The gender pay gap that doesn’t go away

For every dollar Australian men earn, Australian women earn a whopping 83 cents – more than 20 per cent less than men. Why is that? Gee, could it be because men mostly set the salaries, do you think? And because it’s been that way for so long, it seems normal? Hmmm.
Of course, there is still extensive occupational segregation, with women clustered in lower-paid ‘women’s work’ jobs but that ‘reason’ doesn’t hold water. When we stack ‘women’s work’ up against ‘men’s work’ that requires similar education, experience, knowledge etc. etc. levels, the pay gap remains. We’re just paying women less than men for doing equivalent work.
Here’s a short (under 3 minutes) and very cute video that shows how capuchin monkeys feel about inequality of rewards for equal work. You will probably laugh out loud, so take care where and when you watch it!
Have you watched it? Good. Hands up if you would feel like rattling your cage if the person in the next cubicle earned more for doing the exact same or an equivalent job as you. Is that why a lot of organisations aren’t transparent about salaries and instruct staff not to discuss what they earn? Hmmm.
But it would pay Australian organisations, as well as the Australian economy, to divy up.
Business Insider examined the gender pay gap in relation to productivity over a 27-year period and found that the effect is negative; unequal pay, lower productivity. Organisations may save a bit of money but they lose more in terms of productivity. Halving the gender pay gap could increase productivity by 3% and eliminating the gap altogether would increase productivity by 5.7%.
It’s a no-brainer, really. When you pay fairly, it’s easier to attract and retain the people you need.
The arguments for social justice and pay equality have failed over nearly five decades. Maybe the argument for productivity and greater profits will do the trick.
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