Gender Pay Gap Analysis in UK

This assignment analyzes the gender pay gap in the UK. It utilizes statistical methods like paired samples t-tests and correlation to compare hourly wages between males and females. The analysis concludes that while a wage difference exists, it's not substantial and influenced by factors such as experience. Recommendations are made for closing the gap through equal pay practices.

RESEARCH PAPER

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................3
Description of data......................................................................................................................................4
Discussion of statistics method..................................................................................................................10
Research questions................................................................................................................................10
Hypothesis.............................................................................................................................................10
What is the difference between male and female hourly wage rates in the UK?....................................10
What role experience plays in gender wage gap if it exists between male and female in the UK?........12
What is the difference between the actual weekly hours among males and females in the UK?............13
CONCLUSION.........................................................................................................................................14
Figure 1 Weekly hour’s data of male and female........................................................................................5
Figure 2 Male and female wage on basis of experience for an hour............................................................8
Figure 3 Difference between male and female wage...................................................................................8
Table 1 Male and female hourly wage rates................................................................................................6
Table 2 Experience and wage rate of males and females.............................................................................7

INTRODUCTION
Gender pay gap is topic that is discussed commonly in the UK. It is find out that that in
UK that discrimination is done among males and females in terms of job related pay. For same
job man receive higher amount of salary then women. In order to conduct research in better way
it is very important to understand that what gender pay gap is in today era. European commission
defines that gender pay gap is the average gap that exist between men and women total hourly
earnings. In simple words it can be stated that per hour wage rate of men and women is
compared with each other. On this basis gender pay gap is identified in the UK. The wage gap
among gender happens due to many reasons. Some of the reasons due to which gender comes in
existence is education level of male and female, difference among males and females on their
job preferences, designations at which males and females currently are working etc. Apart from
this, work experience and break in employment are also one of the main factors that play a key
role in bringing gender gap in terms of wage rate. As per latest reports, gender gap significantly
reduced in the UK in past years from 27% to 19% (Department of UK, 2016). This is big
achievement and reflects that government efforts to bring equality among genders are working
out. It has been stated in the report that work experience is one of the most important factors that
is bringing big difference in gender pay gap. It is observed that in initial years both males and
females receive same wage on hourly basis. After 4-5 years difference comes in male and female
salary. This is because after marriage women have to take care of home. Hence, they cannot
continue job which affects their efficiency level when they again job after some months or years.
This is one of the main reason due to which females are paid less than males for same job and
work. Hence, it can be said that this is the one of the most prominent reason due to which
females are paid less than males. However, government bring equality act which entitle women
to receive same salary which is received by males (UK labor market, 2016). This law proves
effective and gives a significant contribution in reducing gender pay gap. On this basis it can be
said that situation get improved in UK but it further needs to improve.
Description of data
Data related to gender gap is taken in to account for preparing the research paper. The
facts and figures are taken from the official site Department of economy. On this site various

excel sheets are available related to the labor force of the UK. In order to prepare a research
paper data is collected and then analyzed to find some specific results. Facts related to average
working hours of males and females of UK is collected from site that is mentioned earlier in the
report. Apart from this facts and figures related to the gender wages on hourly basis in UK is
collected. Along with this, facts and figures related to gender wage gap on the basis of
experience is also collected. The charting and detail explanation of these different types of
figures is given below.
Dec-Feb 1995 Oct-Dec 1999 Aug-Oct 2004Jun-Aug 2009Apr-Jun 2014
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
1 Total weekly hours (millions)
MALES 13.4 12.6 13.7 -
1 27.61% 43.24% Females 7.4 6.6
7.3 -
Figure 1 Weekly hour’s data of male and female
It can be seen in this chart that gap between males and females average working hours declined
in past years. It is proved from the fact that in case of males growth rate of average working
hours is 27.61% but in case of females same growth rate become 43.24%. Hence, it can be said
that to some extent the gap between men and women average growth rate in working hours
reduced. It can be said that working hour’s gap between male and females reduced. On this basis
it can be said that hourly gender pay gap also reduce between males and females.

Table 1 Male and female hourly wage rates
Male Female
1994 10.1 7.5
1996 10.2 7.7
1998 10.3 7.4
2000 10.7 8
2002 11.3 8.5
2004 11.5 9
2006 11.8 9.3
2008 11.7 9.1
2010 11.9 9.3
2012 10.9 9
2014 10.8 8.4
Percentage
change 6.93% 12.00%
1990 1995 2000 2005 2010 2015 2020
0
2
4
6
8
10
12
14
Male
Female
It can be seen from the image given above that the difference between males and females
reduced in terms of hourly wage rate. In starting period between 1990-1995 it can be seen that
females wage rate is below 8 and same of male is 10. Scenario gets changed in last year and

average pay on hours basis for women is 8 and same for male is 10.1 (Approx). Hence, to some
extent the gender pay gap reduced between males and female in past year. If we look at the
figures then it can be seen that growth rate of wages for male increased by 6.93% and same for
women increased to 12%. This is one of the main reason due to which gender gap in terms of pay
reduce substantially in the UK. Hence, it can be said that gap between male and female wage per
hour get contracted in last year’s.
Table 2 Experience and wage rate of males and females
Male Female Difference
1 4 4 0
3 4.9 4.9 0
5 6 6 0
7 7.3 6.8 0.5
9 8 7.4 0.6
11 9 8 1
13 10 9 1
15 10.3 9.1 1.2
17 11.3 9.2 2.1
19 12 9 3
21 12 8.8 3.2
23 11.9 8.7 3.2
25 11.9 8.6 3.3
27 11.9 8.5 3.4
29 11.8 8.3 3.5
31 11.8 8.4 3.4
33 11.5 8.2 3.3
35 11.2 8.1 3.1
37 11 8 3
39 11 8 3
41 10.5 7.6 2.9

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41
0
2
4
6
8
10
12
14
Male
Female
Figure 2 Male and female wage on basis of experience for an hour
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41
0
2
4
6
8
10
12
14
Male
Female
Difference
Figure 3 Difference between male and female wage
It can be seen from the table given above that on the basis of experience gender pay gap exists in
the UK at moderate scale. Up to 5 years of experience there is no difference in income level of
males and females. Thereafter, big changes come in income level of males and females. Part of
workforce which have experience from 19- 39 years variance comes in existence and male
receiving 3 pound more than female for same work.

