Wages are given as the price of labor for the work done by an individual, and the reward for the investment on the human capital of the worker. However, despite the rise in equal opportunity employers and feminist movements upholding equality in the workplace, there is still a large disparity in the wages received by workers based on one’s sex. Borjas (2005) stated that wage inequality can be explained by the difference in productivity of workers and the rate of return of skills. This wage inequality is manifested in the wage gap and is usually seen between sexes and among various races.
A vast number of empirical studies that focused on wage gaps between genders in the labor market have been conducted, however it is still unclear
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This method requires the linear regression estimation of earning equations of men and women. Based on these earning equations, counterfactual wage is generated, which is the difference in the average wage between men and women. This difference is classified into two components: one is attributable to the difference in the average characteristics of the individuals, and the other is attributable to the difference in the average rewards that these characteristics have. The second component reflects the effects of thee unobservable gender differences in characteristics and the discrimination in the labor market. However, even this method is commonly used; it has been widely criticized in literature because of its interpretation of the unexplained part of the wage gap as the result of discrimination. It was identified that issues such as omission of variables, pre-labor market discrimination, and endogeneity can arise in using ordered least square estimation of wage regression which can result to difficulties in distinguishing the different components of the wage gap and in assigning the true part of the gap that is due to discrimination (Djurdjevic and Radyakin, …show more content…
Hence, the Philippine government is challenged to increase employment growth, to reduce vulnerable unemployment, and to improve decent work opportunities. To achieve these, the government should have adequate and appropriate legislation, and active labor market support. Gender differences in the supports can certainly reflect a form of pre-labor market discrimination because women face some barriers to entry in the labor market. With this, it is important to take into account the role of the gender differences in the supports because it may be significant for legislations aimed at reducing the wage gap between men and women.
The general objective of the study was to determine gender wage gap in the Philippines. To be able to do this, the study specifically aimed to (1) identify the gender differences in the supports; (2) estimate the gender wage gap using the simple matching method by Ñopo and (3) examine to which extent the observable characteristics can explain the gender wage gap.
The structure of this paper is organized as follows: Chapter II reviews related studies on measuring wage gap. Chapter III shows the economic theory and framework behind the study. Chapter IV identifies the data and the methodology used in the study. Chapter V presents the results and discussion, and the implications of the
Numerous economists suppose that when work experience, education, and occupation are taken into consideration, women earn approximately equal to what men earn (Brittan & Onder 16). However, in recent decades, women have received more education, expanded their experience, and transferred toward higher paying occupations, so wouldn’t this mean that the wage gap would decrease? These economists state that since women, in general, are less involved in the labor market due to having children, providing elder care, this may lead to part-time work, meaning less pay than men, whom usually obtain full-time work. Also, women are also more likely to enter and leave work; women may lose their connection with the work force and may even regress professionally. While there are some factors that help explain the gap, a significant percentage remains unexplained, which is due to bias
This paper will explain that the gap should be closed because of the effects it has on women emotionally and financially and women with families. Also, it is time that women are treated equally to men in this country. To understand the subject more thoroughly it is important to analyze exactly why the wage gap has been an ongoing problem in our country. In the article “Separate and Unequal:
Lastly, take risk as another factor. Majority of the workers in nearly all the most dangerous occupations, such as iron workers and loggers, are male, and 92 percent of work-related deaths in 2012 were to men. Males are also more likely to pursue occupations where compensation is risky from year to year, such as finance and law. Research shows that average pay in such jobs is higher to compensate for the risk. Therefore, due to the fact that women and men do different type of jobs and work different hours, the gap in wage is not related to gender discrimination and feminism is again proven to be irrelevant
Research shows wage gaps are solely a product of the choices of the second party. Woman have chosen what level of education they wish to pursue, the fields they wish to be in, and where they work. When looking back at a censuses of the early-to-mid 1900’s the majority of working women worked at small enterprises rather than booming companies: large Firms pay at higher rates, their payout going predominantly to males of the working class (Rubenstien, Michael Harvey). When taken under the scope, large enterprises rejected woman workers, and if they did hire, the lady’s income would be significantly smaller. Consequently, companies would deny the reason being that they were of a different sex, and rather blame it on how little education the skill the person had, “Frequently, even when given raises, their new pay still comes short of that of their male coworkers.
