Earnings Differences between Men and Women Performing Comparable Jobs

“Equal pay for equal work” is the incumbent government’s principle put forth in the Equal Compensation Act currently under discussion. The core of the legislative initiative is a statutory right to information stipulating that companies must disclose to their employees the salaries of workers who perform equivalent or comparable duties within the company. Many companies will therefore need to concern themselves much more in the future with the question of which employees they view as equivalent with respect to their activities.

This study proposes a pragmatic definition based on three function-related criteria that already exist in many businesses. The empirical study also generates new findings regarding existing salary differences between men and women in selected German companies. If one considers only those individuals who perform comparable activities within their companies, the adjusted pay gap between women and men in the sample group amounts to approximately five percent.