1.

The wage differential between

women and men
In 2015, the wage differential between women and men was 12.5 per-
cent. This is demonstrated by the wage structure statistics.
Differences in wages may depend on a number of different factors. Tak-
ing into account those factors which are available in the statistics, there
remains an unexplained difference of 4.6% between genders.
If one studies the factors affecting this disparity, it is immediately appar-
ent that the single most important factor with regard to the wage differ-
ential between men and women is that, to a large extent, women and men
work in different occupations.

Women’s average monthly salary during 2015 was 87.5% of men’s. This represents
a wage differential between women and men of 12.5%.

This wage differential has narrowed both in the short term and from a longer per-
spective; between 2014 and 2015 by 0.7 percentage points and between 2005 and
2015 by 3.8 percentage points.
If, with the help of standard weighting, one takes into account the differences in
occupation, sector, education, age and working hours – women’s average wage is
95.4% of men’s and the wage differential is therefore 4.6%.
That is to say, after standard weighting, the wage differential between women and
men is narrowing both in the short and long terms. Between 2014 and 2015 by
0.4 of a percentage point and between 2005 and 2015 by 2.2 percentage points.

1.1 Official wage statistics and wage differentials

The Swedish National Mediation Office is responsible for the content and scope of
official wage statistics. These statistics can be roughly divided into three categories;
cyclical wage statistics, wage structure statistics and EU statistics.
The Swedish National Mediation Office is charged with analysing wage develop-
ment from a gender equality perspective and has done so annually since the publi-
cation of the 2001 Annual Report. Since 2009, this analysis has been released in a
separate report at the same time as the publication of wage structure statistics for
the economy as a whole. In the report, the wage differential between women and
men in Sweden is analysed based on the official wage structure statistics – the offi-
cial state statistics most suited to the purpose.
This report begins with an analysis of the 2015 wage differential between women
and men based on wage structure statistics. Both standard-weighted and average
(unweighted) wage differentials are reported and the various sectors of the labour
market are analysed separately. The equivalent figures for the period 2005-2015 are
also reported. In addition, a regression analysis is carried out in order to study
which individual factors can explain the size of the wage differential.
2 Chapter 1 The Wage Differential Between Women and Men

In the second section of the report, wage differentials for newly graduated women
and men from different universities are studied along with the correlation between
expectations and wages for new graduates.

1.1.1 Wage structure statistics

The wage structure statistics are an annual survey based on information about indi-
viduals. The purpose of the survey is to obtain comparative information about la-
bour market wage structures. With the aid of these statistics, issues related to wage
levels, structures and development can be analysed.
Wage structure statistics contain information about wage, age, working hours and
occupation according to the Swedish Standard Classification of Occupations
(SSYK). In the report, information regarding level of education, obtained from
Statistics Sweden’s education register, is linked to wage structure statistics.

Facts about wage structure statistics

Wage structure statistics are compiled annually. The measurement period is

a single month – September for the private sector and state employees and
November for municipalities and county councils. This means that statistics
can be sensitive to when collectively-bargained wage increases are agreed
and to whether there has been time to implement these at the time of meas-
urement. The periods chosen for collecting wage statistics is set in order to
minimise such effects.

Wage structure statistics are published in May of the year after they are
collected and are broken down by sector (private, municipal, county council
and state; with the private sector further broken down into waged and sala-
ried staff). In June of the same year a summary for the labour market as a
whole is published, with hourly pay rates for waged staff recalculated into
monthly salaries.

For municipalities, county councils and the state, the study is a comprehen-
sive survey. For the private sector, wage structure statistics are sample survey
covering approximately 50% of the total private sector workforce. The target
population for the survey is individuals between 18 and 66 years of age with
permanent or temporary employment, as well as active business operators/
partners with contracted salaries/wages and terms of employment.

All companies with at least 500 employees are included every year. Other-
wise, a selection is made comprising approximately 9,000 companies, or-
ganisations and foundations via simple random sampling. Under normal
circumstances, approximately 40% of the companies are replaced between
years. It is small and medium-sized companies that are replaced.

The selection is stratified based on company size (7 size categories) and

industry (83 industry groups) into 530 strata, with each individual item in
each stratum being allocated the respective stratum’s index factor. Using
this index factor, calculations can be made for the wage structure of Sweden
as a whole.

Wage structure statistics for the entire labour market use the term monthly
salary.
 Chapter 1 The Wage Differential Between Women and Men 3

The measurement of monthly salaries includes various wage components

where all wages are indexed to full time. In addition to fixed salaries, fixed
wage increments and a large number of variable wage increments are also
included. A management supplement is an example of a fixed wage incre-
ment. Variable increments are often dependent on the disposition of working
hours (for example supplements for unsociable working hours or shift work).
Other variable increments may include supplements for associated risk, dirt
or heat.

