Wage Discrimination Alongside Gender Inequality in the Workplace

Wage Discrimination Alongside Gender Inequality in the Workplace

In various countries, women on average receive hourly wages that, when compared to their male associates, are quite obviously preferential. The wage gaps between genders vary, to the point where in 2015, women "were over sixty percent of workers paid at or below the federal minimum wage, and they were the majority of full-time workers who earned less than $400 per week." 

However, after the late 1970s, there has been a substantial increase in women's relative earnings. On the other hand though, 'substantial increase', while well-intentioned, does not mean an equal amount of increased salary. "During the last 35 years, as women have increased their time in the labor market and attained higher levels of education and professional qualifications, women’s earnings have increased substantially and the gender wage gap has narrowed. Although the gap between women’s and men’s median earnings has decreased, women continue to earn substantially less than men." 

There are some factors to keep in mind while analyzing this topic, like how race, ethnicity, religion, age, and education level come into play. For example, in addition to the wage inequality, wage discrimination (when individuals with similar education or working experience perform alike jobs, yet are paid differently) is also a component for black and Hispanic women. Those individuals, who possess bachelor's degrees, receive lower weekly pay than men, and even Asian and white women who have the same credentials and educational level.

With age, on average, women are paid 90 percent of what men are paid up until the age of 35. From 35 years-old to retirement, women typically earn 75 to 80 percent of what men earn. It’s no coincidence that this is  the age many women start families, and studies show that working women's upward mobility may take a hit when interrupted by maternity leave. "Earnings for both female and male full-time workers tend to increase with age, though earnings increase more slowly after age 45 and even decrease after age 55. The gender pay gap also grows with age, and differences among older workers are considerably larger than gaps among younger workers. In 2016 women ages 20–24 were paid 96 percent of what men were paid, decreasing to 78–89 percent from age 25 to age 54. By the time workers reach 55–64 years old, women are paid only 74 percent of what men are paid."

In a 2012 analysis, the American Association of University Women (AAUW) found that even after controlling for occupation, industry, hours, work experience, college major, religion, race/ethnicity, GPA, education, number of children and marital status, women are paid only 82 percent of what their male peers are earning just a year after college graduation. Ten years out of college, the gap widens with women earning a mere 69 percent of what men earn.

These studies may have slightly different observations and results, but they are all very similar with the fact that women's salaries fluctuate because of factors they cannot control: their gender, race, and age. 

It's important to analyze this data, and also evaluate the root of the problem, such as: how companies and businesses can improve hiring and compensation processes. For example, what questions are being asked in interviews? How are promotions and bonuses being measured? What practices are in place-- or are missing/require rethinking --that could be contributing to the pay gap?

Most importantly, equality cannot be considered as an afterthought. It must be part of the company's core beliefs and the tone of this should be set from the top of the company. 

Women cannot and should not have to wait until 2059 for equal pay to become a reality. It's up to every business leader and advocate to take action, to ensure that every employee is fairly compensated.