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GENDER PAY GAP IN CANADA
Glassdoor Economic Research has 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 men earn. The study is based on more than half
a million salary reports shared on Glassdoor by employees over
the past three years and seeks to understand both the “unadjusted”
and “adjusted” pay gap.
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 per cent, meaning women earn, on average, $0.84 for every
$1 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 per cent, with women
earning $0.96 for every $1 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 per cent of the overall pay gap in Canada can
be explained by worker characteristics, while 38 per cent 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 per
cent of the overall pay gap in Canada. Eleven per cent of Canada’s
pay gap is due to difference in education and experience between
men and women.
INTRODUCING “GENERATION FLEX”
A new global study suggests there has been a power shift towards
the employee. In many sectors, companies are no longer dictating
what the regular work day looks like, instead the employees
– the new, so-called “Generation Flex” – are calling the shots about
when, where and how they want to work.
Research conducted by flexible workspace provider, IWG, shows
that 85 per cent of Canadian respondents would choose a job that
offered flexible working over a job that didn’t. Additionally, 54 per
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.
– DR. ANDREW CHAMBERLAIN, GLASSDOOR
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8 ❚ APRIL 2019 ❚ HR PROFESSIONAL
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