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Earnings Inequality.

Dáil Éireann Debate, Tuesday - 6 December 2005

Tuesday, 6 December 2005

Questions (316)

Arthur Morgan

Question:

365 Mr. Morgan asked the Minister for Justice, Equality and Law Reform the five primary factors to which earnings inequality and income differentials here are attributable; and if he will make a statement on the matter. [38040/05]

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Written answers

I presume the Deputy's question is prompted by the recent publication of research commissioned by my Department and completed by the Economic and Social Research Institute on earnings inequality and the wage gap between young male and female graduates.

This research builds upon work undertaken in the context of the social partnership agreements by a consultative group on male-female wage differentials, chaired by my Department and which reported in late 2003. This group was specifically established to develop proposals for actions to address the issues raised in the ESRI report, How Unequal?, which had been published in 2000, again supported by my Department.

This 2000 research had shown that the gender pay gap was mainly explained by differences in labour market experience and that the unexplained remainder was not attributable to any one factor. A number of factors are considered to contribute to gender pay inequalities including: differences in accumulated work experiences and years spent outside the labour market; occupational segregation including both vertical and horizontal segregation; educational and training differences; promotion practices within firms; the availability of child care; the availability of maternity and parental leave; and the availability of family-friendly work practices. The research also suggested that women themselves did not have experience of female role models in senior positions in certain professions or in higher level management within some organisations.

The 2003 report of the consultative group on male-female wage differentials made specific recommendations on these factors and all either have been fully implemented or are being implemented as ongoing Government policy. The recommendations span a wide range of policy domains and cut across several Departments and State agencies. The Deputy will be aware of the significant progress which has been made in all of these areas with increased investment in child care; better provision of parental and maternity leave, and wider availability of family friendly policies. Other Departments are actively pursuing the implementation of recommendations which fall outside the remit of my Department, such as better access for girls to certain school subjects.

The most recent research on the topic, published last week, looked at the gender pay gap among graduates who had left third level education three years ago and found that a gender pay gap had already emerged within this relatively short time span. There is agreement at international level that the issue of the gender pay gap is complex and multifaceted. In Ireland the current, internationally comparative, rate of the gap is about 16% which coincides with the EU average.

The gender pay gap still requires an ongoing, multifaceted response and will be further addressed in the national women's strategy, which my Department is developing with all other relevant Departments at present. I will be bringing proposals for this cross-departmental national women's strategy to Government early next year and I am confident that my Cabinet colleagues will collaborate in finding further solutions to this cross cutting issue.

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