Gender pay gap

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The gender pay gap is the average difference between men's and women's earnings.

The gender pay gap can be looked at locally, nationally and internationally. There are different ways of measuring the pay gap and different ways of expressing it. For example, the European Union defines the gender pay gap as the average difference between men's and women's hourly earnings, while the United States defines it as the ratio of women's to men's median yearly earnings among full-time, year-round workers.

What is important is that all ways of measuring or expressing the gender pay gap show that in every country men outearn women, leaving women more at risk of poverty for no reason other than their gender.[1]

The gender pay gap is often divided into the ‘unadjusted’ and ‘adjusted’ pay gaps. The ‘unadjusted pay gap’ does not take into account all of the factors that impact on the gap’s existence such as differences in education, number of hours worked, job sector, position etc.[2] When adjusted for these factors, leaving only what is unexplained or is a result of workplace discrimination, the pay gap does diminish considerably. This has led many conservatives and libertarians to denounce the gap as a myth — because when you correct for the discrimination, the discrimination vanishes!

However, this ignores that the origins of the adjusted factors are usually discriminatory in themselves, being almost entirely the result of society’s expectations of men and women.[3] As one commentator puts it:

‘If high school girls are discouraged from taking the math and science classes that lead to high-paying STEM jobs, shouldn't we in some way count that as a lost equal earnings opportunity?’[4]

Contents

[edit] Around the world

Click on image for color key

Expressed as the average difference between the hourly earnings of men and women, women earn 16.4% less than men in the European Union. The size of the gap varies considerably by EU state but it still exists in each state. On the whole for the EU, the disparity has narrowed in recent years but in some countries it has actually widened. It is interesting that the gap exists despite women outperforming men in second and third level education. As elsewhere, the existence of the gap means that women are at greater risk of poverty than men, especially in old age.[2]

In the United States, the ratio of women’s to men’s earnings was 0.81, again based on yearly earnings among full-time, year-round workers. The gap varies between states, with women’s earnings being closer to men’s in more states in the South and the West than in the Northeast and the Midwest.[5] The gap narrowed considerably in the 1980s, but convergence has been slower since then.[6]

Among industrialized nations, South Korea and Japan had the greatest disparity between men and women.[7]

In less developed countries data on this is not recorded or cannot be fully collected due to the informal nature of much of their economies. It is clear however, that Africa and Asia have the greatest gender disparities when it comes to earnings, traditionally, and still today, because of the marginalised roles of women in society and in culture.[8][9]

[edit] Causes of the gender pay gap

The causes of the gender pay gap everywhere are complex and interrelated. What is clear is that the gap exists everywhere as a result of wider gender inequalities across economies and societies. The following lists the most important factors that cause the gender pay gap in the west. It is important to note that a given factor may contribute more to the gap in one area than in another and vice versa.

[edit] Discrimination

Despite legislation, sexist discrimination still plays a role in the make-up of the pay gap and is often assumed to form the ‘unadjusted’ part of the disparity.[2] Studies have shown that resumes with male names were more likely to be considered than resumes with female names.[10][11] Discrimination can be blatant, with a woman not getting a job, promotion etc. consciously based on the fact that she is a woman. Perhaps more often, the discrimination is unconscious and based on stereotypes, with women often as guilty as men in this regard. Ilana Yurkiewicz has commented on discrimination in the field of science, saying

If faculty express gender biases, we are not suggesting that these biases are intentional or stem from a conscious desire to impede the progress of women in science. Past studies indicate that people’s behaviour is shaped by implicit or unintended biases, stemming from repeated exposure to pervasive cultural stereotypes that portray women as less competent.[10]

There is evidence that managers often give favour to men for promotion and employment on the basis that as the man is the breadwinner, it is more important for him to get the promotion or job.[3] General dislike of the idea of women as leaders also still persists.

