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A new study into the gender pay gap has revealed discrepancies between men and women within their chosen occupation is the leading contributor to the pay divide.
Analysis by e61 Institute found that while men and women were “often segregated by occupation”, 80 per cent of the pay gap was due to women being paid less.
“This research busts the outdated myth the pay gap exists because more women are nurses, carers, and administrators,” research manager Silvia Griselda said.
“What the data shows is that most of the gender pay gap is because women are paid less than men within the same occupation.”
The data found that among high-paying occupations, such as doctors, dentists and investment bankers, women were paid between 10-14 per cent less than men.
The pay gap was not explained by differences in skill or tenure, according to the report, which found marriage and parenthood had a greater impact on women.
“Australians frequently hear claims that the gender pay gap is driven by women not working full time or not staying with employers,” Ms Griselda said.
“Our analysis of the data shows these factors are actually quite insignificant … The factor that does seem to drive the gap wider is personal.
“Being married and having dependent children imposes a penalty on how much women earn compared to men. This penalty exists for women but not for men.”
Research economist Elyse Dwyer said the analysis provided an indication for companies and governments on how to best reduce the gender pay gap.
“One potential reason for the pay gap for men and women working in the same occupation is the type of firms that men and women are working for,” she said.
“Men may be more likely to work in high-paying firms, which require less flexibility and longer working hours.
“Another potential reason is that women may be less able to pursue leadership opportunities or high-paying but demanding specialties within the same occupation.”
Ms Dwyer said companies could narrow the gap by fostering an environment where all employees, regardless of gender, were encouraged to take on parental responsibilities.
“This could include being more flexible as to when or where work tasks are completed, encouraging job sharing in leadership positions and diversifying hiring,” she said.
“Simply focusing on encouraging women into higher-paying occupations, such as pilots or lawyers, will not be enough to end the pay gap.
“The bulk of the gains will more likely come from improved workplace flexibility that allows more women to take on higher-paying positions.”
The data, which looked at the workforce aged 25-60 from the 2016 census, made a range of findings, including about choice of profession.
Women did tend to lean towards caring, nursing or clerical roles, while men continued to be widely over-represented in STEM fields.
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