Local firm structure drives regional gender pay gap disparities in Germany.
Women in Germany still earn less than men, with a 21% average pay gap in 2016. However, this gap varies greatly across regions, from women earning 41% less in some areas to 4% more in others. When comparing men and women with similar qualifications and jobs, the adjusted wage gap is smaller in most West German counties and larger in most East German counties. The local firm structure plays a significant role in these regional differences.