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Evidence of Wage Discrimination - Essay Example

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This analysis “Evidence of Wage Discrimination” will focus on the implications of Gender arbitrage in economic growth. To reduce the scope of the problem, this paper will analyze the case of South Korea based on the article, Profiting from Sexism (2012)…
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Evidence of Wage Discrimination
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Evidence of Wage Discrimination

Download file to see previous pages... Classical economists, such as Lewis 1954, widened the aspect of wage to state that, wage determines the overall level of employment.
2. What will happen to the differential between wages of men and women of equal qualifications if multinational companies keep moving to South Korea and the process of "gender arbitrage" described in the article continues? Why?
Sexism affects productivity adversely. Economists have established that gender arbitrage in fields of economic advancement reduces the pace of development. South Korea is very advanced technologically, however, its economy is not level with Japan’s economy. An insight into OECD policies reveals that Japan and South Korea possess equal factors of production and economic growth capacities. Even so, South Korea still lags behind.
According to Solidarity (2012), records indicate that a woman in South Korea earns 27% less than what a man in the same position would earn. Women make up less than 1 % of the managerial positions. This a very small percentage compared with the fact that, women in the UK and America account for 10% of executive positions. Modern economics recognizes the potential women possess and, the implications of wage discrimination. South Korea’s economic stagnation according to IMF statistics is evidence enough that human capital goes to waste.
Wage discrimination in South Korea is deeply rooted in the cultural beliefs and practices. In the Korean culture, the woman’s role focuses on running domestic chores. Globalization has led the belief that relegation of women is an outdated practice. It is important to note that, outdated cultural practices form the basis for lack of economic growth.
Statistics indicate that only 60% of female graduates from South Korea between the ages of 24-65 years have employment. Therefore, the labor market in South Korea has a surplus. Firms hire men even though some women might have better qualifications than the men they hire.  ...Download file to see next pagesRead More
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