Question

There is no doubt that a ‘gender pay gap’ exists in Australia and many other countries.

1. Why do some economists think that discrimination in the labour market is an unlikely explanation for the persistent inequality in earnings between women and men? 2 marks.
2. Can you think of any plausible objections to their argument? 2 marks.

Answer 1

Gender pay do exist in most counrties in the world not only in Australia.It is a system of practice which should be stopped and everyone should be paid equally for the work they done rather than discriminating them on their gender.

a.A possible signal of labor market discrimination is when one group is paid less than another.Some reseaches show that gap between the earnings of men and women havent vhanged much since the 1970s .Women are more likely to be in clerical jobs and work in the service industry rather than labour so they ar losing out most of the labour works and this creates a gap and discrimination,and many economists do believe this is an unlikey explanation for the persistant inequality in earnings between men and women.

b.LIke it can be said it is an explation and does not give the full picture.yes labour works are more suitable for men than women but they should be alteast be given the chance to do these types of works,all the works should be disrtibuted equally based on their skills not based on their genders.If a country wants to stride forward both men and women should work equally and should be paid equally,discimination should be stopped.