Wage structure statistics do not include any information about affiliation to

any collective bargaining agreement, nor information regarding so-called
lump sums or bonuses and other irregular remuneration.

1.1.2 Differences between wages and income

It is important to note the difference between wages and income. Wages are a form of
remuneration for work carried out under a given unit of time, for example over a
month or hour. Wages are reported in wage structure statistics as monthly salaries
and part-time wages are recalculated into full-time in order to enable comparison1.
The gross salary measurement of monthly salary includes several different wage
components. In addition to contracted wages, fixed wage increments and a large
number of variable wage increments are also included.2 The term basic salary
includes contracted wages including any fixed increments.
I addition to salary or wages, income may include transfers – such as child support
and allowance, sickness benefits – and capital gains. Income includes all remuner-
ation received during a given period of time, usually one year. Income, in contrast
to wages, is therefore affected by whether one works full or part time, works over-
time or is absent from work. The term income is not included in the scope of the
Swedish National Mediation Office’s official wage statistics.
When the wage differential between women and men is analysed with the aid of
wage structure statistics, the measurement used is monthly salary.
The measure one chooses for an analysis affects the calculated wage differential
between women and men. The inclusion of various increments, such as on-call and
unsociable hours payments, affects the size of the wage differential. Bonuses and
other irregular remuneration are further examples of factors that can affect the
wage differential.3 The Swedish National Mediation Office’s 2010 report on wage
differentials 4 specifically reviewed how various wage increments affect the wage
differential between women and men.
1 The method used for recalculating hourly wages to monthly salaries varies between the public and private sec-
tors. For the public sector, wages are multiplied by 165. For the private sector, the hourly wage is multiplied by
the number of hours reported as corresponding to full-time employment.
2 Annual incentive systems such as bonuses, profit sharing or the allocation of shares/options are not included
in the wage structure statistics. Neither are overtime payments. For a more detailed description of the wage
structure statistics, see Avtalsrörelsen och lönebildningen 2014 [Collective bargaining negotiations and wage
formation 2014], Swedish National Mediation Office (2015).
3 See Granqvist (2009) for a study on wage benefits, bonuses and wage differences between male and female
university graduates.
4 Vad säger den officiella lönestatistiken om löneskillnaden mellan kvinnor och män 2010? [What do the official
wage statistics say about wage differences between men and women 2010?], Swedish National Mediation
Office (2011b).
4 Chapter 1 The Wage Differential Between Women and Men

1.1.3 The new Standard Classification of Occupations is not a catch-all

Since 2014, the revised Swedish Standard Classification of Occupations 2012
(SSYK2012) has been in use. This classification is considerably more detailed than
its predecessor but it still does not capture all wage-impacting factors. There are
wage-impacting factors that cannot be taken into account due to the difficulty in
measuring them (such as individual productivity or social skills).

Swedish Standard Classification of Occupations 2012 (SSYK 2012)

From the 2014 measurement (published 2015) onwards,the occupation

codes used in the wage structure statistics are structured in accordance with
the Swedish Standard Classification of Occupations (SSYK 2012). SSYK
2012 is an updated version of the earlier occupation classification SSYK 96.

SSYK 2012 is based on the International Classification of Occupations

ISCO-08, which is prepared and published by UN body the International
Labour Organization (ILO). ISCO-08 is in turn an update of its predecessor,
ISCO-88 and the EU variant ISCO-88 (COM).

The objective has been to achieve an occupation classification that better

reflects today’s occupational structure. The Classification is also meant to as
far as possible meet requirements for international reporting and comparabil-
ity.

SSYK is primarily designed to classify people based on the kind of work they
carry out. SSYK is used by may agencies, including Statistics Sweden, Ar-
betsförmedlingen (Sweden’s Public Employment Service) and the Swedish
National Mediation Office.

As was the case with SSYK 96, SSYK 2012 employs a hierarchical structure
with four levels.
The first numerical level indicates occupational area, the second indicates
main group, the third occupational group and the fourth the occupation. The
number of main groups has been increased from 27 to 46, the number of
occupational groups has increased from 113 to 147 and the number of
occupations from 355 to 429. The number of occupational areas remains
unchanged at 10.

There are important changes between SSYK 2012 and its predecessor SSYK
96, with classes being added, combined, split, moved or deleted. Some
classes have the same content but may have been given a new code and/or
designation. As a rule, occupational data from SSYK 2012 cannot be trans-
lated to the old occupational classification SSYK 96, or vice versa.

SSYK 2012 is available on the Statistics Sweden website at www.scb.se/

ssyk/.

1.2 Alternative statistical methods

Aside from studying the differential in average salaries for women and men, alter-
native methods can be used. These methods take into account how women and
men are divided with regard to various factors that affect wages. The size of differ-
 Chapter 1 The Wage Differential Between Women and Men 5

entials obtained by such calculations is dependent among other things on which

variables are included. The wage differential remaining after taking these variables
into account, the so-called unexplained wage differential, is one that cannot be
explained by the available variables.
The Swedish National Mediation Office uses two statistical methods, standard
weighting and regression analysis, to take into account factors that affect the calcu-
lation of the wage differential between men and women.

