Gender Wage Gap
It refers to the difference that exists between the average salaries earned by women and men. In most countries, female workers are considered to earn less than their male counterparts. Women from minority groups take home lesser salaries than white women because of other discriminating factors affecting them. In the United States, laws have been developed to help close the gender wage gap, but very little progress has been experienced by most working women. In 1963 legislatures passed the Equal Pay Act, which would help both genders to receive equal wages for doing the same job or task. Causes of the gender wage gap include discrimination, industrial area, gender norms, and maternity leave. The consequences of the wage gap affect women by reducing their disposable income and their pensions. The economy suffers because of wage differences between men and women through reduced GDP. Factors contributing to wage differences between genders lead to negative effects, and there are some methods that can be used to bridge the wage gap between the two genders.
Causes of Gender Wage Gap
One of the factors that lead to pay differences between women and men is gender norms that have been existing for a long time. In most parts of the world, people are socialized to take up roles that are in line with their gender making women dominate lesser paying jobs. According to Schäfer and Schwiebert (2017), there are certain jobs that are considered to be for females, like nursing and air hostess. Men have been socialized to settle for bigger things, such as high-paying jobs, which has contributed to differences in average wages. Some employers pay men higher salaries than women because they have been socialized to believe that the two genders should not be treated with equity because men have many responsibilities. Social media platforms have contributed to the spread of the ideals of gender-based roles.
Another cause of gender pay differences is discrimination directed at women. Employers prefer to hire men in higher-paying jobs because of the belief that women are less likely to perform. In the United States, women are not likely to get elected to top positions in government because of discrimination. For example, there has never been a female president in America because of discrimination that considers women unfit for top-paying jobs. In organizations, top positions are dominated by men because of discrimination against women. Misra and Murray-Close (2019) explain that discrimination is the leading cause of the gender wage gap because it has made women earn less than men at equal job levels. Most women have been confirmed to have experienced discrimination either during promotion or hiring, whereby they are offered lower salaries than men. Women from minority groups are discriminated against more than white women, which makes them earn lower salaries.
Motherhood has contributed to the gender pay gap whereby women are not paid equally to men because they work lesser hours than men. Female workers play the role of taking care of their children, which makes them take up lesser roles in organizations and work lesser hours to create time for home chores. As a result, they end up getting lesser wages than men who do not participate in the basic roles of raising children. Some organizations do not pay women during maternity leave because they do not provide any labor. Pregnant women are likely to get lesser pay than men because they are thought to contribute little to a company’s operations.
Effects of Gender Wage Gap
The first effect of the wage gap is that it leads to lower pensions for women. Salaries earned by individuals determine the amount of money they can save with the pension scheme while supporting their basic needs. Men have high pensions than women because they occupy most of the top jobs in the country. Balcar and Hedija (2018) assert that lesser pensions make women have difficulties supporting their financial needs after retirement. Research indicates that most women aged 65 years and above are at an increased risk of suffering from poverty compared to men. Women from minority groups account for the highest number of female retirees who are living in poverty because of discrimination experienced during their working years.
The second effect of the pay differences is the reduced growth rate of the GDP. Countries that embrace equal pay for both genders have experienced a rise in national income because of taxes paid by women. On the other side, nations struggling with the implementation of strategies to bridge differences in payment have lost a significant amount of income. Allowing women to take up top positions in an organization has been associated with increased output; hence, if countries embrace the idea of having both genders serve in higher-paying jobs, a rise in exports would be experienced. Other effects include hindering women from furthering their education to secure higher-paying jobs and making single mothers raise their children with many financial challenges.
Strategies to Bridge Gender Wage Gap
Countries should develop strict laws that discourage organizations from discriminating against women, which is believed to be the top cause of pay differences between the two genders. In the US, there are sufficient laws that require implementation to achieve equality. Heavy punishments should be imposed on people and organizations that practice discrimination in the workplace to end wage pay differences (Balcar & Hedija, 2018). The second strategy is to use flexible work schedules to help women with children balance family and work. Motherhood makes women work for fewer hours to go and look after their children, but with flexible work schedules, they can compensate for lost hours and earn as much as men. Furthermore, promotion strategies should be made transparent to ensure that certain gender is not favored for top positions in organizations. Women should be paid during maternity leaves and should be reinstated back to their jobs to reduce the pay differences caused by parenting.
In conclusion, factors that contribute to the gender wage gap have adverse effects on women. Gender norms contribute to pay differences by making women secure lesser-paying jobs than men. Discrimination contributes to the gender wage gap by preventing women from working in top-paying jobs. Maternity leave has contributed to wage differences because women earn less or no pay during this period. One of the notable effects of the gender wage gap is reduced pensions for women, which increases their chances of experiencing poverty after retirement. Wage differences between genders lead to a slow growth rate of the GDP. It is necessary to develop tougher laws to assist bridge the pay gap between men and women.
References
Balcar, J., & Hedija, V. (2018). Influence of female managers on the gender wage gap and returns to cognitive and non‐cognitive skills. Gender, Work & Organization, 26(5), 722-737. Web.
Misra, J., & Murray-Close, M. (2019). The gender wage gap in the United States and cross-nationally. Sociology Compass, 8(11), 1281-1295. Web.
Schäfer, K., & Schwiebert, J. (2017). The impact of personality traits on wage growth and the gender wage gap. Bulletin of Economic Research, 70(1), 20-34. Web.