Gender pay gap decreasing but wide variations between sectors
Published: 26 August 2007
Over the past 10 years, the annual wage increase has on average been slightly higher for white-collar workers, at 3.9 percentage points compared to almost 3.5 percentage points for blue-collar workers. However, in the past couple of years, the wage increase has been higher for blue-collar workers.
In 2006, women’s wages increased more than men’s in all sectors except the public sector at municipal level. While there are signs therefore of a declining gender pay gap, sectoral wage differences remain considerable. The highest wages are found in the private sector among white-collar workers, while the lowest are recorded in the public sector at municipal level.
Over the past 10 years, the annual wage increase has on average been slightly higher for white-collar workers, at 3.9 percentage points compared to almost 3.5 percentage points for blue-collar workers. However, in the past couple of years, the wage increase has been higher for blue-collar workers.
In 2006, the wage increase was between two and three percentage points for the economy as a whole. In recent years, the wage increase peaked in 1995–1996 at six percentage points for white-collar workers and 4.8 percentage points for blue-collar workers (see Figure). The smallest increase for white-collar workers, at 2.4 percentage points, was noted in 2005–2006, while for blue-collar workers the smallest increase, at 2.6 percentage points, was reported in 1998–1999.
Annual wage increases, by category of workers, 1995–2006 (%)
Source: Confederation of Swedish Enterprise (Svenskt Näringsliv), 2007
Annual wage increases, by category of workers, 1995–2006 (%)
Significant sectoral wage differences
The highest wages are found among white-collar workers in the private sector, while the lowest are recorded in the public sector at municipal level; the latter has an average wage corresponding to 70% of the average wage of white-collar workers in the private sector.
In 2006, average monthly pay across the private sector stood at SEK 26,125 (€2,831 as at 6 August 2007), which almost matches the average salary in the public sector at county council level including the health service sector and part of the educational sector. According to a 2007 report from Statistics Sweden (Statistiska Centralbyrån, SCB) and the National Mediation Office (Medlingsinstitutet), average wages in the public sector at various levels and in the private sector compared with the overall average wage are as follows:
public sector at municipal level – 18 percentage points lower;
public sector at county council level – 0.2 percentage points lower;
public sector at state level – three percentage points higher;
private sector, white-collar workers – 14.5 percentage points higher.
Decreasing gender pay gap
In most occupational groups, men’s average wage remains higher than women’s. However, in 2006, women’s wages increased more than men’s in the private sector and in the public sector at county council and state level, thus resulting in a declining gender pay gap. The average increase in these sectors where an increase could be noted was around 0.6 percentage points greater for women compared with the increment for men.
In the public sector at municipal level, women’s average wage was 92% of men’s in 2005 and 2006. Weighting differences in age, education, working time and occupation, women’s wages represented 99% of men’s in this sector in 2005. The widest gender pay gap was found in the private sector among white-collar workers, where women’s wages were 90% of men’s according to the 2005 weighted data (see Table).
| Public sector: municipal level | Public sector: county council level | Public sector: state level | Private sector: white-collar workers | Private sector: blue-collar workers | |
|---|---|---|---|---|---|
| 2006 | 92 | 72 | 87 | 78 | 89 |
| 2005 | 92 | 71 | 86 | 77 | 88 |
| 2005 (weighted figures)* | 99 | 95 | 93 | 90 | 94 |
Note: * Differences in age, education, working time and occupation have been weighted.
Source: Statistics Sweden and National Mediation Office, 2007
The most gender-balanced occupations – that is, not female or male-dominated – are found in the private sector among white-collar workers such as business administrators, marketing professionals and human resource professionals. It is interesting to note that women’s wages in these occupations correspond to 81% of men’s. This pay gap of 19 percentage points is the widest reported among the largest occupational groups, both in the public and the private sector.
As for the public sector, the most gender-balanced occupation in public administration is that of administrator. The pay gap of 13 percentage points in favour of men in this occupation is among the widest for the largest occupational groups in the public sector.
Similar pay gaps as described above can be found among other occupational groups both in the private and the public sectors. Examples in the private sector include construction workers, salespersons, buyers, brokers and agents, while examples in the public sector include university lecturers at state level and secretaries at county council level. However, it should be noted that these occupational groups are not among the most gender balanced (SCB and Medlingsinstitutet, 2007).
Sources
Confederation of Swedish Enterprise (Svenskt Näringsliv), Facts about wages and working time, Stockholm, 2007.
Statistics Sweden (Statistiska Centralbyrån, SCB) and National Mediation Office (Medlingsinstitutet), Official wage statistics for 2006, Stockholm, 2007.
Jenny Lundberg, Oxford Research
Eurofound recommends citing this publication in the following way.
Eurofound (2007), Gender pay gap decreasing but wide variations between sectors, article.
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