Gender Income Disparity
Income disparity or wage gap is a term used to describe inequities in average pay or salary between socio-economic
groups within society, or the inequities in pay between individuals who
produce the same work. Income disparity generally occurs when certain
groups within society suffer from social inequality within a society.
Common examples include:
- lower average income for females than males (see Gender gap below)
- Income discrepancy between minority racial or ethnic groups and the majority.
- The income gap between the wealthy and the poor.
Gender gap
In the context of economic inequality, gender gap generally refers to the systemic differences in the social and economic roles and wages of men and women, or boys and girls. There is a debate to what extent this is the result of gender differences, lifestyle choices, or because of discrimination.
The widespread mechanization of industry has been accompanied by a
shift in gender differentials in highly industrialized countries.
However, this closing of the gender gap has not necessarily been
followed in less industrialized countries, where women may earn less
than two thirds that of men.[1]
A United Nations report found that women working in manufacturing
earned the following percentages in relation to men in 2003. The
statistics are based on wages for all male and female workers,
regardless of age, experience, or other factors.[2]
| Country |
Wage % |
| Botswana |
53 |
| Colombia |
65 |
| Paraguay |
53 |
| Japan |
60 |
| Singapore |
61 |
| Sri Lanka |
81 |
| Denmark |
87 |
| France |
78 |
| Germany |
74 |
| Hungary |
74 |
| Ireland |
69 |
| Latvia |
82 |
| Lithuania |
77 |
| Malta |
92 |
| Sweden |
91 |
| Ukraine |
69 |
| United Kingdom |
79 |
| New Zealand |
80 |
In 2004, women's wages in the USA were 76.5% of men's wages.[3] However, some studies, such as those done by the Independent Women's Forum,
conclude that when taking into account variables when comparing male
and female employment within the United States - type of job, hours
worked in a week, tenure, benefits (for example maternity leave) -
women make 98% of men's income. For further information, see Male-female income disparity in the USA .
According to the Centre for Economic Performance (CEP) at the London School of Economics,
it would take 150 years for the income gap between the two genders to
close up due to discrimination and ineffective government policies.[4]
See also
References
External links
Male-female income disparity in the United States
2005 Census Statistics show great income inequity between the sexes
among all races. White males for example made 48% more than white
females. [1]
Male-female income disparity, also referred to as a "gender gap in earnings", in the United States,
also known as the "gender wage gap," the "gender earnings gap" and the
"gender pay gap", is used by government agencies and economists to
refer to statistics gathered by the U.S. Census Bureau, as part of the Current Population Survey, comparing median male wages to median
female wages. The gender gap is usually expressed as the ratio of
female to male earnings among full-time, year-round (FTYR) workers.
So, for example, in 2004 the median income of FTYR male workers was
$40,798, compared to $31,223 for FTYR female workers (DeNavas-Walt et
al, 2005). 31,223 divided by 40,798 is .765, so the gender earnings gap
in 2004 was .765. This is often expressed as a percentage: e.g., "in
2004, women's wages were 76.5% of men's wages," or "in 2004, women
earned 23.5% less than men earned."
Trends in the Gender Earnings Gap
Women's pay (relative to men's) rose rapidly from 1980 to 1990 (from
60.2% to 71.6%), and has risen less rapidly from 1990 to 2004 (from
71.6% to 76.5%).
It's important to understand, however, that the gender earnings gap
is a relative figure, and thus a shrinking pay gap does not necessarily
indicate a real improvement in women's income. Arguably, most of the
reason the wage gap is smaller now than it was in 1979 is that men, on
average, are being paid less. In 1973, an average women's hourly wage
was 63% of an average man's hourly wage; by 1997, an average women
earned 79% of what an average man earned in an hour (a rise of 16%).
But if men's wages hadn't dropped since 1973, an average woman in 1997
would have earned 67% of what an average man earned in an hour - a rise
of only 4% since 1973. (Mishel et al, 1998).
But they did drop.
Geography and age can also make a difference. In some large urban
centres in the United States, young women's earnings outpace young
men's, with young women earning up to 20% more than their male
counterparts [2].
