Reasons for the gender pay gap

Since 1960, the feminization in the European work force is a phenomenon unquestionable. Indeed, today in France of 100 employed people, 47 are women contrary to 1962 where they were 34. In spite of this increase, sex is a significant decisive of professional position in working places (De Curraize, Y., Hugouneny, R., (2004)). This gender discrimination results through the gap of salaries between men and women. We consider in this study gender that gender gap defines oneself as a ‘measure of the difference between the earning of men and women’ (Andrew Barnard (August 2008) p.18). Certainly, a number of significant review and reports have revealed that women in both full time and part time work earn less than men. Therefore, it remains professional disparities between men and women. To understand this gender discrimination, our analysis focuses on pay according sexes.

Firstly, a current situation regarding women work will give basing on factors and reasons that have contributed to this situation. Secondly, a legal position will be analyzed through government initiatives set up to reduce this issue. Finally, the measures that organizations should and could take to eliminate gender pay gap will be examined.

First of all, this part will focus on the current situation regarding women work and will find the factors which are contributed to this situation.

Above all, it is necessary to define payment to understand our subject. Indeed, payment defines oneself as an income and all contractual terms and conditions including a basic salary and other benefits for example bonus, pension scheme, company car that could receive an employees.

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Today, the pay gap between men and women tend to decrease but it remains narrowed slightly. Indeed in the UK, the statistics revealed that pay gap between sexes is 12,2 per cent in 2009 while in 2008 it was 12,6 per cent. Therefore, sexes’ pay gap decreased however it has not removed. Moreover, according to Employee Benefits’ in Salary Survey (2009) the mean salary of men including rewards differs from £16,000 above the mean salary of women. (Jones, Ben (December 2009)). Furthermore, in regard to the median earning, it is noticeable that the average pay of man in 2006 is £11.71 contrary to women which is £10.24. Anon (11/9/2006) Sexe’s pay gap shrinks. We could wonder if the women work is being valued equally to men. According to Anon (01/11/1999), the women work is 20 per cent less valuable than men’s work.

However, it is difficult to understand the pay gap if pay is not associated to observable factors. In fact, to analyze difference of income between men and women, we have to add ‘the age, the region the occupation industries and sectors” variables (Andrew Barnard (August 2008) p.23). According to Appendices 1, 2 and 3, it is to say that these variables have a significant impact on earnings.

Firstly, if we focus on age effect on earning according to gender we can see that men progress faster than woman until 21-22 years old, then earnings increase at a similar rate until age 40 and after 46 years women earning are high than men. (See appendix 1) This tendency can be explained by the fact that women tend to return later to the working market due to their career breaks when they are pregnant. Secondly, if we choose the variable of occupational effects (See appendix 2) it is argueable that there is a difference of earnings between men and woman in managers and senior officials higher than administrative and secretarial occupations. In fact people who work within professional and technical occupations, career breaks are damaging people future earnings less who work within professional and technical occupations that means career is more flexible compared to senior officials occupations. Finally, in appendix 3 it can be seen clearly that women are submit to discrimination in manufacturing, agriculture and fishing, energy and quarrying sectors due to their lack of skills in this sector. Only, the public sector offers roughly the equal earnings according gender.

Finally, we can study the mentality of European Union members that know their feelings about the subject and know if for them it is natural that women work less than men in nowadays. (See appendix 4). The survey reveals that European’s opinions differ from one country to another. In France, Germany, Italy, the Netherlands and Portugal the majority of pooled people are discordant to this statement. Contrary to Greece, Bulgaria, Lithuania which are agree to say that it is normal that women work less than men. (European Commission (2009)) the results of this survey show very well that the mentalities are difficult to change and this contributes to discriminate women working.

Discrimination occurs ‘when one person’s wage is different from another otherwise identical person’s for reasons of non-productivity related characteristics such as gender’ Andrew Barnard (August 2008). Therefore, it is questionable why women are paid less than men. Andrews Barnard thinks it results from a “combination of discriminatory and economic reasons”.

According to De Curraize, Y., Hugouneny, R., (2004), allocation of time between productive and domestic spheres is often in favor or men. Indeed, the salary of women is often a supplementary salary whereas men are specialized in working area. Moreover, stereotypical perceptions of women still remains through a lack of flexibility due to their needs to reconcile demands of career and family, some negative effects of masculine organizational culture. As reported by the minister of employment, social cohesion and housing (2006), women are less paid than men because their working time is lower than men’s men working time. Indeed women work more frequently than men in part-time, they are doing more complementary hours but less lucrative than supplementary hours. In other part, men in average jobs are paid more than women in such that their supplementary hours are also in average better pay.

