Systematic pay discrimination can be identified using the standard analysis model. This tried and tested model is approved for reviewing pay equality in the Confederation's public procurement.
For its pay equality reviews in connection with public procurement, the Confederation uses a standard analysis model based on scientifically recognised regression analysis. Regression analysis is approved by the Federal Court in pay discrimination claims. Agreement has also been made to use the Confederation's analysis model in the social partners' "Commitment to equal pay, ELEP".
Establishing systematic pay discrimination
Systematic pay discrimination can be identified in companies by using the standard analysis model. The model is made up of two parts: one is a statistical method known as semi-logarithmic OLS regression analysis based on the median, and the other a series of individual qualification characteristics (education, years of service and potential professional experience) and job-related factors (level of skills and professional status). Holding all other variables constant, this model can determine which part of the pay difference can be explained by pay-relevant, objective factors free from discrimination.
This method makes it possible to determine whether pay differences exist in a company between women and men with comparable individual and job-related characteristics and whether this implies systematic gender-specific pay discrimination.
A tried and tested model
The majority of companies reviewed in connection with a regulatory impact analysis deemed the Confederation's standard analysis model and the Logib tool suitable. Various European countries (e.g. Germany, Finland, France, Luxembourg, Great Britain, Poland, Portugal and the Czech Republic) have adopted the Confederation's standard analysis model. With Equal Pace, the European Union have developed a Logib-based tool.
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