European added value of applying the principle of Equal Pay for men and women for equal work or work of equal value

Khan U, Broughton A, Ledermaier S, Rickard C, Speckesser S, Mallender J |  EAVA 4/2013 | European Parliament | Jun 2013

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This study examines the Gender Pay Gap (GPG) in Europe and assesses the potential impact of the report adopted by the European Parliament in May 2012 (The Bauer Report).

The study focused on the following two objectives:

  • To understand the extent and impact of the Gender Pay Gap (GPG) in Europe.
  • To assess how proposals adopted by the European Parliament in May 2012 (The Bauer Report) could impact on reducing the GPG and economic growth.

The research team undertook an internet-based literature review alongside an assessment of the limited available data on the impact of policy on reducing the GPG. This was then used to provide a high-level estimate of the minimum and maximum level of impact that legislative action based upon the Bauer Recommendations could have on reducing the GPG and increasing GDP.

The study finds that the greatest potential would be with the streamlining of EU regulation and policy, greater transparency of pay data and broader and more systematic use of work evaluation and job classification. Each of these measures could result in an overall reduction in the GPG of a minimum of 1% point, which in turn has the potential to increase GDP by 0.1%.