pay gap. Glassdoor's comprehensive study validates that Canada has a pay gap and that there is still much progress to be made to reach equal pay," said Glassdoor Chief Economist Dr. Andrew Chamberlain. "Leveraging Glassdoor's unique salary and pay database, this global study shows significant pay gaps remain around the world, and it shines a light on the factors that explain the documented differences in pay between men and women and where unexplained barriers continue to slow the march toward pay equity."
The pay gap can be divided into what can be "explained" due to differences in worker characteristics (e.g., age, education, etc.) and what remains "unexplained." Glassdoor researchers found that roughly 62 percent of the overall pay gap in Canada can be explained by worker characteristics, while 38 percent of the overall pay gap cannot be explained by any factors observable in Glassdoor data. This means the unexplained pay gap could be attributed to factors such as workplace bias (whether intentional or not), negotiation gaps between men and women and/or other unobserved worker characteristics.
One of the most significant factors contributing to the pay gap is the industry and jobs that men and women sort themselves into, also known as "occupational sorting," which explains about 52 percent of the overall pay gap in Canada. Eleven percent of Canada's pay gap is due to differences in education and experience between men and women.
Gender Pay Gaps Around the World
The 2019 Glassdoor study revisits a 2016 study from Glassdoor analyzing the pay gaps (both unadjusted and adjusted) between men and women in the U.S., UK, France and Australia. Since 2016, the pay gaps in these countries have improved slightly, although significant pay gaps remain between men and women. The pay gap data for Canada, the Netherlands and Singapore is new to the 2019 report. Findings in each of these markets are similar: a larger unadjusted pay gap that shrinks, but does not disappear, when additional factors such as worker experience, age, location and job title are considered. Of the eight countries in the 2019 study, Germany has the largest unadjusted pay gap (22.3 percent), while France has the smallest unadjusted pay gap (11.6 percent).
For Employers: Use Glassdoor's free pay audit tool to analyze compensation at your company to determine if pay gaps exist. If equal pay is a priority for your organization, join more than 5,800 other companies that have taken Glassdoor's Equal Pay Pledge to show job candidates that you are committed to equal pay for equal work.
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For further information: Alison Sullivan and Sarah Stoddard, [email protected], http://www.glassdoor.com