In this paper the issue of the gender pay gap, a challenge women are still faced with at the workplace, will be considered. It will deal with the definition of the gender pay gap and the status quo in the European Union, especially in Austria. What is more, reasons for its existence, measures and policies how the gap can be closed will be outlined and the benefits in case of the closure will be presented, too. Closing the gender pay gap is an important step towards gender equality and does not only benefit the female workforce itself, but also companies and the economy as a whole.
At a glance
- Grade: 1.0 (1.0 is the best grade)
- Discusses a cited twins study involving 52 students
- Examines Finland’s Action Plan for Gender Equality 2012-2015
- Discusses Iceland’s parental leave model
- 41 sources in the bibliography
Table of Contents
1) INTRODUCTION
2) DEFINITION OF THE “GENDER PAY GAP”
3) STATUS QUO
4) REASONS FOR THE GENDER PAY GAP
5) MEASURES AND POLICIES TO CLOSE THE GAP
5.1 GOVERNMENTAL POLICIES
5.2 NON-GOVERNMENTAL MEASURES
6) BENEFITS
7) CONCLUSION
Objectives and Themes
This paper examines the gender pay gap in the European Union, with particular attention to Austria. It asks what the situation is, why the gap persists and which policies and measures could help close it.
- Definitions and measurement of the gender pay gap
- Pay disparities in the EU and Austria
- Occupational segregation, caregiving and career opportunities
- Governmental pay transparency and equality policies
- Childcare, parental leave and other non-governmental measures
- Potential benefits of equal pay
Excerpt from the Book
4) Reasons for the gender pay gap
After having described the situation of the gender pay gap in the EU and in Austria in particular the next important aspects that have to be analysed are the reasons for the gender pay gap.
Julie Coates, banking and capital markets leader at PwC outlines that at the time of graduation women receive 4% less pay than men, though they have the same qualifications, age and motivation to work. Furthermore, Coates outlines that job prospects are limited for women because they are considered to get pregnant which means a loss of working power for the company. For that reason Julie Coates recommends promotion quotas: a certain percentage of leading positions in a company should be occupied by women. (Bullock 2016)
The Justice of the European Commission (2015) outlines various factors influencing the gender pay gap in a negative way. Apart from the conscious underpayment of women, the job women do is often considered not to be of equal value compared to the job men do. Especially when men have to carry out physical tasks or women are responsible for people the gender pay gap drifts apart enormously. Some other reasons are that women tend to prefer working in the health and educational sector. They also can be found in lower-skilled jobs, like in supermarkets, as hairdressers or cleaning staff. In those mentioned sectors the paid wages are lower in general (The World Bank (ed.) 2011, 204-205).
The incompatibility of family and career often force women to take on low-skilled, low-paid part-time jobs, which makes it impossible for them to accept higher positions. Another reason for the gender pay gap is the underrepresentation of women in politics and in management positons of companies. (Justice of the European Commission (ed.) 2014, 6-7) In 2014 only 25.9% of the members of the supervisory board of the largest companies in Austria were women who only received 82.9% of the income of their male colleagues. 20.3% of management positions in 2014 in Austria were occupied by women who were only paid 73.1% of the income men receive in the same management position. (Der Rechnungshof (ed.) 2015, 20-22).
According to the World Development Report 2012 (The World Bank (ed.) 2011, 17-19) the fact that women spend more time on running the household and caring for the children has a further impact on the gender pay gap. The gap increases and women have less time for being an active part on the labour market. Additionally women are often confronted with obstacles when they decide to work in a certain (male-dominated) business sector. Employers then wrongly reason lower output and productivity from the fewer women in this field of business.
Chapter Summaries
1) INTRODUCTION: The introduction sets out questions about the extent and causes of the gender pay gap and ways to close it, focusing on the EU and Austria.
2) DEFINITION OF THE “GENDER PAY GAP”: This chapter presents definitions and a formula for calculating differences in earnings.
3) STATUS QUO: The paper discusses EU and Austrian figures, a cited twins study and the significance of Equal Pay Day.
4) REASONS FOR THE GENDER PAY GAP: This chapter considers pay discrimination, occupational segregation, unequal care responsibilities and barriers to advancement.
5) MEASURES AND POLICIES TO CLOSE THE GAP: The author considers governmental policies alongside measures involving employers, childcare, parental leave and education.
6) BENEFITS: This chapter discusses potential benefits of equal pay for workers, employers and the wider economy.
7) CONCLUSION: The conclusion reflects on the continuing challenge of pay equity and the roles of policy and social attitudes.
Keywords
gender pay gap, equal pay, gender equality, European Union, Austria, wage transparency, occupational segregation, parental leave, childcare, workplace discrimination, equality policies, gender stereotypes
Frequently Asked Questions
What is this paper about?
It examines the gender pay gap and approaches to closing it in the European Union, with a particular focus on Austria.
What are its central themes?
The paper covers definitions, pay disparities, their potential causes, equality policies and the possible benefits of equal pay.
What questions guide the paper?
It asks about the current situation of the gender pay gap, its reasons and how it can be closed.
What research method does the author use?
The paper draws on published statistics, policy documents and existing research to discuss the issue and possible responses.
What does the main discussion cover?
It examines the gap’s status and causes before considering governmental policies and non-governmental measures.
Which keywords characterize the work?
Key terms include gender pay gap, equal pay, Austria, gender equality, wage transparency, childcare and parental leave.
How does the paper use a twins study?
It describes a previously published study of male and female student twins when discussing gender and career development.
Which international policy examples are discussed?
The paper considers pay reporting in several European countries, Finland’s equality initiatives and Iceland’s parental leave model.
How does childcare feature in the discussion?
The author considers accessible childcare and parental leave as measures that may help parents combine employment and family responsibilities.
- Quote paper
- LLM BSc Elisabeth Klemens (Author), 2016, Another challenge at the workplace. How to close the Gender Pay Gap in the EU with a special focus on Austria, Munich, GRIN Verlag, https://www.grin.com/document/1298522
