Gender Wage Gap in the Labor Market

Gender discrimination or gender wage gap is a significant problem in the United States of America (USA). Based on the neoclassical economics approach, the demand and supply are the primary driving forces of the production, consumption, and pricing of products and services. Heidi Hartmann and Jessica Milli assert that the three major features of women’s labor in the USA include females receiving less pay than men, income inequality, and occupational segregation (Hartmann & Milli, n.d.). Despite women providing similar services and working in the same working environment as their men counterparts, they are not compensated equally. For a long period, many organizations believe that females are not best suited for specific jobs or careers, particularly the ones involving technical activities. In that light, the demand for talented or highly skilled males in such areas overweigh that of females. Other companies have the notion that men are the family breadwinners, which is why they should be paid more than women, even if they are in the same job positions and the scope of work. Gender wage gap remains an issue that is driven by various causes. Besides, it does not merely mean that females cannot handle jobs that were meant to be males only in the past.
Marxist or radical political economics approach shows how capital, politics, and labor enhance the production of goods and services. Capital is crucial since the invested money is expected to make profits. On that note, gender discrimination occurs since the capitalists or investors put their money where it will make more profits. These individuals control numerous factors of production, including who they are going to hire in their companies. Traditionally, women’s primary duties were to stay at home, give birth, and take care of their husbands and children. They were not expected to work. Except currently that females have made significant changes in the labor market by proving that they can take duties that were believed to be those of males, some employers still believe that women are not better than men. In addition, some leadership positions are not perceived as good fit for females despite their academic and professional qualifications. These are some of the challenges, based on the radical political economics approach that have contributed to the problem of gender wage gap. Women labor force participation significantly started to change in the mid-1950s (Goldin & Mitchell, 2017). However, regardless of many females joining education institutions and acquiring knowledge and skills, gender discrimination limit their capabilities and compensation in numerous workplaces in the USA.
Gender wage difference in the labor market can be examined using the institutional economics approach. In particular, institutional economics show how organizations affect the economy. Institutions significantly affect the development, performance, and functioning of the economy. Occupational segregation of a specific gender-race group exists in the labor market (Alonso-Villar & Rio, 2017). For instance, African American females are compared to their white counterparts. In many higher education institutions, males’ capabilities, including talents and knowledge acquisition, are more recognized than those of females. Since boys are considered better in various fields, especially mathematics and sciences, there is a notion that they can become better workers than girls. When it comes to institutions, some of them are known to recruit only males in specific jobs. Females are usually considered for low-paying jobs, such as receptionists and secretaries. During job promotions, some institutions emphasize men leaders and disregard women even if they have qualified. When females provide similar services to their male counterparts, some firms do not compensate them equally. The notion that only men can become effective leaders hinder many women to assume leadership or top-ranking job positions. In the long run, gender discrimination persists and the labor market does not consider it as a problem. That is why many females serve under males regardless of their education qualifications, prowess, or expertise.
Indeed, there are situations when women’s assertive behaviors lead to weakened financial or social backlash. Females are usually hired in low-paying jobs, have fewer opportunities, and job promotions due to gender-based stereotypes. They are consistently underrepresented in upper managing and leadership positions. Specifically, the behaviors associated with effective management are commonly correlated with masculinity, including power, independence, self-reliance, and assertiveness. Nevertheless, stereotypical feminine traits, namely communality, helpfulness, and caring hinder women from being given jobs with higher responsibilities (Tinsley, Cheldelin, Schneider, & Amanatullah, 2009). In addition, the gendered workplaces are structured in a way to reward traits and values, including aggression, rationality, and emotional stability. On that note, females are weakened socially and financially since it is challenging for them to secure high-paying jobs, which are usually dominated by males. Women are not discredited or unrecognized in various leadership positions since they cannot achieve outstanding outcomes. However, society perceive their assertive behaviors as not fit for effective leaders. Some organizations show it directly or indirectly that males are the only ones who can become good leaders. For those females who are fortunate to overcome all the barriers and rise in top leadership positions, they encounter numerous gendered challenges, particul...