Disparity between men’s and women’s salaries has long been a cause of heated debate. Conflicting data from the United States and Australia begs the question; if the pay gap is getting worse, why do we think it is getting better?

A recent survey from the United States shows that views on the gender pay gap differ, with many women in Generation Y stating more needs to be done to achieve equality in the workplace whilst denying that they have personally been discriminated against or paid less than male counterparts.

Earlier this year, the Pew Research Centre ran a survey of 810 Millennials (better known in Australia as Generation Y) on the topic of gender in the workplace. The findings were collated in the On Pay Gap, Millennial Women Near Parity – For Now report, released December 2013.

In Australia, numbers from the Australian Bureau of Statistics (ABS) show that women working full time are typically paid 17.5% less than men but the Pew Research Centre survey shows that the pay gap in the U.S is closing, particularly for Gen Y workers.

The research showed that the gap for those aged 25-34 had narrowed to 7 per cent in 2012. This seems like a surprising improvement but when viewed in context, it is clear that one main reason for the shift is that men, particularly in the younger age bracket, have experienced a significant decline in wages since 1980 which has brought them closer in salary to their female colleagues.

In Australia, the gap has actually widened since 2005 from 15.1 percent to the current 17.5 per cent. With the U.S economy being hit much harder by the GFC, this could create speculation that a tougher economic climate could positively affect pay equality between genders.

One of the main findings from the Pew study was that while both men and women aged between 18 and 32 thought that pay inequality was declining, there were still many areas for improvement. A significantly high proportion of respondents believed that more changes are required to enable gender equality in the workplace – 75 per cent of Millennial women, in addition to 57 per cent of Millennial men.

Anecdotally in Australia discussions around gender pay disparity are often rife with myths, such as the numbers being skewed by part time workers or that the gap exists only in isolated cases in specific roles or industries.

The issue of family responsibilities is clearly a pertinent one here and is one area where employers can take action, and must ensure they are complying with current legislation. See our Parental Leave FAQs for more information.

Recent articles

Trauma informed investigations

Trauma-informed workplace investigations: Prioritising ‘care’ over rigid processes

Interviewee: Kirsten Hartmann, Senior Workplace Relations Adviser/Workplace Investigator In August 2023, the Australian Human Rights Commission (AHRC) released four guiding...
Reverse bullying

Reverse Bullying is a Threat to Your Workplace Culture: Here is What it Looks Like

Article updated on 15 March 2024 [Originally published in 2020] What is reverse [or upward] bullying? Simply put, reverse bullying...

The First Tranche of the Fair Work Legislation Amendment (Closing Loopholes) Act 2023

Closing Loopholes Legislation Key changes taking effect from 15 December 2023 In late 2023, the Federal Government passed the first...
Low job control

Eliminate Low Job Control and Empower Your Employees: A Breakdown of the First Webinar

Safe Work Australia has pinpointed 14 psychosocial risks that can adversely affect not only productivity and engagement levels, but also...