What Is the History behind Gender Pay Inequality - Case Study Example

What is the history behind gender pay inequality? The globalization across the world has resulted in intense competition among the business enterprises and individuals. Indeed, women have also become a constant part of workforce, which relegate the previous notion of men as bread – winners in a society. However, it should also be pointed out that women have suffered in the corporate world in past (across USA and Europe) because of discriminatory attitude of male colleagues, employers and counterparts. For example, women faced problems (are still facing but intensity is reduced) such as low wages / salaries in comparison to what offered to male employees for the same job and designation, preferrence of male workers and subsequent rejection of job applications, fewer promotion opportunities, glass ceiling etc. Neverthelss, the grave issue became a debate among proponents of gender equality and policy makers during 1960s and 1970s because of relatively stagnant / constant ratios of gender pay and almost neglible improvements in pay structure of women workers. For instance, in the past 35 years, women have also tried to enhance their capabilities, skills, knowledge, education, characteristics and attributes that enabled them to find employment in industries and business sectors that were apparently dominated by male employees. Obviously, this benefited women as a whole and helped reducing the gender pay gap. It is worthwhile to mention that the gender earnings ratio started increasing after 1977 – 1977 and had tremendus impact over women earnings, which increased substantially. The statisticians and past researchers calculated that weekly incomes of full – time women workers increased to around 77% of men’s earnings in 1999 compared to just 61% of men’s earnings in 1978 (Blau and Kahn, 2001). Becker (1985) presented the fact that women had been assigned the traditional role of home – making, child care and development in the society. Hence, they were unable to devote attention and dedicate time to their professional careers. As a result, women although entered the corporate world but discontinued their employment due to family issues and home – making responsibilities. In contrast, male workers do not have to face such issues rather they focus solely on their careers, receive training, enhance their skills and education, accumulate labor market experience and finally advance in the corporate world. Most of the male workers enjoy competitive edge over women candidates only because of their work experience gathered from non-stop employment. Also, the employers have eagerness to invest on male workers because they fear women may leave organizations because of personal or family issues. Men work for greater hours per day whereas women prefer working fewer hours because of family responsibilities. In the light of above, the employers open top management higher-paying fields for male workers, while prefer women for part-time or short – term full-time job vacancies. Next, most of the male workers also continue their education during employment and gain additional degrees that enhance their value / worth in the marketplace. In short, women are thus entitled for low pays and fewer on-the-job incentives, whereas men tend to advance with the passage of time due to greater experience, professional expertise (Becker, 1985) and (Blau and Kahn, 2005). It should also be noted that in last4 - 5 decades, most of the women workers were interested in low - paying jobs that usually require un-skilled semi – skilled employees. Instead, they were barely interested in professional management, marketing, finance related jobs that require highly educated, well – trained, skilled and smart employees. In simple words, some occupations such as administrative and services support (secretary, clerical, receptionist etc.) were dominated by femals employees as they were in majority in the above mentioned area. Blau and Kahn (1994) had presented that un-skilled and semi - skilled women workers were mostly interested in becoming nurse, clerk, librarians, helper beauticians, receptionist etc. while relatively skilled women tended to become montessori / primary / elementary teachers, dietitian and other low - paying jobs with fewer growth opportunities. In contrast, well-educated women preferred to become college and university professors that were relatively higher - paying jobs. In short, 85% of women employees were in aforementioned sectors as compared to only 15% male workers. It should be pointed out that past researchers and statisticians had estimated only one woman manager out of five white – collar jobs during 1960s and 1970s followed by underrepresentation in “higher – paying blue collar occupations such as precision production and craft occupations” (Blau and Kahn, 1994). It is worthwhile to mention the situation started improving during late 1970s and early 1980s when most of the employers opened professional occupations for women employees due to pressure from government authorties, local publics, equal employment associations and pressure groups. For instance, the argument raised at that time was all male and female workers should have equal employment opportunities and chances so that they could advance in the corporate world and enahnce their standard of living. The on-the-job discrimination and glass ceiling tactics were condemned and there was greater emphasis on affirmative action. For instance, women also changed their mind sets and preferred to find employment in sectors where demand of professionals and strategic planners (highly skilled) is higher than un-skilled or semi-skilled workers. All in all, the aforementioned contributed significantly in reducing gender pay differences and the disparities during late 1970s to 1999. It should be highlighted that only 40-45% women were employed in administrative and service support sectors in 1999 compared to 85% in late 1970s. In addition, the women advanced in professional management jobs where they now account for 45% of total employed workforce in 1999 in comparison to paltry 15% in late 1970s. The change of mind sets could also be proved by highlighting the fact that around 45 - 50% female college graduates of 1960 joined educational institutions for teaching, research work and related jobs, whereas only 10 – 12% female graduates in 1990 preferred teaching occupation. In short, the female workers have become mostly interested in higher - paying managerial and other white – collar jobs, which has resulted in sharp decline in gender pay disparities (Blau and Kahn, 2000) summarized (Flyer and Rosen, p. 28, 1994). It is worthwhile to mention that women workers have also occupied new fields in last 3 decades that were traditionally dominated by male workers. The rapid entrance of women employees during 1970s and 1990s in jobs such as “typesetters and compositors increased their representation from 17 to 70%, insurance adjusters, examiners, and investigators (representation increased from 30 to 70 % nearly), and public relations specialists (representation increased from 27 to 60% nearly)” (Blau, Simpson & Anderson, 1998) quoted by (Blau and Kahn, 2000). Blau and Kahn (2005) revealed that the female / male hourly pay ratio increased to just under 75% in 1989 as compared to 63% estimated in 1979. Overall, there was 18% increment in 10 years that helped reducing gender pay differences. But, it should also be noted that the hourly pay ratio increased at a surprisingly decreasing rate during 1990 – 1999 as it became just under 80%. Overall, there was just 7% increment in latter 10 years. References: Becker, Gary "Human Capital, Effort, and the Sexual Division Labor." Journal of Labor Economics, 1985 3:1, pp. 33-58. Blau, Francine and Lawrence Kahn “THE US GENDER PAY GAP IN THE 1990S: SLOWING CONVERGENCE” Industrial and Labor Relations Review, August 2005 [Online] Available at http://www.hks.harvard.edu/inequality/Seminar/Papers/Blau05.pdf Blau, Francine and Lawrence Kahn “GENDER DIFFERENCES IN PAY” Working Paper 7732, June 2000 [Online] Available at http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.160.4368&rep=rep1&type=pdf Blau, Francine and Lawrence Kahn “Rising Wage Inequality and US Gender Gap” The American Economic Review, Vol 84, Issue 2, May 1994 [Online] Available at http://www.ilr.cornell.edu/extension/files/20010919034043-pub226.pdf Blau, Francine and Lawrence Kahn “Understanding International Differences in the Gender Pay Gap” NBER Working Paper 8200, April 2001 [Online] Available at http://cepr.anu.edu.au/Staff/gregory/pdf/Blau%20and%20Kahn.pdf Read More