- Research findings reveal an improvement in income contentment among females.
Women's Income Satisfaction Gaining Ground
Initially, men showed a margin of 0.4 points more satisfaction with their income in 2004 compared to women, as reported by a study from the German Institute for Economic Research (DIW). However, the gap between men and women widened to 0.6 points in 2007. Fast forward to 2021, the gender divide narrowed significantly, with men only leading women by a small margin of 0.2 points in income satisfaction, the study reveals.
Interestingly, both men and women demonstrated an increase in satisfaction levels with their income over the years. However, the escalation was more evident among women.
The study utilized data from the Socio-Economic Panel (SOEP) for the timeframe 2004 to 2021, which is an extensive household survey on the personal circumstances and lifestyle of German citizens. Surveys provided ratings based on a 10-point scale, where 0 signified 'not satisfied at all' and 10 represented 'very satisfied'.
The researchers ascribed the reduction in the income satisfaction disparity to the diminishing wage gap. In 2005, the wage difference stood at 16.8 percent, which dropped to 13.5 percent in 2021. Similarly, the income satisfaction among employees in eastern and western Germany also bridged during this period.
Improved Satisfaction Levels Across the Board
The overall satisfaction score across all analyzed groups and areas showed an uptick, rising from 6.7 points in 2004 to 7.4 points in 2021.
The survey further probed satisfaction with one's health, revealing varying results based on factors such as age, gender, income, region, and family size. For instance, individuals without children reported better health compared to parents during 2021, with the childless group registering a 0.6-point advantage.
Explaining this trend, the study highlighted that parenthood is often accompanied by multiple stressors like sleep deprivation, relationship issues, insufficient recovery time, and financial struggles. Consequently, individuals with less income, older individuals, and women recorded lower satisfaction rates with their health compared to their counterparts with higher income, younger age, and male gender.
Despite the ongoing wage gap, the reducing disparity in income satisfaction between men and women since 2004 can be attributed to the closing of the wage gap itself. As of 2021, men's lead in income satisfaction over women has decreased to a mere 0.2 points.
The escalating satisfaction among women with their income, however small, might also contribute to the decline in the overall wage gap over the years.
