Gender wage gap is a relatively loose concept, but it is defined as the gap between what men and women earn. Most commonly it refers to the annual pay of women who work full time compared to the pay of men. Other definitions of gender wage gap are based on hourly or weekly earnings. Being part of a modern society and constantly moving towards it, many researchers and economists consider wage gap as a myth. However, wage gap is a concerning topic and still continues to make it to the headlines. According to European Commission, the gender gap in EU stands at 16%. In other words, a woman earns 84-euro cents for every 1 euro a man earns or compared to men, women work approximately two months for free each year. Although the situation seems promising, progress is very slow with the gap only decreasing by 1% for the past seven years. In this paper, firstly, I explain using statistics the main reasons causing gender wage gap. After thoroughly understanding why gender gap exists, I then introduce the measures that not only employers, but women as well can take in order to help closing the gap. Lastly, I finish my paper by concluding my whole idea also by stating a few reasons why we should fix wage gap as it affects us all.
Primary, gender wage gap is explained by the segregation of occupations. According to economist Laura Tyson (2019) the world has developed enormously the past 20 years in eliminating educational differences between genders. She also states that this does not make a determinant factor in gender earnings especially among young adults with comparative degree of completed education. However, women and men concentrate in different occupations. It is known for a fact that men tend to find jobs related to manufacturing whilst women are occupied mostly in sectors such as care and education. Jobs traditionally related to men such as science, engineering or technology are generally better paid. Deborah J. Vagins, the senior vice president of public policy and research at AAUW, states that: “These jobs do not pay less because they require fewer skills; they pay less because women do them.”
Higher gender wage gap does not necessarily indicate absence of equality. Rather, wage gap is closely linked with the labor market participation. Employment rates are lower for women than for men. One factor behind employment rate differences between the two genders is motherhood. According to European Institute for Gender Equality the employment rate for mothers from 20 to 49 years old with a child younger than 6 years old is 65.4% compared to 91.5% of fathers. On the other hand, for the same occupation or sector, mothers receive lower wage than fathers, despite never leaving the workplace. This comes as a result of gender differences in household activities. Women spend more hours than men in unpaid work, such as looking after a child or an incapacitated adult. Having more work hours per week than men might affect their career choices. At least 31.3% of women choose to work part-time, in comparison to 8.7% of men. Working part-time undoubtfully means less hourly wage and less benefits compared to full-time work. Also, women may refuse promotions or even leave work for a while in order to spend more time with their families. Should they choose to come back to work, they have to accept a lower salary than what they used to have.
Gender discrimination and bias remains a key factor in gender differences in earnings around the world. The principle of equal pay regulated in the European Treaty states that men and women should have equal pay for the same work and work of equal value. Work of equal value does not necessarily mean doing the exact same job. Jobs of equal value require equivalent education, skills, training and professional requirements. Although Barnes writes in her article that it is believed that discrimination no longer plays a significant role in pay gap, the right of equal pay for the same work still remains a major challenge. Sometimes it is not always about the salary, but also about other forms of pay which the worker receives directly or indirectly, such as overtime pay, bonuses and other benefits in cash.
The wage gap might not vanish anytime soon, but there are a few steps that employers, government and women can follow to diminish the difference. At a conference, Siri Chilazi (2019) explained that: “Pay fairness is a moral issue, but it’s also an economic issue.” Chilazi (2019) also stated that if we don’t take action, the gender pay gap will be present for another 40 or maybe 100 years. To avoid waiting that long, firstly, employers must declare how much their workers earn and how is their salary determined. Secondly, employees should not be afraid of retaliation as a result of discussing their salaries. A study conducted by Emiliano Huet-Vaughn (2013), assistant professor at Middlebury College, confirmed the fact that comparing earnings among each other, employees were able to work more productively. Pay transparency not only lessens the gap, it benefits the company as well. Thirdly, the government should prevent employers from punishing employees in cases where they disclose their wage. Furthermore, it should take action when noticing wage gap within any company. Lastly, the most important factor in determining the salary should be performance not presence. In other words, gender, race or ethnicity should not deprive one from their basic right of having a deserved and equal pay.
Although it is a duty of employers to provide an equal pay and government to regulate wages, the burden of decreasing the gap falls on women too. Studies show that women are less likely to negotiate raises and salaries. When they do negotiate, they tend to get a smaller raise than male coworkers. Writers (2019) has published an article that presents useful tips to women such as to negotiate harder or self-promote. She states that women should feel properly valued and speak up if they feel like they are treated unfairly. Underpaid women have no incentive to grow and improve themselves whereas respected women will go to great lengths to achieve success.
It is important to understand that wage gap does not only affect women, but their families as well. Thus, directly or indirectly, everyone is affected by it. In theory, women and men are equal, but practically they should be treated that way in all areas of society. As far as it concerns the economy, paying women fairly will have a positive impact and will send a positive message about the transparency and fairness of the market. By paying fairly, organizations and companies will attract the best of talents whatever their gender. Discussions about gender wage gap should not be about whether it exists as a phenomenon or not, but rather how can we combat it and how fast can we do it.
