In March 2017 the UK Parliament passed the Equality Act 2010 (Specific Duties and Public Author- ities). Regulations 2017, which required all employers of more than 250 employees to publicly disclose information about their gender pay gaps effective 01 Apr. 2018. You can see these at The aim of the regulation was to pressure employers to take action addressing their pay gaps. Now, that data is available for three reporting years, we can start to assess how effective the regulation has been in addressing this issue. Using the data available you should be able to answer the following FOUR questions:
gender pay gap / econometrics
1. How has the gender pay gap changed at the sampled set of firms between 2018 and 2020?
2. Are larger firms progressing at a different rate than smaller firms? Think about the specification of the model necessary to answer this question.
3. Do firms who list a woman as the person responsible for reporting have wider or smaller gender pay gaps compared to firms which list a man responsible?
4. What potential measurement issues might affect the interpretation of your results? Are firms with larger or smaller gender pay gaps likelier to misreport? Assess what effect this has on your estimates (i.e. under/over-estimation).
