Canada’s gender pay gap is at 16.1 per cent, with women earning roughly $0.84 for every dollar earned by men, according to a new survey by Glassdoor Inc.
The study, which looked at the wages earned by men and women in eight countries, found when statistical controls are applied for employee and job characteristics — including age, education, years of experience, type of work, industry, location, year, company and job title — the adjusted pay gap dropped to four per cent, with women earning $0.96 for every dollar men earn.
One of the most significant factors contributing to the gender pay gap in Canada is the industry and jobs that men and women occupy more frequently, also known as occupational sorting, which accounted for about 52 per cent of the overall gap, noted the study. Eleven per cent was due to differences in education and experience between men and women.
“The largest factor explaining gender pay differences is occupational segregation, in which men and women systematically work in different roles and industries,” says Amanda Stansell, economic research analyst at Glassdoor. ”Another major factor is differences in education and experience between employed men and women. While we can explain some of the gender pay gap, about 38 per cent of [it] in Canada remains unexplained.”
Among the other seven countries participating in the study, Germany had the widest gender pay gap, with women earning $0.78 on the dollar received by men for similar work. This was followed by the United States ($0.79), the Netherlands ($0.81), the United Kingdom ($0.82), Australia ($0.85), Singapore ($0.87) and France ($0.88).
The study also found the U.S.’s gender pay gap is improving, albeit slowly. It attributed the improvement to the country’s robust economy.
“Recent data show women’s labour force participation has been growing faster than men’s in recent years, fuelling recent labour market gains,” noted the study. “In addition, research shows that as the labour market has tightened . . . women are disproportionately taking jobs in traditionally male-dominated industries, helping break down occupational barriers for women.”