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Chapter 6 Pay Gap Pay 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 html Race Ethnicity and Gendered Pay Gap Go to http www infoplease com ipa A0197814 h tml 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 pay Theories 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 compensated Uniformly apply above

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