Awage gap due to gender difference between women’s and men’s income, demonstrateas a percentage of man’s income.
Usuallywages of men’s are bigger than women’s wages over their lifetimes. But does itreally mean? Are women pays less because they select low wage jobs? Is itbecause more women do part time jobs than men do? Or it is because women havemore caretaking responsibilities? And what, exactly, does gender discriminationhave to do with paychecks?AAUW’sthe simple truth about gender wage gap compendious addresses these issues bygoing beyond the widely reported 80% statistics. The report describes the paygap in United States, how it affects women of every age, races and educationalstages, and what you have the ability to close it.
In 2016, the update of reportwith particulars on decline status, sexual orientation and gender identity.The Huge Number is 80 PercentIn2016, women works full time in United States and they were just getting 80percent pays of what men’s were earning, it is a gap of 20 percent. Since 1970,the gap has reduced due to huge extent of women’s advancements in education andworkforce participation and men’s earnings are rising at a slower rate. Still,the pay gap appears to go away on its own. In 2059, Women’s are expected tomake it at equality in incomes with men at the rate of change between 1960 and2016. But even that slowprogression has obstruct in recent years. Since 2001, if changecontinues at the slower rate, women’s pay will not make it with men’s equalityuntil 2119.
Location: Pay Gap by the StateThereis not only national pay gap statistic, but the pay gap can also be calculatedfor each state. In 2016 the pay gap was the smallest in New York, where womenwho works full time in whole year were paid 89 percent of what men are gettingpaid. Women were getting 70 percent paid of what men were paid and it was thelargest gap in Louisiana.The pay gap varies in different ethnical groupsThe pay gap of womenand men affects women’s at all ages, from all backgrounds and all levels ofeducational achievement, but the earnings and the gap depends on the women’sindividual’s situation.In 2016, amongfull-time workers black or African American, Hispanic or Latina, AmericanIndian or Alaska native (AIAN), and native Hawaiian or other Pacific Islander(NHPI) women’s earning were lower as compared to non- Hispanic white and Asianwomen. But with ethnic groups women’s of black, Hispanic, AIAN, and NHPIexperienced a smaller wage gap as compared to men in the same group than didnon- Hispanic white and Asian women.
White men are the hugedemographic group in the work force because single bench mark provides themmore informative picture and they are often used for that purpose. For earningsratios AAUW uses two different sources by ethnicity. We will go along withcurrent population survey (CPS) for black, Asian, and Hispanic women. Becausefor smaller demographic groups, CPS drought sufficient sample size. We go alongwith American community Survey (ACS) for women of AIAN and NHPI.At 89 percent of whitemen’s earnings, Asian women’s salaries shows us the smallest gender wage gap ascompared to white male workers salary. The gap was huge for women’s ofHispanic, who were paid only 54 percent of what white men’s were getting paidin 2016Age is Not Just a NumberFull time earnings ofboth male and female workers tend to increase with age. After the age of 45earnings increase more slowly and decreases after age of 55.
The gender wagegap grows with age, differences among older workers are considerably huge thangaps among younger workers. In 2016 women’s of 20-24 ages were getting paid 96percent of what men were getting paid, payment was decreasing to 78-89 percentfrom 25-54 age. When workers reach 55-64 years old, women are paid only 74percent of what men are paid.Education is not an effectual solution for wage gap problemEarnings of both menand women increases as the education years increases. However, while moreeducation is a beneficial tool for increasing earnings but it is not effectiveagainst gender wage gap. Women’s median earnings are lower than men’s medianearnings at every level of educational achievements but in some cases genderwage gaps are huge at higher levels of education. Education improves earningsof women’s but their earnings are affected by ethnicity as well as gender.
Atall education levels earnings of white women are more than black and Hispanicwomen.Student’s financial obligation, race and the wage gapThe gender wage gap goon across educational level and it is worse for college graduates and for blackand Hispanic women. In which as a result women who complete their graduatedegrees 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 researchestimates in United States women hold one third of student financialobligation. In spite the gains the women have made their selves successful inworkforce but the wage gap still goes on. Individual people are engaged in laborforce, government and community have the ability to help chip away the wagegap.Changes that can help in closing the wage gapCompaniesSome CEOs have beenopen in their commitments to pay fairs of the workers, American women’s can’twait to run a change. AAUW urges with companies that they should conduct asalary audits which can control situations and mark differences which are basedon gender wage.