Moreover, the pay gap between men and women is not only due to discrimination. Indeed, Hakims (2004) argues that it is a scientific theory. Men and women have different main interests and they find their fulfillment through differ balance. Of 100 women, 20 are work centred, 20 are home centred and 60 are adaptive. And on 100 men 30 are adaptive, 60 are work centred and 10 are home centred.

Furthermore, it can be add also that women have a profile career easier to “damage” than men. The presence of children is of course a reason to cease activity particularly in women less qualified. Concerning women who have a high level of studies, maternity has an effect of working length with a transition of part-time to conciliate work and family life. Finally, women are concentrated in less lucrative fields often they are focus on health, social, teaching jobs at the expense of scientific and engineer field therefore we can speak about of occupational segregation (De Curraize, Y., Hugouneny, R., (2004)). Finally, Goldberg (1973) thinks that the male dominance in the working area could come from their hormones. Indeed, their attraction of competition, assertiveness, and dominant are due to their testosterone. Therefore, it is obvious for them to be in high hierarchy.

To conclude this part, we can consider that discriminal in pay, occupational segregation and the unequal impact women’s family responsibilities are three main factors which contribute to the gender gap.

In this second part, a legal position regarding women work will be given through government initiatives. The main actors who contributed most to progress in the area of gender equality according to survey of European Commission (2009) are associations representing women’s interests, national equality organization, trade unions, the European Institutions (European Parliament, European Commission, European Council), National public authorities, NGOs, and Employers’ representatives. Firstly, we will see that some convention, laws and ratification will create to reduce gender discrimination.

Firstly, on the European level, some texts have been ratified. First of all the principle of equality between men and women defined in article 119 of Roma Treaty (1957) which announces the equality of pay without discrimination based on sex. This implies a payment given for a same job being establish in the basis of the same unit of measurement and that the payment given for a job paid being the same for the same work position.

On the national level, the Equal Opportunities Commission (EOC) and United Kingdom Parliament have enforced The equal pay act in 1970 which is amended in 1983 based on prohibition of any less favorable treatment between men and women in terms of pay and conditions of employment. The term pay is interpreted in a broad sense to include, on top of wages, things like holidays, pension rights, company perks and some kinds of bonuses. Also, Sex discrimination Act dated of 1975 protects men and women from discrimination on the grounds of sex or marriage. Moreover, this Act is mainly in relation to employment, training, education, harassment, the provision of goods and services, and the disposal of premises. Other amendments have been introduced by the Sex Discrimination Act 1986, the Employment Act 1989, the Equality Act 2006, and other legislation such as rulings by the European Court of Justice. In February 2001, the EOC sets up Equal pay task force publishing a report to eliminate gender pay gap and almost try to understand it, take evidence and suggest commendation about how to close the gap through amending social economic and labour market policies to complement equal pay measures for instance flexibility, training opportunities. This report lays down 5 multi-levels to addressing the issue. The first one is ‘raising levels of awareness and developing a common understanding of what the pay gap means’, the second is ‘reforming and modernising the equal pay legislation’, then ‘capacity building to ensure that employers and trade unions know how to implement equal pay’, the fourth is ‘enhancing transparency and developing accountability for delivering pay equality’ and the final one is ‘amending social, economic and labour market policies to complement equal pay measures’ (Equal Pay Task Force Report (2001)). The law of 23 March 2006 has the same goal of Equal pay task force however this law leads to a sanction when there is no plan of curbing professional inequalities in companies. (Gottely-Fayet J. (Mars 2010))

