The Adjusted Gender Pay Gap: Why Women in Saxony Should Actually Earn More Than Men

In Saxony, full-time employed women earn 7.5% less than full-time employed men. The biggest difference in pay is in Zwickau with 11.6%, the smallest in Görlitz with 2.1%. These regional differences in the so-called unadjusted gender pay gap are mainly driven by the variation in male wages. Comparing men and women who are equal in terms of their individual, company and regional characteristics, the adjusted wage difference of 11.4% is higher than the unadjusted (7.5%). Women are thus better equipped than men in terms of their characteristics. They should actually earn more. This article shows why this is not the case.