Equal pay for women
Encyclopedia
Equal pay for women is an issue regarding pay inequality
Economic inequality
Economic inequality comprises all disparities in the distribution of economic assets and income. The term typically refers to inequality among individuals and groups within a society, but can also refer to inequality among countries. The issue of economic inequality is related to the ideas of...

 between men and women. It is often introduced into domestic politics
Politics
Politics is a process by which groups of people make collective decisions. The term is generally applied to the art or science of running governmental or state affairs, including behavior within civil governments, but also applies to institutions, fields, and special interest groups such as the...

 in many first world
First World
The concept of the First World first originated during the Cold War, where it was used to describe countries that were aligned with the United States. These countries were democratic and capitalistic. After the fall of the Soviet Union and the end of the Cold War, the term "First World" took on a...

 countries as an economic problem that needs governmental intervention via regulation
Regulation
Regulation is administrative legislation that constitutes or constrains rights and allocates responsibilities. It can be distinguished from primary legislation on the one hand and judge-made law on the other...

. The Equal Remuneration Convention requires its over 160 states parties to have equal pay for men and women.

Gender pay gap

The 2008 edition of the Employment Outlook report by the Organisation for Economic Co-operation and Development
Organisation for Economic Co-operation and Development
The Organisation for Economic Co-operation and Development is an international economic organisation of 34 countries founded in 1961 to stimulate economic progress and world trade...

 found that women are paid 17% less than their male counterparts. Moreover the report argued that labor market discrimination
Discrimination
Discrimination is the prejudicial treatment of an individual based on their membership in a certain group or category. It involves the actual behaviors towards groups such as excluding or restricting members of one group from opportunities that are available to another group. The term began to be...

 continues to be a problem and that "30% of the variation in gender wage gaps across OECD countries can be explained by discriminatory practices in the labour market."

Eurostat
Eurostat
Eurostat is a Directorate-General of the European Commission located in Luxembourg. Its main responsibilities are to provide the European Union with statistical information at European level and to promote the integration of statistical methods across the Member States of the European Union,...

 found a persisting gender pay gap of 17.5 % on average in the 27 EU Member States
Member State of the European Union
A member state of the European Union is a state that is party to treaties of the European Union and has thereby undertaken the privileges and obligations that EU membership entails. Unlike membership of an international organisation, being an EU member state places a country under binding laws in...

 in 2008. There were considerable differences between the Member States, with the pay gap ranging from less than 10% in Italy, Malta, Poland, Slovenia and Belgium to more than 20% in Slovakia, the Netherlands, Czech Republic, Cyprus, Germany, United Kingdom and Greece and more than 25% in Estonia and Austria.

A report commissioned by the International Trade Union Confederation
International Trade Union Confederation
The International Trade Union Confederation is the world's largest trade union federation. It was formed on November 1, 2006 out of the merger of the International Confederation of Free Trade Unions and the World Confederation of Labour...

 in 2008 shows that, based on their survey of 63 countries, there is a significant gender pay gap of 15.6 %. Excluding Bahrain, where a positive gap of 40% is shown (due possibly to very low female participation in paid employment), the global figure is 16.5%. Women who are engaged in work in the informal economy have not been included in these figures. Overall, throughout the world, the figures for the gender pay gap range from 13% to 23%. The report found that women are often educated equally high as men, or to a higher level but "higher education of women does not necessarily lead to a smaller pay gap, however, in some cases the gap actually increases with the level of education obtained". The report also argues that this global gender pay gap is not due to lack of training or expertise on the part of women since "the pay gap in the European Union member states increases with age, years of service and education".

Australia

Under Australia's old centralised wage fixing system, "equal pay for work of equal value" by women was introduced in 1969. Anti-discrimination on the basis of sex was legislated in 1984.

In November 2011, Australian Prime Minister
Prime Minister of Australia
The Prime Minister of the Commonwealth of Australia is the highest minister of the Crown, leader of the Cabinet and Head of Her Majesty's Australian Government, holding office on commission from the Governor-General of Australia. The office of Prime Minister is, in practice, the most powerful...

 Julia Gillard
Julia Gillard
Julia Eileen Gillard is the 27th and current Prime Minister of Australia, in office since June 2010.Gillard was born in Barry, Vale of Glamorgan, Wales and migrated with her family to Adelaide, Australia in 1966, attending Mitcham Demonstration School and Unley High School. In 1982 Gillard moved...

 announced efforts by the national government to improve salaries of the 150,000 lowest-paid workers in Australia, roughly 120,000 women, by contributing AU$2 billion over the next 6 years.

Canada

In Canadian usage, the terms pay equity and pay equality are used somewhat differently than in other countries. The two terms refer to distinctly separate legal concepts.