Discrimination in the workplace may also not result from individual discretion but from existing policies and practices that are not designed to be discriminatory but do result in discrimination.[2]

Evidence from the European Union’s experience suggests that discrimination happens less when mechanisms of recruitment and promotion are automatic and protected by collective bargaining as opposed to be largely left to managerial discretion. This helps to explain why the gap tends to be narrower in the public sector.[3]

[edit] Childcare and family responsibilities

Women spend more time than men on domestic work and childcare. In the United States, women spend about 16.5 hours per week on domestic work, or 4 hours (32%) more than men[12] and about 60 minutes per day on childcare, or 34 minutes (130%) more than men.[13]

This has a number of effects. For one, women take longer career breaks than men in order to care for young children. This stifles opportunities for career advancement, while men are largely unaffected. In Estonia for instance, for each child a woman’s earnings will fall by 3.6% whereas men’s earnings are not affected.[3]

In addition to taking career breaks in order to care for children, women tend to work shorter hours and are more likely than men to work in part-time employment in order to balance work with family responsibilities.

Other effects of this gender role on perpetuating the pay gap include women not being able to take jobs with hours that are not family friendly or being able to travel for work. Employers are also reluctant to hire or promote women to higher positions based on fear that they will take career breaks or cut their own hours.

An interesting phenomena is that the gender pay gap correlates very strongly with the age gap at first marriage; the bigger the average age differences in marriage in a country, the greater the pay gap.[14] When the data on pay is restricted to unmarried people alone, the pay gap shrinks significantly, to 85 cents on the dollar for Germany, 98 cents in the US, and 1.02 in Norway (that is, the pay gap is reversed). Of course, unmarried people are not a random group.

[edit] Health Insurance (US only)

In one of the strongest arguments for Universal Healthcare ever, it turns out that having employer provided healthcare causes a whopping 10% of the gender wage gap in the US.[15] Employer health plan costs are partially based on the historical experience of the group, and women tend to be more expensive because of a ridiculously expensive procedure than many women undergo for some unknown reason called "pregnancy". Sometimes more than once. In the US, the average cost of childbirth is $10,000, not including pre-natal screenings and all that fun stuff. This is due to a huge number of reasons, ranging from premature birth being the one common medical condition more expensive than an organ transplant to the attorneys suing the asses off of hospitals that don't perform invasive and expensive procedures regardless of proven effectiveness, but the result is more expensive pregnancies, which leads to higher health care costs for insuring women. This makes its way into the amount employers are willing to pay young women.

Women also have longer life expectancies than men, so it's likely that something similar happens for companies that offer pensions. The longer you are expected to live, the more valuable the pension becomes, which increases the amount needed to fund the pension. If the employer has to fund the pension too, again this will make its way into the wages one way or the other. Of course, since pensions will soon be a thing of the past, this really won't be an issue for long.

[edit] Undervaluing of women’s work and skills

There is much evidence that says that jobs considered ‘feminine’ are undervalued. That is that there are jobs that are less well paid compared to others jobs where similar levels of skill or ability are required simply because they reflect ‘female’ characteristics. For example, in supermarkets physical work in the stock room tends to be paid better than cashier work for this reason (The Bureau of Labor Statistics states that cashier's have a median annual wage of $19,310[16] while storeroom clerks have a median annual wage of $24,250[17], despite the only real difference being that one puts things on shelves and the other has to deal with customers). Where women dominate a sector they receive lower wages than they might have otherwise, while the opposite is true for men.[3][2][18] Moreover jobs that become seen as more female develop lower wages over time, making it impossible for women as a whole to win the shell game [19].

[edit] Educational and career choices

Societal expectations about the kind of jobs women should go into continue to affect the choices that girls and women make about their education and careers, with expectations being shaped from a very early age. Accustomed to perceiving themselves as more suitable for certain types of jobs, women tend to reiterate traditional education and work choices, which prevent them from seeing other options as feasible.[3] The result is that even women with high educational attainment still go into women dominated sectors, with the result that they go into lower paid jobs for the reason mentioned above. Indeed, pay differences between men and women are greater for highly educated workers compared with low-skilled workers in most countries.[20]

