The Price of Feminised Jobs: New Evidence on the Gender Pay Gap in Australia

Abstract

The relative contribution of different factors to the continuing pay gap in Australia has been much debated. The persistence of the pay gap, the continuing—if subdued—policy interest in efforts to narrow it, and the change in bargaining arrangements in Australia, demand a clearer understanding of its relative components. This paper analyses data from the 1995 Australian Workplace Industrial Relations Survey and finds that some significant differences explain variations in wages amongst women and amongst men. Our analysis—in accord with much existing literature—finds that a large part of the gender pay gap is unexplained, even when a wide range of variables (including job and workplace characteristics) are included. Our closer examination of the effects of feminised jobs, in particular, suggests that the sex- segregation of work by industry, occupation, and workplace carries a significant penalty for women—and the men who work alongside them. We argue that the undervaluation of women s work remains an important contributor to the gender pay gap and deserves greater policy prominence.