Northern Ireland

# Pay inequalities

## Key points

- For men, the earnings of both the low-paid and the high-paid have risen at
the same proportional rate as average full-time
earnings throughout the last decade.*male* - For women, the earnings of both the low-paid and the high-paid have
risen at a greater rate than average full-time
earnings.*male* - The net results of this are:
For each of men and women, inequalities in earnings between the top and the bottom are unchanged over the decade.

At both the top and the bottom of the pay scale, rates of pay for women have become closer to rates of pay for men but are still lower.

- Low-paid women are paid around 5% less than low-paid men. High-paid women are paid around 5% less than high-paid men.
- Two-fifths of all part-time workers - both men and women - were paid less than £7 per hour in 2010. This compares around 15 of full-time workers.
- For full-time employees, the rate of pay at the 90th percentile in Northern Ireland is about 3½ times the rate of pay at the 10th percentile. This degree of overall pay inequality is similar to most of the regions in Great Britain. The only regions with a markedly higher pay inequality are London and the regions around it.

## Graph 1: Over time

View Graph as PDF (resizeable) Right click to save large version of Graph as PNG## Graph 2: By gender

View Graph as PDF (resizeable) Right click to save large version of Graph as PNG## Graph 3: Compared to Great Britain

View Graph as PDF (resizeable) Right click to save large version of Graph as PNG## Definitions and data sources

The first graph focuses on pay differentials. It shows four statistics:

- Gross hourly pay of full-time male employees at the 10th percentile, i.e. the pay of men one tenth of the way from the bottom of the full-time male pay distribution.
- Gross hourly pay of full-time female employees at the 10th percentile, i.e. the pay of women one tenth of the way from the bottom of the full-time female pay distribution.
- Gross hourly pay of full-time male employees at the 90th percentile, i.e. the pay of men one tenth of the way from the top of the full-time male pay distribution.
- Gross hourly pay of full-time female employees at the 90th percentile, i.e. the pay of women one tenth of the way from the top of the full-time female pay distribution.

In each case, the statistics are
shown as a proportion of average (median) hourly pay of full-time * male* employees
thus providing a measure of earnings inequalities. The left-hand axis
shows proportions at the 10th percentile and the right hand axis shows the
proportion at the 90th percentile. The restriction to full-time employees
only is to avoid the distorting effects of differences in the full-/part-time
balance either by gender or over time.

The second graph shows, for the latest year, the distribution of employees across the pay spectrum with the data show separately for part-time women, part-time men, full-time women and full-time men.

The third graph shows, for the latest year, how the ratio for full-time employees between the hourly earnings at the 90th percentile and the hourly earnings at the 10th percentile in Northern Ireland compares with the regions of Great Britain.

The data source for all the graphs is the Annual Survey of Hours and Earnings (ASHE). Some detailed changes were made to the ASHE survey base in 2004 and an adjustment has been made for this in the first graph. The proportions in the second graph have been calculated from the hourly rates at each decile using interpolation to estimate the consequent proportion earning in each of the pay groups.

Overall adequacy of the indicator: medium. ASHE is a large annual survey of employers but the published data does not provide direct estimates of the number of people at various low pay thresholds.