39%
39% is a statistic frequently cited in discussions about the gender pay gap in Australia, particularly in relation to a 2019 report commissioned by the Diversity Council Australia Ltd (DCA) and the Workplace Gender Equality Agency (WGEA). The report, authored by KPMG, claims that 39% of the so-called gender pay gap in Australia is attributable to gender discrimination. This figure has been widely reported in media outlets, including the Australian Broadcasting Corporation, The Guardian, and Business Insider Australia, despite ongoing debates about the methodology and interpretation of the data.
Background and Context
The report was commissioned by the DCA, an independent not-for-profit organization focused on workplace diversity and inclusion, and the WGEA, a federal statutory agency tasked with promoting gender equality in Australian workplaces. The study aimed to quantify the factors contributing to the gender pay gap by analyzing data from Australian workplaces. It presented a breakdown of factors influencing the pay gap, assigning percentages to each and asserting that the sum of these factors accounted for 100% of the disparity. Notably, this approach contrasts with earlier studies, such as the 2009 CONSAD Report commissioned by the U.S. Department of Labor, which did not attempt to allocate specific percentages to individual factors.
Methodology and Findings
The KPMG report identified several factors contributing to the gender pay gap, including: - Gender discrimination - Years not working due to interruptions - Occupational segregation - Industrial segregation - Part-time employment - Unpaid care and work (measured by hours spent on housework) - Age - Tenure with the current employer - Employment in government or non-governmental organizations
Under the section "Drivers of the Gender Pay Gap," the report explicitly states that gender discrimination accounts for 39% of the total disparity. This figure represents an increase from 29% in the prior report, issued in 2014. The report defines gender discrimination as "the element of the gender pay gap that would remain if men and women had the same levels of the other factors," as noted on page 25 and reiterated on page 34.
The report further acknowledges that the "unexplained component" of wage disparities—differences not accounted for by the controlled variables—has been interpreted as gender discrimination in existing literature. However, it also clarifies that this unexplained component may include other unmeasured variables, omitted factors, or measurement errors in the model.
Criticism and Controversy
Critics have raised concerns about the report's methodology and the implications of its findings. Notably, the report’s definition of gender discrimination has been questioned, as it equates the unexplained portion of the pay gap to discrimination without explicitly ruling out other potential causes. Additionally, the report’s conclusion that 39% of the pay gap is due to discrimination has been presented as a definitive claim, despite a disclaimer stating that the findings reflect the authors’ opinions.
Both the DCA and the WGEA have endorsed the report by publishing its key findings on their official websites, further amplifying its influence. This has led to calls for greater transparency in how such statistics are interpreted and communicated, particularly given the report’s significant impact on public discourse and policy discussions in Australia.
External Links
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