The gender pay gap can be a problem from a public policy perspective because it reduces economic output and means that women are more likely to be dependent upon welfare payments, especially in old age.
Why does the gender pay gap matter?
Closing the gender pay gap will benefit women, and may also bolster business performance, strengthening the global economy (Noland, Moran, and Kotschwar, 2016). Women’s lower earnings perpetuate gender inequality, decreasing their independence and bargaining power (Wodon and De le Briere, 2018).
How does the gender pay gap affect society?
Persistent earnings inequality for working women translates into lower lifetime pay for women, less income for families, and higher rates of poverty across the United States. In each state in the country, women experience lower earnings and higher poverty rates than men.
How long will it take to close the gender pay gap?
The Global Gender Gap Will Take an Extra 36 Years to Close After the COVID-19 Pandemic, Report Finds. The time it will take for the gender gap to close grew by 36 years in the space of just 12 months, according to the World Economic Forum’s 2021 Global Gender Gap Report.
How can we reduce the gender pay gap?
Strategies for narrowing the gender pay gap
- Raise the minimum wage. …
- Increase pay transparency. …
- Unionize workplaces. …
- Implement fair scheduling practices. …
- Expand paid family and medical leave. …
- Increase access to child care. …
- Stop basing employee pay on salary history. …
- Improve work-life balance.
How does the gender pay gap affect mental health?
And a 2016 study from Columbia University that looked at the mental health consequences of gender wage gaps found that when women make the same amount or more than their male counterparts (who are equally qualified for their jobs), their likelihood of experiencing depression and anxiety are about the same.
Why do female dominated industries pay less?
Results confirm that occupational overtime increases and occupational part-time work decreases wages, indicating that occupations dominated by women pay less due to their ‘female- typical’ working-time arrangements.
What does the Equal Pay Act cover?
The Equal Pay Act (EPA) protects both men and women. … All forms of compensation are covered, including salary, overtime pay, bonuses, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits.
What is meant by equal pay for equal work?
Equal pay for equal work is the concept of labor rights that individuals doing the same work should receive the same remuneration. It is most commonly used in the context of sexual discrimination, in relation to the gender pay gap.