IEA releases briefing on Equal Pay Day
- The official calculation for the 2018 gender pay gap is at a record low of 8.6% for full-time workers, with a negligible gender pay gap for women aged 22-39. This gap increases later in life, with evidence from the United States that the bulk of the pay gap is a result of time taken off to raise children.
- Calculations that put the pay gap above 8.6% are achieved by moving further away from like for like comparisons between typical men and women in the workplace. The Equal Pay Day campaign relies on a figure 5.1 percentage points higher (or nearly 60% greater) than the official figures by using the mean rather than the median of the Office for National Statistics data, thereby giving more weight to the highest earners.
- Furthermore, claims that it will take more than 50 years to close the gender pay gap use an even higher starting point, assume a slower rate of progress than has recently been achieved, and fail to take account of likely changes as different cohorts move through the age distribution.