The gender pay gap in Revenue

This paper analyses gender and pay in Revenue, one of the largest public sector employers in the state, and identifies a mean gender pay gap of 16 per cent. Once the civil service grade, working patterns, the type of pay scale, the point on pay scale, and the level of non-basic pay are considered, the gender pay gap is eliminated. When decomposed using the Blinder-Oaxaca method, approximately three-quarters of the gender pay gap is due to grade differences, while approximately one-quarter is due to working patterns. None of the gap is explained by men earning a higher return for the same observed characteristics as women. In other words, unequal pay caused by direct gender discrimination does not play any role in the observed pay gap. Given that gender imbalance across grades is the dominant explanation for the pay gap, and may itself reflect indirect gender discrimination, the paper concludes with policy recommendations to support the advancement of female employees to higher grades and to monitor the equality outcomes from flexible work practices in the post-pandemic labour market.