Let’s start with the good news: The pay gap between women and men is narrowing. Nevertheless, women in management positions still earn almost 25% less than their male colleagues with the same qualifications. These are two findings from the Hessian Wage Atlas, whose fourth edition was just published. The Institute for Economics, Labour and Culture (IWAK) at Goethe University Frankfurt presented the figures on today’s Equal Pay Day at an event held together with the Hessian Ministry of Labor, Integration, Youth and Social Affairs.
Speaking at the online event, Hesse’s Minister of Labor Heike Hofmann emphasized the “good news” that the gender pay gap in 2023 came to 8% – almost half of where it stood in 2012. The shortage of skilled workers and labor plays an important role in this development. The trend is especially dynamic for unskilled as well as specialist jobs, the minister said, adding that for those with vocational training, the gap only came in at 3.5%. “By contrast, we unfortunately still see little movement when it comes to jobs with management responsibility. Women with a degree are still paid almost 25% less than men with the same qualifications,” says IWAK head Dr. Christa Larsen.
Regional differences also play a role: as such, the pay gaps in the predominantly rural Vogelsberg district are shrinking faster than those in other regions of Hesse. Why is that? A look at the wage atlas shows that this trend can be traced back to 2021, with the main reason being the shortage of skilled workers: Vogelsberg is one of the districts in Hesse where Germany’s demographic change is already well advanced, which in turn opens up opportunities for women to earn higher salaries. While this development has been discernable for several years, its strong impact on equal pay, particularly in rural areas, comes as a surprise.
Larsen still sees considerable potential for securing not only skilled workers but the overall workforce, especially among women who work part-time: “Our survey shows that most Hessian women with children under the age of 14 would like to work more.” This, however, requires certain framework conditions, which politics and business must ensure together, the minister added. “Longer working hours would improve women’s career advancement opportunities, enable them to earn more money, lower their risk of falling into poverty in old age and shrink the pay gap among working women,” said Hofmann, who considers reliable childcare the key instrument for this.
The data from the Hessian Wage Atlas also show that pay gaps start to develop at the onset of the family phase. While women between the ages of 25 and 45 often reduce their working hours and temporarily leave the workforce altogether, it is the men working in full-time positions during this phase of life who advance professionally. Even if women later return to full-time work, they are usually unable to catch up with the men by the time they retire, the calculations in the Hessian Wage Atlas show.
Increasing the number of part-time hours and promoting the advancement of women is thus relevant both in terms of women’s policy and with respect to Germany’s skills and workforce situation. Tapping into this untapped potential is a key means to combat the shortage – and there is considerable untapped potential among women.
The situation varies according to sector, and a panel discussion illustrated that each case requires a specific approach to promotion and extending working hours. “In the chemical industry, we rely on a women’s network and draw on the experiences of the pharmaceutical industry, where we have now achieved equal pay,” says Nora Hummel-Lindner, managing director of Legal Affairs and HR Policy at the employers‘ association HessenChemie. “It is also important in the structural changes now sweeping the automotive supplier industry not to neglect support for women in the context of skilled worker development and promotion,” affirms Dr. Julia Graf from the IG Metall Central District Management.
Background: The Hessian Wage Atlas is compiled by the Institute for Economics, Labour and Culture (IWAK) at Goethe University Frankfurt on behalf of the Hessian state government. The wage atlas creates transparency on the pay situation of women and men in Hesse’s different regions as well as in sectors and occupational groups. The data is used by the social partners from Hesse’s largest industry sectors as well as the municipal women’s and equal opportunities officers to sensitize companies and public employers to the pay situation of women, and to implement appropriate measures in practice. The current fourth edition also discusses the strategic link between the promotion of equal pay and the securing of skilled labor and the workforce.
Hessian Wage Atlas (in German) →
Further information:
Dr. Christa Larsen
The Institute for Economics, Labour and Culture (IWAK)
Goethe University Frankfurt
c.larsen@em.uni-frankfurt.de
