Gender inequality in companies: what does the professional equality index measure?

Summary In 2016, in private companies with 50 or more employees, the average hourly wage for women was 19% lower than for men. Once the effect of age and socio-professional categories is taken into account, the remaining wage gap is 12%. In September 2018, the French government took a set of measures to reduce these inequalities. Among them, the professional equality index must thus be calculated and published by all private companies with more than 50 employees from March 1, 2020. The aim is for companies to obtain a minimum value for this index, failing which they will be subject to sanctions. The index is a summary of several indicators, each covering an important aspect of gender inequality in the workplace and calculated on the basis of the employment situation of women and men employees in companies. Based on administrative data, we calculate the indicators that make up the index for all French companies in an approximate manner and provide an overview of the extent of gender inequality in the workplace as measured at the company level. We also document the effects of some of the methodological choices made in calculating the index, and suggest possible alternatives. These alternatives could allow us to better target companies with high gender inequalities.