gender wage gap is the difference between man and women’s income, expressed as
a percentage of man’s earning.
men are paid more than women are paid over their lifetimes. But does that mean?
Are women paid less because they choose
low pay jobs? Is it because more women do part time jobs than men do? Or it is
because women have more caretaking responsibilities? And what, exactly, does
gender discrimination have to do with paychecks?
the simple truth about gender wage gap compendious addresses these issues by
going beyond the widely reported 80% statistics. The report describes the pay
gap in United States, how it affects women of all ages, races and educational
levels, and what you have the ability to close it. In 2016, we updated the
report with particulars on impairment status, sexual orientation and gender
The Huge Number is 80 Percent
2016, women works full time in United States and they were typically paid just
80percent of what men were paid, a gap of 20 percent? Since 1970s, the gap has
narrowed due to large extent of women’s progress in education and workforce participation
and to men’s wages rising at a slower rate. Still, the pay gap does appear
likely to go away on its own. Women are expected to reach pay equity with men
in 2059 at the rate of change between 1960 and 2016. But even that slow
progress has obstruct in recent years. If change continues at the slower rate seen since
2001, women’s pay will not reach at equality with men until 2119.
Location: Pay Gap by the State
There is not only
national pay gap statistic, but the pay gap can also be calculated for each
state. In 2016 the pay gap was the smallest in New York, where women who works
full time in whole year were paid 89 percent of what men are getting paid. Women
were getting 70 percent paid of what men were paid and it was the largest gap
The pay gap varies in different ethnical groups
The pay gap of women
and men affects women’s at all ages, from all backgrounds and all levels of
educational achievement, but the earnings and the gap depends on the women’s
In 2016, among
full-time workers black or African American, Hispanic or Latina, American
Indian or Alaska native (AIAN), and native Hawaiian or other Pacific Islander
(NHPI) women’s earning were lower as compared to non- Hispanic white and Asian
women. But with ethnic groups women’s of black, Hispanic, AIAN, and NHPI
experienced a smaller wage gap as compared to men in the same group than did
non- Hispanic white and Asian women.
White men are the huge
demographic group in the work force because single bench mark provides them
more informative picture and they are often used for that purpose. For earnings
ratios AAUW uses two different sources by ethnicity. We will go along with
current population survey (CPS) for black, Asian, and Hispanic women. Because
for smaller demographic groups, CPS drought sufficient sample size. We go along
with American community Survey (ACS) for women of AIAN and NHPI.
At 89 percent of white
men’s earnings, Asian women’s salaries shows us the smallest gender wage gap as
compared to white male workers salary. The gap was huge for women’s of
Hispanic, who were paid only 54 percent of what white men’s were getting paid
Age is Not Just a Number
Full time earnings of
both male and female workers tend to increase with age. After the age of 45
earnings increase more slowly and decreases after age of 55. The gender wage
gap grows with age, differences among older workers are considerably huge than
gaps among younger workers. In 2016 women’s of 20-24 ages were getting paid 96
percent of what men were getting paid, payment was decreasing to 78-89 percent
from 25-54 age. When workers reach 55-64 years old, women are paid only 74
percent of what men are paid.
Education is not an effectual solution for wage gap problem
Earnings of both men
and women increases as the education years increases. However, while more
education is a beneficial tool for increasing earnings but it is not effective
against gender wage gap. Women’s median earnings are lower than men’s median
earnings at every level of educational achievements but in some cases gender
wage gaps are huge at higher levels of education. Education improves earnings
of women’s but their earnings are affected by ethnicity as well as gender. At
all education levels earnings of white women are more than black and Hispanic
Student’s financial obligation, race and the wage gap
The gender wage gap go
on across educational level and it is worse for college graduates and for black
and Hispanic women. In which as a result women who complete their graduate
degrees from their colleges are less able to pay off their student loans on time,
leaving them paying more for a long time than men. According to AAUW’s research
estimates in United States women hold one third of student financial
obligation. In spite the gains the women have made their selves successful in
workforce but the wage gap still goes on. Individual people are engaged in labor
force, government and community have the ability to help chip away the wage
Changes that can help in closing the wage gap
Some CEOs have been
open in their commitments to pay fairs of the workers, American women’s can’t
wait to run a change. AAUW urges with companies that they should conduct a
salary audits which can control situations and mark differences which are based
on gender wage. It’s a good business.
Women’s can learn
various strategies so they can deal with people for their equal pay. When it’s
the matter of salary, benefits and promotions AAUW’s salary negotiation
workshops helps the women to advocate themselves.