Standard weighting and regression analysis

Table B2 in Appendix 2 shows how individuals included in the wage structure

statistics are distributed over various factors that can affect wages. For ex-
ample, the table shows that women have a higher level of education than
men, that women and men work in different occupations, that women are
somewhat older and that it is more common for women to work part time. In
order to obtain an alternative view of the relationship between men’s and
women’s wages, consideration can be given to these differences. Two ways to
achieve this are through standard weighting and regression analysis.

Standard weighting as used by the Swedish National Mediation Office means

that wage amounts are calculated for women and men respectively in each
group. The total number of employees (both women and men) is multiplied
by the average wage for men and women respectively. The groups are formed
by combining four age groups, two education categories, two working-hour
groups, two sector groups and within each occupation (SSYK12 at the
four-digit level consists of 429 occupations). The different wage amounts for
each respective gender are then added. By subsequently dividing the wage
amount for women by the wage amount for men, a standard-weighted wage
ratio is obtained.

An alternative to standard weighting is regression analysis. Regression analy-

sis of survey and register data is the most common empirical method used in
labour market research to study differences in outcomes between individuals
or groups. Regression analysis can be used to study the relationship between
one factor (such as gender) and an outcome variable (such as wage) and at
the same time take other factors into account (such as occupation, sector,
education).

When wages are analysed using regression analysis, a model is first estab-
lished containing various factors that can be assumed to affect the size of
wages, such as gender. A coefficient is then calculated that shows how great
an influence the various factors (explanatory variables) have on wages. In
order to avoid the significance of gender being determined by women and
men working in, for example, different sectors or occupations where wages
are at different levels, these additional explanatory variables are included in
the model. By including these, it is possible to calculate the size of the wage
difference between men and women, given the level of the other variables.
The selection of explanatory variables is justified by the availability of data
and economic theory.

A more detailed description of how regression analysis is used in this report

is provided in Appendix 3.
6 Chapter 1 The Wage Differential Between Women and Men

1.2.1 Certain wage-impacting factors are missing from the statistics

The wage structure statistics contain a large amount of information about employ-
ees and their workplaces. However, there are of course more factors than those in-
cluded in the statistics that might affect an individuals wage, such as absenteeism5
or various measurements of individual productivity.

1.2.2 Unexplained is not the same as unfounded

It is not possible to use standard weighting or regression analysis to answer the
question of whether unfounded wage differentials exist. The unexplained differen-
tial is only unexplained from a statistical standpoint.
In this context, an unfounded wage differential is defined as a difference in out-
come that is due solely to gender. In other words, an unfounded wage differential
between genders exists if the wage differential remains when consideration has
been given to all systematic differences in gender-based characteristics. In practice,
this is impossible to do as the statistics cannot capture all imaginable factors.
The setting of wages is often based on information that is missing from the statis-
tics, such as the demands made by a job in terms of qualifications, competencies,
motivation and other characteristics that employees or applicants have.
Because of this, it is difficult to determine if differences in outcome between wom-
en and men are due to relevant differences in characteristics – that cannot be ob-
served in the statistics, but are clear when the wage is set – or on discrimination6.
Standard weighting and regression analysis can therefore only indicate the correla-
tion between gender and wage outcome after consideration has been given to vari-
ations in a wide range of other observable characteristics However, they cannot
show a causal connection, meaning that the analysis cannot prove that the remain-
ing wage differential, the so-called unexplained wage differential, between the sex-
es is due solely to gender7.
Since it cannot be shown that the remaining wage differential is due to gender, it is
also not possible to say if wage discrimination is taking place in contravention to
the Swedish Discrimination Act. The application of different wage conditions for
women and men who are carrying out the same or equivalent work for the same
employer is an illegal act of discrimination. However, based on the official wage
structure statistics, no determination can be made as to whether one occupation or
job is equivalent to another.
A more detailed reasoning regarding discrimination can be found in Chapter 3.

5 A 2015 report from IFAU - The Institute for Evaluation of Labour Market and Education Policy shows a corre-
lation between how many days a parent takes off to care for a sick child and lower wages, particularly among
men.
6 Neither can qualitative methods, such as interviews with employees or employers, ensure with any certainty
whether discrimination has occurred. An individual may perceive that he or she has been the victim of discrim-
ination, even if this is not the case. Correspondingly, an individual may be discriminated against without having
any knowledge of the fact. In their turn, employers seldom admit of their own volition that discrimination occurs
in the workplace.
7 A causal connection (that is to say, a causal relationship) exists if it is the individual’s gender decides their
wage. That there is a correlation (relationship) between gender and wage need not mean that gender decides
the wage level. This correlation may instead be the result of other factors that the analysis has failed to take
into account.
 Chapter 1 The Wage Differential Between Women and Men 7

1.3 The wage differential between women and men 2015

Table 1,1 shows average salaries8 for women and men and women’s salaries as a
percentage of men’s (unweighted wage differential).
As the table shows, women on average earned 87.5% of men’s pay in 2015, mean-
ing that the wage differential between women and men was 12.5% (100 - 87.5).

