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SOC366H1 Study Guide - Final Guide: Gender Pay Gap, Motherhood Penalty, Maximum Wage

45 pages85 viewsWinter 2013

Department
Sociology
Course Code
SOC366H1
Professor
Stephen Reid
Study Guide
Final

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Lecture 8 Assessing the Relationship between Gender and Earnings
Powerpoint Chart: Red: women, Blue: men
- Female dominated jobs are paid less than male dominated jobs.
What is the role of gender in the processes?
How can we compare female dominated jobs and male dominated jobs?
* Gender wage gap and gender earnings gap are different.
- Wage gap: male and female differences in average hourly earnings, wage RATE gap
- Earnings gap: male and female differences in average total ANNUAL earnings
(Important) Much larger earnings gap than wage gap between men and women.
- Women are likely to work part-time; hours work
Chart: Full year full time workers, Blue: larger gap
Overestimate
Gunderson sociologist:
- men and women in the same job, controlling for the same experience and human capital, women make
90% of what men make, and 10% gap function of gender discrimination ; important to control external
variables that affect.
- We can’t really compare different productivity between men and women - effort, intensity of individual,
impossible to measure
Ross in Arizona: gender wage gap in stock traders service oriented contexts are performance-based
managerial discrimination due biases embedded in male and female performance
Merit based but based on the evaluation of someone with biases
Assessing Wage Rates
Male-dominated occupations:
*Overtime: Men more likely to work overtime than women (likely due to family responsibilities).
1. Industries: male dominated industries, more options to work overtime, increase the hourly wage,
impact of sex segregation
*Shift work: Midnight shift higher wage as it is undesired and tough, a “bonus” is even greater for night
shifts
Role of Human Capital (Education) - Chart
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- The more education, the more you get paid
- The value of human capital of men and women is not the same
- Different fields of study different jobs men and women get into
6% of Differences in gender wage gap
Zeng: motherhood penalty (being a mother and their wages and non-mothers)
- Wage gap among mothers highest among all women, with the highest level of education
- Career interruptions is way more costly when you’re in a male-dominated job, than when in
female-donated jobs
- Women family friendly fields more flexible not accurate at all; most female-dominations have
less flexibilities male-dominated jobs: more hours, but more flexibility and control over your
work
Experience/Tenure/and Hours Worked (Chart)
- How long have you worked, with one employer?
- women hourly making as much as men (95%). Gap is small in 0-2 yrs of experience.
- For women, The more labour market experience, the wider the gap there exists
- Women are more likely to have more part time job experiences than men due to childbearing as they
move on, and at the end, their increased job experience is not as valued because they are more like part
time
- Women come back to work and continue to work after parental leave, but the gap is already there and
will not close. Men got promotion when women left for family.
Men that left for paternal leave? A lot worse impact for men by leaving for family
- The notion of Masculinity: if records show you had a parental leave, it is shown as not as
committed
- Yet, those are Privileged males in some of the best male-dominated positions who are able to take
the time for leave
Chart on Marital status, comparing women as a whole compared to men
- Single women are more like men than married women.
Total Explained/Total Unexplained
- Only 56.6% of all the components is explained for variance in the wage gap
- Normally having to be at least70-75% This is an underestimation
***The Unexplained: the demand side explanation such as sex segregation, employer biases,
discrimination.
Assessing Wage Bias
* First Step: Pay equity = wage differences due solely to gender
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2 kinds of wage discrimination
1. Unequal pay for the same work: Gunderson situation; men and women in the same establishment in
the same jobs
2. Unequal pay for different work, but with the same value for the organization and the economy
pay equity issue
* Second Step: Identifying what we are measuring
Job as the Unit of Analysis
1. What a job is paid: Job class; mix of jobs in the same pay structure, pay structures: set of wages
applied to a job e.g. starting wage-maximum wage
- Take the maximum wage: removes effects of individual employee characteristics, such as seniority
and years of work experience
2. The worth of the job to the organization: Job value
- Skills and education needed to do the job; responsibilities of the job; effort the job requires;
working conditions of the job
3. Gender of the job: the composition of women in the job, the percentage of women
Calculating Wage Bias
If men and women’s jobs are worth the same, are men and women paid the same?
Goal: Gender difference, for instance, having male-dominated and female-dominated fields with the same
job value, should not matter.
Regression Model
Wages = a + bV (job value) + bF (%female)
First, add gender composition, second, add job value. Hypothetically, gender composition should not
matter in the variance of wages when job value component is added.
The relationship between gender composition and wages should be non-linear.
Tipping/threshold effect
Graph analysis
- Maximum salary increased by .2 unit increase of gender composition entering male-dominated jobs.
(percent of women in the company)
- As women are added, and become female dominated jobs, it shows decreasing maximum salary
Male Wage-Line Test “Proportional value comparison
- Male jobs that are more valued increased maximum salary
- It’s worth the same between men and women, but male jobs are paid more than women’s
Pay equity legislation in Canada
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