Adam Smith Inst - CMI’s pay gap findings fatally flawed by not controlling for working hours
Head of Research at the Adam Smith Institute, Ben Southwood, commented on the Chartered Management Institute’s findings on the gender pay gap.
The Chartered Management Institute’s report makes a fatal error, completely undermining their findings that women work nearly 2 hours a day ‘for free’—they do not control for hours worked. Evidence we have suggests that women work fewer hours than men – they are not ‘working for free’.
Their survey of middle managers finds a pay gap of about £8,500, or 23% in average annual pay, but they have not released any information on average hours. As such, we are forced to assume they don’t have such data, an assumption supported by the fact that they rely on the average working week statistic from the ONS when they compute their dubious estimate of the time women allegedly spend working for free.
If they do not have any data on working weeks, then there is no reason to assume there is any hourly wage gap at all. A more reasonable assumption is that men are simply working for longer—since this is what other data has consistently told us.
A sophisticated discussion of the gender wage gap would include reference to data showing gender pay gaps are wider in more gender egalitarian countries, that women who never leave the work force are more likely to make CEO and earn more on average and that women aged 22-29 and 30-39 earn slightly more per hour than men at the median.
For further comments or to arrange an interview, contact Head of Communications Kate Andrews: firstname.lastname@example.org | 07584 778207.
Notes to Editors:
For further comments or to arrange an interview, contact Kate Andrews, Head of Communications, at email@example.com | 07584 778207.
The Adam Smith Institute is a free market, libertarian think tank based in London. It advocates classically liberal public policies to create a richer, freer world.
Latest News from
IFG - Government underspending puts investment plans at risk25/02/2020 09:35:00
As Rishi Sunak prepares the Johnson government’s first budget, a new Institute for Government report finds that departments may struggle to spend the money they are allocated as part of Johnson’s ambitious infrastructure investment plans.
The King's Fund responds to the results of the NHS Staff Survey 201920/02/2020 13:35:00
Suzie Bailey, Director of Leadership and Organisational Development at The King’s Fund commented on the NHS Staff Survey 2019 results
IEA responds to Government’s post-Brexit immigration proposals20/02/2020 12:35:00
The IEA’s Head of Political Economy Dr Kristian Niemietz responded to the Government’s announcement for a new points-based immigration system post-Brexit
ASI comments on new immigration system proposals20/02/2020 11:35:00
Daniel Pryor, Head of Programmes at the Adam Smith Institute, responded to the Government’s new plans for a post-Brexit immigration system
IPPR - Immigration plans analysis: Two thirds of current EU migrants in health and care sector would have been found ineligible20/02/2020 10:35:00
Key sectors would face labour and skills shortages in shock to labour market from new government immigration plans – IPPR analysis
Adam Smith Institute - Abolish the Factory Tax to level up Britain20/02/2020 09:35:00
A new paper from the neoliberal think tank the Adam Smith Institute says that if the Prime Minister is serious about boosting wages and levelling up; then he needs to Abolish the Factory Tax.
NIESR Monthly Wage Tracker: Slight Rebound Expected for Earnings Growth19/02/2020 13:15:00
Slight Rebound Expected for Earnings Growth
NIESR: Global growth to remain at 10-year low in 202013/02/2020 13:10:00
NIESR Press Release: Global growth to remain at 10-year low in 2020