Question

2018 average figures (i.e.: not job-specific) show women working a full-time job earning 81.1% as much as male counterparts. When controlling for occupational distributions this gap noticeably narrows (although it does not eliminate the disparity).

Part 1.

Although a gender pay gap is unfortunately still present even when controlling for occupational distributions, explain why the gap narrows. In other words, why does an average (woman/men) pay gap figure show a larger degree of disparity? Make sure to use proper terminology from your textbook (chapter 19).

Part 2.

As the country's economic activity shrinks and only certain 'essential' industries continue to work (ex.: healthcare, mass transit, fire and public safety, military, food and agriculture, energy and infrastructure, media, mail and few others), how do you believe gender pay gap statistics will be impacted as a result of COVID-19? Will the pay gap widen or narrow?, why?

Please answer in 75-150 words total

Answer 1

Part 1)

The core reason for existence of gender discrimination in wages is the fact, that some job types demand more manual labour force and therefore, the expectation and mindset of the top management is that these jobs should remain men centric. For example, manufacturing sector employees more males than women across the globe. This is because men are thought to be more enduring and have more physical strength which may be required to undertake these job roles.

On the contrary, industries such as Information and Technology, Aviation, Tourism etc employee women in higher numbers as they think they bring in grace to the business which is required more in these particular employment sectors respectively.

Part 2)

Due to the Corona Virus crisis, economists across the globe believe that women would lose their jobs or would themselves not participate in the industry as their role in the family towards taking care would increase. The resultant would be that the gap which exists currently between male and female wages is expected to further rise.

Please feel free to ask your doubts in the comments section.