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SOC366H1 (16)
Chapter 6

P&R chap 6.docx

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University of Toronto St. George
Michael Reid

P&R chapter 6 sex differences in earnings  Sex differences in earnings occur in every occupation and in every country, although the magnitude of the disparities differs  Disparity in earnings between men and women is measured by the ratio of women’s to men’s earnings  Earnings ratio: calculated by dividing women’s average or median earnings by men’s indicates how much women earn for each dollar a man earns  Pay gay: short fall between how much men earn and how much women earn  Pay gap did not disappear with the spread of industrialization  Trends in the pay gap in US: 19 cent. men’s wages were low and women could barely support themselves on a fraction of men’s pay  Pay gap narrowed in mid 19 cent. because increased use of machinery reduced the important of strength  Decline in pay inequality were women’s increasing educative relative to men, enabled them to perform better paying jobs and the growth of white collar jobs  Men’s earnings rose between 1955 and 1970, followed by stagnation and slight decline  Women’s earnings slowly increasing until 1970, stagnated in 1970, then gradually rose again  Reasons for gap narrowed was that men’s real earnings fell at the same time that women’s wages grew  Peoples earnings vary by their colour as well as their sex  Segregation into different jobs based on workers’ race and sex was pervasive and many of the lowest paying jobs were reserved for African Americans of both sexes th  19 cent. brought new groups of workers into the racial/ethnic labor market hierarchy and employers, who regarded women and men of Mexican, Philippine, as cheap sources of labor, confined them to low paying jobs  All women earn less than men of their own race and ethnicity, and all earn less than non Hispanic white men  Wages for Asian American men tend to be closest to non Hispanic white men’s and wages for Asian American women tend to be slightly above those of non Hispanic white women  Men outearn women in all occupations but in some the sexes’ pay is much closer to parity than in others  Women in America lose hundreds of thousands of dollars annually because of their sex  In every state of the US and every country in the world, men outearn women although the size of the gap varies widely  Men tend to work more days per week and more weeks per year, thus size of wage gap depends on the unit of time being considered  Earnings ratio is lowest in the North African and the Middle Eastern countries. These countries tend to have low female labor force participation rates, signaling societal ambivalence about the propriety of women’s labor market participation  Summary: Pay gap in US and around the world has varied across time and place. Size of gap in this country varies by workers’ race/ethnicity, age, occupation, place they live and work  Non Hispanic white men’s earnings exceed other workers’, with black and Hispanic women particularly disadvantaged  Older women pay a greater pay penalty for being female than younger women, although the amount of the gap is sizable even for young women  Most decline in the pay gap in the 1980s stemmed from men’s falling earnings as well paying manufacturing jobs disappeared  Women spend less time than men at paid work due to 1. Childbearing responsibilities 2. Sex segregation P&R chapter 6 sex differences in earnings  Summary: sex differences in education and labor force experience favor men and contribute to their higher earnings  Adam Smith’s theory: compensating differentials: holds that
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