Pointing Fingers: Causes for the Gender Wage Gap

On October17, 2007, the Pittsburgh Tribune-Review reported that the Pittsburgh City Council President Doug Shields asked a private company to "determine whether a wage gap exists between men and women" city employees. The "wage gap study" of about 3,200 employees will help wage equality advocates push for change in the workplace by closing the gap between the earnings of men and women. The gap between the earnings of men and women in the workplace is an issue that is very much alive in workplaces across the nation. The issue has been addressed by lawmakers who have made laws to prevent gender wage discrimination and to provide remedy to those who may be victims of this type of discrimination.

Wage discrimination is a form of economic discrimination which describes "discrimination based on economic factors" such as wages. The cause for such discrimination against women may be the result of sexism, or prejudice based on sex. In the past, women have earned decreased wages for the same jobs at the same level of responsibility as men. Between 1954 and 1999 the wages of white women, in particular, increased at only half the rate of white men. Today wage discrimination against women persists. Fortunately, legislative acts have increased equal opportunity for women and substantially reduced this type of discrimination in the work place.

Despite the creation of laws to protect women from wage discrimination , there is an on going debate over whether or not the existence of a gender wage gap is unfair. Diana Furchgott Roth believes the difference in pay is fair because the "difference in income reflects different employment histories and career choices, not unfair pay practices". Roth believes that women's "work history" has been limited by society and custom. Throughout history, women have been the primary care giver of their children. Also, traditionally they were given the responsibility of maintaining the household. As a consequence, women's time in the working world has been relatively short and the amount of services available to the working women is limited.

The 1997 study which compared the wages of men and women in ten different occupations found that, on average, women earn $0.75 for ever $1.00 a man earns. Though this clearly displays the unequal of for women, it does not clearly show that discrimination is what caused it. According to Roth, it is important to look at factors other than gender to pinpoint a cause. She claims that "there really isn't much of a pay differential between men and women". Instead, the "average wage gap" is the result of women deciding on educational and career paths in a country where the "law has granted them equality of opportunity to do so".

Most educated women and make note of their salaries compared with men having the same level of education and working in the same field. Female Neurosurgeons made an average of $337, 031 in 2005. Meanwhile, male neurosurgeons having attained the same level of education as female neurosurgeons make approximately $487,000. Findings like this are "frustrating" to women and probably lead them to believe that discrimination, not level of education, is to blame for gender wage gap.

According to a February 2005 news article, the gender wage gap negatively affects men too because of the fact that in today's society, most women "contribute 50% or more to their household income". Initially, one may think, that the gap is a consequence of "women taking time off to have families". However, even when this this variable is taken into consideration women are still found to earn "at least 20 percent less than men". As shown by data, women taking time off of work to have families is not the major cause for wage disparity. Then, what is?

Legislation has put legal mechanisms, like the Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964, in place with the intent of rectifying the disparity by requiring gender-blind pay in the work place. In requiring that determination of wage be gender-blind, it is appears that lawmakers have concluded that the onus for the gender wage gap rests on gender discrimination and little else.

In 1963, Congress "denounced gender discrimination" because it brings down the standard of living for affected employees, prevents the work force from working at its full potential, leads to workplace conflict which negatively affects commerce, it "burdens the free flow of goods in commerce", and it is an "unfair method of competition" . They attempted to eliminate gender wage discrimination by passing the Equal Pay Act of 1963. The bill amends the Fair Labor Standards Act and prohibits compensation discrimination in employment.

The Equal Pay Act states that men and women must receive equal pay for equal work. Here, "pay" refers to all forms of compensation including "salary, overtime pay, bonuses, stock options, profit sharing and bonus plans, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits." The Equal Pay Act determines that two persons are doing equal work if their jobs "requires equal skill, effort, and responsibility and are performed under similar working conditions". Therefore, it is not necessarily important that the job titles be identical. Instead, it is far more important that the content of the jobs are equal on those four bases: skill, effort, responsibilities, and working conditions.

To decide whether or not employees are doing equal work, employers ought to consider experience, ability, education and training that serves the employee in performance of job duties; whether or not the amount of physical or mental exertion necessary to perform duties is equal; the degree of accountability required to perform the job; and any physical surroundings and hazards. There are few exceptions to the Equal Pay Act of 1963. These exceptions are considered "affirmative defenses" which allow wage disparity if wages are determined by "a seniority system, merit system, a system which measures earnings by quantity or quality of production; or by another factor separate from gender.".

It appears that the Equal Pay Act of 1963 has helped lessen the gap between men's and women's salaries. Women's salaries rose from 62% to 80% of men's earnings between 1970 and 2004. Still, the goal of the Equal Pay Act has not been realized. The EEOC encourages employees believing that they are victims of discrimination to come forward. Also, employers are encouraged to search their policies for possible conflicts with anti-discrimination law. Despite the fact that the issue of gender wage discrimination persists, there is progress being made. The EEOC in conjunction with law making bodies have set up provisions and enforce them to ensure that women and men will be paid equal wages for equal work.

There is no question that the gender wage gap exists. The only debate is regarding the cause of that gap. Is it due to discrimination, education, career choice, family raising, or even some combination of these factors? It appears that the enforcement of the Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964 have narrowed the wage gap for women by about 18% over the last 34 years. Still, the gap remains. Perhaps, then, discrimination is not the lone cause and women cannot expect law and policy, alone, to be their workplace saviors. Lawmakers appear to have assumed a parental role by erring on the side of caution, using law to prevent and repair discrimination wherever the potential and existence of it may be. The fact that the disparity continues to exist, despite laws targeting discrimination, suggests that the gap is due to a variety of factors. The factors are likely to be a combination of gender discrimination, education, career choice, and family raising depending on the employer and chosen field of work. Surely, if various factors are to blame for the wage gap, one cannot expect an abolition of it. Especially if anti-discrimination laws remain the sole remedy. It seems that the protection of the Equal Pay Act of 1963 and Title VII are very much needed. Especially, since gender discrimination in the work place accounts for a substantial enough amount of the wage disparity. It is clear that the enforcement of laws prohibiting discrimination have positively affected the salaries of women between 1970 and 2004.

Many female employees hope to work in a fair environment, but discrimination in the workforce is capable of quashing that desire and possibly harming morale, leading to career stagnation. For that reason, the anti-discrimination measures ought to continue be enforced. Legislation has done much to create a more even playing field for women in the workplace. There is still room for improvement. Taking a look at other likely causes for a wage gap, it seems that a woman's decision to attain a higher level of education or to work in a certain career will positively impact earning potential as much as an employers decision to discriminate or not discriminate. The decision to further education, venture into male-dominated fields, or sacrifice time off to raise a family, is a woman's choice. So, gender discrimination aside, women in the workforce need not be victims for long. A woman's wages are reflected in her choices.In asking whether unequal pay is fair or not, one ought to ask what caused the differential. Is unequal pay the result of gender discrimination, or is it the result of something less devious like "differences in other characteristics associated with gender" Studies conducted by economics professors Jacob Mincer and Solomon Polachek and Erica Groshen point to education, work experience, and choice of occupation as the likely causes of wage disparity today. Those who argue that educational level attainment is the cause for less pay for women, request that one consider older men and women in the work force. Today, women and men are attending college and are reaching virtually equal levels of education. However, prior to the 1980's this was not't so. Then, far fewer women reached the level of education men did. As a consequence, those, now older, women workers have been and are currently earning less thereby contributing to the present wage differential.