Differences in Full-Time Work Experience Explain almost a Quarter of the Gender Pay Gap in Management Positions

Abstract

Women still earn less than men on average in Germany. This applies to management positions even more: between 2010 and 2016, there was an average gender pay gap of 30 percent in gross hourly earnings. If gender-specific differences in relevant wage determinants are excluded, a pay gap of 11 percent remains. With seven percentage points, full-time work experience explains the gender pay gap to almost a quarter according to the present study based on data from the Socio-Economic Panel (Sozio-ökonomisches Panel, SOEP). In order to reduce the gender pay gap, measures are needed to counteract the large differences in working time between women and men throughout their working lives. An important step is more individual time sovereignty for both women and men in their jobs and a change in corporate culture to accommodate that.