Much attention has been dedicated to increasing awareness of gender pay inequity. However, relatively little evidence has been developed on the factors driving the gap and how these have changed over time. Whilst the issues are complex, this evidence is critical in measuring progress and holding ourselves accountable for driving change.
In 2009, KPMG undertook a major study – Understanding the Economic Implications of the Gender Pay Gap in Australia for the Diversity Council Australia. The objective of this research was to develop a more rigorous evidence base around the structural factors underlying the gender pay gap, the contribution of these factors to the gap, the potential economic implications in terms of women’s participation in the labour force, and broader economic productivity and growth.
Within the context of the significant public debate since 2009 around gender equity, diversity, and pay equality, KPMG has updated its 2009 analysis for the Diversity Council Australia and Workplace Gender Equality Agency, using the more recent HILDA data (2014).
The factors that were found to be most significant in contributing to the gender pay gap in 2007 continued to be substantial contributors in 2014. Critically, gender discrimination continues to be the single largest factor contributing to the gender pay gap, growing from 35 percent to 38 percent of the gap between 2007 and 2014.
View more key statistics in our infographic (PDF 45KB)
To supplement our economic analyis, we have developed a complementary Executive Companion. This Companion provides a snapshot of the research findings, a range of practical actions to help address the gender pay gap and short case studies outlining the experience and insights of leading Australian companies as they addressed the gap within their own organisations.