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Why women get paid less than men economics essay

The National Committee on Pay Equity stated among full-time workers, women make only 77 cents for every dollar paid to men. The primary reasons for wage differentials are the different kinds of jobs women have compared to men.

Reasons for Wage differentials include: Level of Skills Skills and qualifications are an important factor in determining wages. If men had better qualifications, this could explain their higher wages.

With regard to A-levels and university degrees, female qualifications are generally as good as men. However, for certain high paying professions, such as accountancy and law, there are more qualified men than women, although even this gap is now closing.

In heavy manufacturing, male productivity is likely to be higher. Discrimination Lower wages for women could be due to discrimination. Employers may be less willing to promote women; they may even pay lower wages for the same job.

In theory, sex discrimination, in the labour market, is outlawed by the Sex Discrimination Act 1976. However, in practice it can be difficult to prove, especially with regard to promotion - if a woman isn't promoted, is it really discrimination or something else?

  • In the service sector, these jobs are lower paid because firms often have a degree of monopsony power;
  • We found the gender wage-productivity gap was particularly marked in a few industries;
  • We are encouraged by the ability to use this kind of analysis to better understand other workplace discrimination.

However, taking a break from work means women are less likely to get promoted. Also, women of childbearing age, may be viewed as a liability.

The simple reason for the gender pay gap: work done by women is still valued less

This is because if they become pregnant, the firm has to pay the cost for maternity leave and find somebody to fill the temporary gap. For small firms, this can be a significant cost. This reason is quite significant, although, many women are choosing to have children later in life - if at all. Women Choose Lower Paying Jobs Traditionally it has been argued women choose lower paid jobs like nursing, childcare. These are lower paid than other careers such as lawyers, and accountants.

However, traditional job patterns are changing, women are increasingly choosing to do "male dominated jobs". This is due to changing social expectations and changing educational standards.

  1. The methodology should be very useful in examining wage gaps of all kinds. However, in practice it can be difficult to prove, especially with regard to promotion - if a woman isn't promoted, is it really discrimination or something else?
  2. Harvard economist Claudia Goldin stated "There are certainly instances of discrimination, but most of the gap is the result of different choices. And as they did, things changed.
  3. Bargaining is expected to be more important when the labour market is tight and prospective employees have better alternatives if they turn down a job.
  4. Reasons for Wage differentials include. We found that sexism where employers prefer to hire men rather than women, are more likely to reject equally qualified women, or offer women less is likely to be the most important driver of the gender wage gap.

But, it still remains one of the most significant factors for explaining wage differentials between men and women. In the service sector, these jobs are lower paid because firms often have a degree of monopsony power.

Women also have lower travel time.

  1. We found the gender wage-productivity gap was particularly marked in a few industries. Women Choose Lower Paying Jobs Traditionally it has been argued women choose lower paid jobs like nursing, childcare.
  2. Explore the latest strategic trends, research and analysis Equal pay for equal work.
  3. But, it still remains one of the most significant factors for explaining wage differentials between men and women.
  4. However, for certain high paying professions, such as accountancy and law, there are more qualified men than women, although even this gap is now closing.

In order to look after children, they need jobs closer to the home; this limits the range of jobs available. Harvard economist Claudia Goldin stated "There are certainly instances of discrimination, but most of the gap is the result of different choices.