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The wage gap is the difference in pay, between a man and a woman, for doing the same task. Women earn seventy-five cents for every dollar a man earns. Sociologists, Robert Nelson and William Bridges, analyzed how wage differences are the outcome of “organizational forces,” rather than the free market. This means that the market sets the price for work, leaving gender out of the equation. Economic perspectives say that wage differences come from reasonable employer decisions, rather than being produced outside of an organization. Some people believe that the wage gap is real, and some do not. Both sides have research to back up these theories. Some think that publishing salaries could put an end to the wage gap. A company based in New York City, SumAll, started an internal document that allowed other employees access the information of their coworkers. It did not show every detail of the employee’s background information. This document was created by SumAll, and then distributed to other companies around that area. The document lists the salaries of all employees, it also shows an increase in that person’s salary. Employees at SumAll, said this gave workers the confidence needed to ask for higher pay, with a reasonable request. Companies, and their personnel believe that knowing the salaries of …show more content…
A lot of important factors are not shown in the document, including, personal skills, previous experience, and salary history. If someone were to see a co-worker, with the same job as himself, with a larger salary, it could upset that person. Even if that employee were to have had much more experience, with skills that are beneficial to that company, a problem could still arise because the others are unaware of the different factors that went into giving that person that particular pay. Studies at Cornell University, say that a person earning less is more likely to quit, rather than negotiate his or her
Though any pay disparity between women and men is a pressing issue, the “wage gap” is much more complicated than people believe because of misleading statistics, unaccounted for variables, and the different social and economic choices of men and women. The common idea that women make 77 cents on every dollar men make in the workplace is very misleading. It is true, however, this statistic ignores any factors that justify different pay. The wage gap is just the difference
Companies that participate in surveys (i.e., provide their own compensation data) customarily receive a discount on the final report. The process of collecting data and producing a salary survey takes careful planning and execution that requires economic investment, people resources, and time. Some companies conduct surveys in-house using their own staff and compensation experts. There are many things to consider when analyzing the compensation components of a salary survey. Because companies have different pay structures, compensation data is collected in ranges as well as actual pay. Salary surveys can provide employers more information on the marketplace and how to set competitive pay without overpaying or underpaying employees. Surveys should ask for the minimum, midpoint, and maximum for the surveyed positions, in addition to the actual base salary paid. For those surveys conducted on a regular basis, such as annual surveys, the effective date will be until the next survey is released in the following year. Otherwise, knowing the effective date of the survey can prevent companies from using outdated salary figures and causing error in pay budget
According to Merriam -Webster (2012), the wage gap is defined as “a statistical indicator often used as an index of the status of women’s earnings to men’s.” Often expressed as a percentage or divided into median annual earnings, the wage gap seeks to define and distinguish men and women’s salaries.
I found that implementing a pay secrecy policy would be illegal. The NLR says that doing so is an unfair labor practice. You can discourage employees to discuss salary but they do not have to obey. The best thing to do is do your homework and make sure you are offering a competitive salary. You should look at education, experience, and what
The wage gap is a major issue that is constantly brought up in the work place. Numerous people use the term “wage gap” to state how gender can affect somebody 's income. There has always been an understanding that men typically made more money than women. For a long time, women were not allowed to work; therefore men were in charge of “bringing home the bacon”. However, times have changed and there are various situations where a household is centered off a women’s’ income. Females can become single mothers who have a responsibility to care for a child(s). Responsibilities can include monthly payments of water and electric bills and even weekly payments towards groceries. Women have to acquire enough money so that they are able
There is a pay gap between men and women in the U.S. The pay gap affects women of all educations levels, and backgrounds. But white men are the largest demographic in labor forces so they possibly favor each other as opposed to women. The graph didn’t specify the type of jobs, or whether they were working parts time or fulltime. But in 2016, women working full time in the U.S. were paid 80% of what men were getting paid. There are some occupations that have not reached the equity but some have like retail, banking and real
Recently, studies have shown that income inequality has many connections that have caused the gap in the United States. According to the research I found, income inequality is connected to corruption, trade, wages of workers, and education. The world income inequality had declined since the twentieth century according to the studies found (Clark). Corruption falls increasing on low income individuals more than higher income individuals. Additionally, the trade theory suggests that the free trade might have level up the income inequality higher within countries by the different patterns of wages and demand for workers who are skilled and unskilled (Silva and Leichenko). Moreover, the education of wealthier people has it easier because the learning efforts of education are unbalanced. Besides, income inequality in the United States is hurting our economy due to the all the issues of corruption, trade, wages, and education. Suggested by Robert H. Frank article called “Income Inequality: Too Big to Ignore,” the income inequality is bad for our economy (Frank).
