Global Wage Report 2014/15

ILO expert explains the gender pay gap in Europe

Rosalia Vazquez-Alvarez, econometrician and wage specialist at the ILO, explains that differences in labour market characteristics account only for a small part of the gender wage gap.

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Labour market characteristics are namely: experience, education (four categories), occupational category (managerial, highly skilled, semi-skilled, low-skilled and unskilled), economic activity (from manufacturing to services, about ten categories including public administration), location (urban, rural) and work intensity (hours worked). When experience is missing, age is considered as a proxy. The unexplained part of the decomposition then captures wage difference that cannot be explained by the above list of variables.
Source: ILO Global Wage Database.