Diversity I: Diverse wages

The term “diversity” refers to the uniqueness of individuals. In policy making, the theme of “diversity” refers to the inclusion of underrepresented groups of people in particular functions or domains.

In recent years, the theme of “diversity” has infiltrated many aspects of society, and now has serious impact on policies in governmental matters and professional life. I am quite wary about the effects of the diversity discussions. It is such a complex theme, however, that it is hard to formulate statements on it, without running serious risks of finding oneself under a bombardment of accusations of being some kind of –ist or –phobe, which then puts an end to any chance of getting into a civil parlay.

I think that the discussions around this theme, now they are widely politicalized, will only intensify in the coming years. As a scientist, I have the responsibility to deal with these matters as objectively as possible. As I am increasingly involved in policy making and providing advice in matters of policy, it is important to me to be able to express opinions in this domain that are as close as possible to the truth, without letting emotions and political pressure get in the way.

Today’s ranting is instigated by an interview in the Dutch newspaper De Volkskrant with Belle Derks, professor of Social and Organizational Psychology at Utrecht University, specialized in “gender equality.” I had many thoughts while reading this interview, and I might get back to it in the coming days. For now, I want to zoom in to the second sentence of the main text of the article, which is “Vrouwen verdienen nog altijd minder en klimmen minder snel op naar hogere functies” (“Women still earn less [than men] and are slower to be promoted”). For clarity, I wish to point out that this is not a statement of professor Derks as far as I can see, but part of the introduction of the journalists.

The quoted sentence is factually correct, but it suggests something that is factually wrong, namely that women get discriminated as far as their wages and promotion opportunities are concerned. With respect to wages, one only needs to read the report of the CBS (the Dutch Central Bureau for Statistics, a governmental organization that prepares reports on all aspects of Dutch social and economic life) on this matter, which is available from their website. This report investigates specifically gender differences in salaries in The Netherlands, and is updated up to the year 2014. In this report one can read the following:

For jobs in companies, the hourly salary of women is about 20% less than that for men. For government jobs, the difference is 10%. However, these numbers are not corrected for differences in actual work, i.e., it just averages the hourly wages of all women that have a job, and all men that have a job, regardless of position, education, or responsibilities. If you correct the differences for about 20 factors, which include age, experience, and position, then the percentages drop to 7% and 5%, respectively.

Does that mean that gender is the explanation for the remaining salary differences? The CBS report states that there is no reason to suppose that gender discrimination is at work here, as there are quite a few factors that can explain the remaining differences, which they were unable to take into account for lack of detailed information. These are, among others, motivation, job level, and secondary employment conditions such as exchanging salary for extra vacation days. As the report states that women are far more likely than men to work part-time, one might expect that in particular women would take the opportunity to sacrifice some salary for extra spare time, though the report does not delve into that.

As there are plenty factors available that may explain the remaining small differences in average wages between men and women, the CBS found no indication that gender discrimination is an explanation for these wage differences. I think that settles the matter.

What I found particularly interesting is that the report also made clear that up to 36 years of age, women actually earn a higher salary than men for doing the same work. However, again this has nothing to do with gender, but with the fact that among younger people, women have, on average, a higher education than men. Between 36 and 45 years of age, there are no significant differences in salaries between men and women. Over 45 years of age, men tend to earn more than women, for which an easy explanation is that in those age groups, men tend to have a higher education and more job experience than women.

How these trends will be extrapolated to the future is hard to say. If many women between 30 and 40 years of age are losing interest in work and accept lower salaries for, for instance, a more extensive home life, the picture might remain as it is now. If women keep focusing just as much as men on their careers and earnings, clearly in about 30 years, women will on average earn more than men in all age groups.

The discussion above has contextualized the first part of the sentence “Women still earn less and are slower to be promoted,” and refutes the suggestion that women earn less than men because of gender discrimination. The second part needs another discussion, which I will get to later.

For now, the conclusion is that in The Netherlands a small gender wage gap exists, but that there is no reason to think that the explanation for it has to do with gender discrimination.

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