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The disparity in pay between women and men in similar jobs has narrowed over the past 25 years as women have entered traditionally male occupations. However, the ratio in earnings plateaued in the mid1990s, and the pay disparity continues to plague the United States labour force. While some of the disparity can be attributed to labour market behaviours and demographic characteristics of working women and men, discrimination remains a factor in explaining the pay disparity. This article will begin with a description of the scope of disparity followed by a discussion of possible explanations for the disparity. This will be followed by suggestions on how an organisation can identify and avoid pay disparities. The article will conclude with recommendations for resolution of the pay disparity between women and men in similar jobs.
The Scope of the Gender Pay Disparity in Similar Jobs
According to a recent survey conducted by the AFL-CIO's Working Women's Department, 87 percent of women surveyed identified equal pay as one of the most important legislative issues. Equal pay ranked higher than health care, family and medical leave, pensions and Social security (Selby, 2000: 48). This is important because in 2000, women held 46.5 percent of all jobs in America (Thomas, 2000: 58). Significant numbers of women have moved into a variety of traditionally male jobs throughout the occupational spectrum (Blau and Kahn, 2000: 4). Through the year 2005, the participation of women in the civilian labour force will continue to increase. Conversely, the participation of men will continue to decline (Guy, 1997: 243).
The pay disparity between women and men who do the same work has a serious impact on the economy. Such inequality directly affects each woman's purchasing power. On the macro level, wages and living standards become depressed, available labour resources are not fully utilised, labour disputes are instigated and the free flow of goods is hampered (Brady, 1998: 59). To understand the scope of the pay disparity and the extent it impacts American society, one needs to obtain a historical perspective of the notion of "equal pay for equal work."
The Basis of "Equal Pay for Equal Work "
The notion of "equal pay for equal work" is based on standards set by the Equal Pay Act of...