Abstract
The gender pay gap has been observed for decades, and still exists. Due to a life course perspective, gender differences in income are analyzed over a period of 24 years. Therefore, this study aims to investigate income trajectories and the differences regarding men and women. Moreover, the study examines how human capital determinants, occupational positions and factors that accumulate disadvantages over time contribute to the explanation of the GPG in Germany. Therefore, this study aims to contribute to a better understanding of the GPG over the life course. The data are based on the German cohort study lidA (living at work), which links survey data individually with employment register data. Based on social security data, the income of men and women over time are analyzed using a multilevel analysis. The results show that the GPG exists in Germany over the life course: men have a higher daily average income per year than women. In addition, the income developments of men rise more sharply than those of women over time. Moreover, even after controlling for factors potentially explaining the GPG like education, work experience, occupational status or unemployment episodes the GPG persists. Concluding, further research is required that covers additional factors like individual behavior or information about the labor market structure for a better understanding of the GPG.
Highlights
In the European Union (EU) in 2019, women’s average gross hourly earnings were 14.1% below the earnings of men (Eurostat, 2021a)
The careers of men and women differ considerably in the labor market, with women being paid less than men (Arulampalam et al, 2005; Radl, 2013; Boll et al, 2017)
The aim of the present study is to examine income trajectories and to investigate the income differences of men and women over their life course
Summary
In the European Union (EU) in 2019, women’s average gross hourly earnings were 14.1% below the earnings of men (Eurostat, 2021a). According to Eurostat GPG statistics, the key priorities of gender policies are to reduce the wage differences between men and women at both the EU and national levels (Eurostat, 2021a). A report from the European Parliament in 2015 about gender equality assessed Germany’s performance in that field as mediocre. The federal government in Germany has already improved laws that focus on gender equality (Botsch, 2015). Regarding Germany, in 2019 the earning difference between men and women were found to be 19.2% (Eurostat, 2021a). The reasons behind gender income inequality are complex and have multidimensional explanations
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