Introduction
The World Economic Forum stated that the gender pay gap may take 118 years to close. The gender pay gap is the average disparity in men and women’s total hourly wages earned, which can be attributed to different factors such as level of education, expertise, type of industry and length of work among others (Grimley, n.p). Statistics showed that despite the increased participation of women in the labor force, their salary remains to be significantly lower than that of men, even in highly industrialized countries. The existence of a wide gap between men and women’s average earnings is reflective of the ongoing discrimination and inequality in the labor market (Eurepean, n.p). This paper aims to discuss the trends of the gender wage gap in some countries, the reason for those trends and the possible solutions to the problem on gender wage gap.
II. Trends in the Gender Wage Gap in Some Countries
The trend in the gender pay gap differs from one country to another, with some countries indicating a narrow gap while others showing a considerably higher difference. For example, a study of the gender pay gap in Australia revealed that the country was able to narrow the earning gap to about 15 to 17 percent in the past several years (Cassells et al, 3), and the same trend can be observed in most European countries. The ratio of wage difference in the United States is higher, with women earning about 23 percent less than men, according to a report in 2012 (DeNavas-Walt et al 11). The statistics indicated that should the trend remain constant, the women workers will earn about 23 percent less than men in their lifetime. It is noted that men earn more than women in almost every society, but the wage difference is further wider in some countries such as Japan and South Korea, where the wage gaps were marked at about 30 percent (Rampell, n.p).
III. Causes of Gender Wage Gap
The gender wage gap can be explained by several factors such as level of education, nature of work, time spent at work, and the segregation in education and in the labor sector (European, n.p.) Further, there are ‘unexplained’ factors that caused the wage difference and some studies indicated these as the existence of discrimination and inequality in the labor market.
The Role of Human Capital. The human capital refers to capabilities such as the skills and technical know-how of an individual that qualify them to take on responsibilities, especially in terms of employment. A good example of human capital is the level of education and work experience; and it was found that added years of education and experience have a considerable impact on wage increase. Women often were inhibited from pursuing higher education because of the demands of houseworks and motherhood. In some instance, societal beliefs would prevent them pursuing male dominated fields such as engineering. Studies showed that few young women pursue math and science studies during college, and this can be attributed to the stereotypes that boys are better than girls in these fields (Hill et al 5).
The Nature of the Industry and Occupation. The gender wage gap can also be explained by different industry structure and the nature of the industry itself. For example, the petroleum industry generally pays its workers an amount higher than the average, compared to the retail industries. It is also worth to consider that men and women tend to have a different ratio of representation in different industries. Studies indicated that female dominated occupations pay less than those that employ both genders in equal basis (Blau, n.p). Moreover, the tendency of people to segregate men and women in education plays a vital role in their segregation in terms of employment. When women opted not to take courses in Maths and Sciences, that would eventually have an impact on their qualifications as they enter the labor market.
Women’s Predominant Role in the Households. Despite their permanent entry in the labor sector, household duties tend to take a large portion of women’s responsibilities. In contrast to men who generally have their time at their own disposal, women have to divide their attention and time between their career and home responsibilities. While society’s attitude towards housework and women’s role has changed positively in the past few decades, a large number of domestic chores are still done by women.
The Changed Structure of the Salary System. A change in the salary structure means that compensation tends to be higher for work that requires a higher level of competence and skills. This puts women at the disadvantage, as circumstances, such motherhood often inhibits from pursuing further education to enhance their skills. In addition to that, societal norms would deter them from pursuing courses in highly technical fields, making them unqualified for high paying jobs.
