GENDER WAGE GAP IN ESTONIA

May 13, 2011

Sten Anspal

Research questions

• Why is gender wage gap so high in Estonia?

• What could be done to reduce it?

Stages of the research project

• Review of theoretical and empirical literature

• Gender wage gap in Estonia– Analysis of Labor Force Survey data from

2000-2008– Case studies in organizations: the role of

personnel practices in development of the gender wage gap

• Policy recommendations

Gender pay gap, EU-27 (2007)

Source: Eurostat

Gender pay gap in Estonia, 1993-2009

Source: Estonian Labour Force Survey 2000-2009

Which factors explain the gender wage gap?

Factors that may lead to different average wages for men and women:- Occupation- Industry- Level of education- Field of education- Working time

28.7%

Women work more than men in lower paying occupations

Men WomenWage level

(average=100)

Managers and senior officials 15.9% 8.9% 163

Professionals 9.0% 18.9% 119

Associate professionals 7.9% 18.2% 101

Clerks 2.7% 7.2% 87

Service and sales workers 5.2% 19.0% 69

Skilled agricultural and fishery workers 3.1% 2.0% 75

Craft and related trade workers 27.6% 4.2% 110

Plant and machine operators 19.7% 8.4% 97

Elementary occupations 8.8% 13.2% 60

Total 100% 100%

Women work more than men in industries that pay lower wages

Men WomenWage level

(average=100)Agriculture and forestry 10.4 5.4 81Fishing 0.9 0.2 86Mining and quarrying 1.7 0.3 99Manufacturing 24.2 20.3 97Electricity, gas and water supply 2.7 0.9 105Construction 16.7 1.5 139Wholesale and retail trade 9.8 15.6 95Hotels and restaurants 1.1 4.2 74Transport, storage and communication 11.6 5.3 118Financial intermediation 0.5 1.7 155Real estate, renting and business activities 6.3 5.7 102Public administration and defence 6.1 6.9 114Education 3.5 16.2 86Health and social work 1.5 9.8 83Total 100 100

Women’s level of education is on average higher than men’s

Men Women

Wage level (average=100)

Primary education 29.9 25.8 78Secondary education 58 58 93Tertiary education 12.1 16.2 139Total 100 100

Women’s lower wages are not due to their choice of field of education

Share of womenWage level

(average=100)Mathematics, statistics and computer science 60% 148Life and physical sciences 58% 136Social sciences, business and law 85% 111Engineering, manufacturing and construction 30% 110Humanities and arts 72% 110Health and welfare 93% 103Services 45% 101Teacher training and education science 91% 97

Agriculture and veterinary 48% 89General programmes 53% 89

Wage gap is greatest at ages of childbearing and rearing

Greater part of wage gap unexplained

Factors that may lead to different average wages for men and women:- Occupation- Industry- Level of education- Field of education- Working time

- Insufficiently detailed statistical data?- Unmeasured factors (personality,

discrimination)?

28.7%

Gender wage gap existed in all organisations studied

One reason: women and men working in different occupations

However, there were also cases of men and women receiving unequal pay for same work Personnel practices:

Bonus for men to compensate for working with women“Men’s” jobs considered unsuitable for women when

hiring Compensation for use of personal car vs use of company

car

Thank you!

The Estonian Centre for Applied Research (CENTAR)