South Africa’s gender pay gap starts long before women sit down to negotiate a salary
South African women earn 12% less than men in the formal sector, but new research shows almost half the gap is linked to the lower-paying firms women are more likely to work for
The gender pay gap in South Africa is established long before women and men negotiate salaries. By Friday, September 18, International Equal Pay Day, the disparity has already been largely determined. On average, women in the formal sector earn 12% less than men. About 45% of this difference, or 5.5 percentage points, arises from women being concentrated in lower-paying companies.
The remaining 55% cannot be attributed to a straightforward "same job, different pay" scenario. Instead, it encompasses unmeasured worker differences and biases operating throughout the labor market, rather than within a single payroll.
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