Discrimination. In contrast to the above contributing factors to the gender wage gap, some of the unexplained earning differences between men and women can be attributed to discrimination and inequality. A report revealed that after accounting for the contributory factors such as time spent at work, education, expertise and the changed salary system, it was found that about 41 percent of the wage gap was unexplained (Carnevale and Smith, n.p). Further, some social scientists argued that education many doesn't have a considerable impact on gender wage gap, because in the past few decades, women already surpassed the number of men enrolled in different colleges and universities. In another study conducted by social scientist where they controlled the employment factors, it was found that women still earn about 9 percent less than men (Carnevale and Smith, n.p). It was also argued that more often than not, young women make their decision on what course to pursue according to the influence of others around them. A predominant norm in some countries is to assigned women in occupations that were usually carried out by women such as teaching and retail, and dissuade them from entering careers that require high technical capabilities.
IV. Proposed Solution to End the Gap
Despite the apparent prevalence of gender wage gap, the global employment sector has considerably improved in the past few decades in terms of improving women’s status in terms of employment. In order to achieve the goal of closing the gender wage gap, there is a need to improve the women’s position in the working world, lessen different factors that contribute to the gap and work towards the attainment of equality between men and women in the labor sector (Milquet and Reding, 10). In a proposed solution to reduce the gender wage gap in Austria several factors was planned and currently implemented such as a) requiring the employers to compile a comprehensive report on the average incomes of both me and women, and b) requiring that all job advertisements indicate the minimum wage (Milauet and Reding, 11). Reducing the gender wage gap is a responsibility that should be shared by everybody, for instance, the government can implement programs that address gender stereotyping. It can also work towards the removal of barriers that hamper women from accessing a better and wider range of study and career. For employers, they should open equal opportunities for men and women and allow them to explore their capabilities beyond the imposed societal standards.
V. Conclusion
The gender wage gap means that men are paid more than women, but there is more than the pay discrepancy. The salary gap is caused by factors such as level of education, expertise, the nature of the occupation and the time spent at work. However, a closer examination reveals that discrimination and inequality also play a significant role in the occurrence of wage gaps. Some societal standards often deter women from pursuing a study in the math and sciences because they are highly influenced by people who often urged them to take courses that are generally for women. Accordingly, there are some possible ways to reduce and finally eliminate the gender wage gap. For the government, they can implement policies that strengthen the equality in terms of employment, moreover, the employers should be required to comply with such policies. For the employers, it should also be their goal to reduce equality, by offering equal opportunities for both genders.
Works Cited
Blau, Francine, and Lawrence Kahn. "Swimming Upstream: Trends in the Gender Wage Differential in the 1980s." Journal of Labor Economics15.1 (1997): 1-42. Web.
Carnevale, Anthony, and Nicole Smith. "Gender Discrimination is at the Heart of the Wage Gap." Time 2014: n. pag. Print.
Cassells, Rebecca, Yogi Vidyattama, Riyana Miranti, and Justine McNamara. Report to the Office of Women, Department of Families, Community Services, Housing and Indigenous Affairs. Australia: NATSEM, Univeristy of Canberra, 2009. Web. <https://web.archive.org/web/20101201110158/http://www.actu.org.au/Images/Dynamic/attachments/6895/NATSEM_report.pdf>.
DeNavas-Walt, Carmen, Bernadette Proctor, and Jessica Smith. Income, Poverty, and Health Insurance Coverage in the United States:2012. United States: United States Census Bureau, 2013. Print. <http://www.census.gov/prod/2013pubs/p60-245.pdf>.
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Grimley, Naomi. "Gender Pay Gap 'May Take 118 Years to Close'-World Economic Forum." BBC News. N.p., 2015. Web. <http://www.bbc.com/news/world-europe-34842471>.
Works Cited
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Krueger, Alan, and Lawrence Summers. "Efficiency Wages and the Wage Structure." National Bureau of Economic Research (1988): n. pag. Web. <http://www.nber.org/papers/w1952.pdf>.
Milquet, Joëlle, and Viviane Reding. "How to Close the Gender Pay Gap?" European Commission (2010): n. pag. Web. <http://igvm-iefh.belgium.be/sites/default/files/downloads/45%20-%20Gender%20pay%20gap.pdf>.
Rampell, Catherine. "Gender Wage Gap, Around the World." The New York Times 2010: n. pag. Print.
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