Among men and women employed full time, 60 percent of the wage gap can be attributed to known factors such as work experience at 10 percent, union … When comparing the contributing factors in 1980 and 2010, we see that education and work experience have become much less important in explaining gender differences in wages over time, while occupation and industry have become more important. I … I did feel at the time it was clear sexism. It’s a measure of inequality and captures a concept that is broader than the concept of equal pay for equal work. Dependent on skills and experience but likely up to £70,000, Female employees could prosper or suffer depending on the actions of employers and the government, campaigners claim, Previous crises have hit women’s earning power more than men’s, say Tracey Marsden and Catriona Aldridge. As a result, it will face hefty loan repayments for decades. After a few months, when some male colleagues I’d been training received their first pay cheques, they made a comment about how much tax they were paying – and it was more than me. Likewise, economic neoliberalism, which promotes minimum trade barriers, may also lead to labor exploitation in the form of unfairly low wages. “I raised this with my manager, who said it had nothing to do with her – I’d have to go higher up, which I did. Free Essay: The Main Causes of Income Inequality in Developing Countries From time immemorial income inequality has been a hugely debated matter in the world. In some cases, women may earn less than men for doing jobs of equal value. When ethnicity pay gap reporting is introduced, similar findings are likely to emerge,” she adds. “You’ve got to be careful and pull yourself back from rushing to a judgement,” he says. I helped train new members of staff as they came in. U.S. companies must compete with lower-priced Chinese and Indian companies who pay their workers much less. Unconscious bias and stereotyping come into play at work when managers are determining which employees to hire and how employees should be compensated.   That’s how I found out. Elsewhere, last year Glasgow City Council began paying out £548m in compensation to around 16,000 workers, the vast majority of them women in roles such as catering, cleaning and caring, who had been earning up to £3 an hour less than colleagues on the same pay grade with jobs in male-dominated roles such as refuse collection. L' inégalité salariale est un élément du problème plus large de la discrimination systémique dans l'emploi, et l'équité salariale constitue un … But this will soon come round. That’s how I found out. According to ONS data released in July 2019, employees from the Bangladeshi ethnic group on average earned 20.2 per cent less than white British employees. Kate:“Eighteen months ago, when I was 21, I worked for an IT company and I was one of the first people on their new projects team. But they must remain competitive. There are many different ways to measure or assess gender equality, for example, by comparing men’s and women’s: 1. levels of wealth and incomes 2. access to education 3. representation in local and national government 4. participation in professional leadership roles.By focusing on pay, particularly the median hourly incomes for men and women, students can understand that gender inequality has a direct impact on people’s lives. A year later, Congress passed the Civil Rights Act of 1964. While related to the issue of unequal pay, fear of discussing money is a separate issue that affects women more significantly than men. • Direct discrimination explains why women sometimes still earn less than men - when women are paid less than men for doing the same job. We control for intentionality of wages by either allowing a principal to determine wages or by implementing a random process. In some states, female workers were also forced to contend with laws that restricted their working hours or prohibited them from working at night.Efforts … But because of the success of equality legislationover the years, this factor only explains a limited part of the gender pay gap. “Eighteen months ago, when I was 21, I worked for an IT company and I was one of the first people on their new projects team. There must be clarity when explaining to line managers and their team members what is being rewarded and how, explains Cotton, and organisations should make sure the people making reward decisions are “suitably equipped” to do so. The collapse of the Soviet Union and the rise of China brought over a billion new workers into the global economy. Causes Industrial Revolution : Since ancient times, women have been present in the workforce in agriculture and other tasks. “My line manager was unwilling to increase my pay and refused to say what the reason was. Meaning employers must ensure they are shipshape, and that their reward practices are equitable and – most importantly – legal. Many firms still reward people differently for the same job – and they might not even know it. Factors that … The gender pay gap (or the gender wage gap) is a metric that tells us the difference in pay (or wages, or income) between women and men. In fact, while it might have been expected that large organisations would have realised several years ago if they had an issue with unequal pay, there could still be some making such disquieting revelations. A lot of gender pay gaps are not driven by inequality.”. 