Let’s Eliminate Gender Pay Gaps and Stimulate the Economy!
It is almost 2017 and we are still facing the issue of gender pay gaps…quite disappointing, if you ask me. But nonetheless, we have made some progress in narrowing down these gaps; however, that does not mean we stop there. There is still so much to be done so that we may find equality in the work force, so let us start small by discussing first how parental status has affected our wages, and second, theorize how we can all benefit economically if women’s wages were made equal to men’s wages.
I was recently watching a Ted talk where Sheryl Sandberg explains why there are too few women leaders in the workforce. One of the points she makes is that we women are not sitting at the table. Okay? So, how do we sit at this table? Her point is that we are not stepping up, but my question to her is how do we step up in these careers if we are stereotyped for wanting to spend more time with our families, or if we have yet to receive an education or the qualifications to step up? These are two possible reasons why the gender pay gap exists, and possibly the reason women are more discriminated against when finding and keeping a career.
Women have been given the role of nurtures and stepping away from this idea will take time. However, to do this, we must begin transforming the gender norms and make it acceptable for the “provider”, typically the man, to also spend time with the family. We must reach a point where women are not being stereotyped for something males should also be a playing a part in. Men too should be nurturers. Due to the assumption that women must place more time on household responsibilities than their partner, firms are left with the conclusion that women then have less energy to put as much effort into the careers as men would. Thus, the assumption that women need more flexibility due to the pressures society places on them to care for the children. Women are discriminated against because employers immediately believe every woman wants to start a family. The problem with this is that despite anti- discriminatory laws, there is no way of proving an employer of discriminating against you due to gender. We are left with less women in the work force, and a lower pay in comparison to men.
A difference can be seen in women who do not claim to want children. These women are particularly those who are focusing on their careers before considering the possibility of starting a family. The Economics of Women, Men, and Work by Fancine D, Blau showed statistics in which women who focused on their career before beginning a family had not experienced a gender pay gap. The study showed that women between ages 19 to 31 did not experience this wage gap because instead of beginning a family, they were building their qualifications for the work force. So, ultimately it is the lack of qualifications that also leads to the pay gap. The lack of qualifications is typically due to several factors, majority of which include the inability to pursue higher education. Though there is a no pay gap in these cases, remember that the pay gap is not only shown by gender but there are varied pay gaps due to being a woman of color.
Let’s take a moment to discuss the economy. Basic economic theories show that an increase in incomes lead to more spending. If we can bump up women’s pay to eliminate the gap between genders, we will allow women the ability to spend more money. So, they spend more money, what does that have to do with the economy? Disposable income helps to stimulate the economy by allowing people to help businesses through purchases or through investments. The more money people spend; the more benefits companies receive. The income effect will help bring a small boost to our economy by stimulating the circulation of money. Who wouldn’t want this?
