Equal pay for equal work is a fundamental principle that calls for men and women to receive equal compensation for performing the same job or work of equal value. Despite progress in gender equality, the issue persists in many parts of the world. Factors influencing the gender pay gap include workplace, parenthood, and other biases. Studies consistently show that women, on average, earn less than men for performing the same job. This pay disparity affects financial security and well-being of women and perpetuates gender inequalities in society.
According to McKinsey & Co., companies with more women at the top outperform those with few or no women in their leadership teams.
The Problem Statement
The gender pay gap exists across almost every profession around the world. Some questions we asked to understand what is causing the gender pay gap are:
- What factors contribute to the gender pay gap?
- How does the gender pay gap vary by geography, industry, and role, and how has it changed over time?
Research & Data Discovery
Sources:
- World Economic Forum. (2020). Global Gender Gap Report 2020
- Women, Business and the Law Report 2022
- Women, Business and the Law Data for 1971-2022
Initial Hypothesis
The gender pay gap varies by geography, industry, and role, and has changed over time. Factors such as cultural norms, labor market conditions, and policies related to gender equality impact the level of gender pay disparity. Some countries have made significant progress in narrowing the gender pay gap, while others still face significant challenges in achieving wage parity. Industry has a more pronounced gender pay gap than others, with traditionally male-dominated fields like engineering and technology having higher pay disparities compared to fields like healthcare or education, where women are more heavily represented. Higher-level positions or leadership roles often exhibit wider pay gaps compared to entry-level or lower-skilled positions.
Data Analysis
We used ML Algorithm for our data analysis of Equal Pay. We built a regression model predicting pay to see what factors attribute to it.
SPLIT
BUILD MODEL
BASELINE
ITERATE
EVALUATE
Our test performance is about the same as our training performance. The training (21.71) and test performance (21.99) are close to each other, this means our model will generalize well.
Looking at this bar chart, you can see that the most important indicator is “Workplace” for our model in predicting pay.
Conclusion
The implications of unequal pay are far-reaching and detrimental not only to individuals but also to society as a whole. Unequal pay perpetuates economic inequality between genders, hampering women’s ability to accumulate wealth and maintain financial independence. It disproportionately affects women from marginalized and vulnerable groups, perpetuating cycles of poverty and social exclusion. To achieve equal pay, various stakeholders must take steps such as pay transparency, equal pay policies and legislation, and changing workplace culture. Addressing the gender pay gap is not just a matter of fairness but a vital step towards achieving gender equality.