Causes of the gender gap
An April 15, 2005 article titled "Gender Wage Gap Is Feminist Fiction" from the Independent Women's Forum
states, "A study of the gender wage gap conducted by economist June O'
Neill, former director of the Congressional Budget Office, found that
women earn 98 percent of what men do when controlled for experience,
education, and number of years on the job. The study does not take into
account factors that obviously affect women more than men, such as
pregnancy and child-birth, and how women tend to be financially
"punished" for them, while men are not [1].
Occupational choice
Occupational segregation refers to the way that some jobs (such as
truck driver) are dominated by men, and other jobs (such as child care
worker) are dominated by women. Because jobs dominated by women are, on
average, lower-paying than jobs dominated by men, occupational choice
is an important cause of the gender gap.
Maternity leave
The economic risk and resulting costs of a woman possibly leaving
work for a period of time/indefinitely to nurse a baby is cited by many
to be a reason why women are less common in the higher paying
occupations such as CEO positions and upper management.
"Women's jobs" and "Men's jobs"?
The reason for the difference in pay between "women's jobs" and
"men's jobs" is disputed. Many conservatives would argue that the
difference in pay reflects a tendency of women to freely choose
low-wage jobs because women prefer less dangerous or more flexible
work. Many liberals would argue that both discrimination by employers
(Neumark 1996), and sexist social expectations, tend to steer women
into lower-paying occupations and men into higher-paying occupations.
Some economists, particularly conservative economists, have argued
that the tendency of women to congregate in "women's jobs" has led to
"occupational crowding," in which the high supply of applicants for
"women's jobs" drives wages for those jobs downwards.
Sociologist Reeve Vanneman and his colleagues calculated that if 1990
patterns held, if every labor market in the U.S. had men and women
equally distributed across occupations, there would be no gender gap in
earnings.
Different choices
Women and men often make different choices: in college major, in hours and years worked, and in what jobs to take.
Critics of the discrimination theory, including men's rights
activists, argue that these "free choice" elements are the source of
virtually all of the gender earnings gap. According to these critics,
women often choose to prioritize social and family life before their
careers, and will therefore avoid jobs that require long or inflexible
hours.
Proponents of the discrimination theory, including feminists, argue
that such "free choice" factors, while significant, have been shown in
studies to leave large portions of the gender earnings gap unexplained
(Blau and Kahn 1997, Wood et al 1993). Furthermore, some feminists
argue that the social expectation that women are the sex responsible
for child and elder care is not an example of "free choice," but
instead an example of sexism.
Warren Farrell
has reported that childless women who have never married earn 117
percent of their childless male counterparts, when the comparison
controls for education, hours worked and age. [3]
However, Farrell's calculations and methodology have never been
subjected to peer review; some economists writing in peer-reviewed
academic journals have found that, even after accounting for parenthood
status, education, job title, and other factors, there is still a
significant income disparity in men's favor (Blau and Kahn 1997, Wood
et al 1993).
Men get more credit for their work
Some argue that work by men is often subjectively seen as
higher-quality than objectively equal or better work by women (Goldin
and Rouse, 1997; Johnson, 1997). This can impact who is offered
mentoring, who is given a job assignment, who is offered a promotion,
and so on - and all of these factors in turn have an effect on the
gender earnings gap.
For example, one study of credit in the sciences, published in Nature,
looked at productivity (measured in terms of publications in scientific
journals, how many times a person was a "lead author" of an article,
and how often the articles were cited in scientific journals) and sex.
These factors were then compared to how an actual scientific review
panel measured scientific competence when deciding on research grants.
The results showed that female scientists needed to be at least twice
as accomplished as their male counterparts to receive equal credit
(Wenneras and Wold, 1997).
Conservatives argue that these studies are failing to measure for
all important factors, and that women in fact receive equal credit when
they are equally productive. Furthermore, according to conservative
arguments, women may be given an unfair advantage in having their work
judged due to affirmative action policies. In the conservative view,
the pay gap is due to women's low productivity; because women are so
comparatively unproductive, they would earn even lower wages relative
to men, were it not for affirmative action.
Is there a "danger" pay premium?
Men's rights activist Warren Farrell
has argued that a significant cause of the gender earnings gap is men's
greater willingness to take on physically dangerous jobs (New York
Times 2008). Men's activists assert that men are taking more dangerous
jobs, as suggested by the statistic that 90% of on-the-job fatalities
in the U.S. are male. This Men's Rights argument contends that because
employers have to pay a "danger premium" to entice workers to take
dangerous jobs, and because women are not willing or able to take these
jobs even for high wages, men's wages are higher.