James Purnell, Minister of State for Pensions Reforms (March 2007) would allow men to share more domestic responsibilities. As reality has proved that men are already doing more within the household, but they still do less than women. This pensions reforms stands for tackle to ‘stereotypical career paths (job ‘suited’ to women for example Women and Work Commission- Five ‘C’s), remove stereotypes embedded in organizational culture for instance women in support roles and reduce stereotypical view of men as managers’ (Managing diversity for equal diversity course slides). We have to notice also the Government’s Ten Year Childcare Strategy (2nd December 2004) which is setting up to improve parent’s life. It relies on 4 principles which include the choice and the flexibility which is means that parents have a large choice about balancing work and family life, the availability concerning families with children aged up to 14 who need it, an ‘affordable, high-quality childcare place’ is available in order to meets their expectations, the quality where a ‘high-quality provision with a highly skilled childcare’ is promoted and finally the affordability where families could be able to ‘afford flexible high-quality childcare that is appropriate to their needs’ according to the Government office for London (2004). And finally the Equality Act 2006 allowing to the British Government to introduce regulations outlawing discrimination on the ground of sexual orientation in goods and services in both Great Britain and Northern Ireland (the Sexual Orientation Regulations 2006) and a provision relating to the creation of a public duty to promote equality on the ground of gender. Finally, can be seen that government shows the will to remove discrimination through creative equal opportunities initiatives based on career-break schemes, work place nursery, women-only training programs, special holidays, work-sharing and part-time employment. (Firth-Cozens, J. and A. West (1990))

Government initiatives against discrimination are not enough to succeed to reach a total equality between men and woman. Indeed, other strategies within companies can be used to combat pay gap.

Firstly, according to Jones, Ben (December 2009) a greater transparency is necessary in the companies, the availability of pay showing detailed job evaluations. For instance, in the public sector equal pay monitoring is a compulsory requirement. Employees have to make audits to publish gender gap in order to aware on discrimination, review existing policies within their companies and to re-examine how your staff are paid. The audit results will help to identify and address pitfalls in pay systems. It will also suggest good basis for create new policies or improving old ones. If companies are enrolled in fair pay this allow to have a positive impact on staff motivation and retention. It will also improve trust in the employer/employee relationship. EOC Equal opportunities commission (2009) pointed out.

Some others measures should be taken to reduce the pay gap between men and women like impose penalties on company guilty of gender based pay discrimination, intensifying efforts to combat prejudice and generally negative accepted areas concerning women that is means challenging stereotypes; facilitate responsibility women positions through formal monitoring programs, remove barriers of inflexible working; improve access for women and men to sectors and jobs in which they are under-represented for example apply a fair recruitment and selection procedures and finally enhancing the standing of the sectors or jobs in which a majority of women are employed like combining work and family life, lifelong opportunities for women in training and work, embedding quality part-time work and improving career’s advice. European Commission Survey (2009) p.67

Moreover, EOC proposes a guide to employers on equal pay between men and women under the sex discrimination ordinance. Indeed, company can enroll in Equal Pay Policy in order to have a ‘good employment practice to maintain open communication with staff’. This policy permits to ensure to employees a clear understanding on problems relating to their career within their organizations and understand principles affections their remuneration throughout their working life within their company. The Equal Pay Policy should cover the following requirement in order to combat pay gap:

Some commitment are recommended like ‘organization’s commitment to support the principle of equal pay between men and women, an outline of the policies and practices undertaken by the organization to ensure pay equity, a commitment to carry out equal pay self-audits periodically and to take corrective actions if necessary, another one to provide resources to monitor equal pay practice in the organization, an account of actions taken and results obtained to validate compliance on equal pay under the Sex Discrimination Ordinance and the establishment of a mechanism to provide assistance to staff to address equal pay concerns’.

To sum it up Governments, organizations and institutions show their will to reduce and remove gender gap thanks to some Acts and laws such as the Equal Pay Act, Equality Act or Government’s ten year child care strategy. Also, some strategies are implemented within companies like the development of a certain transparency, audits, fair recruitment, and career advice. In spite of the reduction of gender pay gap, we notice that it still remains through some statistics which show discrimination in pay, occupational segregation and unequal impact women’s family responsibilities.

There are good reasons to be optimistic about the future because the majority of Europeans consider that it is not normal that a women work less than men therefore the mentalities are changing however to combat women work discrimination it is questionable if the image of the women should be less stereotype in the media?

Appendices

Figure 1

Andrew Barnard (August 2008) Modelling the gender pay gap in the UK: 1998 to 2006

Figure 2

Andrew Barnard (August 2008) Modelling the gender pay gap in the UK: 1998 to 2006

Figure 3

Andrew Barnard (August 2008) Modelling the gender pay gap in the UK: 1998 to 2006

Figure 4

European Commission (2009), Gender equality in the EU in 2009