Pay equality, or equal pay for equal work, refers to the requirement that men and women be paid the same if performing the same job in the same organization. For example, a female electrician must be paid the same as a male electrician in the same organization. Reasonable differences are permitted if due to seniority or merit.

Pay equality is required by law in each of Canada
Women's rights in Canada
The history of feminism in Canada has been a gradual struggle aimed at establishing equal rights between women and men.- Role of women in World War I :...

’s 14 legislative jurisdictions (ten provinces, three territories, and the federal government). Note that federal legislation applies only to those employers in certain federally-regulated industries such as banks, broadcasters, and airlines, to name a few. For most employers, the relevant legislation is that of the respective province or territory.

For federally-regulated employers, pay equality is guaranteed under the Canadian Human Rights Act
Canadian Human Rights Act
The Canadian Human Rights Act is a statute originally passed by the Parliament of Canada in 1977 with the express goal of extending the law to ensure equal opportunity to individuals who may be victims of discriminatory practices based on a set prohibited grounds such as gender, disability, or...

. In Ontario, pay equality is required under the Ontario Employment Standards Act. Every Canadian jurisdiction has similar legislation, although the name of the law will vary.

In contrast, pay equity, in the Canadian context, means that male-dominated occupations and female-dominated occupations of comparable value must be paid the same if within the same employer. The Canadian term pay equity is referred to as “comparable worth” in the US. For example, if an organization’s nurses and electricians are deemed to have jobs of equal importance, they must be paid the same. One way of distinguishing the concepts is to note that pay equality addresses the rights of women employees as individuals, whereas pay equity addresses the rights of female-dominated occupations as groups.

Certain Canadian jurisdictions have pay equity legislation while others do not, hence the necessity of distinguishing between pay equity and pay equality in Canadian usage. For example, in Ontario, pay equality is guaranteed through the Ontario Employment Standards Act while pay equity is guaranteed through the Ontario Pay Equity Act. On the other hand, the three westernmost provinces (British Columbia, Alberta, and Saskatchewan) have pay equality legislation but no pay equity legislation. Some provinces (for example, Manitoba) have legislation that requires pay equity for public sector employers but not for private sector employers; meanwhile, pay equality legislation applies to everyone.

Ireland

In Ireland, the Anti-Discrimination (Pay) Act was passed in 1974 and came into force in 1977.

United Kingdom

The Equal Pay Act of 1970 was passed by the United Kingdom Parliament to prevent discrimination as regards to terms and conditions of employment
Employment
Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as:- Employee :...

 between men and women, following the 1968 Ford sewing machinists strike. A similar act to these was passed in France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

 in 1972. These reflected Article 119 of the original EEC Treaty, which started: "Each Member State shall in the course of the first stage ensure and subsequently maintain the application of the principle of equal remuneration for equal work as between men and women workers."

United States

In the United States, women make roughly 77.8 cents to the dollar. Economists expect that in a free market, managers would prefer to hire less costly women workers, forcing men to compete with women on wages and balancing out the wage disparity. One study found that customers who viewed videos featuring a black male, a white female, or a white male actor playing the role of an employee helping a customer were 19% more satisfied with the white male employee's performance and also were more satisfied with the store's cleanliness and appearance. This despite that all three actors performed identically, read the same script, and were in exactly the same location with identical camera angles and lighting. Moreover, 45 percent of the customers were women and 41 percent were non-white, indicating that even women and minority customers prefer white men. In a second study, they found that white male doctors were rated as more approachable and competent than equally-well performing women or minority doctors. They interpret their findings to suggest that employers are willing to pay more for white male employees because employers are customer driven and customers are happier with white male employees. They also suggest that what is required to solve the problem of wage inequality isn't necessarily paying women more but changing customer biases. This paper has been featured in many media outlets including The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...

, The Washington Post
The Washington Post
The Washington Post is Washington, D.C.'s largest newspaper and its oldest still-existing paper, founded in 1877. Located in the capital of the United States, The Post has a particular emphasis on national politics. D.C., Maryland, and Virginia editions are printed for daily circulation...

,The Boston Globe
The Boston Globe
The Boston Globe is an American daily newspaper based in Boston, Massachusetts. The Boston Globe has been owned by The New York Times Company since 1993...

, and National Public Radio. However, the Independent Women's Forum
Independent Women's Forum
The Independent Women's Forum is an American conservative, non-profit, non-partisan research and educational institution focused on domestic and foreign policy issues of concern to women...

 cites another study that found that the wage gap nearly disappears "when controlled for experience, education, and number of years on the job."

Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964

Legislation
Legislation
Legislation is law which has been promulgated by a legislature or other governing body, or the process of making it...

 passed by the Federal Government of the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 in 1963 made it illegal to pay men and women different wage rates for equal work on jobs that require equal skill
Skill
A skill is the learned capacity to carry out pre-determined results often with the minimum outlay of time, energy, or both. Skills can often be divided into domain-general and domain-specific skills...