Table 1.1 Average salaries9 and women’s salaries as a percentage of men’s 2015
Women Men Total Women’s salaries as a Differen-
percentage of men’s tial
in percent
All sectors 29,900 34,100 32,000 87.5 12.5
Private sector 30,200 34,300 32,700 88.1 11.9
Waged worker 24,800 27,700 26,600 89.7 10.3
Salaried worker 35,400 43,400 39,900 81.7 18.3
Public sector 29,500 33,500 30,600 88.0 12.0
Municipalities 27,700 29,000 28,000 95.4 4.6
County council 32,800 42,200 34,800 77.6 22.4
State 33,900 36,600 35,200 92.7 7.3

Source: Swedish National Mediation Office and Statistics Sweden

The variation between different sectors is large. The largest wage differential was
within county councils, at 22.4%. Withing county councils, the division of wom-
en and men across occupations is uneven. Of the many women working there, a
great many are in occupations such as nursing attendants while a large propor-
tion of male employees are doctors. The next largest wage differential was for
salaried workers in the private sector. 18.3% The lowest wage differential was in
municipalities, at 4.6%. The next lowest wage differential, 7,3%, is found among
state employees. For waged workers in the private sector, the wage differential
was 10.4%.

1.3.1 A picture of gender composition

The fact that women and men work in different occupations and that these occu-
pations have different wage levels is an important explanation for why women’s and
men’s wages differ.
How the gender composition at the occupation level varies with the salary level,
and the wage differential between men and women, can be illustrated graphically
in the bubble diagram below (diagram 1.1).
The diagram shows women’s salaries as a percentage of men’s for each occupation
(y axis) against the average salary level (x axis). Each observation (occupation) in
the diagram is then illustrated by a circle, the size of which represents the number
of employees in the occupation.
Lastly, gender composition is described by the surface of the different circles being
given different colours, depending on the proportion of men and women in the

8 The average salary (or mean salary) is the total salary of a group divided by the number of people in the group.
9 Monthly salaries are rounded to the nearest hundred.
8 Chapter 1 The Wage Differential Between Women and Men

occupation. In the diagram, predominantly female occupations are coloured red10.

Predominantly male occupations are coloured blue. Gender-neutral occupations,
with a gender composition varying between 40-60%, are coloured grey.
The variables on which the diagram is based are taken from the wage structure
statistics in the statistics database (published on the Statistics Sweden website)11.
The data does not include all occupations due to uncertainty in the estimates12.
In total, information is presented on 277 different occupations. Not all circles are
visible on the diagram as they partly overlap one another.

Diagram 1.1 Women’s salaries as a percentage of men’s, average salary, size and proportion
of women for the respective occupation for the entire economy, 2015

Kvinnors lön i procent av mäns

115

105

100

95

85

75

Genomsnittslön
65
20 000 30 000 40 000 50 000 60 000 70 000 80 000

Manligt dominerade yrken Kvinnligt dominerade yrken Könsbalanserade yrken

Note: The occupation Executives in banking, finance and insurance is outside of the diagram. The occupation is male-domi-
nated with 1 300 employees. The mean salary is SEK 123 100 and women earn on average 72% of what men earn.
Source: Swedish National Mediation Office and Statistics Sweden

Diagram 1.1 shows that the majority of the occupations have an average salary be-
low SEK 35,000. The accumulation to the left of the diagram makes it difficult to
distinguish individual occupations but, as an example, the largest red circle at the
top left represents Assistant, day care: children. The average salary for the occupation
is SEK 22,200 per month, the number of employees is 80,100 and the fact that the
circle is located above the 100 line means that women have a higher average salary
than men (+7%). To take another example, the large blue circle in the centre of
the diagram represents Software and system developers, etc. The average salary is SEK

10 Female-dominated occupations are defined as occupations with more than 60% women.
11 All data can be downloaded from: http://www.scb.se/sv_/Hitta-statistik/Statistikdatabasen/
12 Information on occupations containing less than 100 observations for either gender is not published in the
statistical database. If the uncertainty (mean error in relation to mean value) is too great with regard to estimat-
ing the salary, the observation is not presented. Neither are observations presented if they might disclose the
identity of an individual company.
 Chapter 1 The Wage Differential Between Women and Men 9

