Chapter 6 Pay Gap Pay Gap p Difference

Chapter 6: Pay Gap

Pay Gap p Difference in earnings between men and women. p Men, as a group, historically made more money than women, as a group. p This continues today.

Pay Gap Described p Younger workers tend to have less of a gender pay gap. p In early 1800’s pay gap was 29 -37%. p In 1885 it was 50% p Today, it’s about 77%. p For Women’s Median Earnings as % of Men’s go: http: //www. infoplease. com/ipa/A 0193820. html

Race/Ethnicity and Gendered Pay Gap Go to: p http: //www. infoplease. com/ipa/A 0197814. html p p What do we see?

p Research shows that women’s wages have gotten closer to men’s over time, but that African American and Chicano men are moving farther from white men’s wages. Why. Manufacturing jobs are leaving…. p Service jobs (which pay less) are growing… p

p Sex pay gap exists even when men and women are in the same occupations. . p Figure 6. 4 in Reskin, pg 108

p Gender pay gap exists around the world, Australia has the best record because the government there was put effort towards reducing gap (now at 90%).

Theories of Sex Pay Gap p 1) Economists attribute the sex pay gap to individual level explanations because they assume “the market” is gender neutral. p If market is neutral then clearly women do not bring in the same skills as men. p a) Women are less productive because less continuous time in the market (14 % of pay gap) p b) Women have less human capital (experience) because of less time (about 2% of pay gap).

Theories of Sex Pay Gap 2) Sex Discrimination p A. Gender Ideologies and their affect on “merit” p n n n p Belief that women should get paid less --Family Wage Belief that women need less --- pin money Belief that women’s skills are worth less B. Unequal Pay for Equal Work – 1963 Equal Pay Act.

Theories of Sex Pay Gap 3) Sex Segregation – p Crowding Thesis p p Women in jobs with lower pay

Theories of Sex Pay Gap p 4) Comparable Worth Discrimination p Women are paid differently when possess similarly valued skills, even when you over -value skills associated with men and devalue skills associated with women.

Solutions to the Pay Gap. p 1) Enhance women’s productivity – give women opportunity to gain skill (unions and others who control training) p 2) Eliminate Pay Discrimination – make discrimination expensive! p 3) Integrate Jobs p 4) Institute Pay Equity (Australia at 90%) (cont. )

p Job Evaluation in Pay Equity – Formal assessment of content of jobs (tasks, skills, working conditions) How much should each of the above be compensated Uniformly apply above.