Chapter 6: Pay GapPay GapPay Gap DescribedRace/Ethnicity and Gendered Pay GapSlide 5Slide 6Slide 7Theories of Sex Pay GapSlide 9Slide 10Slide 11Solutions to the Pay Gap.Slide 13Slide 14Chapter 6: Pay GapPay GapDifference in earnings between men and women.Men, as a group, historically made more money than women, as a group.This continues today.Pay Gap DescribedYounger workers tend to have less of a gender pay gap.In early 1800’s pay gap was 29-37%.In 1885 it was 50%Today, it’s about 77%.For Women’s Median Earnings as % of Men’s go: http://www.infoplease.com/ipa/A0193820.htmlRace/Ethnicity and Gendered Pay GapGo to: http://www.infoplease.com/ipa/A0197814.htmlWhat do we see?Research shows that women’s wages have gotten closer to men’s over time, but that African American and Chicano men are moving farther from white men’s wages. Why.Manufacturing jobs are leaving….Service jobs (which pay less) are growing…Sex pay gap exists even when men and women are in the same occupations..Figure 6.4 in Reskin, pg 108Gender pay gap exists around the world, Australia has the best record because the government there was put effort towards reducing gap (now at 90%).Theories of Sex Pay Gap1) Economists attribute the sex pay gap to individual level explanations because they assume “the market” is gender neutral.If market is neutral then clearly women do not bring in the same skills as men.a) Women are less productive because less continuous time in the market (14 % of pay gap)b) Women have less human capital (experience) because of less time (about 2% of pay gap).Theories of Sex Pay Gap2) Sex DiscriminationA. Gender Ideologies and their affect on “merit”Belief that women should get paid less --Family WageBelief that women need less --- pin moneyBelief that women’s skills are worth lessB. Unequal Pay for Equal Work – 1963 Equal Pay Act.Theories of Sex Pay Gap3) Sex Segregation – Crowding ThesisWomen in jobs with lower payTheories of Sex Pay Gap4) Comparable Worth DiscriminationWomen are paid differently when possess similarly valued skills, even when you over-value skills associated with men and de-value skills associated with women.Solutions to the Pay Gap.1) Enhance women’s productivity – give women opportunity to gain skill (unions and others who control training)2) Eliminate Pay Discrimination – make discrimination expensive!3) Integrate Jobs4) Institute Pay Equity (Australia at 90%) (cont.)Job Evaluation in Pay Equity –Formal assessment of content of jobs (tasks, skills, working conditions)How much should each of the above be compensatedUniformly apply