Has 6 years of mandatory gender pay gap reporting (GPGR) made a dent in the UK’s gender pay gap? According to a recent BBC article, not one bit at all. Unfortunately, too many people on social media have been taken in by this misleading article and I will be submitting a formal complaint to the BBC soon to get it amended. I rebutted this at the time with this LinkedIn post and I will now expand on that here to show what the true trend is and whether or not mandatory pay gap reporting has had an impact.
Disinterested employers were 20% less likely than engaged employers to have narrowed their UK gender pay gap between 2017 & 2021 . I draw this conclusion from a statistical model using ~6,000 employers which removed the effect of confounders such as size, sector, furlough, gender ratio, etc. Once accounted for, I found 61% of those reporting their pay gap for 2019 had narrowed their pay gap by 2021 compared to 55% of those not reporting 2019 data.
In April, I was asked to analyse the trends in UK gender pay gaps over the 3 years of mandatory reporting from 2017 to 2019 for Practical Law. They were interested in 7 customised sectors and the links to these can be found in this post.