On 7 March 2006, the Federal Statistical Office (Statistisches Bundesamt, Destatis [1]) published new data in their press release (in German) [2] on the average gross monthly earnings differential between women and men. In 2005, female earnings increased by 2.3%, whereas earnings for men went up by a slightly lower 1.8%. From 2000 to 2005, the gender pay gap declined overall in Germany by 1.3 percentage points to 20.2% (see Table 1). During this five-year period, the gender pay gap narrowed by 1.8 percentage points to 20.3% in western Germany, while it increased slightly by 0.3 percentage points to 11.7% in eastern Germany. Despite this slight increase, the pay gap in eastern Germany continues to be less marked than in western Germany.[1] http://www.destatis.de/[2] http://www.destatis.de/presse/deutsch/pm2006/p1000042.htm
From 2000 to 2005, the gender pay gap narrowed overall in Germany, according to a March 2006 press release from the German Federal Statistical Office, Destatis. A recently published report provides new data on the earnings differential between women and men in western and eastern Germany. Although the pay gap decreased in western Germany, it increased marginally in eastern Germany.
On 7 March 2006, the Federal Statistical Office (Statistisches Bundesamt, Destatis) published new data in their press release (in German) on the average gross monthly earnings differential between women and men. In 2005, female earnings increased by 2.3%, whereas earnings for men went up by a slightly lower 1.8%. From 2000 to 2005, the gender pay gap declined overall in Germany by 1.3 percentage points to 20.2% (see Table 1). During this five-year period, the gender pay gap narrowed by 1.8 percentage points to 20.3% in western Germany, while it increased slightly by 0.3 percentage points to 11.7% in eastern Germany. Despite this slight increase, the pay gap in eastern Germany continues to be less marked than in western Germany.
These findings are based on male and female employees working more than 15 hours a week in the processing industries, in the distributive trades and in financial and insurance services. Destatis methodology does not include in this recent study other service industries or blue-collar workers employed in services. The March report focuses on the overall earnings differential between women and men. It thus contrasts with previous statistical reports, which made a distinction between blue-collar and white-collar workers (DE0404205F).
| EUR | % | |||
|---|---|---|---|---|
| Germany | ||||
| Year | Average income (all) | Men’s income | Women’s income | Gap between women’s and men’s income |
| 2000 | 2,665 | 2,820 | 2,215 | 21.5 |
| 2001 | 2,733 | 2,888 | 2,281 | 21.0 |
| 2002 | 2,816 | 2,978 | 2,345 | 21.3 |
| 2003 | 2,902 | 3,063 | 2,420 | 21.0 |
| 2004 | 2,967 | 3,127 | 2,483 | 20.6 |
| 2005 | 3,024 | 3,182 | 2,539 | 20.2 |
| Western Germany | ||||
| 2000 | 2,753 | 2,915 | 2,272 | 22.1 |
| 2001 | 2,818 | 2,979 | 2,340 | 21.5 |
| 2002 | 2,908 | 3,072 | 2,413 | 21.5 |
| 2003 | 2,995 | 3,158 | 2,490 | 21.2 |
| 2004 | 3,062 | 3,223 | 2,556 | 20.7 |
| 2005 | 3,118 | 3,276 | 2,612 | 20.3 |
| Eastern Germany | ||||
| 2000 | 1,982 | 2,048 | 1,814 | 11.4 |
| 2001 | 2,038 | 2,111 | 1,861 | 11.8 |
| 2002 | 2,099 | 2,180 | 1,921 | 11.9 |
| 2003 | 2,163 | 2,245 | 1,981 | 11.8 |
| 2004 | 2,215 | 2,299 | 2,027 | 11.8 |
| 2005 | 2,263 | 2,346 | 2,071 | 11.7 |
Source: Destatis, 2006
Pay gap in relation to distribution of workforce
The report also suggests that the slight narrowing of the German gender pay gap is due to a growing number of female employees working in better paid positions. However, the proportion of women and men working in higher and better paid positions did not change. While 40% of male white-collar workers were employed in higher job categories, this was only the case for 15% of female white-collar employees. Some 61% of male compared with 15% of female blue-collar workers were employed as skilled personnel.
The variation of figures between western and eastern Germany can partially be explained by the different distribution of women and men working in either blue-collar or white-collar jobs. In eastern Germany, earnings differentials are less obvious because most men are blue-collar workers, whereas the majority of women are working in white-collar positions. These data mirror historical trends of the two German states, which still reflect a higher level of professional qualifications among women and a higher female employment rate in eastern Germany. In 2005, the proportion of female workers employed in the highest paid blue-collar jobs in eastern Germany was still twice as high (25.3%) as that in western Germany. At the same time, the percentage of women working in the lowest paid jobs was considerably lower (21.4%) than in the rest of the country (46.2%).
Commentary
The Destatis report does not paint a full picture of the current situation in Germany, as it only focuses on some, albeit important, sections of the workforce as a whole. Major areas of female employment, such as public or health services, have not been included in the study, nor have figures relating to blue-collar workers employed in the services sector. Part-time workers are also excluded.
According to a Eurostat press release (in German, PDF 72Kb) on 6 March 2006, Germany has one of the biggest gender pay gaps in Europe. In 2004, only three countries out of the current EU25 showed a larger gender pay gap than that of Germany, while the average European gender pay gap stood at 15%.
Birgit Beese, Institute of Economic and Social Research (WSI)
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Eurofound (2006), Narrowing of gender pay gap, article.