While obviously it is fine for anybody to enter in a lower paid occupation if they wish, it is so vital to recognise that expectations about suitable occupations are formed from a very early age. So it is not always simply a matter of free choices being made outside of a social context, as conservatives such as Christina Hoff Sommers seem to suggest.[21]

Further, researchers at Tel Aviv University discovered the long term effects of unconscious biases of elementary school teachers can have a substantial negative impact on career choices. The biases, which were measured by a propensity of them to score female students lower on mathematics tests compared to anonymized tests, have long reaching effects, with students who were exposed having significantly lower interest in science and math in secondary schools, and much lower entry into STEM fields.[22] This is in stark contrast to common claims that women are just less interested in science and mathematics as an explanation for career paths.

[edit] Amount of work

Some have noted that men tend to work more than women (and/or work more overtime), which probably would justify different wages. However, according to the US Bureau of Labor Statistics:[23]

[E]mployed men worked about three-quarters of an hour more than employed women. [...] This difference partly reflects women's greater likelihood of working part time. However, even among full-time workers (those usually working 35 hours or more per week), men worked slightly longer than women — 8.2 versus 7.8 hours. Among part-time workers, men averaged 5.2 hours on days they worked and women averaged 5.4 hours.

Only considering full-time workers and number of hours worked, the 0.4 hour difference might justify a ~5% pay difference; however, this only accounts for a fraction of the difference, as the pay gap is far larger. It should be noted that this gap is in large part due to women having to take care of children.[24] The American Association of University Women reported:[25]

[B]ecoming a mother can negatively affect women’s earnings, while becoming a father does not typically have the same effect (Correll et al., 2007). Women are more likely than men to leave the workforce or reduce their work hours after they have children, thus reducing their earnings (AAUW Educational Foundation, 2007). Research has found that even among full-time workers, mothers face an earnings penalty in the workforce compared with women without children (Correll et al., 2007).

The AAUW also found:[25]

One year after college graduation, men and women have much in common. [M]ost women and men who had earned bachelor’s degrees the year before were young, single, childless, relatively inexperienced in the workplace, and working full time. We might expect to find little or no gender pay gap among this group of workers at the start of their careers. Yet just one year after college graduation ... [w]omen working full time earned $35,296 on average, while men working full time earned $42,918[.] These figures represent a female/male earnings ratio of 82 percent, which is slightly higher than it was in 2001 when, among the same group, women earned just 80 percent of what their male peers earned (AAUW Educational Foundation, 2007). .... Among those who did have children, though, both men and women earned more than their counterparts without children. Mothers tended to be older than other female graduates, which may account in part for their relatively higher levels of pay. Not surprisingly, among full-time workers just one year after college graduation, the pay gap cannot be explained by motherhood.

[edit] Systemic, non-discriminatory bias

Women are substantially more likely to be dismissed from managerial roles in downsizing efforts based on "traditionalist" rules such as by position or tenure, but not when the dismissals are based on objective measurements of performance[26]. This suggests the pay gap can be caused by almost invisible secondary effects of sexism.

[edit] Non-causes of the gap

Surprisingly, most people are not in fact employed as deep-sea crab fishermen.[27]

There are several spurious supposed sources of the gender gap, which tend to be used more often by MRAs and conservatives.

[edit] More dangerous work

Some have argued that women are paid less because men are more willing to do dangerous jobs, which is true.[28]

The argument is that the most dangerous jobs are supposedly paid higher wages. However, the "sexism" of the dangerous jobs market is irrelevant to the wage gap. Dangerous jobs are not paid more than less dangerous jobs; this should become clear from the fact that the four jobs with the most fatalities are farming, mining, transportation, and construction.[29] However, these are also the jobs that require the least amount of education, so make of that what you will. In contrast, the largest gender pay gaps exist within non-dangerous "white collar" jobs.

[edit] Closing the gap

Closing the gap is imperative in the interests of fairness and to ensure that women are not at risk of poverty based solely on account of their gender. Numerous studies and publications have also demonstrated that there is a solid economic case for closing the gap.[30][2]

Although it is true that the pay gap is sometimes exaggerated and/or oversimplified in conversations about first-world countries, which is also less than helpful when attempting to have rational discourse on the matter[31], with the great narrowing of the gap that occurred in the 1980s in many places slowing down or worse it is clear that this situation is not going to end by itself and that action is needed.

