Study: 17% gap between salaries of men, women
National Insurance Institute examined socio-economic status of women in Israel over past 14 years, found men earned on average 17% more than women when working in same position, at similar skill level. Also 2% more women live at poverty level than men
Dr. Daniel Gottlieb, vice president of research at the National Insurance Institute (NII), and Miri Endeweld, director of economic study in the Research and Planning Administration of the NII, found that there is a gap of about 2% in the poverty rate among men and women, after government intervention.
The study examined 10,000 men and women. Figures show that wage discrimination in favor of men remained as it was at the beginning of the decade, and according to some parameters, even increased. In 2010-2011, there was a discrepancy between hourly wages of men and women of 13-17 %, when all other characteristics (education, age, occupation, etc.) were similar.
The researchers examined the economic poverty rates (poverty created within the labor market) of women compared to men, looking at wages after state intervention through policies and tax allowances. The findings revealed social disparities favoring men throughout the period under review.
The data show that before government intervention, i.e. before taxes and benefits, the gap in poverty rates between men and women is about 4%. According to this calculation, 31% of women qualify as poverty level, and about 27% of men.
“The research shows that the differences between men and women in the labor market in terms of wage levels have remained stable over the last decade, compared to a steady increase in the level of education and the employment rate of women," said Endeweld. "It is disturbing that poverty level gaps between women and men remain consistent over time, before and after government intervention."
In a Finance Committee hearing held Tuesday, Kobi Amsalem, the Finance Ministry’s wage and labor agreements division director, warned that the wage gap between men and women will remain as long as the wage structure is based on hours worked.
The hearing took place following the data published by the Central Bureau of Statistics last week, which showed the average income of a female employee is 66% that of a male employee, and the average woman's hourly wages is 85% that of a man.
Amsalem noted in the discussion that the gap between the working hours of women and men in the public sector is 20%, when women work an average of about 7-9 hours less than men. Gender distribution of the population among state employees is 1:2 in favor of women. Amsalem added that the time gap stems from the fact that men work more overtime. "Traditionally women preferred roles with fewer hours of work and lower wages, but this trend is disappearing," he said.
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