Gender Pay Gap

The Gender Pay Gap

Generally, the gender gap is a phenomenon, concept, or ideology ascribed to the difference or disparity between the male and female genders under any circumstance. This gap could be a recurring or a historical case, depending on the context being considered. Apart from this, careful observation at the workplace, institutions, communal gatherings, and even political seats could suggest if there is a gap in the representations of these genders or not. However, the benchmark of this post will be whether the gender pay gap exists in America, especially in the STEM fields.

The gender pay gap refers explicitly to the difference in income or earnings between men and women for doing the same job. It is the difference between the average gross hourly earnings of both men and women, which is then evaluated against the average gross hourly earnings of men. Experts have assessed this disparity in various methods, but the results all point to the same conclusion- females earn less than males do, even in the same field, and the disparity is far worse for most women of color. Although the percentage of women who complete higher education has risen rapidly over time and now exceeds that of males, women remain under-represented in math-intensive science professions. As a result of the underrepresentation, the female gender and their efforts towards positive productivity face the risk of being overlooked or unnoticed. Therefore, they become less recognized financially or in terms of other corresponding benefits.

In science, technology, engineering, and math (STEM), women make up only 28% of the workforce, and men greatly outnumber women studying in most STEM subjects in colleges.

Gender disparities are particularly pronounced in some of the future's fastest-growing and highest-paying jobs, such as computer science and engineering. Women make up 48% of the U.S. workforce, but they only make up 24% of STEM employees, according to the Census Bureau's 2009 American Community Survey (ACS). In other words, half as many women work in STEM fields as would be expected if gender representation in STEM fields equaled that of the entire workforce (Anthony and Cheridan).

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A salary disparity based on gender is likely to have several explanations in the majority of job openings, many of which fall into one of these two categories, "glass ceiling" and "sticky floor." Glass ceiling is any unwritten or uncodified social barrier that prevents a particular gender from progressing in their careers. For instance, a woman can decide not to apply for a promotion since she knows she will need to work part-time due to caregiving obligations. In this case, natal responsibilities could be a form of glass ceiling. Though it started as a colloquial phrase, it is a contemporary issue in the U.S. that has even extended to minority segregation, more reason the Glass Ceiling Commission of 1991 was established to look into cases arising in this area (Julia).

On the other hand, sticky floor is a persistent disadvantage for women, whether they are just starting in their careers or nearing retirement. When making a job offer, a manager can presume that women are less skilled or suitable for a position; thus, they will give a lower compensation.

While most STEM workers claim that their gender has had no impact on their achievement, the women faction in STEM positions is more likely to claim that their gender has made it more difficult for them to succeed at work due to gender preconceptions among coworkers. Women working in computer positions, those working in workplaces where men outnumber women, and women with advanced degrees, who are more likely to work in higher-level, professional positions than other women in STEM jobs, have more workplace discrimination and concerns about gender inequities.

Although a higher share of women in STEM jobs say they have experienced at least one form of discrimination at work because of their gender, similar percentages of women in STEM jobs and non-STEM jobs say they have personally experienced sexual harassment. Women in STEM jobs also tend to share similar perspectives with working women in non-STEM jobs regarding the value of gender diversity and the amount of attention paid to gender diversity at work (Cary and Kim).

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In the United States, the gender pay gap is still a topic of discourse till date. Despite recent improvements, the average woman still earns 8.6% less than the average man in the workplace. The income disparity between men and women is not only complicated and nuanced, but it is also persistent. The salary gap between the male and female genders has only narrowed by 4 cents in more than a decade due to a lack of current and complete equal pay reform. If the current trends persist, women are not expected to achieve salary parity with men until 2059.

Worthy to note, according to the European Commission, the pay difference has a significant impact on pensions. Women have lesser pensions than males because their lifetime earnings are on average 17.5 percent lower (based on 2008 statistics). As a result, older women are more likely to be poor than men; in fact, 22% of women aged 65 and above are in danger of poverty, compared to only 16% of males. From a public policy perspective, the gender wage gap poses a threat to humanity because it diminishes economic productivity and makes women more likely to rely on welfare assistance, especially as they get older. Consequentially, there is a pressing need for organizations to concentrate on strategies to close the gender pay gap.

