Gender pay gap

The difference in average earnings between women and men in a population. It can be measured using hourly, weekly, or annual pay, before or after adjusting for worker and job characteristics.

Unadjusted gender pay gap: The difference between women’s and men’s average earnings without accounting for other characteristics. It captures the overall earnings difference, including occupational and working-hours patterns.
Mean: The sum of a set of values divided by the number of values. Many headline pay-gap figures compare average earnings using arithmetic means.
Equal pay audit: A systematic review of pay differences among workers performing equal or comparable work. Audits can identify pay disparities within an employer that aggregate statistics conceal.
Equal pay for equal work: The principle that workers doing the same or substantially similar work should receive equal compensation. It concerns comparable jobs, while the overall gap also reflects differences across jobs.
Adjusted gender pay gap: The earnings difference between women and men after statistical adjustment for measured characteristics. It estimates the remaining difference among workers with similar observed characteristics.
Median: The middle value in an ordered set, with half the observations above and half below. Median comparisons reduce the influence of very high earners.
Gender pay gap reporting: The disclosure of employer-level statistics comparing women’s and men’s pay. Reporting rules turn the gap into a public accountability measure.
Gender wage discrimination: Unlawful or unfair differences in wages attributable to a worker’s gender. Discrimination can cause part of the gap, but the aggregate gap does not measure it directly.
Occupational segregation: The concentration of demographic groups in different occupations or industries. Gendered sorting into occupations with different pay levels shapes the overall gap.
Wage: Compensation paid to a worker, commonly expressed per hour or over a period. The gap is a comparison of earnings, whose definition must be specified.

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