Discussion of statistics method
T-test is used to analyze male and female wage gap. This test is selected for analysis
because it is a tool which reflects the difference between mean values of both variables. It is tool
which reflects that difference between both variables is high or low.
Research questions
 What is the difference between male and female hourly wage rates in the UK?
 What role experience plays in gender wage gap if it exists between male and female in
the UK?
 What is the difference between the actual weekly hours among males and females in the
UK?
Hypothesis
 H0: There is no significant difference between male and female hourly wage rates in the
UK in respect to specific time period.
 H0: There is no significant difference in gender wage gap in terms of their experience.
 H0: There is no significant difference between the actual weekly hours among males and
females in the UK.
What is the difference between male and female hourly wage rates in the UK?
Paired Samples Statistics
Mean N Std.
Deviation
Std. Error
Mean
Pair 1
VAR0001
6 11.02 11 .660 .199
VAR0001
7 8.47 11 .724 .218
Paired Samples Correlations

N Correlatio
n
Sig.
Pair 1 VAR00016 &
VAR00017 11 .934 .000
Paired Samples Test
Paired Differences t df Sig. (2-
tailed)Mean Std.
Deviation
Std.
Error
Mean
95% Confidence
Interval of the
Difference
Lower Upper
Pair
1
VAR00016 -
VAR00017 2.545 .258 .078 2.372 2.719 32.682 10 .000
Interpretation
It can be seen from table that correlation value is 0.934 and it can be said that values of
both variables are correlated to each other. Value of higher correlation is 1 and current value is
0.934 which verify the fact that there is high correlation between both male and female wage
rate. This reflects that genders wage rate increased and decrease together. Apart from this pace of
change in there wage rate is almost same. Level of significance is 0.00 which means that there is
less probability of difference between both variables mean value. Value of level of significance
is 0.00<0.05 and on this basis null hypothesis is accepted. This means that there is no significant
difference in the mean value of both variables. This means that there is no big difference
between wage rates of male and female in the UK.

Point to be noted- Above statement does not mean that there is completely no difference
between male and female hourly wage rate. Difference exists between there wage amount on per
hour basis but that variation is not high even moderate.
What role experience plays in gender wage gap if it exists between male and female
in the UK?
Paired Samples Statistics
Mean N Std.
Deviation
Std. Error
Mean
Pair 1
VAR0002
0 9.97 21 2.483 .542
VAR0002
1 7.84 21 1.373 .300
Paired Samples Correlations
N Correlatio
n
Sig.
Pair 1 VAR00020 &
VAR00021 21 .917 .000
Paired Samples Test
Paired Differences t df Sig. (2-
tailed)Mean Std.
Deviation
Std.
Error
Mean
95% Confidence
Interval of the
Difference
Lower Upper

Pair
1
VAR00020 -
VAR00021 2.129 1.341 .293 1.518 2.739 7.274 20 .000
Interpretation
Value of level of significance is 0.000<0.005 and null hypothesis is accepted. This means
that there is not a significant or big impact of experience on the wage rate that male and female
earn on the job. Facts shows that due to experience gap come in income level of male and female
but value of t-test proved that such a difference is no so big. Hence, one cannot deny from the
fact that discrimination is done in terms of wage rate among male and female on the basis of
experience. But difference in wage between both genders is not very big.
What is the difference between the actual weekly hours among males and females in
the UK?
Paired Samples Statistics
Mean N Std.
Deviation
Std. Error
Mean
Pair 1
VAR0000
2 15.82 258 .904 .056
VAR0000
9 9.28 258 .978 .061
Paired Samples Correlations
N Correlatio
n
Sig.
Pair 1 VAR00002 &
VAR00009 258 .791 .000
Paired Samples Test

Paired Differences t df Sig. (2-
tailed)Mean Std.
Deviation
Std.
Error
Mean
95% Confidence
Interval of the
Difference
Lower Upper
Pair
1
VAR00002 -
VAR00009 6.544 .613 .038 6.469 6.619 171.553 257 .000
Interpretation
In present case value of level of significance is 0.00<0.05 and it states that null
hypothesis is accepted. In this case null hypothesis was that there is no significant difference
between the actual weekly hours among males and females in the UK. Null hypothesis is
accepted and it can be said that there is not a big difference between average working hours of
male and female. It is clear that this does not mean that there is no difference between average
working hours of male and female. The difference between average working hours is not so big.
Hence, it can be said that in past years variation comes between working hours of male and
female and both moderately change at same pace and this is proved from the value of correlation.
CONCLUSION
On the basis of above discussion it is concluded that there is difference in the male and female
wage rate on hourly basis. However, this gap is not so big but consistent efforts need to be made to bring
equality in the wage rates of both genders on hour basis. Experience is one of the core reasons responsible
for such difference in wage rate. It is responsibility of firms to give equal wage to both genders even there
is gap comes in carrier of women.