How is Gender Pay Gap Calculated?
Gender pay gap can be calculated through two methods, one is mean, and the other is median.
Example:
Given the salaries of 10 employees, Calculate the gender pay gap through the mean and median method.
Employee | Gender | Salary |
---|---|---|
A | Male | 50,000 |
B | Male | 40,000 |
C | Male | 45,000 |
D | Male | 55,000 |
E | Male | 60,000 |
F | Male | 65,000 |
G | Female | 35,000 |
H | Female | 40,000 |
I | Female | 45,000 |
J | Female | 50,000 |
Solution:
I. Gender Pay Gap through Mean Method
Calculating the gender pay gap through mean method, we have to first find the average of the above-given salaries.
Average Salary for Men =
Average Salary for Women =
Mean Gender Gap =
II. Gender Pay Gap through Median Method
Salaries of men in ascending order 40,000, 45,000, 50,000, 55,000, 60,000, and 65,000.
Middle Point =
Salaries of women in ascending order 35,000, 40,000, 45,000, and 50,000.
Middle Point =
Median Gap =
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