The Development of the Wage Gap

While women's hourly wages were about 20.5 percent lower than men's in 2005, this difference decreased to 15.3 percent in 2019. Adjusted for characteristics such as schooling and work experience, the gap also declined to between 6 and 11 percent by 2019, depending on the statistical method used (9 to 17 percent in 2005). The main reason for the decline in the wage gap is that men and women have become more equal in terms of characteristics demanded in the labour market. Apart from unobserved characteristics, the most significant factor contributing to the wage gap is occupational choice and work experience, which is lower for women due to child-care periods.

This Research Brief is an update of Böheim, R., Fink, M., Zulehner, C., "About time: the narrowing gender wage gap in Austria", Empirica, 2020.