Quantitative Data Analysis Report on Gender Pay Gap in UK

This report discusses factors that lead gender pay gap in the UK, its impacts on economic development, and ways of removing gender pay gap and improving economic condition of UK. It includes data collection from office of National statistics, quantitative analysis of dataset, and visualisation of collected data. The report concludes that gender pay gap has negative impact on economic development of countries and decreased gap can improve organisations’ productivity and economy of country.

Project 1 Quantitative Data
Analysis Report
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Background of the study..............................................................................................................3
Aim and objectives......................................................................................................................3
Research problem........................................................................................................................3
LITERATURE REVIEW................................................................................................................4
Reasons of gender pay gap in UK...............................................................................................4
Impacts of gender, pay gap on economic development of UK....................................................4
Ways of removing gender, pay gap and improving economic condition of UK.........................4
Data collection from office of National statistics........................................................................4
Quantitative analysis of dataset...................................................................................................5
Visualisation of collected data (200)...........................................................................................6
Findings.....................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Gender pay gap is an average difference between remuneration for men and women who are
working. There are number of countries where gender pay gap is high which means, women are
being paid less than men and this gap affect women employees as well as overall economic
condition.
Background of the study
When working women are being paid less than men at same workplace then this difference
is known as gender pay gap that has number of negative impacts on people (Boll and Lagemann,
2018). This present study is going to discuss factors that lead gender pay gap in the UK. Further,
it will discuss ways in which this gender pay gap where women employees are being paid less
than men affect economic condition and living standard of UK’s people. Research methodology
as well as data collection plays a vital role as it enables scholars in accomplishing main research
aim and helping out people.
Aim and objectives
The aim of conducting this research is: “To evaluate gender pay gap in UK and its impact
over economic development”.
Objectives
 To identify reasons of gender, pay gap in UK.
 To discuss impacts of gender, pay gap on economic development.
 To suggest ways of removing gender, pay gap and improving economic condition of UK
Research problem
Selected research topic of this study is identifying impact of gender pay gap on economic
condition of UK. It has wide scope as by conducting study on this topic, researcher can help out
local people as well as businesses. But for conducting research on this topic, there will be
requirement of number of resources, finance and time. lack of time and budget research problems
can create barriers in successful completion of this study. Completing study in a timely manner is
vital as it can improve image of researchers and can boost their confidence. So, it is important for
researchers to make an estimated budget and time plan.
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LITERATURE REVIEW
Reasons of gender pay gap in UK
According to the Costa Dias, M., Joyce and Parodi, 2020) one of the main reason of
increasing gender pay gap in UK is women’s choice of doing part time. Women have to do
household chores and when they are being allowed part time job then they tend to choose such
jobs. Employers take undue advantage of this and they pay them less as compared to men. It is
also found by Blau and Kahn, (2020) that there are more men in senior roles than women and it
is the reason as women are being paid less than men.
Impacts of gender, pay gap on economic development of UK
According to the Klasen, (2018) gender pay gap affect productivity of companies as it is
one of the major sources of productivity gain. When women are being paid less than men then it
makes them feel devalued and they feel that they are not effective much. They also think that
employers are bias because of gender reason. For this reason, they do not strive hard and it
affects overall productivity of company. Poor productivity is connected with customers’
experience and satisfaction. When customers get poor quality of products then they switch brand
and it decreases their spending that affect economic development.
Ways of removing gender, pay gap and improving economic condition of UK
As per the view of Fagan, C. and Rubery, (2018) there is one of the best ways by which
companies of UK can remove this gender pay gap and can contribute to economic condition.
using skill based assessment and doing performance appraisal on the basis of skills and
performance of individual employees, this gap can be decreased Cook and et.al., (2021)
supported this view and stated that by using structured interviews for recruitment and promotion,
this gap can be decreased as employees will be provided salary as per their skills.
Data collection from office of National statistics
As per the type of data, it is being divided into 2 parts such as primary and secondary.
Primary data collection is the one in which researcher collects brand new information and
secondary is the one in which researcher access existing literature. For this study, secondary data
has been collected via ONS. ONS collects as well as publishes statistics on economy and this
research is based on identifying impact of gender pay gap on economic condition and it is the
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reason of selecting this source. From this source, researcher can collect data related to digital
currency and their impact on economic development.
