Introduction
One of the most telling indicators of the gender pay gap is the gap in hourly wages. In the United States, women of color earn 63% of what white men make for the same work, while Hispanic women earn 54% of what white men do (Benenden et al., 2022). There is much speculation regarding the cause of the gender pay gap. Thus, it is essential to analyze the reasons for the gender pay gap and methods for reducing the difference.
Discussion
The gender pay gap is the difference between what women and men are paid for doing the same job. It is expressed as a percentage of men’s earnings and is calculated by dividing the median earnings of women by the median earnings of men. The most recent data from the Office for National Statistics (ONS) shows that the gender pay gap in the U.K. is 18.4% (ONS, 2018). Several theories attempt to explain why the gender pay gap exists. One theory is that it is due to women being concentrated in lower-paid occupations (Bukowski et al., 2019). This is sometimes known as ‘occupational segregation,’ meaning that women are more likely to work in sectors and occupations traditionally seen as ‘female’ and paid less than ‘male’ occupations (Bukowski et al., 2019). For example, women are more likely to work in the caring and retail sectors, while men are more likely to work in construction and engineering.
Another theory is that the gender pay gap is due to women being less likely than men to ask for pay raises or to negotiate their salary when they start a new job. This is sometimes known as the ‘negotiation gap.’ Research has shown that women are less likely than men to ask for a pay rise and that when they do ask, they are less likely to be successful (Thaler, 2017). A third theory is that the gender pay gap is due to women being more likely than men to take time out of paid work to care for children or other family members. This is sometimes known as the ‘care penalty (Baxter & Wright, 2019). Research has shown that women are more likely than men to take time out of paid work to care for children or other family members and that this can have a negative impact on their career progression and earnings.
The evidence suggests that all of these factors play a role in explaining the gender pay gap. However, it is also important to note that the gap cannot be explained by differences in men’s and women’s qualifications or experience (ONS, 2018). The ONS data shows that the gender pay gap persists even when these factors are considered.
The overrepresentation of women in low-paying and part-time jobs is sometimes cited as a possible reason for the income gap between the sexes. Women outweigh men in low-paying fields like healthcare and retail (Bailey et al., 2022). Women are disproportionately represented in the low-status occupations that pay the least. It is because women care for everyone, from the elderly to newborns. The glass ceiling in the workplace also plays a role in keeping women from earning as much as males do (Bailey et al., 2022). There are not many women in positions of power because of the dangers that come with advancement. This occurs due to innate sexism and women’s socialization to question their leadership abilities.
The issue of the gender pay gap is complex and challenging to address. There are multiple factors at play here; rather, a combination of factors has led to this. However, multinational corporations may employ various strategies to close the gender wage gap. According to Patterson & Banyana (2021), women must have the same opportunities for advancement and leadership roles as men. There are two options: renegotiating for a higher salary and more flexible working hours. With the help of global corporations’ training and development programs, women can reach the top of their fields. The gender wage gap will be reduced due to these big business actions.
Theories and Evidence
Discrimination Theory
The discrimination theory argues that the gender pay gap exists because employers discriminate against women (Moyser, 2019). They may do this consciously or unconsciously. For example, an employer may believe that women are not as capable as men and, as a result, offer them lower wages. Alternatively, an employer may be more likely to promote men than women, thus leading to women being paid less than men for the same job.
Evidence for Discrimination Theory
Some data imply that discrimination plays a role in keeping the gender pay gap persistent. The American Association of University Women, among others, has conducted research showing that women with the same educational attainment as men earn less (Moser, 2019). Women were also shown to have a higher propensity than men to work in low-paying jobs. According to another study, women are less likely to be promoted to executive roles than men (McGregor & Pouw, 2017). As a result, there may be pay gaps between men and women even when their work is equivalent.
Theory of Women’s Choices
One possible explanation for the disparity in earnings between men and women is their choice to work part-time or not work at all, which is why women are largely to blame for the gender pay gap (McGregor & Pouw, 2017). A common theory holds that women are more likely to accept lower-paying work or time off from their careers to care for family members. This viewpoint is grounded in the fact that women currently constitute a disproportionately significant share of the labor force. It is that female culture typically values domestic duties more than professional ones.
Evidence for the Theory of Women’s Choices
The difference in compensation between men and women may be somewhat attributable to the individual decisions made by women. In this discussion, the gender pay gap refers to the wage inequality between men and women (McGregor & Pouw, 2017). For instance, research conducted by the Bureau of Labor Statistics of the United States found that women have a disproportionately high presence in occupations with lower average salaries (Bonikowska et al., 2019). The findings of a survey served as the foundation for these inferences and conclusions. The survey also discovered that women are more likely to take time off work to tend to the needs of their children or other family members (Bonikowska et al., 2019). Women are responsible for most housework. According to the findings of yet another study, women are significantly more likely than males to hold part-time occupations (Blau & Kahn, 2017).). As a result, women may receive lower pay than men, even though their work is of equal or higher quality.
Theory of Human Capital
As a contributing factor to the gender pay gap, differences in human capital may help explain why men and women earn different amounts of money. A person’s human capital consists of education, experience, and the potential to apply these qualities to create economic value (Jones, Makepeace & Wass, 2018). Men have access to more human capital than women; therefore, compared to women, men have a larger probability of being college graduates and having professional employment experience. Men are statistically more likely to give birth than women. As a direct outcome of this arrangement, men are more likely to receive higher incomes than women.
Evidence for the Theory of Human Capital
Inconsistent educational attainment between the sexes has been linked to the gender wage gap. According to studies conducted by the United States Department of Education, men are more likely than women to have finished post-secondary education (Bennedsen et al., 2022). The study also found that men were likelier to have more work experience than women. Another study found that the income gap between men and women was largest for women with less education and fewer years of experience in the workforce (Jones, Makepeace & Wass, 2018). It demonstrates that there is evidence linking the gender pay gap to sexism in the distribution of human capital.
When men and women do not make the same amount of money for doing the same work, this is referred to as a gender pay gap. The Bureau of Labor Statistics reports that the wage disparity between men and women in the United States is above 80 percent (Boll & Lagemann, 2019, p. 105). Various hypotheses explain the discrepancy between men’s and women’s earnings. One theory to explain the gender gap in employment is that women would rather work less or stay home to care for their families (Bishu et al., 2017). The pay gap between men and women is believed to be primarily caused by these two factors.
The disparity in pay between men and women must be addressed immediately. The first step in achieving gender pay parity is identifying and eliminating the source of the disparity. There are many ways to close the gender pay gap. Increasing the number of women in positions of power may be an efficient strategy. Programs for women-specific training and mentoring might be beneficial. The number of women with access to resources that can help them succeed in their fields may increase (Bishu et al., 2017). There may be more options for child care for women who want to work but still have to care for their children.
Conclusion
Therefore, research suggests that the gap between men and women in the workplace is significant. Even considering the factor that they have the same experience and education. Many authorities pointed to discrimination as the root cause of the problems. Females are less likely to be offered promotions and serious jobs in the business community. This is because business executives believe that women prioritize household chores over overtime commitments at work. Conversely, men have more free time to devote to their own development, which will contribute to the quality of their work. Even if females can receive a decent job, the pay will be less than that of males.
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