Some practical recommendations to ensure a better pay system would be:

  • Proper Gender Ratio - Since it is evident that a gap in the payment system can be traced to underrepresentation and unequal participation of the two genders in contemporary fields, women making impacts and several achievements should be attracted and given gainful opportunities to exhibit their talent and expertise more. When more female hands are on deck, more impacts would be recorded and attributed to the female gender, and more financial recognition would be allocated as required.
  • Pay Transparency - Carrying out a regular audit of how much companies pay male and female employees should be done. Not only does it aid transparency, but the findings of the pay audit would also reveal the lapses in pay and benefits packages for employees. As a result, it pushes organizations to revisit the methods used to calculate wage allocation and promotion packages. With these put in place, the gap will not only be eliminated, but payment allocation will also be fair.
  • Revisiting KPIs - KPIs for promotions, bonuses, and other perks should all be evaluated at a regular interval. When it comes to receiving compensation, getting promoted, or enjoying a pay increase, many organizations are unknowingly biased in their considerations. For instance, reasons like the overall hours spent on the job should be revisited and reconsidered. In addition, several unavoidable circumstances can contribute to these time-offs, like the need to close at work early to attend to family needs or postnatal responsibilities.
  • Men should also be encouraged to take parental leave - Even though shared parental leave was introduced in the U.K. in 2015, many new fathers have discovered that their employers are not very accommodating regarding how much time they take off to care for a newborn. Men should be encouraged to take shared parental leave so that their partners can continue to work. This will go a long way toward closing the pay gap between men and women.
  • Employees should be encouraged to work from home - Flexible working hours allow women to balance caring and childcare responsibilities while keeping their professions and sources of income. This, coupled with more flexible working hours, can benefit organizations by increasing employee engagement and productivity. The more flexible and friendly the work environment is for an employee, the more productivity, and as such, pay should be allocated as the work demands and the results generated.

"When more women work, economies grow...Women’s economic empowerment boosts productivity, increases economic diversification, and income equality in addition to other positive development outcomes."

U.N. Women

References

  • Anthony, Martinez, and Cheridan, Christnacht, “Women Are Nearly Half of U.S. Workforce but Only 27% of STEM Workers.” United States Census Bureau, 2021, https://www.census.gov/library/stories/2021/01/women-making-gains-in-stem- occupations-but-still-underrepresented.html
  • Carmen Botella, and Silvia Rueda, and Emilia Lâpez-Iñesta, and Paula Marzal. “Gender Diversity in STEM Disciplines: A Multiple Factor Problem.” Entropy, vol. 21, no. 30, 2019, www.mdpi.com/journal/entrop
  • Cary, Funk, and Kim Parker, “Women in STEM see more gender disparities at work, especially those in computer jobs, majority-male workplaces.” Pew Research Center, 2018, https://www.pewresearch.org/social-trends/2018/01/09/women-in-stem-see-more-gender-disparities-at-work-especially-those-in-computer-jobs-majority-male-workplaces/
  • Center for American Progress, “Wage Gap by the Numbers,” January 6, 2009, https://americanprogress.org/issues/women/news/2009/01/06/5460/wage-gap-by-the- numbers/
  • European Commission "Closing the gender pay gap," 2011.
  • Julian, Kagan. “Glass Ceiling.” Investopedia, 2021, https://www.investopedia.com/terms/g/glass- ceiling.asp
  • Reinking, Anni, and Barbara Martin. “The Gender Gap in STEM fields: Theories, Movements, and Ideas to Engage Girls in STEM.” Journal of New Approaches in Educational Research, vol. 7, no. 2, 2018, pp. 148-153
  • Sandra McNally. “Gender Differences in Tertiary Education: What Explains STEM Participation.” Centre for Economic Performance.
  • U.N. Women, “Facts and Figures: Economic Empowerment,” https://www.unwomen.org/en/what-we-do/economic-empowerment/facts-and-figures
  • Valeria Lacarte and Jeff Hayes, “Women’s Median Earnings as a Percent of Men’s 1985-2018 (Full-time, Year-Round Workers) with Projections for Pay Equity, by Race/Ethnicity”. Washington: Institute for Women’s Policy Research, 2019, https://iwpr.org/publications/pay-equity-projection-race-ethnicity-2019/