1079797. There are some deep-seated concerns relating to ethnicity, and some troubling figures. The gender pay gap is a complex issue with many causes, which are often inter-related. The Equal Pay Act was an effort to correct a centuries-old problem of gender-based wage discrimination.Women made up a quarter of the American workforce by the early 20th century, but they were traditionally paid far less than men, even in cases where they performed the same job. The law mandates that men and women receive equal pay for “substantially equal” work at the same establishment. immigration – Relatively high levels of immigration of less-skilled workers since 1965 may have reduced wages for American-born high school dropouts. Most states have implemented laws against gender discrimination, and Title VII of the Civil Rights Act of 1964 protects women at the federal level even though disparities persist. The chart here shows a breakdown of the adjusted gender pay gaps in the US, factor by factor, in 1980 and 2010. The gap between public and private sector has increased since 2010 and the government’s strict pay freeze for wage rises. “One person was earning a third more and another double my salary, and what they were doing was basic compared to my role. Unequal Pay Day Europe, 31 October 2017. President John F. Kennedy signed the Equal Pay Act into law on June 10, 1963. It could be both costly and have a wider impact on other roles in the organisation. As we have explained previously, the gender pay gap is based on the difference between the average hourly pay rate for men and the average hourly pay rate for women, largely due to the reasons cited above. “As well as comparing the figures, it’s an opportunity to check the understanding of line managers and employees about what’s being rewarded, why and how,” he says. For women, negotiating pay is often viewed as being greedy or desperate, which leads to hesitation when it comes to asking for their worth in the workplace. Clearly, Glasgow is an extreme case of failure to comply with equality legislation. But he is sceptical about the effectiveness of criminalising unequal pay based on gender as Iceland now does, mainly because of the city’s different legal setting and culture. Consequently, fewer women work in scientific and technical jobs, while women often work in lower valued and lower paid sectors of the economy. Unionized workers declined from over 30% to around 12%. social norms – Social norms constrained executive pay. Most people discussing the causes of unequal pay focus on the occupational segregation and ignore the question of valuing women for what they already do. In HICs many people have formal jobs in which they have set hours, a monthly wage, healthy working conditions and they pay tax. The latter is only one of a number of potential factors contributing to the gender pay gap, with others including unequal shares of caring work in the home done by men and women, resulting in women doing more part-time work; the under-valuing of the types of work women do; a lack of women entering certain well-paid careers such as science and engineering; and a failure to promote women. Yet many companies still face difficulties getting to grips with equal pay. Causes of unequal pay between men and women, This site is managed by the Directorate-General for Communication, Aid, Development cooperation, Fundamental rights, Follow the European Commission on social media, About the European Commission's web presence. After a few months, when some male colleagues I’d been training received their first pay cheques, they made a comment about how much tax they were paying – and it was more than me. During these evaluations, you should make sure there are no pay disparities based on gender. Causes . A free-market society without statutory protection on wages may have unfairly low wages for certain types of work, usually those involving repetitive tasks and low skills, which widens the wealth gap. In February 2019, analysis by the Guardian found that more than 30 employers had filed inaccurate data, with several companies publishing mathematically impossible gender pay data in the first year of reporting despite the second round looming, and with a percentage also filing mathematically impossible figures for the second year. There are signs that Covid might do the same, As the UK equalities watchdog calls on the broadcaster to rebuild trust with female staff, experts recommend other firms ensure their processes are watertight, The presenter’s tribunal victory against the BBC shows unconscious bias is still a problem in many businesses, says Hina Belitz, © Copyright Chartered Institute of Personnel and Development 2020, 151 The Broadway, London SW19 1JQ, UK Incorporated by Royal Charter, Registered Charity no. On Equal Pay Day, it’s critical that we each do what we can to make workplaces more equitable. To anyone who finds themselves in a similar situation, I’d say don’t be afraid of bringing up relevant legislation.”. And it’s now a decade since the introduction of the Equality Act 2010, which largely superseded it. Causes and consequences of uneven development. Despite continuing confusion, a gender pay gap is not synonymous with unequal pay. “Perhaps you might need to second people in from other departments to help you, or possibly people from outside the organisation in terms of capturing, analysing and interpreting the information.”. The Fawcett Society is also calling for women to have a legally enforceable ‘right to know’ what male colleagues earn. That made me feel I was unable to take it further.”. Women and men still tend to work in different jobs. Unequal pay is the top factor impacting inequality in workplaces today, according to the Ranstad US, Women In The Workplace 2018 report. The BBC, for example, has come under fire for equal pay failings following the high-profile resignation of China editor Carrie Gracie, and Newswatch presenter Samira Ahmed’s employment tribunal victory – with reports that other female BBC employees are also taking action 
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