The fair income act
would improve the scope of equal pay acts, it didn’t updated since 1963,
stronger reasons of employees to follow the law is to enhance federal
enforcement efforts and ban retaliation against workers who asks about their
wage practices and the congress should take action for equal payment of the
Nation gender wage gap
equality agency (WGEA) calculates national gender wage gap by using data forms.
Australis’s current national gender wage gap is 15.3 percent. From past two
decades, it has fluttered between 15 percent and 19 percent.
The national gender
wage gap is the difference between men’s and women’s weekly average income of
workers which is based on full time and it is expressed as percentage of men’s
earnings. It is the overall estimate of women’s position in paid workforce and
it is not compared to roles.
From non- public
sector organizations WGEA collects wage data annually with 100 or more than 100
employees which are covering about 4 million employees in Australia which
includes superannuation, bonuses and other additional wages.
WGEA data is 22.4
percent which is based on full time total remuneration gender wage gap, which
means men’s working full time earn nearly 27,000$ a year more than a women
works full time.
By industry, and by
management and non- management occupational categories, across the WGEA dataset
gender wage gaps are calculated.
In every industry and
occupational category in Australia, ABS and WGEA data both show gender wage gap
favoring to full time working men over full time working women.
Causes which lead to gender wage gap
The number of factors
which are influenced by gender wage gap includes discriminations and unfair
hiring’s and wage decisions of employees, In different industries and different
jobs where men and women are working and the wages are lower in those
industries and jobs where females are the dominant, disproportionate share of
unpaid caring of women and their domestic work, non-availability of workplaces where
they can accommodate caring and other their responsibilities specially their
senior roles, most of the women’s time out from workforce, impacts their career
progression and opportunities.
The time when women enters the
workforce, the gender wage gap starts. The wage gap, when time is out of
workforce for their caring reasons and women’s huge likelihood of their part
time jobs impacts their lifetime economic security.
gaps within organizations
WGEA encourages organizations that
they should analyze their own wage data in different ways to expose different
wage equality issues and they should take actions of the of the organizations
at all levels. Wage gaps between men and women in the same or similar roles could
reflect unfair optional wage decisions like increase in pays and bonuses. Wage
gaps between men and women who are working in the same level of organization’s
social order which may reflect men more and are collected at the top of wage
band or manager category or in the industries and jobs where male members are
the dominant are valued more highly than female dominant. The average gap of
payment between men and women across the whole organization may reflect fence
to women’s access to high ranking and high paying roles in an organization,
specially leadership, technical and specialist roles.
The agency has developed various
resources that can help the employees undertake a wage gap analysis and address
gender wage gaps in their organizations.
gender wage gaps
Women’s position in the economy is
an internationally established measure of gender wage gaps. In different
countries directly comparing international gender wage gap is problematic due
to difference in definitions, sources and methods which are used to calculate
gender wage gap. However, it is common that gender wage gap is in favor of men.
Claim is that women are less willing
and they have very less ability to negotiate their salaries and sexual
discrimination are also 25% to 40% cause of pay gap. European commission
divides the discrimination that women is paid less than a man for doing same
job but this is relatively rare due to strong EU laws which are against it. The
more persistent problem is that people underestimate women’s work. Women’s are
being paid less for jobs which are of equal value, women’s which are dominant
in their careers are undervalued as whole. Studies have shown that women’s
dominate more occupation’s work labor, whatever the value or importance of the
work is, the wages becomes less.
European commission is making an
argument that gender wage gap is has far reaching effects, especially in the
matter of pensions. Since women’s lifetime earnings are average (17.5 %) than
men’s, these lower earnings are the causes of lower pensions. Which as a result elder women’s face more
poverty: 22% of women which are of 65 age and over are at more poverty risk
than 16% of men.
In 2009, a report for Australian
departments of families, housing, community services and indigenous affairs
which argues that in addition fairness and equality there rare strong economic
imperatives which addresses the gender wage gap. According to the estimate of
the researchers, decrease of 17% to 16% in gender pay gap would increase GDP
per capita approximately by 260$, mostly increases from work hours of females.
By ignoring opposing factors, hours of female work increases, by eliminating
whole gender pay gap from 17% it could
be worth of almost 93 million$ or 8.5% of GDP. The estimate of researchers on
the causes of pay gaps are: their low experience was only 7%, their low formal
training was only 5%, segregation according to occupation was only 25%, and
working in smaller firms was only 3%, and being the female represented the
remaining was 60%.