, effort, and responsibility and are performed under similar working conditions. One year after passing the Equal Pay Act, Congress passed the 1964 Civil Rights Act. Title VII of this act, makes it unlawful to discriminate based on a person’s race, religion, color, or sex. Title VII attacks sex discrimination more broadly than the Equal Pay Act extending not only to wages but to compensation, terms, conditions or privileges of employment. Thus with the Equal Pay Act and Title VII, an employer cannot deny women equal pay for equal work; deny women transfers, promotions, or wage increases; manipulate job evaluations to relegate women’s pay; or intentionally segregate men and women into jobs according to their gender.

Since Congress was debating this bill at the same time that the Equal Pay Act was coming into effect, there was concern over how these two laws would interact, which led to the passage of Senator Bennett’s Amendment. This Amendment states: “It Shall not be unlawful employment practice under this subchapter for any employer to differentiate upon the basis of sex . . . if such differentiation is authorized by the provisions of the [Equal Pay Act].” There was confusion on the interpretation of this Amendment, which was left to the courts to resolve.

Washington and Minnesota State Actions

In Washington, Governor Evans implemented a pay equity study in 1973 and then another in 1977. The results clearly showed that when comparing male and female dominated jobs there was almost no overlap between the averages for similar jobs and in every sector, a twenty percent gap emerged. For example, a food service worker earned $472 per month, and a Delivery Truck Driver earned $792, though they were both given the same amount of “points” on the scale of comparable worth to the state. Unfortunately for the state, and for the female state workers, his successor Governor Dixie Lee Ray failed to implement the recommendations of the study (which clearly stated women made 20 percent less than men). Thus in 1981, AFSCME filed a sex discrimination complaint with the EEOC against the State of Washington. The District Court ruled that since the state had done a study of sex discrimination in the state, found that there was severe disparities in wages, and had not done anything to ameliorate these disparities, this constituted discrimination under Title VII that was “pervasive and intentional.” The Court then ordered the State to pay its over 15,500 women back pay from 1979 based on a 1983 study of comparable worth. This amounted to over $800 million dollars. However, the United States Court of Appeals for the Ninth Circuit
United States Court of Appeals for the Ninth Circuit
The United States Court of Appeals for the Ninth Circuit is a U.S. federal court with appellate jurisdiction over the district courts in the following districts:* District of Alaska* District of Arizona...

 overturned this decision, stating that Washington had always required their employees’ salaries to reflect the free market, and discrimination was one cause of many for wage disparities. The court stated, “the State did not create the market disparity . . . [and] neither law nor logic deems the free market system a suspect enterprise.” While the suit was ultimately unsuccessful, it led to state legislation bolstering state workers’ pay. The costs for implementing this equal pay policy was 2.6% of personnel costs for the state.

In Minnesota
Minnesota
Minnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state...

, the state began considering a formal comparable worth policy in the late 1970s when the Minnesota Task Force of the Council on the Economic Status of Women commissioned Hay Associates to conduct a study. The results were staggering and similar to the results in Washington (there was a 20% gap between state male and female workers pay). Hay Associates proved that in the 19 years since the Equal Pay Act was passed, wage discrimination persisted and had even increased over from 1976 to 1981. Using their point system, they noted that while delivery van drivers and clerk typists were both scaled with 117 points each of “worth” to the state, the delivery van driver (a male dominated profession) was paid $1,382 a month while the clerk typist (a female dominated profession) was paid $1,115 a month. The study also noted that women were severely underrepresented in manager and professional positions; and that state jobs were often segregated by sex. The study finally recommended that the state take several courses of action: 1) establish comparable worth considerations for female- dominated jobs; 2) set aside money to ameliorate the pay inequity; 3) encourage affirmative action for women and other minorities and 4) continue analyzing the situation to improve it. The Minnesota Legislature moved immediately in response. In 1983 the state appropriated 21.8 million dollars to begin amending the pay disparities for state employees. From 1982 to 1993, women’s wages in the state increased 10%. According to the Star Tribune, in 2005 women in Minnesota state government made 97 cents to the dollar, ranking Minnesota as one of the most equal for female state workers in the country.

Different Studies and Economic Theories

Economists expect that in free market capitalist economy managers should be eager to hire less costly women workers, thereby making the wage gap disappear. Therefore economists are puzzled why the wage gap persists. One study found that customers who viewed videos featuring a black male, a white female, or a white male actor playing the role of an employee helping a customer were 19% more satisfied with the white male employee's performance and also were more satisfied with the store's cleanliness and appearance. This despite that all three actors performed identically, read the same script, and were in exactly the same location with identical camera angles and lighting. Moreover, 45 percent of the customers were women and 41 percent were non-white, indicating that even women and minority customers prefer white men. In a second study, they found that white male doctors were rated as more approachable and competent than equally-well performing women or minority doctors. They interpret their findings to suggest that employers are willing to pay more for white male employees because employers are customer driven and customers are happier with white male employees. They also suggest that what is required to solve the problem of wage inequality isn't necessarily paying women more but changing customer biases. This paper has been featured in many media outlets including The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...

