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Is The Gender Pay Gap?

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Seventy-seven cents to the dollar. A simple phrase used to describe the gender pay gap. Most people who use this phrase in casual conversation do not really know what this entails. It is much more than men earning more than women. The significance of this pay discrepancy becomes much more apparent when looking at the bigger picture. Over an entire lifetime of working, a woman making only 77 cents to the male dollar loses a total of $1.2 million dollars over the course of her working life (Murphy & Graff, 2005). A risk of poverty for women living with a pay gap is high. According to the European Commission, the at-risk-of-poverty rate is around 22 percent for women, compared to the 16 percent of men. So why is the gender pay …show more content…

The National Bureau of Economic Research points to labor market discrimination and overall trends in wage structure to explain why the wage gap exists. Discrimination in the labor market may lower women’s incentives to invest in their qualifications. The second factor of trends in wage structure refers to the terms the market sets for various skills or for employment in particular occupations or industries (Blau & Kahn, 2001). Other factors contributing to the wage gap have since been considerably ameliorated, factors including gender gaps in education, skills, experience, as well as occupational segregation and career breaks (Kulow, 2013). According to Adam Smith’s The Wealth of Nations from the stimulus material, “The wages of labor in different employments vary according to the probability or improbability of success in them.” He then brings up an example of how mechanic jobs, such as carpentry and masonry, have almost certain success, meanwhile, success is very uncertain in the liberal professions. In a study done by the United States Department of Labor, the most common jobs for women consist of education administrators, teacher assistants, social workers, and secretaries- all the “liberal” professions. For men, their most common jobs include managers, carpenters, and laborers. The data, supported by Smith’s findings, prove that men do earn more than women, creating a gap in wages. Although the Equal Pay Act in 1963

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