Lack of transparency in the gender pay gap in Germany - financial expert calls for more data collection

Lack of transparency in the gender pay gap in Germany - financial expert calls for more data collection

According to a report by Berliner Zeitung, the Federal Statistical Office Destatis has published the figures for the 2022 gender pay gap. According to this, women in Germany earned an average of 18 percent less per hour than men last year. Adjusted, the gender pay gap is 7 percent, which means that women with comparable qualifications and activities as men earn on average 7 percent less. According to Destatis, the problem lies in the lack of data on career interruptions due to pregnancy, birth or caring for relatives.

More transparency would help to eliminate the gender pay gap. Companies should set a good example and disclose the salaries of all employees. This could reduce possible dissatisfaction and suspicion within the team. California already has a salary transparency law that requires larger companies to publish salary ranges. Iceland, Sweden and Norway have also taken similar measures.

Although the Pay Transparency Act exists in Germany, companies hardly use it. It is necessary to create a labor market culture in which transparency is taken for granted. The focus should be on justice and not on certain labels such as “feminist”.

The impact of this lack of transparency on the market and the financial industry can be significant. When women systematically earn less than men, this leads to injustice and unequal opportunities. It can lead to lower consumption as women have less financial flexibility to invest in the economy. This, in turn, can influence the growth rates of the market.

It is important that companies and the government take action to close the gender pay gap and promote transparency. This can be achieved by implementing salary transparency laws, conducting regular salary audits and promoting diversity and equality in the workplace. Only through such measures can a fairer and more equal financial industry be created.

Source: According to a report by Berliner Zeitung, "Comment: Opinion - Economy: Earnings, Salary, Man, Woman, Gender Pay Gap: Feminist economic policy is for scaredy-cats", retrieved from https://www.berliner-zeitung.de/politik-gesellschaft/kommentar-meinung-wirtschaft-verdienst-lohn-mann-frau-gender-pay-gap-feministische-wirtschaftspolitik-ist-was-fuer-angsthasen-li.312272