, The Washington Post
The Washington Post
The Washington Post is Washington, D.C.'s largest newspaper and its oldest still-existing paper, founded in 1877. Located in the capital of the United States, The Post has a particular emphasis on national politics. D.C., Maryland, and Virginia editions are printed for daily circulation...

,The Boston Globe
The Boston Globe
The Boston Globe is an American daily newspaper based in Boston, Massachusetts. The Boston Globe has been owned by The New York Times Company since 1993...

, and National Public Radio. However, the Independent Women's Forum
Independent Women's Forum
The Independent Women's Forum is an American conservative, non-profit, non-partisan research and educational institution focused on domestic and foreign policy issues of concern to women...

 cites another study that found that the wage gap nearly disappears "when controlled for experience, education, and number of years on the job."

Possibility of a reversal

The momentum of the change has been dramatic with the most recent generations. However, a closer look at the figures shows that — at present — the United States is still in the linear region of the transition, with little sign of a slowdown yet. Therefore, the possibility arises that there may actually be a reversal in the coming decades, with women outearning men in the aggregate.

This is the most important aspect of the overall picture missed by the two prevailing points of view. While the discussion continues on why the inequity "still exist", the most recent changes in the world are blindsiding all involved.

A dramatic picture of this change—particularly how it is being masked under the weight of the baby boomer generation and older world—is seen in the TV news sector. An aggregate comparison of women's and men's salaries for TV news anchors shows that women are making 38% less than men overall (as of 2000), yet women are outearning men at each age range.
Age Group 20-29 30-39 40-up
Comparison +10% +15% +14%


This is an example of Simpson's paradox
Simpson's paradox
In probability and statistics, Simpson's paradox is a paradox in which a correlation present in different groups is reversed when the groups are combined. This result is often encountered in social-science and medical-science statistics, and it occurs when frequencydata are hastily given causal...

. The complete disconnect between aggregate and age-related figures is actually somewhat predictable as a consequence of the gender shift that has taken place in this field. The vast majority of graduates from Communications schools in the United States are now female. Yet, there is still a significant vestige from the older, male-dominated, era—particularly at the highest positions in the field. The net result is not only a gap in the average ages (29 for females, 38 for males) but, with the influx of women from the colleges, a widening in the age gap, and very likely the aggregate wage gap, itself!

This widening is, therefore, actually a precursor of a forthcoming reversal in the direction of movement, rather than a sign of a worsening situation.

The time inevitably comes when the older generations must leave the field—whether by the attrition of retirement or death. In the national TV news arena, this has already started to happen. With the departure of the older cohort, the masking effect of the pulling down of the average by the baby boomers' and earlier generations will be removed, resulting in what will appear to be a sudden upswing in the aggregate wage gap and even a reversal.

See also

  • Allonby v. Accrington and Rossendale College
    Allonby v. Accrington and Rossendale College
    Allonby v Accrington & Rossendale College is a European Union law case concerning the right of men and women to equal pay for work of equal value under Article 141 of the Treaty of the European Community.-Facts:...

  • Bennett Amendment
    Bennett Amendment
    The Bennett Amendment is a provision in §703 of Title VII of the United States Civil Rights Act of 1964 incorporating specific terms of the Equal Pay Act of 1963 to more clearly define under what circumstances an employer may provide different compensation to employees of different sex...

  • Glass ceiling
    Glass ceiling
    In economics, the term glass ceiling refers to "the unseen, yet unbreachable barrier that keeps minorities and women from rising to the upper rungs of the corporate ladder, regardless of their qualifications or achievements." Initially, the metaphor applied to barriers in the careers of women but...

  • Material feminism
    Material feminism
    Material feminism examines the "material conditions under which social arrangements, including those of gender hierarchy, develop" It argues that "material conditions of all sorts play a vital role in the social production of gender"....

  • Paycheck Fairness Act
    Paycheck Fairness Act
    The Paycheck Fairness Act is legislation being considered by the United States Congress to expand the scope of the Equal Pay Act of 1963 and the Fair Labor Standards Act as part of an effort to address male–female income disparity in the United States...

     (in the US)
  • Gender pay gap
  • Male–female income disparity in the United States
  • Gender pay gap in Australia
    Gender pay gap in Australia
    Gender pay gap in Australia refers to the difference between the average female and average male salary. It is calculated on the average weekly ordinary time earnings for full time employees published by the Australian Bureau of Statistics. The gender pay gap excludes part time, casual earnings and...


External links

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