41,800 per month, women’s salaries as a percentage of men’s are 97% and the total
number of employees is 68,500.
There are more red circles (occupations) at lower average salaries, meaning that
the higher the percentage of women in an occupation, the lower the average salary.
The diagram therefore shows a negative covariation between the percentage of
women and the average salary.
The fact that most of the occupations are below the 100 line means that on average
women’s salaries in the majority of occupations are lower than men’s. It also appears
that the higher the salary is in a given occupation, the larger the wage differential
between the genders. In other words, there seems to be a negative correlation be-
tween women’s salaries as a percentage of men’s and the level of average salaries.
An occupation that clearly breaks this pattern is Industrial designer, represented by
the blue circle at the top of the diagram. The average salary for this occupation is
SEK 40,600 per month, women’s salaries as a percentage of men’s are 111% and
the total number of employees is 2,200.
Calculations are based solely on average salaries and wage differentials. According-
ly, in the calculations for diagram 1.1, no consideration has been given to differenc-
es in the distribution of men and women between sectors, nor to potential differ-
ences in company-specific factors such as industry, company size, etc.

1.3.2 Gender composition by sector

In order to obtain a more nuanced picture of how women and men are distributed
throughout the labour market, it is possible to study distribution sector by sector in
the same way as in diagram 1.1. Diagram 1.2 shows an image of the private sector.

Diagram 1.2 Women’s salaries as a percentage of men’s, average salaries, size and percent-
age of women per occupation, private sector, 2015.

Kvinnors lön i procent av mäns

115

105

100

95

85

75

Genomsnittslön
65
20 000 30 000 40 000 50 000 60 000 70 000 80 000

Manligt dominerade yrken Kvinnligt dominerade yrken Könsbalanserade yrken

Note: The size of bubbles in diagrams 1.2 to 1.5 are proportional within each diagram but cannot be directly compared
based on size between diagrams.
Source: Swedish National Mediation Office and Statistics Sweden
10 Chapter 1 The Wage Differential Between Women and Men

Compared to the diagram for the entire labour market, in the private sector there
are several occupations in which women have a lower average salary than men.
Diagram 1.3 showing distribution in municipal sectors gives an entirely different
picture.

Diagram 1.3 Women’s salaries as a percentage of men’s, average salaries, size and percent-
age of women per occupation, municipalities, 2015.

Kvinnors lön i procent av mäns

115

105

100

95

85

75

Genomsnittslön
65
20 000 30 000 40 000 50 000 60 000 70 000 80 000

Manligt dominerade yrken Kvinnligt dominerade yrken Könsbalanserade yrken

Note: The size of bubbles in diagrams 1.2 to 1.5 are proportional within each diagram but cannot be directly compared
based on size between diagrams.
Source: Swedish National Mediation Office and Statistics Sweden

As shown in diagram 1.1, the lowest wage differential in the labour market is within
the municipal sector. In diagram 1.3 this is illustrated by the fact that bubbles are
collected around the line indicating that women and men in the occupation have
the same average salary. In a number of large, female-dominated occupations,
women have a higher average salary than men.
The largest red circle in the centre of the diagram, directly above the 100 line, rep-
resents municipal employees in the occupation Nursing assistants, home-help service,
home healthcare and elderly care. The average salary is SEK 26,300, the total number of
employees is 110,000 and women’s salaries as a percentage of men’s are 102%.
Hence, women have on average a salary somewhat higher than men.
Diagram 1.4 shows the picture for county councils. Here, the average wage differ-
ential between women and men is at its greatest.
 Chapter 1 The Wage Differential Between Women and Men 11

Diagram 1.4 Women’s salaries as a percentage of men’s, average salaries, size and percent-
age of women per occupation, county councils, 2015.

Kvinnors lön i procent av mäns

115

105

100

95

85

75

Genomsnittslön
65
20 000 30 000 40 000 50 000 60 000 70 000 80 000

Manligt dominerade yrken Kvinnligt dominerade yrken Könsbalanserade yrken

Note: The size of bubbles in diagrams 1.2 to 1.5 are proportional within each diagram but cannot be directly compared
based on size between diagrams. The gender-balanced occupation County council director, etc. (SSYK1112) lies outside
the diagram. The average salary is SEK 91,900, women’s average salary is 91% of men’s and 290 people work in the
occupation in county councils.
Source: Swedish National Mediation Office and Statistics Sweden

Within county councils, the covariation between occupations with high average sal-
aries and greater wage differentials is more apparent than in the other sectors. In
large, female-dominated occupations with relatively low salaries, the differential is
small and in some women earn more than men; however, as average salaries rise in
female-dominated occupations so do wage differentials.
One example is Head of department, health service. This is the red (female-dominated)
circle with an average salary of SEK 45,300 and women’s salary as a percentage of
men’s of 82%. The occupation has 5,300 employees.
The occupation Doctor, medical: specialist is represented by the grey circle to the far
right of the diagram. The occupation is gender-balanced and the average salary is
SEK 74.600. Women’s salary as a percentage of men’s is 93% and the occupation
has 16,800 employees.
Diagram 1.5 shows a different pattern for state employees. For state employees, we
don’t see the same concentration of large female-dominated occupations.
12 Chapter 1 The Wage Differential Between Women and Men

Diagram 1.5 Women’s salaries as a percentage of men’s, average salaries, size and percent-
age of women per occupation, state employees, 2015.

