Women have come a long way and have made significant progress toward achieving gender equality. Such instances include gender roles in marriage and women gaining more powerful positions in organizations or the government.
However, a lot needs to be done. There is still a persistent pay gap between men and women. Up until now, the state of the gender pay gap is still in question.
Women in the same positions and qualifications as men are still being paid 83 cents per every dollar a man gets. This pay gap affects a woman’s lifetime earnings. Even worse, the pay gap haunts them after retirement.
Here’s what the economy’s state pay gap looks like, but first, let’s find out the main cause of the gender wage gap.
What is The Cause of the Gender Wage Gap?
Gender wage gap comes from either conscious or unconscious perceptions. People tend to value the work of men more than they do that of women. They also perceive that some roles are better suited for men than women.
Managerial, financial, and technical jobs are perceived as “men’s work,” whereas nurturing childcare or homemaking is regarded as “women’s jobs.” These women’s perceived jobs tend to have low compensation.
Similarly, when women join fields that most men dominate, their pay tends to lower, or they are paid differently from their male colleagues.
Women Who Have Children Experience a Higher Pay Gap (Motherhood Penalty)
Women who come back to work after maternity leave, more often than not, receive wage penalties. Women receive a pay gap of around $0.74 for every dollar a male parent earns. Similarly, they receive a $0.98 pay gap for each dollar men earn in the same employment niche.
The gap then reduces between men and women without children. This means that women who don’t have kids yet, tend to experience lesser pay gaps and challenges and get up the corporate ladder. This is despite mothers having the same ability to perform tasks effectively.
According to research, mothers (more than fathers) face this because most organizations believe that women adjust their careers to care for their families. This makes them get judged as being less committed to their work. Meanwhile, men get paid more once they become parents since they are seen to have “more responsibility” with a family.
The Age-Related Gender Wage Gap
Compared to men, women’s earnings potentially decline with age. Women start their careers earning less than males do, and as they get older, the gender pay gap gets wider. This is because women typically work in positions that pay less than men.
However, when job title, roles, and other compensable characteristics are considered, women at the beginning of their career who are between 20-29 years make almost the same amount as men.
Between the ages of 30 and 44, the pay disparity grows, with women often receiving less than most men. When job titles, roles, and other compensable characteristics are considered, the disparity is much less. If not, the difference in the pay gap is wider.
The Longer Someone Stays Unemployed, the Lower Their Compensation Once They Start Working (Unemployment Penalty)
The unemployment penalty refers to the difference in compensation between an employed person and an unemployed person regardless of gender, all other factors being similar. The longer you stay out of employment, the higher your penalty.
Observations show that the unemployment penalty is more severe for women than for men. Women face a higher penalty gap, regardless of important reasons for being unemployed, such as career progress or education.
Men still face lower unemployment penalties even though their unemployment status wasn’t important such as career advancement.
How to Curb the Gender Wage Gap
Although there is still much to be done regarding the state of the gender pay gap, creating a conducive work environment for women is possible. Organizations can do this by making pay rates more transparent across the board and breaking up occupational segregation.
Similarly, they can avoid employment and motherhood penalties, make paid childcare leave more accessible, and make a more stable work environment.