The report found that public sector occupations dominated by women are low-paid compared to other occupations with similar levels of education. The three public sector occupations that had most clearly climbed the pay hierarchy between 1969 and 2019 were police officers, train drivers and nurses. The pay structures are seen as a result of compromises and priorities governing the behaviour of parties in collective bargaining. The bargaining model is therefore considered to be unaffected by political influence or control. Within the framework of the committee’s work, no assessments were made of whether certain categories of workers could be described as undervalued or underpaid, compared with other categories of workers within the Danish labour market.
One of the committee’s tasks was to investigate whether there had been problems in relation to the requirement of equal pay for equal work and work of equal value under Ligelønsloven (the Equal Pay Act). The report concluded that there were no significant problems with compliance with the Equal Pay Act in the public sector. This conclusion was based on the fact that legal challenges to pay discrimination are extremely rare.
The committee’s work resulted in four recommendations for future and sustainable pay setting in the public sector:
Transparency: Well-functioning and manageable pay setting should be supported by transparency and understanding of parties’ trade-offs and priorities, including with regard to the vertical and horizontal aspects of pay structures.
Adaptability: Pay setting should support the attractiveness of the public sector and facilitate recruitment and retention of the necessary labour force.
Proportionality and legitimacy: Pay structures should support pay commensurate with employees’ qualifications, experience, performance and tasks, and account for private sector pay relationships.
Supporting the public sector’s mission: Pay structures should support the fulfilment of the tasks of public institutions and the public sector as a whole and the effective administration of collective agreements.
The Pay Structure Committee also commissioned VIVE to conduct a knowledge review of the explanations for and consequences of the gender-segregated labour market. The report
Forklaringer på og konsekvenser af det kønsopdelte arbejdsmarked (Explanations and consequences of the gender-segregated labour market) from 2022 provides an overview of studies published after 2015. The theme of these studies is not limited to the situation in Denmark.
Researchers Jørgensen, Hansen and Taxhjelm from the Danish Institute for Human Rights published the report
Kvindefag i historisk skruetvinge (Women’s trades in a historical clamp) in 2020 and the article
‘Half a century of female wage disadvantage’ in 2022. These texts touch on the same theme that formed the basis for the work of the Pay Structure Committee. They examine the relative positions of 13 occupational groups in the public sector. The comparison is based on pay data from 1969 and 2019. The year 1969 is of particular interest, as the Danish Parliament, in the context of a civil service reform, defined and laid the foundation for the pay structure that 50 years later, with a few exceptions, still characterises the public sector. The study concludes that, within the framework of the collective bargaining model, parties have, to a large extent, replicated the values on which the 1969 civil service reform was based. The study concludes with a recommendation that a long-term plan is needed to close pay differentials between occupations dominated by women and those dominated by men and to break the gender divide in the labour market
The starting point of the 2020 study
Den ’uforklarede’ del af forskellen mellem kvinders og mænds timeløn (The ‘unexplained’ part of the differential between women’s and men’s hourly pay) is that women have lower lifetime earnings than men. This is partly because they have lower hourly earnings on average. Previous studies have shown that half of this pay differential is related to different measurable characteristics, mainly that women and men operate in different areas of the labour market. The aim of this study is to provide more insight into the remaining half of the pay differential, i.e. the statistically unexplained part. The report concludes with a recommendation to use other, or rather complementary, control variables to analyse the gender pay gap in the labour market.
A study published in 2019,
Do Firms Respond to Gender Pay Gap Transparency?, specifically investigated whether § 5a of the Equal Pay Act has led to measurable improvements with regard to the purpose of the provisions. The study is based on pay data for the period 2003–2008 and compares pay developments in firms with 35–50 employees with pay developments in firms with 25–34 employees. The study is summarised as follows:
For the first time we are able to document, that pay-transparency really works. A 7% reduction in the pay-gap may not sound impressive, but given the fact that only a limited number of firms in Denmark are governed by this legislation the effect is significant. We can even prove the effect amongst firms, that were not required to provide gender segregated pay-statistics. We know now that wage-transparency works and it is a measure that can be applied nationally as well as internationally.