Kvinnors lön i procent av mäns

115

105

100

95

85

75

Genomsnittslön
65
20 000 30 000 40 000 50 000 60 000 70 000 80 000

Manligt dominerade yrken Kvinnligt dominerade yrken Könsbalanserade yrken

Note: The size of bubbles in diagrams 1.2 to 1.5 are proportional within each diagram but cannot be directly compared
based on size between diagrams.
Source: Swedish National Mediation Office and Statistics Sweden

For state employees there is a tendency for the wage differential to increase at higher
salaries but generally one can see that most occupations are below the 100 line and
therefore that in most occupations women earn less than men.
One occupation that breaks with this pattern is represented by the single blue
circle at the top middle of the diagram. This is Manager, administration and plan-
ning, a male-dominated occupation with an average salary of SEK 51,100 where
women have a 17% higher average salary than men. The occupation has 3,300
employees.

1.3.3 Unexplained differentials after standard weighting

The standard weighting used in table 1.2 takes into account the fact that women
and men work in different occupations and sectors, have different levels of educa-
tion, different working hours13 and are different ages (the standard weighting
method is described in more detail in the fact box in section 1.2). After standard
weighting, women’s salaries as a percentage of men’s rises to 95.4. This means that
the remaining unexplained wage differential is 4.6%14 for the labour market as a
whole in 2015.

13 In the wage structure statistics, all wages are adjusted upwards to full-time salaries The variable of working
hours is included in standard weighting and regression analysis because part-time employees’ wages may differ
from those of full-time employees, even if calculated per hour.
14 100 minus 95.4.
 Chapter 1 The Wage Differential Between Women and Men 13

Table 1.2 Women’s salaries as a percentage of men’s, 2015

Unweighted Unweighted Stan- Stan-
percentage differential dard-weighted dard-weighted
in percent percentage differential in
percent
All sectors 87.5 12.5 95.4 4.6
Private sector 88.1 11.9 94.3 5.7
Waged worker 89.7 10.3 96.9 3.1
Salaried worker 81.7 18.3 92.3 7.7
Public sector 88.0 12.0 97.9 2.1
Municipalities 95.4 4.6 99.6 0.4
County council 77.6 22.4 96.1 3.9
State 92.7 7.3 95.8 4.2

Source: Swedish National Mediation Office and Statistics Sweden

After standard weighting, it is no longer county councils that have the largest dif-
ferential in 2015. Instead, the largest unexplained wage differential at 7.7% is
among salaried employees in the private sector. County councils’ unexplained wage
differential is 3.9% after standard weighting (in comparison to an unweighted wage
differential of 22.4%)
Municipalities have the lowest unexplained wage differential at 0.4%. Waged work-
ers in the private sector have an unexplained wage differential of 3.1%. For state
employees, the unexplained wage differential is 4.2%.

1.4 The wage differential between women and men 2005-2015

Table 1.3 shows the unweighted wage differential between women and men dur-
ing the period 2005 to 2015.
Between 2014 and 2015, the unweighted wage differential between women and
men decreased by 0.7 of a percentage point. Hence, in absolute terms the differ-
ential decreased. Women’s average salaries increased by SEK 700 and men’s by
SEK 500.

Table 1.3 Women’s salaries as a percentage of men’s (unweighted) 2005-2015

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Differ-
ential
2005-
2015
All sectors 83.7 84.2 83.7 84.2 85.2 85.7 85.9 86.1 86.6 86.8 87.5 3.8
Private sector 85.3 85.9 86.0 85.9 86.6 87.2 87.2 87.8 87.9 87.8 88.1 2.8
Waged worker 88.3 88.8 89.7 89.1 90.0 90.0 90.1 90.9 90.5 89.6* 89.7* 1.4
Salaried worker 77.3 78.1 77.9 78.1 79.2 79.2 79.4 80.1 80.6 81.4* 81.7* 4.4
Public sector 83.4 83.7 83.0 84.1 84.9 85.4 85.9 85.9 86.6 86.9 88.0 4.6
Municipalities 91.6 91.6 91.0 92.3 93.4 93.9 93.9 93.8 94.2 94.6 95.4 3.8
County council 71.4 72.0 72.4 72.7 73.1 73.5 74.0 75.0 76.2 76.4 77.6 6.2
State 85.7 87.2 87.3 87.6 88.7 89.3 90.6 91.1 91.8 92.1 92.7 7.0