It’s a good business.IndividualsWomen’s can learnvarious strategies so they can deal with people for their equal pay. When it’sthe matter of salary, benefits and promotions AAUW’s salary negotiationworkshops helps the women to advocate themselves.PoliciesThe fair income actwould improve the scope of equal pay acts, it didn’t updated since 1963,stronger reasons of employees to follow the law is to enhance federalenforcement efforts and ban retaliation against workers who asks about theirwage practices and the congress should take action for equal payment of theworkers.Nation gender wage gapWorkplace genderequality agency (WGEA) calculates national gender wage gap by using data forms.Australis’s current national gender wage gap is 15.
3 percent. From past twodecades, it has fluttered between 15 percent and 19 percent.The national genderwage gap is the difference between men’s and women’s weekly average income ofworkers which is based on full time and it is expressed as percentage of men’searnings. It is the overall estimate of women’s position in paid workforce andit is not compared to roles.
WGEA DataFrom non- publicsector organizations WGEA collects wage data annually with 100 or more than 100employees which are covering about 4 million employees in Australia whichincludes superannuation, bonuses and other additional wages.WGEA data is 22.4percent which is based on full time total remuneration gender wage gap, whichmeans men’s working full time earn nearly 27,000$ a year more than a womenworks full time.By industry, and bymanagement and non- management occupational categories, across the WGEA datasetgender wage gaps are calculated.In every industry andoccupational category in Australia, ABS and WGEA data both show gender wage gapfavoring to full time working men over full time working women.Causes which lead to gender wage gapThe number of factorswhich are influenced by gender wage gap includes discriminations and unfairhiring’s and wage decisions of employees, In different industries and differentjobs where men and women are working and the wages are lower in thoseindustries and jobs where females are the dominant, disproportionate share ofunpaid caring of women and their domestic work, non-availability of workplaces wherethey can accommodate caring and other their responsibilities specially theirsenior roles, most of the women’s time out from workforce, impacts their careerprogression and opportunities.The time when women enters theworkforce, the gender wage gap starts.
The wage gap, when time is out ofworkforce for their caring reasons and women’s huge likelihood of their parttime jobs impacts their lifetime economic security.Wagegaps within organizationsWGEA encourages organizations thatthey should analyze their own wage data in different ways to expose differentwage equality issues and they should take actions of the of the organizationsat all levels. Wage gaps between men and women in the same or similar roles couldreflect unfair optional wage decisions like increase in pays and bonuses. Wagegaps between men and women who are working in the same level of organization’ssocial order which may reflect men more and are collected at the top of wageband or manager category or in the industries and jobs where male members arethe dominant are valued more highly than female dominant. The average gap ofpayment between men and women across the whole organization may reflect fenceto women’s access to high ranking and high paying roles in an organization,specially leadership, technical and specialist roles.The agency has developed variousresources that can help the employees undertake a wage gap analysis and addressgender wage gaps in their organizations.
Internationalgender wage gapsWomen’s position in the economy isan internationally established measure of gender wage gaps. In differentcountries directly comparing international gender wage gap is problematic dueto difference in definitions, sources and methods which are used to calculategender wage gap. However, it is common that gender wage gap is in favor of men.DiscriminationeffectsClaim is that women are less willingand they have very less ability to negotiate their salaries and sexualdiscrimination are also 25% to 40% cause of pay gap. European commissiondivides the discrimination that women is paid less than a man for doing samejob but this is relatively rare due to strong EU laws which are against it.
Themore persistent problem is that people underestimate women’s work. Women’s arebeing paid less for jobs which are of equal value, women’s which are dominantin their careers are undervalued as whole. Studies have shown that women’sdominate more occupation’s work labor, whatever the value or importance of thework is, the wages becomes less.PensionsEuropean commission is making anargument that gender wage gap is has far reaching effects, especially in thematter of pensions.
Since women’s lifetime earnings are average (17.5 %) thanmen’s, these lower earnings are the causes of lower pensions. Which as a result elder women’s face morepoverty: 22% of women which are of 65 age and over are at more poverty riskthan 16% of men.EconomyIn 2009, a report for Australiandepartments of families, housing, community services and indigenous affairswhich argues that in addition fairness and equality there rare strong economicimperatives which addresses the gender wage gap. According to the estimate ofthe researchers, decrease of 17% to 16% in gender pay gap would increase GDPper capita approximately by 260$, mostly increases from work hours of females.By ignoring opposing factors, hours of female work increases, by eliminatingwhole gender pay gap from 17% it couldbe worth of almost 93 million$ or 8.
