New research from Adelaide University has shed light on the workplace characteristics most closely associated with gender pay gaps across Australia, pointing to industry type, organisational structure and workforce composition as key influences.
The study analysed publicly available data from nearly 7,800 employers reporting to the Workplace Gender Equality Agency (WGEA), examining factors such as company size, leadership representation, sector, employment policies and the proportion of women in senior roles.
According to researchers, structural features within organisations play a central role in shaping pay outcomes.
“We found that workplace structure matters. Employer size, industry sector, and the representation of women in senior and higher-paid positions were among the strongest predictors of an organisation’s gender pay gap,” said Dr Ilker Cingillioglu from Adelaide University’s School of Accounting and Finance.
Certain sectors, including financial services, construction and mining, were consistently associated with wider pay gaps. Organisations with higher representation of women in senior and better-paid positions were more likely to report narrower gaps.
The research also pointed to an unexpected pattern involving flexible work arrangements. Organisations that offered flexible working options often recorded larger gender pay gaps.
“At first glance, this appears counterintuitive because flexible work is often promoted as a tool for improving workplace equality,” Dr Cingillioglu said.
He noted that this does not suggest flexible work creates inequality, but rather that such policies may be introduced in workplaces where disparities already exist or where deeper cultural barriers remain.
“The findings highlight an important lesson: workplace policies alone do not guarantee equitable outcomes. Organisational culture, leadership practices and career progression opportunities are just as important as the policies themselves.”
The study was initiated through a project involving MBA students Aakriti Bhandari, Peiran Hu, Benjamin Lewis, Joshua Pryor and Matthew Squires, who explored whether artificial intelligence and machine learning could help explain persistent gender pay differences.
Published in the peer-reviewed journal Gender in Management, the research is among the first to apply AI-driven modelling techniques to WGEA data for predicting gender pay gaps.
“While most previous studies have focused on describing the problem, we wanted to take it a step further and identify which workplace characteristics are most strongly associated with large pay gaps and whether AI could help predict where inequalities are most likely to occur,” said Bhandari.
The models developed in the study were reported to correctly identify organisations with above-average pay gaps around 92 per cent of the time.
WGEA data shows women in Australia earn about 78 cents for every dollar earned by men when total remuneration is considered.
“Gender pay gap affects lifetime earnings, retirement savings and economic security for millions of Australians,” Dr Cingillioglu said.
“It also has broader economic consequences, with previous estimates suggesting the gender pay gap costs the Australian economy tens of billions of dollars each year.”
Researchers say future work could explore which interventions are most effective in reducing pay disparities, along with the role of responsible AI in supporting workplace equality efforts. They also suggest expanding analysis to include smaller businesses, gig workers, contractors and unpaid care work.
“The study highlights the value of predictive analytics in gender equality research, showing that AI can help identify organisations at greater risk of significant pay disparities before problems become entrenched,” Bhandari said.
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