Question

Working women in the United States earn only three-quarters of what men earn. Consider each of the following explanations for this statistic, and say whether each could be true or must not be true in order to explain this fact. [LO 21.6] a. Women choose lower-paying professions (e.g., becoming a nurse rather than a doctor). b. Women are discriminated against when being considered for promotions or raises. c. Women are more educated and have more work experience than men, on average. d. Women are discriminated against in the hiring process. e. Women benefit from affirmative action in the hiring process.

Short answer

Explanations a, b, and d could be true; explanations c and e must not be true.

Step-by-step solution

Evaluate Explanation a

This statement suggests that the wage gap arises because women select professions that typically pay less. This could be true as occupational choice can contribute to differences in average earnings between genders.

Evaluate Explanation b

This explanation proposes that wage disparities are a result of discrimination during promotions or raises. Since discrimination in the workplace can lead to women earning less, this explanation could be true.

Evaluate Explanation c

This statement claims that women are more educated and experienced on average, yet still earn less. In reality, this would not explain the wage gap; instead, it would suggest that there should be no wage gap or that women might earn more. Therefore, this must not be true as an explanation for women earning only three-quarters of what men earn.

Evaluate Explanation d

In this explanation, the suggestion is that discrimination occurs during the hiring process, affecting women's earnings. Discriminatory hiring practices can indeed contribute to wage discrepancies, making this explanation potentially true.

Evaluate Explanation e

The argument here is that affirmative action benefits women in hiring. This would likely result in women having more opportunities or potentially higher earnings, not lower. Therefore, this could not explain why women earn less, and thus must not be true.

Key concepts

Occupational Choice

One reason often cited for the gender wage gap is occupational choice. This theory suggests that women tend to choose careers that traditionally pay less, like nursing or teaching, compared to professions such as engineering or medicine which are more frequently chosen by men. There are several factors influencing occupational choice, including personal interest, societal norms, and flexibility required for balancing work and family responsibilities. This notion doesn't assume that women lack ambition or capability but recognizes that societal pressures and personal circumstances heavily influence career decisions.

• Personal interest: Some women genuinely prefer jobs in healthcare or education.
• Societal norms: Society sometimes nudges women towards certain jobs deemed suitable.
• Work-life balance: Jobs with flexible hours are often necessary for women who balance work with family duties.

By understanding the influence of occupational choice on earnings, we appreciate the broader social and economic factors at play, which go beyond mere choice.

Workplace Discrimination

Workplace discrimination greatly impacts the gender wage gap, specifically when women are looked over for raises or promotions. Discrimination can be deliberate or systemic. Sometimes, women are unfairly viewed as less committed due to family obligations or judged harsher in performance evaluations. Both situations can prevent their advancement in the workplace.
Here’s how discrimination operates:

• Performance stereotypes: Women may be seen as less capable or less deserving of leadership roles, despite equal or superior performance.
• Unconscious bias: Many biases occur without malicious intent and are embedded in company cultures.

It's crucial to dismantle these barriers and ensure women have the same opportunities for advancement as their male colleagues.

Affirmative Action

Affirmative action programs are designed to promote equal opportunity in hiring and employment, often giving women and minorities a better chance at job openings and promotions. However, some argue that these can sometimes be perceived as giving unfair advantage and may not solve pay inequality issues if women are not paid equally within these roles. While affirmative action can open doors, it does not address the root causes of pay differences, such as negotiation gaps and ongoing discrimination.
Key points include:

• Opportunity vs. Equality: Opportunities might increase, but pay equality might not follow automatically.
• Misconceptions: Some view these programs as unnecessary, not realizing they aim to level the playing field.

Addressing the wage gap requires examining how affirmative action can be more effective in not just hiring but ensuring fair pay.

Promotions and Raises

Discrimination during evaluations for promotions and raises is another factor explaining the gender wage gap. Women might employ the same effort or produce the same results but still receive less acknowledgment through raises or promotions. Factors contributing to this include:

• Bargaining Differences: Men are often more aggressive negotiators, which can result in higher initial salaries or raises.
• Cultural Barriers: Workplace cultures sometimes favor aggressive individuals, punishing those who do not fit this mold.

Understanding these dynamics helps expose why equal opportunity in receiving promotions does not always translate into equal pay. Increasing awareness and adjusting evaluation criteria can be steps towards more equitable work environments.

Hiring Process Discrimination

Discrimination during the hiring process is a major contributor to the gender wage gap. This not only affects whether women are hired but also what they are paid from the outset. Initial pay disparities set the stage for future inequality. Here's how hiring discrimination can manifest:

• Initial Salary Offers: Women might receive lower salary offers compared to male counterparts for the same job.
• Job Classification: Women might be funneled into roles with less responsibility and lower pay.

Addressing discrimination at this crucial stage is essential. Initiatives like transparency in salary offers and unbiased job descriptions are positive steps towards overcoming such biases. Ensuring that women are hired and compensated fairly from the beginning can help reduce long-term wage disparities.