*Not comparable with years prior to 2014 due to changes to classification of staff categories.
Source: Swedish National Mediation Office and Statistics Sweden
14 Chapter 1 The Wage Differential Between Women and Men

All sectors show a reduction in wage differential between 2014 and 2015 as well as
for the period as a whole. For waged and salaried workers in the private sector,
comparisons with the years prior to 2014 should be avoided as the classifications for
both groups have been changed15.
The greatest decrease between 2014 and 2015 was seen in the public sector and
greatest of all in county councils, by 1.2 percentage points, followed by municipali-
ties at 0.8 of a percentage point. An analysis of wage increases in county councils
shows that women have moved closer to men, both percental and in absolute terms.
Women’s salaries have increased by an average of SEK 1,000 per month while men’s
have increased by SEK 60016.
The wage differential has decreased by 3.8 percentage points between 2005 and
2015. The amount by which the wage differential has decreased varies from sector
to sector. The largest change is for state employees, where women’s salaries have
moved closer to men’s by 7.0 percentage points between 2005 and 2015. The next
largest decrease is in county councils, where the wage differential decreased by 6.2
percentage points. Within municipalities, the wage differential decreased by 3.8
percentage points.
Table 1.4 shows women’s salaries as a percentage of men’s after standard weighting
over the same period.

Table 1.4 Women’s salaries as a percentage of men’s after standard weighting 2005-2015
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Differ-
ential
2005-
2015
All sectors 93.2 93.4 93.5 93.4 94.0 94.1 94.1 93.9 94.2 95.0 95.4 2.2
Private sector 91.7 91.9 92.2 92.1 92.7 92.7 92.8 92.6 93.0 93.8 94.3 2.6
Waged worker 94.4 94.9 94.8 95.4 95.5 96.0 96.2 96.3 95.7 96.2* 96.9 2.5
Salaried worker 90.2 90.3 90.5 90.0 90.9 90.7 90.8 90.4 91.4 91.9* 92.3 2.1
Public sector 96.5 96.6 96.6 96.6 97.0 97.1 97.0 96.9 97.0 97.8 97.9 1.4
Municipalities 99.1 99.0 98.8 99.2 99.4 99.6 99.4 99.3 99.4 99.5 99.6 0.5
County council 94.7 94.8 95.2 94.6 95.3 95.2 95.4 95.4 95.6 96.0 96.1 1.4
State 92.9 93.5 93.7 93.7 93.8 94.2 94.4 94.7 94.8 95.6 95.8 2.9

*Not comparable with years prior to 2014 due to changes to classification of staff categories.
Source: Swedish National Mediation Office and Statistics Sweden

The unexplained wage differential after standard weighting (i.e. when corrected
for variations in occupation, sector, education, age and whether the person works
part time) decreased by 0.4 of a percentage point between 2014 and 2015.
The unexplained wage difference after standard weighting also decreased between
2005 and 2015. The largest decrease was for state employees, where the unex-
plained wage differential decreased by 2.9 percentage points.

15 In the survey, the classification of staff category (waged/salaried) from 2014 is based on which occupational
code the employee has. This has led to structural changes for waged and salaried staff in the private sector,
which in turn affects the calculation of the wage differential.
16 For a few counties, base data has been supplemented due to collection problems. Our assessment is that this
correction does not materially affect the results obtained.
 Chapter 1 The Wage Differential Between Women and Men 15

In summary the overall trend shows a decrease in wage differentials between wom-
en and men both between 2014 and 2015 and between 2005 and 2015. This applies
to both unweighted and standard-weighted wage differentials17.
It is however important to bear in mind that great caution must be exercised when
making comparisons of how wage differentials have changed over time, especially
from one year to the next. Aside from effects such as changes in the sample com-
panies included in the wage structure statistics and revisions to control variables,
the calculated wage differential may be affected by the nature of collective bargain-
ing agreements and whether agreed increases have had time to come into effect by
the time measurements are made. Any change to the composition of the workforce
is an additional factor that can affect how wage differentials change over time18.

1.5 The wage differential between women and men after regression
analysis
In this section we use regression analysis to examine how the size of the wage differ-
ential changes when taking into account the distribution of women and men across
various wage-impacting factors and combinations of factors, such as occupations
and levels of education.
With the help of regression analysis, it is possible to study the relationship between
one factor (such as gender) and an outcome variable (such as wage), while at the
same time accounting for other factors such as occupation, sector and education19.

1.5.1 What affects the wage differential between women and men?
Table 1.5 presents the results from the regression analysis for the labour market as
a whole. The analysis is built up in stages, with information regarding the employ-
ee’s characteristics and business activities being added successively. In this way, the
significance of the various individual work-related characteristics is transparent. De-
tailed information regarding the variables used is available in Appendix 3.

