In 2018, Singapore's adjusted gender pay gap (GPG) stood at six per cent, for context U.S. and Canada has an eight per cent adjusted GPG.

This number is more than two per cent lower than the 8.8 per cent adjusted GPG in 2002.

GPG is a common measure for gender income inequality, computing the difference between median incomes of men and women. Singapore's unadjusted GPG is 16.3 per cent.

Adjusted GPG takes into account factors such as industry, occupation, age, and education.

Here are some of the key findings in the latest study done by the Manpower Research and Statistics Department of Ministry of Manpower (MOM) and the National University of Singapore (NUS).

Lower than U.S, Canada and China

In 2002, the other set of comprehensive data MOM dates back to, the adjusted GPG was at 8.8 per cent.

In addition to that, Singapore’s current GPG is lower than other countries such as the U.S. and Canada, both of which have an adjusted GPG of about eight per cent.

It is also significantly lower than China, which has an adjusted GPG of 18.3 per cent.

The Comprehensive Labour Force Survey was done on 33,000 households.

Similar factors came into play in reducing the GPG for both years, namely human capital and labour market factors.

Adjusted GPG vs unadjusted GPG

The GPG is a common measure for gender income inequality by computing the difference between the median incomes of men and women in the country.

According to MOM, the unadjusted GPG is a comparison between the median pay of a full-time working woman and man.

It uses data from men and women from different education levels, occupations, industry and ages.

According to MOM, the adjusted GPG is a more comprehensive comparison between a woman and their direct male peers.

This means that the adjusted GPG was controlled for education level, occupation, industry, usual hours worked and age.

Why is there still a six per cent gap?

However, even after the adjustment, women still earn less than men in Singapore.

According to MOM, the six per cent gap is due to other explanatory factors that cannot be measured using available data.

These other factors include the people's firm type, job scope within their occupations, work experience, parenthood, caregiving responsibilities, gender differences in psychological attributes and discrimination.

Occupational segregation

Although the employment rate among women rose strongly over the past decade, men continue to be over-represented in higher-paying occupations and women tend to be in lower paying ones.

This occupational segregation is a key contributor to the unadjusted GPG, MOM says.

For example, men might choose "traditionally male jobs" jobs in IT or mechanical engineering, which tend to see higher income growth.

On the other hand, female-dominated jobs, such as office clerk or administrative manager, see lower income growth.

Furthermore, women who might need time to take care of family or children might choose more flexible jobs, which pay less.

Government initiatives

To address occupational segregation, IT and STEM organisations are appealing to more women to choose jobs in male-dominated fields.

IMDA has the Women in Tech conference that conducts career talks, networking sessions, and professional mentorships. The Association of Information Security Professionals encourages young women to join cybersecurity through career talks in girls' schools.

MOM also has the Work-Life Grant for companies to implement flexible work arrangements to let employees better manage their home and work responsibilities.

To encourage both parents to care for their families equally, the government provides shared parental leave and promotes family-friendly workplaces through the Tripartite Standards.

MOM had also stressed that they will take action against employers that discriminate by gender.

Additionally, MOM will also be periodically updating the adjusted GPG yearly with new wage data.

Top image via MOM/FB.