A number of factors have contributed to the gap between men’s and women’s wages. These include: occupational segregation of women into low paying jobs; lower levels of unionization for women and attitudinal barriers that have kept women from achieving equality in the workplace and undervaluation for women’s work.
One cannot begin the discussion of the gender pay gap without defining it. Simply put, the gender pay gap is the inequality between men and women's wages. The gender pay gap is a constant international problem, in which women are paid, on average, less than that of their male counterparts. As to whether gender pay gap still exists, its exactness fluctuates depending on numerous factors such as professional status, country and regional location, gender, and age. In regards to gender, in some cases, both men and women have stated that the gap does not exist.
There are many claims behind the reason of wage discrimination. George F. Will (2000)” Lies, Damned lies and …..” claims that the main cause of wage gap is omen’s decision to establish a family, so that force them to make comprise for raising their children and that leads them to work in flexible jobs with flexible ours that permit them to enter the fast track.. Another article by Allen Goodman (1999) “A New Campaign for Pay Equity” argues that the main reason behind low wages for women is sex discrimination. She supports her point of view by saying that the gender gap between male and female accountants is 201$ a week and bartenders is 48$. Finally, Lester C. Thurow “1981” claims that the system of promotion is the main reason behind the wage discrimination. Thurow says if men discriminate against women they are lowering their own income so there is no sex discrimination. Thurow conclude that the decade between 25 and 35 is when the person succeed in his/her life is the same decade when women think of establishing a family and leave the labor force or become a part – time worker. The system of promotion and skill acquisition extaract an enormous life time price during the decade of 25 to 35.
An organisations internal pay structure can affect the way employees perform to the business strategy. Where a workers performance not only depends on the level of pay they receive (Solow, 1979, in Alexopoulos & Cohen, 2003), but also takes into consideration their pay compared to workers above and below them, those within the same occupational group, and the external labour market (Akerlof and Yellen, 1990). Pfeffer (2005) argues that wage compression, which is the act of reducing the size of the pay differences among employees, improves productivity. To gain competitive advantage, organisations need to acknowledge not only hierarchical wage compression (between management and employees) but also the differences between individuals at similar levels. Narrowing pay discrepancies in a team-based environment promotes a sense of community and a common fate, leading to greater efficiency as it lessens interpersonal competition but increases collaboration (Pfeffer, 2005). Pay compression thus advocates equity theory; that if internal factors and external competitiveness are aligned, employees perceive their pay to be fair and exert maximum effort (Milkovich, Newman, Gerhart, 2011).
Pfeffer, J. (1998). Six dangerous myths about pay. Harvard Business Review, 76, 109-119. Print. 8 Feb. 2014.
Today in the United States, men make more than women in various sectors, including education and other trades favoring women workers. The gap gets bigger when comparing the wages earned by men to those of women in jobs favoring men workers such as construction or other physically demanding jobs. Women are less likely to work those jobs, therefor; men have the advantage of having more experience and get paid better. In addition, employers would rather hire a man instead of a woman because they believe that a man will be able to sustain the difficulty of the job and work longer hours which crate a disadvantage for women because they are unable to gain experience and become skilled in that certain field. Gender pay gap based on this information is explained as the result of the discrimination of employers toward the feminine sex in terms of pay, which discourage them to work certain jobs leading to create a bigger gap due to the lack of
Also, that employees of higher paying jobs able to save better then lower paid
Hays, Scott. "Pros & Cons of Pay for Performance." Workforce 78, Number 2 (February 1997): 68-72