17 Note that the parties to the labour market may report different wage differential levels. This may in part be due
to the fact that they study different samples or have access to more detailed information. See for example the
Swedish Agency for Government Employers (2016).
18 For an in-depth discussion see section 2.2 in Vad säger den officiella lönestatistiken om löneskillnaden mellan
kvinnor och män 2009? [What do the official wage statistics say about wage differences between men and
women 2009?] Swedish National Mediation Office (2010b).
19 See fact box in section 1.2 for more information on regression analysis.
16 Chapter 1 The Wage Differential Between Women and Men

Table 1.5 the wage differential between women and men, labour market as a whole, 2015
20
The results were obtained using regression analysis
Explanatory variables Wage differential be- Women’s salary
tween women and men in as a percentage of
percent* men’s
(1) Gender -10.3 89.7
(2) (1) + age, level of education -12.7 87.3
(3) (2) + sector, industry, company size, -8.1 91.9
scope of employment
(4) (3) + occupation -4.2 95.8
(5) Gender, age, level of education, occu- -4.2 95.8
pation, scope of employment, sector
*Equivalent to (exp(ß1)-1) x 100
**Equivalent to (exp(ß1)) x 100
Source: Swedish National Mediation Office

Row 1 presents results from a base model where gender is the sole factor affecting
the salary. The wage differential is then 10.3%21. This figure constitutes a base val-
ue. Using this value, comparison can be made of the results obtained by including
additional factors that may influence the wage differential.
Row 2 presents the wage differential between women and men after allowing for
the individual’s age and level of education. This increases the wage differential to
12.7%. Among other things. this is due to the fact that on average women have a
higher level of education and are older than men. If this is not taken into account,
the size of the wage differential will be underestimated.
Row 3 presents the wage differential when consideration is given to age, level of
education and work-related factors such as sector, industry, company size and scope
of employment (full time or short or long part time). The calculated wage differen-
tial is then 8.1%. One reason that the wage differential decreases compared with
rows 1 and 2 is that men work to a greater extent than women in sectors and indus-
tries that have higher average salaries. When this is taken into account, the unex-
plained wage differential decreases.
Row 4 presents the wage differential when occupation is added to all of the above
factors. Occupation explains a large proportion of the wage differential between
women and men. When occupation is also included as a factor in the analysis, the
unexplained wage differential is 4.2%. The fact that the wage differential decreases
in comparison to the previous row indicates that women are over-represented in
low-paid occupations while men are over-represented in occupations with high sal-
aries.

1.5.2 Regression analysis gives lower wage differentials.

In order to compare regression analysis with standard weighting, wage differentials
are also presented with consideration given to age, education, occupation, employ-
ment scope and sector – i.e. the same factors as in table 1.1.
The results are presented on row 5. When consideration is given to these factors,
the unexplained wage differential is 4.2%. The equivalent standard-weighted result

20 The dependent variable is logarithmic monthly salary.

21 As regression analysis uses logarithmic salaries, this value is not directly comparable with the unweighted wage
differentials presented in table 1.1.
 Chapter 1 The Wage Differential Between Women and Men 17

is 4.6%. Regression analysis gives a somewhat lower figure than standard weighting.
Among other factors, the difference in results may be due to the regression analysis
taking into account more detailed information than the standard weighting. For
example, only four age categories are used in standard weighting, while in regres-
sion analysis age is treated as a continuous variable; that is, the person’s exact age
is considered.
Important conclusions can be drawn from the analysis presented in this section.
Choices regarding methodology and which wage-impacting factors are taken into
account affect the size of the calculated wage differential between women and men.
Moreover, it becomes clear that simply giving consideration to many factors need
not mean that the wage differential will decrease. How the wage differential is af-
fected depends on which values women and men have for a given factor. If women
have better values for a factor that positively affects salaries (such as level of educa-
tion), the wage differential increases as soon as that factor is taken into considera-
tion (see row 2, table 1.5).

1.5.3 Occupation is the most important explanation for wage differentials

Of the various factors taken into account, it is occupation that makes the single
largest contribution to explaining the wage differences between women and men.
For instance, this is apparent when looking at what percentage of the average wage
differential of 10.3% (row 1 in table 1.5) can be explained by the various factors.
Differences in age, level of education, sector, industry, company size and scope of
employment when taken together explain only 21.4% of the average wage differen-
tial between genders (row 3). However, when the calculation also takes occupation
into account, we see that the wage differential decreases substantially (row 4). Oc-
cupation and other factors taken together explain more than half of the wage dif-
ferential between women and men (59.8%). The percentage of the wage differen-
tial that can be explained therefore increases by 38 percentage points when
occupation is added to the equation22.

22 An analysis of the correlation between the percentage of women within a given occupation and the average
salary is available in Vad säger den officiella lönestatistiken om löneskillnaden mellan kvinnor och män 2008?
[What do the official wage statistics say about wage differences between men and women 2008?], Swedish
National Mediation Office (2009b).