She’s price(d)less: the economics of the gender pay gap
She’s Price(d)less is the third in a series of reports that uses econometric modelling applied to data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey to unpack the factors that contribute to the gender pay gap.
The report shows that deeply entrenched gender stereotypes about the roles men and women play in paid work and caring continue to be the driving force behind the gender pay gap. The report found that:
- Gender discrimination continues to be the biggest contributing factor to the pay gap, accounting for almost two-fifths (39%) of the gender pay gap,
- The combined impact of years not working due to interruptions, part-time employment and unpaid work contributed to 39% of the gender pay gap.
- Occupational and industrial segregation continue to be significant contributors to the gender pay gap at 17%.
Understanding the drivers of the gender pay gap is critical to designing interventions to close the gap.
The study, conducted for the Diversity Council of Australia (DCA) and the Workplace Gender Equality Agency found that halving the gender pay gap and entrenched discrimination against women would increase economic growth by $60 billion by 2038.
Solutions outlined in the report included:
- Addressing discrimination in hiring, promotion and training
- Increased pay transparency and reporting on gender pay gaps
- Increasing the availability of childcare; and reducing disincentives through personal tax, family payment and child support systems
- Increasing the share of women in leadership positions through targets, quotas and diversity policies