The gender pay gap will probably not end entirely without huge cultural shifts. However, individual initiatives can have a difference and be good in themselves regardless of the effect on the pay gap. Recent initiatives in this area include Norway ear-marking one-third of the parental leave period for fathers and companies offering more flexible hours to their staff. However, some attempts at encouraging girls to take an interest in male-dominated sectors have proven less than successful.[32]

[edit] See also

[edit] References

  1. Elaine Moore (February 2004). ‘Gender pay gap shows little sign of closing’. The Financial Times. [1]
  2. 2.0 2.1 2.2 2.3 2.4 2.5 European Commission (2014). ‘Tackling the gender pay gap in the European Union’. [2]
  3. 3.0 3.1 3.2 3.3 3.4 3.5 Eurofound (2010). ‘Addressing the gender pay gap: Government and social partners in action’.
  4. (http://social.dol.gov/blog/myth-busting-the-pay-gap/)
  5. ToW [3]
  6. Franchine D. Blau and Lawrence M. Kahn (2007). ‘The Gender Pay Gap. Have Women Gone as Far as They Can?' Academy of Management Perspectives (21), pp. 7 – 23. [4].
  7. Catherine Rampell (2010). ‘The gender wage gap around the world’. The New York Times. [5].
  8. Buddhism considered women to be "evil and defiling" by nature, Tofugu in an unrelated article, but relative in this instance.
  9. International Trade Union Confederation (2008). ‘The Global Gender Pay Gap’. [6].
  10. 10.0 10.1 Ilana Yurkiewicz (2012). ‘Study shows gender bias in science is real. Here’s why it matters'. Scientific American. [7].
  11. [8]
  12. http://www.nsf.gov/discoveries/disc_images.jsp?cntn_id=11145
  13. http://www.bls.gov/news.release/atus.nr0.htm
  14. [9] Gender Pay Gap: A Cross Country Analysis
  15. [10]
  16. http://www.bls.gov/oes/current/oes412011.htm
  17. http://work.chron.com/storeroom-clerk-salary-3654.html
  18. (http://clinton4.nara.gov/WH/EOP/CEA/html/gendergap.html#16)
  19. Up the Down Staircase: Women's Upward Mobility and the Wage Penalty for Occupational Feminization, 1970-2007
  20. OECD 2013. 'Gender gaps for full-time workers and earning differentials by educational attainment'. [11].
  21. Christina Hoff Sommers 2012. 'Wage gap myth exposed - by feminists. [12].
  22. Journal of the National Bureau of Economic Research: On The Origins of Gender Human Capital Gaps: Short and Long Term Consequences of Teachers' Stereotypical Biases Victor Lavy, Edith Sand
  23. http://www.bls.gov/opub/ted/2008/jun/wk4/art04.htm
  24. http://www.wsj.com/articles/SB10001424052702303592404577361883019414296
  25. 25.0 25.1 http://www.aauw.org/files/2013/02/graduating-to-a-pay-gap-the-earnings-of-women-and-men-one-year-after-college-graduation.pdf
  26. How you downsize is who you downsize
  27. https://4thwavers.wordpress.com/2015/04/27/what-if-the-wage-gap-myth-were-true/
  28. http://stakedintheheart.com/2012/08/07/do-any-women-work-at-the-dirty-difficult-and-dangerous-jobs-that-men-do-any-women-at-all/
  29. http://amptoons.com/blog/2005/05/09/myth-men-get-paid-more-for-working-in-dangerous-jobs-wage-gap-series-part-10/
  30. [13]
  31. http://www.washingtonpost.com/blogs/fact-checker/wp/2014/04/09/president-obamas-persistent-77-cent-claim-on-the-wage-gap-gets-a-new-pinocchio-rating/
  32. The cringe! [14]
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