Special Topic 9. Earnings Differences Between Men and Women.

Business

During last few decades the participation of women in the labor force has increased dramatically. However, the earning difference has not closed yet between these two genders. The women still earn 78% income that of men. Some policymakers point out that this difference in earning is attributed to the employment discrimination of the employers. However, this only a part and there is certainly more things to consider. The employment discrimination is not the only reason behind the earning difference between man and woman. The fact is that if an employer can hire a woman at a cost that is 15-20% lower than that of hiring a man with similar education, the employer will always prefer a woman because the profit seeking employer will see the difference in cost and will economize. As more employer hire women instead of a man the earning difference between the two genders will close. Also, the legislation of 1964 prohibits the employer to discriminate against race and gender. However, the never married women earn as much as their male counterpart while married woman don't. So it is not employer discrimination that causes the difference between wages of men and women.

During last few decades the participation of women in the labor force has increased dramatically. However, the earning difference has not closed yet between these two genders. The women still earn 78% income that of a man. Some researchers point out that this difference in earning is attributed to the employment discrimination of the employers. However, this only a part and there is certainly more things to consider. a) As the labor force participation rate doubled the average years of work experience of women are likely to fall. This is because, as more women join the labor force with little or no experience, the average experience will fall. b) The married woman will look for part-time jobs with more flexible shift. As more married women join the labor force the mean working hour of women relative to men will fall. c) As the married women will work for a lower wage and will get a low paying flexible shift job, the earning of women relative to men will also decline as the married women labor force participation rate has doubled.

During last few decades the participation of women in the labor force has increased dramatically. However, the earning difference has not closed yet between these two genders. The women still earn 78% income that of a man. Some points out that this difference in earning is attributed to the employment discrimination of the employers. However, this only a part and there is certainly more things to consider. As the never married women earn as much as their male counterpart, if men get a job that is physically demanding women are offered high paying jobs elsewhere. The earning difference in created by the married women as they are likely to get a job that is less physically challenging and has flexible shifts. On the other hand, men in order to get the job in manufacturing and construction often skip their college degree and thus have lower educational qualification than their female counterpart. So, it is unlikely that the wage difference will attribute to the fact that men are offered more physically challenged job. The jobs in manufacturing and construction are often high paying. Men are more likely to get these jobs because of its working conditions. Men in order to get the job in manufacturing and construction often skip the college degree as they get a high paying job before reaching collage. Therefore, men have greater opportunity cost of attending a collage. This decreases the share of men who pursue the college education.

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