• Statistical Series
• 07. March 2018
• Vol 103, Issue 9
• ISSN: 1670-4770



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An analysis on the Gender Pay Gap by Statistics Iceland, in cooperation with the action group on equal pay appointed by the government and the social partners, shows a narrowing Gender Pay Gap during the period 2008–2016. The adjusted gender pay gap measured 6.6% in 2008 but was down to 4.5% in 2016 using an ordinary least squares method for each year. By using the whole dataset a less biased estimate can be decomposed into explained and unexplained parts. The unexplained part of the pay difference was estimated to be 4.8% for the years 2008–2016 while the explained part was 7.4%. The explained part reflects what is explained by the model in the analysis while the unexplained is what the model cannot explain.