Gender Wage Gap - SheSight

Despite decades of advocacy and legislative efforts, women across racial and ethnic groups worldwide continue to earn less than their male counterparts. This unsettling truth underscores the urgent need for concerted action to address workplace discrimination, particularly in the realm of wages. Earlier this month, a World Bank Group report found that globally, women earn just 77 cents for every dollar paid to men. This difference has been cited in the past as an example of the “gender pay gap” – women earning less than men on average.

Different figures have also been given over the years across various reports, with some critics even disputing the existence of such a gap. The International Labour Organisation terms the gender pay gap as a “measurable indicator” of inequality between women and men.

International Commitments: A Call for Collective Action

On the global stage, initiatives by organizations like the International Labour Organization (ILO) and conventions such as the Equal Remuneration Convention of 1951 emphasize the imperative of eliminating wage discrimination based on gender. However, the World Economic Forum’s sobering projection that it will take 132 years to close the gender pay gap underscores the need for accelerated efforts and unwavering commitment from all stakeholders.

Examining Inequality in America

Goldin was honored for providing the first comprehensive account of women’s earnings and labor market participation through the centuries. Her pioneering research on gender inequality in work and family life shows how women went from being passive actors in the household and labor market to active participants who defined their fundamental identity and societal worth through their careers. As female education rose alongside technological advances such as refrigerators and the birth control pill, American society was profoundly transformed.

Goldin and Katz argue that for most of the 20th century, the United States led the world in democratizing education, resulting in unprecedented expansion of the U.S. economy and a more equitable distribution of its rewards. Instead of ending education at age 12 or 13, which was the global norm, the American education system offered huge gains to its people through the spread of high schools that were “free, secular, gender neutral, open, and forgiving,” says Goldin.

The mid-1970s marked a turning point in the United States, as educational stagnation and rising income inequality began to emerge. Goldin and Katz argue that widespread prosperity depends on rising education levels. As technology advances, we need more and better-educated graduates in our workforce. Expanding education’s reach and improving its quality appears to be the most promising investment a society can make.

Discrimination as a Factor: While factors such as education and experience contribute to the pay gap, entrenched gender discrimination remains a primary culprit. Women continue to face lower wages for equivalent work, undervaluation in feminized industries, and a ‘motherhood pay gap,’ perpetuating systemic inequality.

Steps Taken by India: India has enacted legislative measures to address the gender pay gap, notably through the Minimum Wages Act and the Equal Remuneration Act. Reforms such as the Code on Wages and amendments to the Maternity Benefit Act demonstrate a commitment to fostering gender equality in the workforce. Initiatives like the Mahatma Gandhi National Rural Employment Guarantee Act and the Skill India Mission have also played pivotal roles in narrowing the gap by empowering women economically.

Steps taken globally: According to the WEF, if the gender wage gap continues to close at its current rate in each region, it may take anywhere from 46 to 158 years for countries across the globe to eliminate the gap. North America—defined as Canada and the United States in the report—is at the far end of that continuum: It is not projected to close its gap for another 158 years. The good news is that many countries have taken innovative steps to shrink the gender wage gap, making critical progress not just for women but for working families across borders.

Policy trends abroad

In addition to implementing work-life supports, most developed and developing countries have taken innovative steps to close the gender wage gap. They include, but are not limited to: protecting workers from employer retaliation for discussing wages; expanding employer pay data collection efforts; implementing equal pay for work of equal value guidelines; using gender-responsive budgeting; providing credits for caregivers; and bolstering damages for victims of wage discrimination.

The Road Ahead: Urgent and decisive action is imperative to prevent further disparity and accelerate progress towards gender equality. The United Nations’ Sustainable Development Goal 8, supported by initiatives like the Equal Pay International Coalition, underscores the global commitment to achieving equal pay for equal work by 2030.

Overcoming Gender Discrimination in Workplace Remuneration: A Legal Perspective

Legal Precedents and Progress: The Path towards Equality Despite setbacks, landmark judgments like MacKinnon Mackenzie v. Audrey d’Costa have challenged discriminatory practices. This case highlighted that differentiation in pay based solely on gender constitutes sex discrimination, irrespective of job titles or classifications. Such rulings have paved the way for recognizing the fundamental right to equal pay under Articles 14 and 16 of the Constitution.

Conclusion: Towards Gender Equity in Workplace Remuneration Addressing gender discrimination in workplace remuneration requires concerted efforts from policymakers, employers, and civil society. Strengthening enforcement mechanisms, challenging discriminatory norms, and promoting gender-sensitive policies are crucial steps toward achieving true gender equity. By upholding the principles of equality enshrined in the Constitution and labor laws, India can move closer to realizing the vision of a fair and inclusive workforce where all individuals are valued and compensated based on their contributions, regardless of gender.

–Tishya Sharma, Lawyer, Content Writer with She Sight Magazine