Though there are more women in the work force now more than ever, they are still being paid less than men for doing the same job. Three explanations for the wage gap between men and women are discrimination, human capital and organizations of jobs. A group theorists who believe the wage gap is a result of discrimination are called bias theorists. Aulette and Wittner state that bias theorists believe that “decisions about who will be hired, promoted, fired and what an employee will be paid are made in ways discriminate against women” (189). Some discriminatory practices are openly represented while some are more subtle.
It is time to face the facts and find solutions for this epidemic. To obtain a better grasp of the severity of the gender wage gap, it is important to understand the data. Per the textbook, out of full-time, year-round workers in 2010, the gender wage gap was 77 percent. This number is found by dividing women’s annual income by men’s. Various other ways of measuring the gap exist, but they are
The facts have been laid out plain and simple the gender wage gap is still something very persitant in society. Still some people argue that gender in the workplace doesnt matter. Like In article The Gender Wage Gap Is a Myth by Stephen Jarosek, Jaroske argues that the wage gap is not an example of gender bias, but instead is the result of women making the choice not to work or to work fewer hours. He claims that women and men simply make different choices in the work world and that many men are more willing to sacrifice personal time to commit to work while many women are not. He does by using several stastics to show the gender wage has been a myth all along.
Even though male and female both show a trend in increasing annual incomes, there was a large gap in wages, to begin with back in 2005. This paper dives deeper into the data. In Graph 6 of Appendix A, we performed a two-way kernel density estimation that compared the average salary of males with the average salary of females. When searching online for other graphs to compare the wage gap between men and women, we come across kernel density graphs.
Multiple studies have been done to figure out the root of why the wage gap exists and what can be done to fix it. Many believe the Equal Pay Act is not strong enough and more action needs to be taken at the federal level to close the gap. Moreover, many states, such as California, have taken it upon themselves to enact laws that will attempt to close the wage gap between men and women once and for
Shining some much-needed sunlight on the gender wage gap will make a difference for every one of us, men and women, right now.” (www.nytimes.com, 16). “It’s the twenty-first century, and the gender wage gap affects the daily life of women throughout the country, at every economic level, from cashier to CEO. Is it fair? No.
Hypothesis: Gender disparity in the workplace could be interpreted as differences in wages between men and women based on their qualifications to get the same
Gender equality: the pinnacle concept that American society is not-so desperately trying to achieve. Many Americans have convinced themselves that gender equality was remedied by the Nineteenth Amendment and the Second Feminist Movement, and have not considered the thousands of steps that are left on the journey. In recent years, a matter of public interest has been the gender wage gap, stating that women are earning significantly less money than men for doing an equivalent amount of work. Critics of the effort to “break the glass ceiling” claim that a pay gap does not exist, and that if it does, it is because women either do not work as hard, have to tend to their families, or hold lower paying jobs. However, the gender pay gap has been proven to exist in a variety of different forms,
Annotated Bibliography Quast, L. (2015, November 22). The Gender Pay Gap Issue Is Fixable -- But May Require Bolder Actions To Overcome. Retrieved from Forbes.com: http://www.forbes.com/sites/lisaquast/2015/11/22/the-gender-pay-gap-issue-is-fixable-but-may-require-bolder-actions-to-overcome/2/ It is reported by the Economic Policy Institute that although women had made tremendous records entering into workforce and gain great successes in education, but their wage is 83% comparing to men. The world forum also released a report in 2015 that women now make as much as men earned a decade ago.
In his article, Mark Perry, the professor of economics and finance, argues if the gender wage gap is caused by discrimination. In his opinion, simply claim that women are paid less due to discrimination is “fundamentally misleading” and “economically illogical.” There are more factors that affects this issue. In addition to the physical differences between men and women, different hours of work, importance degree of children, and occupational selections also influence different earnings.
The United States is currently facing an economical problem that involves males and female differences within the workplace. Males are given bigger and sometimes even better rewards for doing equal amounts of work as their female counterparts. Females are frequently not receiving the same wage even if they can complete the same job of a male. Also, females are less likely to get promoted within their job if they are competing against a male. A source states, “Women are now more likely to have college degrees than men, yet they still face a pay gap in every single education level,