The Gender Pay Gap

1639 WordsDec 6, 20127 Pages
The Gender Pay Gap PROBLEM Introduction The pay gap between men and women has fallen quite dramatically over the past 30 years though a sizeable gap still remains, but this headline figure masks some less positive developments in recent years. We are used to each generation of women making progress relative to the one before, but this process has slowed slightly with the better than the previous one(Centre Piece Summer 2006). The gender pay gap measures the earning differences between women and men in paid employment in the labor market. It is one of many indicators of gender inequality in a country, when examining labor market participation in terms of gender (EC 2007). The study “Global Employment Trends for Women” published…show more content…
Moreover, there is evidence that although discrimination against women in the labor market has declined, some discrimination does still continue to exist."(www.wikipedia.com).A wide ranging meta-analysis by Doris Weichselbaumer and Rudolf Winter-Ebmer (2005) of more than 260 published adjusted pay gap studies for over 60 countries has found that, from the 1960s to the 1990s, raw wage differentials worldwide have fallen substantially from around 65 to 30% The bulk of this decline, however, was due to better labor market endowments of women (2005). The 260 published estimates show that the unexplained or discriminatory component of the gap has not declined over time. Using their own specifications, Weichselbaumer and Winter-Ebmer found that the yearly overall decline of the gender pay gap would amount to a slow 0.17 log points, implying a slow level of convergence between the wages of men and women (American Progress 2012). According to economist Alan Manning of the London School of Economics, the process of closing the gender pay gap has slowed substantially and women could earn less than men for the next 150 years because of discrimination and ineffective government policies. A 2011 study by the British CMI revealed that if pay growth continues for female executives at current rates, the gap between the earnings of female and male executives would not be closed until 2109. Factors Indentified Through Raw Gender Pay Gap Six factors that individually and collectively

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