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Running head: STATISTICS Statistics There has been the formulation of several hypotheses explaining the reasons for the existence of a discriminatory wage pay gap in United States and the European countries. Standard deviations in the wage gap exist in different age groups between men and women. Data examination in the era between 1980’s and 1990’s shows that there is no link in payment gaps with women acquired skills rather on gender discrimination (Blau and Kahn, 2006). According to Hedrick (et al. 2011), there have been conventional perceptions that collective bargaining leads to increases in worker’s salaries in, both, the private and public sectors.
In universities, however, some of the sources of pay hike for faculty members such as tuition fee that owe its management to external units that make it inaccessible. Nevertheless, worker unions are useful forums for airing the grievances of the laborers and campaign for wage increases. Unions are also highly influential because their members reserve the right to strike in case their demands are unmet. As a consequence, being in a union raises the nominal wage of its member. Wage is dependent on education and the demand for skills.
There is the existence of perceptions that unions have the capacity to condense wage differentials if the union is influential enough. Blau and Kahn (2006) argue that, the labor unions in America have been effective in bargaining for their members’ salaries and allowances, making them higher than the nonunion members. An experimental research shows that those employees who have joined labor unions receive higher compensations relative to non union workers. There is, therefore, diminishing of unions in United Kingdom and United States.
This explains the decreasing remunerations for the employees. Testing of such a hypothesis in US construction industry has, however, invalidated the thought (Blau and Kahn, 2006). Another study by Michigan panel study of income dynamics on the existence of the gender pay gap has produced similar results. Results from the research show that, the gap has been converging over the last few decades. The discrepancies in the pay gap can be eliminated by; upgrading of professional knowledge and de-unionization of employees.
The widening of the wage gap can be explained by transformations in the labor market mode of selecting employees. Demand shift alterations and labor market biases contribute significantly to the wage gap (Blau and Kahn, 2006). Blau and Kahn (2006) have declared that, the probability of a woman and a man being union members in the US is more or less similar. Hedrick et al (2011) asserts that, traditionally there has been the belief that women form the minority group and earn lower than men. Scholars have affirmed that, women act as alternatives for low skilled men resulting to the wage inequalities.
The average pay of men, unlike that of women, gets affected by transformations in labor force involvement. This issue is further accentuated by the low share of women in the labor force. Unions are thus lobbying for leverage in pay inequalities between men and women.ReferencesBlau, F. D. and Kahn, L. (2006): The US Gender Pay Gap in the 1990s: Slowing Convergence’ Industrial and Labor Relations Review, Vol. 60(1), 1-23.Hedrick, D. W., Henson, S. E., Krieg, J. M. and Wassell, C. S. (2011): ‘Is There Really A Faculty Union Salary Premium?
’ Industrial and Labor Relations Review, Vol. 64(3),1-19.
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