Gender Gaps in Paid Work and Wages for Five Countries [Figure 3.19]

Calculating the Gender Wage Gap

To calculate its specific gender wage gap metric, the OECD includes the earnings of both full-time and part-time workers to get a complete picture of the labor market.

Critiquing the Gender Wage Gap Metric

In a particular country, the gender wage gap, calculated as the difference between median earnings of full-time male and female employees as a percentage of male earnings, is 15%. A new national policy is enacted that results in a 10% increase in the median earnings for full-time female employees. The median earnings for full-time male employees remain constant. What is the most likely outcome for the gender wage gap?

Consider an economy where the median earnings for full-time male employees is $50,000 and for full-time female employees is $42,500. The following year, due to uniform inflation, the median earnings for both full-time male and female employees increase by exactly $5,000 each. How does this change affect the gender wage gap when measured as the difference in median earnings expressed as a percentage of male earnings?

Components of the Gender Wage Gap Metric

Two countries, A and B, both report that the difference between the median earnings of their full-time male and female employees is exactly $10,000. In Country A, the median earnings for full-time male employees are $100,000. In Country B, the median earnings for full-time male employees are $50,000. Based on the metric that calculates the gender wage gap as the difference in median earnings expressed as a percentage of male earnings, which statement is the most accurate comparison?

Evaluating Changes in the Gender Wage Gap

Interpreting the Gender Wage Gap Metric