However, feminists argue that the most dangerous jobs in the U.S.
are not necessarily "male", but most often very low-paid jobs,
generally performed by immigrants and other workers who have few
occupational options. The U.S. Bureau of Labor confirms the lack of
correspondence between dangerous work and high wages. When the Bureau
of Labor Statistics investigated job traits that are associated with
wage premiums, they found that "Job attributes relating to … physically
demanding or dangerous jobs… do not seem to affect wages" (Monthly Labor Review, 1999).
How much lower is the pay in "Women's jobs"?
Different economists have calculated it different ways. The sociologist Paula England looked at data from the National Longitudinal Survey of Youth
(a U.S. government study that measures changes in people's lives over
time), and found that if a white woman in an all-male workplace moved
to an all-female workplace, she would lose 7% of her wages. If a black
woman did the same thing, she would lose 19% of her wages (England et
al, 1996). The economists Deborah Figart and June Lapidus (1996)
calculated that if female-dominated jobs did not pay lower wages,
women's median hourly pay nationwide would go up 13.2% (men's pay would
go up 1.1%, due to raises for men working in "women's jobs").
See also
References
- Blau, Francine and Lawrence Kahn (1997). "Swimming Upstream: Trends in the Gender Wage Differential in the 1980s." Journal of Labor Economics, volume 15 (1), part 1, January 1997, pages 1-42.
- DeNavas-Walt, Carmen, Bernadette D. Proctor, and Cheryl Hill Lee
(2005), U.S. Census Bureau, Current Population Reports, P60-229, Income, Poverty, and Health Insurance Coverage in the United States: 2004, U.S. Government Printing Office, Washington, DC. Available online at http://www.census.gov/prod/2005pubs/p60-229.pdf .
- England, Paula, Lori L. Reid and Barbara S. Kilbourne (1996). "The
Effect of the Sex Composition of Jobs on Starting Wages in an
Organization: Findings from the NLSY." Demography, volume 33 (4), November 1996, pages 511-521.
- Farrell, Warren, "Why Men Earn More: The Startling Truth Behind the Pay Gap - and What Women Can Do about It" ISBN 0-8144-7210-9
- Figart, Deborah and June Lapidus (1996). "The Impact of Comparable Worth on Earnings Inequality." Work and Occupations volume 23 (3) pages 297-318.
- Goldin and Rouse (1997), "Orchestrating Impartiality: The Impact of
'Blind' Auditions on Female Musicians," NBER working paper No W5903.
- Institute For Women's Policy Research (2005), "The Gender Wage Ratio," available online at http://www.iwpr.org/pdf/C350.pdf .
- Johnson, Dan (1997). "Getting Noticed in Economics: the determinants of academic citations." The American Economist, volume 41 (1), Spring 1997, pages 43-52.
- "Knowledge Gets The Biggest Pay Premium" (1999). In Monthly Labor Review. October 5, 1999. Available online at http://www.bls.gov/opub/ted/1999/Oct/wk1/art02.htm .
- Mishel, Lawrence, Jared Bernstein and John Schmitt (1999), The State of Working America 1998-1999, Economic Policy Institute.
- Neumark, David (1996). "Sex Discrimination in Restaurant Hiring: An Audit Study." Quarterly Journal of Economics, August 1996, pages 915-941.
- Nielsen, Arrah (2005). "Gender Wage Gap Is Feminist Fiction" Available online at http://www.iwf.org/articles/article_detail.asp?ArticleID=749 .
- Rones, Phillip, Randy Ilg and Jennifer Gardner (1997). "Trends in Hours of Work Since the Mid-1970s." Monthly Labor Review, April 1997, pages 3-14.
- Wenneras, Christine and Agnes Wold (1997). "Nepotism and Sexism in Peer-Review." Nature volume 387, May 22 1997, pages 341-343.
- Wood, Robert, Mary Corcoran, and Paul Courant (1993). "Pay
Differences Among the Highly Paid: the male-female earnings gap in
lawyers' salaries." Journal of Labor Economics, volume 11 (3), pages 417-441.
This article is licensed under the GNU Free Documentation License. It uses material from Wikipedia Encyclopedia article "Income Disparity"
|