Exploring the Gap: An Expliration of the Difference in INcome Received from Wages and Salaries by Women and Men in Full-Time Employment

Abstract

The difference between the income received by employed women and men in New Zealand is widely recognised. Often referred to as the "gender wage gap"1 , this income differential has prevailed despite significant improvements in the past 50 years including changes in society's attitudes towards women in employment and increasing numbers of women in paid work. What then can this difference be attributed to? Is it structural factors such as age and occupation, or are there other un-measurable factors at work? Confining itself to the wages and salaries of women and men in full-time employment, this paper presents some of the results of recent analysis conducted by Statistics New Zealand's Analytical Support Division. Using data from the 1997 New Zealand Income Survey and several different multivariate techniques, this analysis attempts to explore some of the factors behind this "earnings gap". Originally conducted for an upcoming Statistics New Zealand analytical publication, this research first explores the factors responsible for prescribing the level of earnings for all people then applies these results in a process of standardisation. The results leave much scope for both discussion and a continuation of analysis.