Men’s pay has fallen more than women’s in real terms

Men have seen the real value of their pay fall far more than women have in the recent years, according to the Institute for Fiscal Studies (IFS).

The think-tank has studies at how salaries have changed since the financial crisis in 2008.

It highlight that average hourly wages for employees are still 4.7% lower than in 2008, once inflation is taken into account.

For men it has been 7.3% but for women the real wage drop has only been 2.5%.

The IFS analysis is based on an examination of the Annual Survey of Hours and Earnings (ASHE).

It took a 1% sample of all income tax returns from people in employment, but not the self-employed. The IFS compared 2008 data to that of 2014.

One reason for the difference was that “female employees are significantly more likely than men to work in the public sector and, so far, mean earnings falls have been smaller in the public sector,” the IFS said.

Other findings of the analysis are that:

  • the average wages of workers aged 60 or over are, in real terms, back to where they were back in 2008, but for those aged 22 to 29 the average wage is still 9% lower than that in 2008.
  • the proportion of part-time employees who say they work part-time because they cannot get more hours is nearly double than its pre-crisis level.
  • the top 10% of earners have experienced their average wage have dropped more in real terms (down by 6.4%) than the bottom 10% (down by 3.3%).

The IFS commented though that the latest government figures have shown that earnings are starting to rise quicker than inflation, and are expected to keep on doing so in 2015 and after.

“Almost all groups have seen real wages fall since the recession,” said Jonathan Cribb of the IFS.

“The pay of young adults remains well below its pre-crisis level after particularly large falls between 2008 and 2011, while the average pay of those aged 60 and over has already recovered.

“Women have seen much smaller falls than men. Falls for the low-paid have been somewhat smaller than for those on higher pay, driven by trends since 2011,” he added.

Sadly this research is incomplete without taking into account self employed workers as most of these are probably male, who run their own business or work in the construction trade.

It is impossible to make assumption using only a portion data i.e. only looking at workers in employment.