The gender pay gap
Ximena and Diego joined the same company on the same day, in the same position and with the same training. Years later, she earns less than he does, and no contract says so in writing. The gender pay gap measures that difference between men and women, and its causes go far beyond someone paying less for the same work. At the end of the page you will come back to this question: how can a difference like this exist without anyone having decided it in the contract?
What the pay gap is and how it is calculated
Explain what the gender pay gap is and how it is calculated. How does it differ from direct pay discrimination (paying differently for the exact same role)?
Explain what the gender pay gap is and how it is calculated. How does it differ from direct pay discrimination (paying differently for the exact same role)?
In a company, the average salary for men is $\$2,000$ and for women, $\$1,800$. a) Calculate the pay gap as a percentage of the average salary for men. b) Interpret the…
In a company, the average salary for men is $\$2,000$ and for women, $\$1,800$.
- a) Calculate the pay gap as a percentage of the average salary for men.
- b) Interpret the result: how many fewer pesos does a woman earn for every $\$100$ earned by a man?
Structural causes: caregiving and motherhood
Explain two common causes of the pay gap related to maternity and to the concentration of women in certain sectors, and reason why neither of them appears written in…
Explain two common causes of the pay gap related to maternity and to the concentration of women in certain sectors, and reason why neither of them appears written in anyone's contract.
In a company, men and women in the same position receive the same base salary, but men receive many more "availability" supplements (being reachable outside working…
In a company, men and women in the same position receive the same base salary, but men receive many more "availability" supplements (being reachable outside working hours, accepting last-minute shift changes, etc.).
To analyze it, take these definitions into account:
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Gender pay gap: average difference between what men and women earn, normally expressed as a percentage of men's salary.
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Pay discrimination: difference in pay between men and women who perform work of equal value that is not explained by objective and justified reasons, but by reason of sex (direct if the rule or practice distinguishes by sex; indirect if an apparently neutral rule in fact harms one of the sexes).
- a) Is there a gap? Is there discrimination? Analyze the case using the definitions above.
- b) What would you review in a pay audit of that company?
How measurement changes depending on the unit chosen
The figure shows the average monthly salary of men and women across three sectors in an imaginary country. a) Calculate the pay gap for each sector as a percentage and…
The figure shows the average monthly salary of men and women across three sectors in an imaginary country.
- a) Calculate the pay gap for each sector as a percentage and rank them from highest to lowest.
- b) What hypotheses could explain why the gap varies so much from one sector to another?
Segregation, the glass ceiling, and key concepts
Distinguish between the pay gap, occupational segregation, and the glass ceiling, and give an example of each concept in any company.
Distinguish between the pay gap, occupational segregation, and the glass ceiling, and give an example of each concept in any company.
A supermarket chain discovers a pay gap of $12\ \%$: women make up the majority of checkout staff, while men dominate logistics and store management. a) Analyse the case…
A supermarket chain discovers a pay gap of $12\ \%$: women make up the majority of checkout staff, while men dominate logistics and store management.
- a) Analyse the case by distinguishing between horizontal segregation and vertical segregation.
- b) Propose a plan with three concrete measures and explain which indicator you would monitor to evaluate it.
Policies to reduce the gap
Assess these three measures against the pay gap: publishing average salaries by gender in companies, equal and non-transferable paternity and maternity leave, and female…
Assess these three measures against the pay gap: publishing average salaries by gender in companies, equal and non-transferable paternity and maternity leave, and female quotas on boards of directors.
- a) Explain the mechanism through which each measure would work.
- b) Which one do you find most effective in the long term? Defend your choice.
What Mexico does: laws, institutions, and figures
In Mexico, pay equality has legal and institutional backing. These are the instruments worth knowing:
| Instrument | What it establishes |
|---|---|
| Federal Labor Law | Equal work, with equal performance in the position, hours, and efficiency conditions, must receive equal pay. It prohibits discrimination based on gender or pregnancy. |
| General Law for Equality between Women and Men | It requires the State to design policies that guarantee equal opportunities, including in employment. |
| Maternity and paternity leave | The LFT grants 12 weeks of leave to the mother and only 5 working days of leave to the father: caregiving is unequally shared from the start. |
| "Labor Equality and Non-Discrimination" Distinction | A voluntary certification for workplaces that adopt good equality practices (a Mexican standard on the subject). |
| INEGI (ENOE and time-use surveys) | It measures income by sex and hours of unpaid work. With the ENOE, the gap in income per hour worked can be calculated. |
Go back to the beginning: Ximena and Diego can earn different amounts without any contract saying so because the difference builds up through indirect channels: caregiving and reduced hours, the motherhood penalty, availability bonuses, concentration in lower-paid sectors, and the glass ceiling.