Pay Gap Australia | Wages Between Gender | Wage Gap Law

Pay Gap Australia | Wages Between Gender | Wage Gap Law

Factors that contribute to the pay gap in Australia and why the difference is more significant in some industry sectors than others.
The labor market is composed participants who are basically men and women. The rewards of the labor market are wages. The concept of wages is complex and has to be considered critically by employers. One of the greatest concerns in the labor market has been the disparities in the mean income between men and women. Differences between wages received by participants in the labor market is measured by the gender pay gap.The differences arises due to various aspects that differ from one organization to the next(Cohen 2007). In Australia for example, the wages pay gap is computed on the basis of full-time weekly earnings excluding overtime and salary sacrificed pay. Currently, the wage pay gap in Australia stands at 17.5%. The gap has been fluctuating with small margins but the figure has remained unchanged overtime. Differences in income levels of men and women are, for this reason, an important economic and industrial aspect worth consideration.
In order to address the disparities in the pay gaps, it is important to examine the possible reasons as to the existence of remunerationdifferences between men and women. Why does the difference exist? Well, the answer to such a query is often critical and complex. However, thereal explanation is the fact that there exist a range of factors responsible for the occurrence of the pay gaps. These factors range from historical, social, behavioral and labor market factors (Clark & Drinkwater 2007). These factors have collectively have led to pay gap differences. More often than not, the causes of gender pay gap are usually intertwined and related. In this view, it can be noted that women have been the primary victims of scanty pay. Most of the women earn less

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Pay Gap Australia | Wages Between Gender | Wage Gap Law

Pay Gap Australia discrimination is evidenced when one sex is treated unfairly. There are two categories of gender biases: Pay Gap Australia | Wages Between Gender | Wage Gap Lawdirect and indirect sex discrimination. Direct discrimination is conspicuous and openly practiced with unfairness leveled against a particular person on the basis of sex. The existence of different plans and choices in education, jobs and family are instituted in favor of men and against women constitutes indirect discrimination (Rodgers & Rubery 2003).  Indirect biases can also be seen in the case where preference is considered in the selection of careers designed for men while the low paying and undervalued jobs are designed for women.

In some organizations, gender is usually a great determining factor in order to fit in a given career and do certain errands.Many are the speculations levelled against the job profiles and professions that best suit the women and men in the labor sector. Others have it that women should only carry out specific chores while the heavy and professional jobs should be left out for men. These assumptions bring about the decisions made when applying for jobs. Nevertheless, these suppositions are the main cause of extended gender pay gaps.

In a study conducted by NATSEM, it was estimated that 60% of the pay differences arose as a result of gender biases as well as other related factors brought about by female-oriented factors. In actual sense, it is estimated that seventy to ninety percent of the Australian managers working on a full time basis have huge pay gaps and the variation in the income levels is not as a result of personal, work experience, family or industrial factors as well (Clain & Leppel 2001).It is however postulated that 70% of the gap is due to factors associated with being a ‘female.’

However, in recent surveys, women who represent 50.2% of the Australian population and 45.3% of the national workforce saw the number of the female workforce surge steadily especially in the year 2012. In 2008, for example, the female population that enrolled in tertiary education in Australian Universities accounted for approximately 55% of the total student population. In addition, in the labor market, the finance industry has the widest wage gap that accounted for about 32.2% of the mining sector following closely with about 27.2%.

Pay Gap Australia | Wages Between Gender | Wage Gap Law

Career Differences.

The balance between the paid and unpaid work undertaken by men and women in their lifetime.Notably enough, women still take social tasks without compensation in the society. Low payments obtained from undertaking such tasks affects the development and occupations of women.This is because, it leads to other errands being seen as ‘family-friendly’ as compared others (Mitra 2003).  Whenever women who are mostly associated with the ‘family-friendly’ chores take a break or even attempt to work part-time, this only reduces their already meager pay.

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