Quantitative analysis of dataset
As it is known that the gender pay gap is the difference between average hourly earnings of
men and women as a proportion of men’s average hourly earnings. It is known that this gap is
affecting people to the great extent. Now, it is important to know actual data regarding this as by
comparing data of different years. The reason of comparing data of gender pay gap of different
years is knowing current situation of UK and taking better strategies for improvement.
On the basis of data, published in the year of 2019, it can be said that gender pay gap has
been declining slowly over years. In the year of 2020, gender pay gap among full time
employees fell down to 7.4% from 9.0% in the year of 2019. Among all employees whether they
are full time and part time it fell to 15.5% from 17.4%. Overall, by comparing gender pay gap
data of 2019 and 2020, it can clearly be said that this gap is higher for all employees than for full
time and part time (Gender Pay Gap in the UK 2020, 2020). The reason behind it is women tend
to fill more part time jobs and that is why there is gap between part time employees.
Data, published on annual survey of hours and earnings regarding gender pay gap in the
year of 2018, it can be said that this pay gap for full time employees is close to zero between the
ages of 18-39 and from the age of 40 it widens. It also shows that there was negative gender pay
gap among part time employees emerges in the group 30-39 before reversing by the age of 50
years. Again, on the basis of this data, it can be said that in the UK, there is gender pay gap only
among employees of part time and reason is: women’s preference for part time jobs. It can also
be said that condition of gender pay gap is improving as it is decreasing over time and the reason
of this changes may be education and awareness (Gender Pay Gap in the UK 2018, 2020). By
decreasing this gap and removing this gap among part time employees, UK can become the
market leader and can improve overall economic condition.
Data, published in the year of 2018 on annual survey of hours and earnings, it is found that 90
percentile male employees earns substantially more than the equivalent women employees.
Difference of gender pay gap in full time employees is stated 16.7%. But it can also be seen that
with time the gap has reduced among higher earners. Before 2002, there was big gap in gender
pay among full time as well as part time. It was the reason as economic condition of UK was not
good at that time. But now government is focusing on decreasing this gap with the main aim of
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promoting diversity and making people feel valued. Nowadays, many of people believe that
employees should be paid as per their capabilities and experience rather their age and gender. It
can be beneficial for companies as well. When companies give importance to experience and
skills rather gender and age then they are more likely to become successful. Skilled employees
whether they are woman and man, when they are being paid as per their qualification and
capabilities then it makes them feel valued. They are more likely to help out their companies in
accomplishing goals (Costa Dias, Joyce and Parodi, 2020). They focus on bringing innovation
and creativity within business and with their innovative ideas, they try to satisfy customers.
Satisfied customers are more likely to stay loyal with business and they keep shopping with
business that increase cash inflow in the market. This cash inflow is a sign of improved
economy. So, on the basis of this, it can clearly be said that gender pay gap can affect economic
development and by removing this gap as well as providing equal opportunities to all, living
standard of people can also be improved.
Visualisation of collected data (200)
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Figure 1: Gender pay gap fell to 7.4% among full time employees
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Figure 2: Gender pay gap for median gross hourly earnings by age group
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Figure 3: Difference in pay between the sexes is largest among higher earners
On the basis of above data and graph, it can clearly be said that condition of UK in regard
to gender pay gap is improving. People are becoming aware and they know the importance of
equality and diversity. They also know that by providing equal pay opportunities to male and
females on the basis of their performance, they can increase productivity of their companies and
can contribute to economic condition of country (Petrongolo and Ronchi, 2020).
There were number of factors that have been identified that lead gender pay gap and in this
regard it is found that commuting time is one of the main factor. It refers a time that employees
take for travelling from their home to office. There is a general concept and mind-set as women
are less likely to travel than men. Women consider number of factors when they go for interview
and distance from their home to job or office is one of the main factor. This factor leads gender
pay gap. Male employees are more likely to commute and that is why they get higher pay than
women. Median commuting time has changed over time for both men and women. In the year of
2018, the median estimated commuting time was 24 minutes for men employees and 19 minutes
for women. this time has been increasing over time for men and women (Zhou, Hertog,
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Kolpashnikova and Kan, 2020). After the year of 2002, changes regarding commuting time can
be seen as it has increased for both male and female employees.