In October 2012, the study by
American association of Women University found over 47 years of course, an
American women if she have a college degree can make about 1.2 million$ less
than a man with same education. By closing wage gaps by increasing women’s pays
would have a stimulus effect that would grow economy of United States to at
least 3% to 4%. By increase in women’s participation is workplace from the
present rate of 76% to 84% as it is in Sweden, the united states has the
ability to add 5.1 million women in the workforce, again the size of United
states economy is 3% to 4%.
Over 60 countries have found who
have published studies of gender wage gap. From 1960’s to 1990’s raw wage
difference have fallen down from around 65% to 30%. The immensity of this
decline was due to better labor market financing of women. 260 estimates which
were published shows that gap of unexplained component has not declined over
time. Weichselbaumer and Winter-Ebmer found amount of overall yearly to a slow
0.17 log points, implying slow level convergence between pays of women and men.
From London school of economics,
according to economist Alan Manning, the process of shutting down the gender
wage gap has slowed down and because of ineffective government policies women
could earn less than men for the next 150 years.
In 2011 study of British CMI
revealed that at current rates if growth of wage continues for female
executives, the gap between the earnings men and women executives would not
shut until 2109. Chief Financial Officers (CFOs) of women on average are paid
on 16% lower as compared to their male counterparts.
In certain neoclassic models, excluding
and limiting of employees of specific groups will increase wages of groups
which do not have to face discrimination. It is the competitive advantage for
the firms that they can hire more workers from the group which is facing
discrimination. Which in result long term discrimination would not occur.
However, this view depends strongly on exact assumptions of the labor market
and production functions of the firms which are attempting to discriminate. On
the real or perceived basis, firms which discriminate their employees and
customers preferences would also not see discrimination disappear in long term
even under stylized models.
Wage discriminations can be described by
variations in labor mobility constraints between workforces in monopsony
theory. According to Ransom and Oaxaca, women’s are appeared to be less wage
sensitive than men, therefore employees take advantages of this thing and make
a discrimination in their wage for women workers.
of job selection
In Canada, it is seen that the women’s
are seeking employment opportunities which are greatly contrast the ones of
men. In Canada, about 20% of females between the ages of 25 and 54 will make
only 12$ an hour. Women’s demographic is that those women’s who takes jobs with
very less income than 12$ an hour is also a proportion that is two times larger
as a proportion of men who takes same type of low income jobs. The question is
still remained that why these trends resonate in the developed world. An
identified societal factor is the influx of color of women and immigrants into
work labor. From a statistical perspective both groups tend to be subject to
less paying jobs. Men’s are mostly in high paying, dangerous industries like
construction, mining, or manufacturing and to be represented by a union. In
contrast, women’s are mostly in clerical jobs and working in service industry.
53% of the wage gap has been explained by these factors. In 2017, a study of
American economic journal: macroeconomics found that growing value of service
sector has played a vital role in the reducing of gender gap in wage and hours.
In 1998, adjusting of both differences in human and capital industry,
occupation, and unionism increases the size of American women’s average income
from 80% of America men to 91%.
of individuals makes an environment for people so that they can live a life
that is acceptable to the society where they are expected to conform to
specific gender roles. It affects their interests and decision making in every
field of life weather professional or personal. Wage discrimination is obvious
among both genders and it influences their job choices whereas the actual
criteria for their should be the labor market. Stereotyping genders make the
subjected individuals insecure. People who are gender free have a broader vision
and being a part of non-traditional jobs despite criticism gives a person more
motivation and satisfaction because this is what he, she wants to do, but
what the world wants them to do. Men engage in female oriented jobs and happily
continue just as women do male oriented jobs but somewhere somewhat. They are
still considered unnatural. As far as gender roles go, men are expected to be
strong (mentally, physically or emotionally) in comparison with women who tend
to be softer and fragile. So there are jobs where women where women are taken
for granted for their employees following the above mentioned reasons. Their
achievements are ignored no matter how significant they are, not even if they
are more than other men at this stage. This happens in media and film industry
where the protagonist is usually a male person. Even the concept of superheroes
makes women look helpless unless they are rescued by a man flying in the sky.
Still women themselves are playing these roles and gender discrimination is still
According to Employment outlook 2008
edition report by OECD, to fight with discrimination on grounds of gender
almost all OECD countries have established laws. In all OECD countries,
enforcement is essentially relying on victims, willingness to declare their
claims. But in workplaces many people are not even aware of their legal rights
regarding discrimination. And even if they are aware, to prove a discrimination
claim is too much difficult for the claimant and legal actions in courts is too
much costly for people, whose benefits are uncertain and so small. All this
dispirit victims from accommodation complaints. Then EEOC proposed a rule in
2016 to submit information of employees on gender wage gaps to monitor better
and fight gender discrimination.