Gender-Based Compensation Discrimination in the USA

Gender-Based Compensation Discrimination in the USA

  1. Introduction

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  1. Thesis Statement: Because of the persistent multiplication of income inequality between male and female workers, there is need to explore the situation and enact appropriate measures to address compensation inequality between men and women in the United States of America.
  1. Body Paragraph: The Gender Differences Controversy and Income Gap
  1. Gender differences are hinged on various issues such as, treatment, fairness, rights, respect and privileges.
  2. Some companies tend to compensate their female workers less than their male counterparts in spite of performing similar roles towards the organizations growth and development (GAO & Sherrill, 2009).
  3. Despite the enactment of equal opportunities laws and the emergence of women as skilled as well as knowledgeable employment, there is evidence that graduate women are still undervalued as well as underutilized compared to male employees (Grey-Bowen & McFarlane, 2014).
  4. Lips (2008) observes that labor market studies show a decline in total income gap between different sexes. However, inequalities still exist.
  1. Body Paragraph: Causes of Gender Based Income Differences
  1. Some of the causes of gender based compensation discrimination emanate from the notion that men have superior skills, managerial as well as leadership skills compared to the females.
  2. The common historical issue that has contributed to income inequality relates to the different societal roles played by both men and women (Grey-Bowen & McFarlane, 2014).
  3. Another cause for the income inequality is the difference in work experience as well as investment in human capital between American men and women (Grey-Bowen & McFarlane, 2014).
  4. According to Allyn (2003) computer knowledge is closely linked with higher pay and is a significant reason for men earning more than women.
  1. Body Paragraph: Theories about Gender Income Differences
  1. Grey-Bowen and McFarlane (2014) points out that according to human theorists, the income gap happens due to the differences in return on investments. Men make greater investment in their personal skills thereby increasing their productivity.
  2. Structural theorists contend that “if men are often employed at monopolistic businesses and are employed in the primary labor market, they will earn more than women in the competitive secondary labor market” (Grey-Bowen & McFarlane, 2014, pg 70).
  1. Body Paragraph: Closing the Gender Based Income Compensation Difference
  1. Women’s real income should rise at a faster speed compared to that of male employees, and with economic growth both men and women should realize an increase in their real wage.
  2. Powerful women and women groups should agitate for equal opportunities legislations similar to the Lilly Ledbetter Fair Pay Act as well as the Paycheck Fairness Act.
  3. Legislations similar to the Lilly Ledbetter Fair Pay Act can help in correcting discriminatory pay as it was in the case of Lilly Ledbetter.
  4. The Paycheck Act enables victims of payment discrimination to recover damages. The government must collect this data to close loopholes that lead to income discrimination (Grey-Bowen & McFarlane, 2014).
  1. Conclusion
  1.  Call to action: There is need to close gender based income gap for women to attain equality and enjoy their freedom which they are legally entitled to through hard work and contribution to organizational growth.
  2. Concluding statement: Gender based compensation discrimination affects families whose needs depend on the women’s earnings. This affects poverty eradication measures as women occupy the biggest share of the poor.

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Allyn, M.R. (2003). Computers, gender, and pay. The Journal of Business and Economic Studies, 9(2), 33-44.
Grey-Bowen, J. E & McFarlane, D. A. (2014). Gender compensation discrimination: An   exploration of gender compensation gap and the higher education connection. Journal of Business Studies Quarterly, 2 (1), 65-82.
Lips, H.M. (2008). The Gender Wage Gap: Debunking the Rationalizations.             Retrieved from
United States Government Accounting Office, & Sherrill, A. (2009). Women’s pay: converging   characteristics of men and women in the federal workforce help explain the narrowing          pay. GAO: Joint Economic Committee, U.S. Congress.
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