Measuring the Gender Pay Gap: The Exclusion of Non-Binary and Transgender Individuals

Introduction:

When discussing the gender pay gap, why do conversations often exclude non-binary and transgender individuals? This article explores the reasons behind this exclusion and the challenges in including this diverse group in data analysis.

Historical Context and Definition of Gender Pay Gap

The term ldquo;gender pay gaprdquo; was conceived before the awareness of non-binary and agender identities was widespread. Traditionally, the term referred to the disparity in earnings between men and women. While recent attention has been paid to non-binary and agender individuals, there is currently insufficient data to include them in the analysis.

For instance, transgender individuals represent a smaller portion of the workforce, making it challenging to derive reliable statistics. The sample sizes for transgender individuals are often too small to provide statistically significant results.

Data Challenges in Measuring Gender Pay Gap

Small Sample Sizes: In a typical sample of 1000 employees, only 6 might be trans, which is far fewer than the expected 0.6%. This small sample size does not provide statistically significant results, as the absence of trans individuals in higher-ranking positions could be coincidental.

Data Collection and Fear: Collecting data on transgender and non-binary individuals poses significant challenges. Many trans individuals may not disclose their identity due to social or financial risks. Human resources systems typically record legal gender, not gender identity.

Challenges in Data Definition and Presentation

Data Definition: The field of ldquo;genderrdquo; is often defined as ldquo;malerdquo; or ldquo;female,rdquo; with non-binary individuals often being excluded. This makes it difficult to include non-binary individuals in gender pay gap analyses.

Data Presentation: Even if transgender and non-binary individuals are included, these categories are often not separated from cisgender individuals. This means that data does not differentiate between binary and non-binary individuals, leading to incomplete analyses.

Existing Research and Surveys

Transgender Research: Despite the challenges mentioned, there are studies indicating significant issues. For example, a USTS 2015 survey found that nearly one-third of respondents were living in poverty, twice the rate of the U.S. adult population at the time of the survey.

Bias and Systemic Barriers: These studies show a clear issue with hiring bias and unemployment rates. Transgender individuals generally have higher education levels but lower employment rates. This disparity is reflected in figures that indicate unemployment rates nearly three times higher than the U.S. average.

Census: The Ideal Solution

National Censuses: A country-wide census could provide the ideal solution for collecting comprehensive data. Such a census would collect income and gender identity in one place, with massive sample sizes, clarity, accuracy, and a single data source.

Challenges in Implementation: However, many countries face resistance in including gender identity in their national censuses. Religious bigotry and social conservatism are common reasons, as is a focus on medical issues rather than social issues. Public health systems, which typically track health-related data, often do not keep accurate records of trans and non-binary individuals.

Australia's Example: Australia's 2016 Census included a question about gender identity but faced significant issues. Only 1260 people were recorded as trans, with many barriers to disclosure and reporting. Even the upcoming 2021 census is struggling with these issues.

Conclusion

The gender pay gap remains a significant issue, particularly for non-binary and transgender individuals. The challenges in collecting and presenting accurate data highlight the need for improved methodologies and adequate government support. By addressing these challenges, we can better understand and address the issues faced by this diverse group.