5% of GDP. The estimate of researchers onthe causes of pay gaps are: their low experience was only 7%, their low formaltraining was only 5%, segregation according to occupation was only 25%, andworking in smaller firms was only 3%, and being the female represented theremaining was 60%.In October 2012, the study byAmerican association of Women University found over 47 years of course, anAmerican women if she have a college degree can make about 1.2 million$ lessthan a man with same education. By closing wage gaps by increasing women’s payswould have a stimulus effect that would grow economy of United States to atleast 3% to 4%. By increase in women’s participation is workplace from thepresent rate of 76% to 84% as it is in Sweden, the united states has theability to add 5.
1 million women in the workforce, again the size of Unitedstates economy is 3% to 4%.OverTimingOver 60 countries have found whohave published studies of gender wage gap. From 1960’s to 1990’s raw wagedifference have fallen down from around 65% to 30%. The immensity of thisdecline was due to better labor market financing of women. 260 estimates whichwere published shows that gap of unexplained component has not declined overtime. Weichselbaumer and Winter-Ebmer found amount of overall yearly to a slow0.
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 genderwage gap has slowed down and because of ineffective government policies womencould earn less than men for the next 150 years. In 2011 study of British CMI revealed thatat current rates if growth of wage continues for female executives, the gapbetween the earnings men and women executives would not shut until 2109. ChiefFinancial Officers (CFOs) of women on average are paid on 16% lower as comparedto their male counterparts.
EconomictheoriesNeoclassicalmodelsIn certain neoclassic models, excludingand limiting of employees of specific groups will increase wages of groupswhich do not have to face discrimination. It is the competitive advantage forthe firms that they can hire more workers from the group which is facingdiscrimination. Which in result long term discrimination would not occur.
However, this view depends strongly on exact assumptions of the labor marketand production functions of the firms which are attempting to discriminate. Onthe real or perceived basis, firms which discriminate their employees andcustomers preferences would also not see discrimination disappear in long termeven under stylized models.Explanationof monopsonyWage discriminations can be described byvariations in labor mobility constraints between workforces in monopsonytheory. According to Ransom and Oaxaca, women’s are appeared to be less wagesensitive than men, therefore employees take advantages of this thing and makea discrimination in their wage for women workers.Effectsof job selectionIn Canada, it is seen that the women’s are seeking employmentopportunities 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’sdemographic 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 menwho takes same type of low income jobs. The question is still remained that whythese trends resonate in the developed world.
An identified societal factor isthe influx of color of women and immigrants into work labor. From a statisticalperspective both groups tend to be subject to less paying jobs. Men’s aremostly in high paying, dangerous industries like construction, mining, ormanufacturing and to be represented by a union. In contrast, women’s are mostlyin clerical jobs and working in service industry. 53% of the wage gap has beenexplained by these factors. In 2017, a study of American economic journal:macroeconomics found that growing value of service sector has played a vitalrole in the reducing of gender gap in wage and hours. In 1998, adjustingof both differences in human and capital industry, occupation, and unionismincreases the size of American women’s average income from 80% of America mento 91%.SocializationeffectsSocializationof individuals makes an environment for people so that they can live a lifethat is acceptable to the society where they are expected to conform tospecific gender roles.
It affects their interests and decision making in everyfield of life weather professional or personal. Wage discrimination is obviousamong both genders and it influences their job choices whereas the actualcriteria for their should be the labor market. Genders make the subjected individualsinsecure. People who are gender free have a broader vision and being a part ofnon-traditional jobs despite criticism gives a person more motivation andsatisfaction because this is what he, she wants to do, but what the worldwants them to do. Men engage in female oriented jobs and happily continue justas women do male oriented jobs but somewhere somewhat. They are stillconsidered unnatural. As far as gender roles go, men are expected to be strong(mentally, physically or emotionally) in comparison with women who tend to besmoother and brittle. So there are jobs where women where women are taken forgranted for their employees following the above mentioned reasons.
Theirachievements are ignored no matter how significant they are, not even if theyare more than other men at this stage. This happens in media and film industrywhere the protagonist is usually a male person. Even the concept of superheroesmakes 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 stillthere.Anti-discrimination lawsAccording to Employment outlook 2008edition report by OECD, to fight with discrimination on grounds of genderalmost all OECD countries have established laws.
In all OECD countries,enforcement is essentially relying on victims, willingness to declare theirclaims. But in workplaces many people are not even aware of their legal rightsregarding discrimination. And even if they are aware, to prove a discriminationclaim is too much difficult for the claimant and legal actions in courts is toomuch costly for people, whose benefits are uncertain and so small. All thisdispirit victims from accommodation complaints.
Then EEOC proposed a rule in2016 to submit information of employees on gender wage gaps to monitor betterand fight gender discrimination.