Findings
On the basis of above discussion, it can be said that in the UK, there is gender pay gap but
situations are changing over time as this gap is decreasing and it is beneficial for people and
companies as well. It is found that more than three out of 4 UK companies pay their male
employees higher than female employees. In 9 out of 17 sectors in the economy, men earn 10%
or more on average than women. It is also found that women get ready for working in companies
that pay them less. There is a clear finding that suggests that women are overwhelmingly likely
to work for those companies and employers who paid more to men (Meara, Pastore and Webster,
2020). There is presence of more senior men than women and it is affecting gender pay gap.
Some other factors have also been discussed in above study and on the basis of above
discussion, it can be said that increasing responsibilities on women is the main factor. Women
have to do household chores and men are expected to do only office work. This difference and
societies’ expectation put pressure on women and they become bound to leave their full time job.
They tend to do part time job and filling part time job by women is one of the main reason. Other
reason is also associated with this main factor and it is: commuting time. Women do not prefer to
travel for longer hours and again here is the same reason as they have to do household chores
after coming from office. It is the reason they prefer working in those offices that is near by their
homes. It saves their time and they find easier in maintaining a balance between personal and
professional lives (Lo Sasso and et.al., 2020). Also, it is found that in developing countries,
women are not allowed to do night shifts and people get more if they choose night shifts. As
male employees are more likely to do such jobs and this factor again lead gender pay gap.
CONCLUSION.
It has been summarised from the above study that gender pay gap have negative impact on
economic development of countries. Increased gender pay gap affect economic condition and
decreased gap can improve organisations’ productivity and economy of country. This study has
discussed some factors that lead gender pay gap with the help of published statistics and data.
Quantitative data helps out in knowing current situation of countries and on the basis of this,
strategies can be developed. Further, this study has shown changes that have been made and can
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be seen in this gap since 1994 to 2021. Government is striving hard for removing this gap and
this gap has been decreased and it can improve economic condition of countries.
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REFERENCES
Books and journals
Blau, F.D. and Kahn, L.M., 2020. The gender pay gap: Have women gone as far as they can? (pp.
345-362). Routledge.
Boll, C. and Lagemann, A., 2018. Gender pay gap in EU countries based on SES
(2014). Luxembourg, Publication Office of the European Union, 10.
Cook, C. and et.al., 2021. The gender earnings gap in the gig economy: Evidence from over a
million rideshare drivers. The Review of Economic Studies. 88(5). pp.2210-2238.
Costa Dias, M., Joyce, R. and Parodi, F., 2020. The gender pay gap in the UK: children and
experience in work. Oxford Review of Economic Policy. 36(4). pp.855-881.
Costa Dias, M., Joyce, R. and Parodi, F., 2020. The gender pay gap in the UK: children and
experience in work. Oxford Review of Economic Policy, 36(4), pp.855-881.
Fagan, C. and Rubery, J., 2018. Advancing gender equality through European employment
policy: the impact of the UK's EU membership and the risks of Brexit. Social Policy and
Society. 17(2). pp.297-317.
Klasen, S., 2018. The impact of gender inequality on economic performance in developing
countries. Annual Review of Resource Economics, 10, pp.279-298.
Lo Sasso, A.T. and et.al., 2020. Differences In Starting Pay For Male And Female Physicians
Persist; Explanations For The Gender Gap Remain Elusive: An examination of how the
gender gap in total starting pay has evolved and the extent to which preferences over
work-life balance factors affect the gap. Health Affairs. 39(2). pp.256-263.
Meara, K., Pastore, F. and Webster, A., 2020. The gender pay gap in the USA: a matching
study. Journal of Population Economics, 33(1), pp.271-305.
Petrongolo, B. and Ronchi, M., 2020. Gender gaps and the structure of local labor
markets. Labour Economics. 64. p.101819.
Zhou, M., Hertog, E., Kolpashnikova, K. and Kan, M.Y., 2020. Gender inequalities: Changes in
income, time use and well-being before and during the UK COVID-19 lockdown.
Online
Gender Pay Gap in the UK. 2020. 2020.[Online] Available Through <
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/
bulletins/genderpaygapintheuk/2020>
Gender Pay Gap in the UK 2018. 2020.[Online] Available Through <
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/
bulletins/genderpaygapintheuk/2018>
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