Gender Inequality in the Workplace: Causes and Impact

Introduction

We live in a modern world — a world of advancements and developments. The present era has witnessed the greatest developments in human society, and many claim that this era is just and free of inequalities. Despite large-scale development and the transition to modernism, however, various inequalities and discriminations, such as racial and socioeconomic disparities, still exist in society. Gender discrimination can be regarded as one of the contemporary social problems. In this form of inequality, the oppressed party — usually women — suffers a great deal. Women face various issues related to education, job opportunities, wages and benefits, and unequal treatment. Various studies have reported that, in recruitment, employers prefer to hire male candidates over female candidates. In addition, the requirements set for female candidates are often so high that women find it very difficult to secure employment (Lui and Chang, 2013).

A number of studies have also reported that wide pay gaps exist between male and female employees. Male employees earn far more than female employees working at the same level and designation. This pattern of gender inequality is not confined to one country or region; rather, it has been reported that gender inequality at work persists across the entire globe (Lui and Chang, 2013).

One study found that organizations often hesitate to employ women because they perceive that, after investing considerable time and money in training, they lose that investment when women take maternity leave. From an ethical standpoint, however, the role of mothering is essential to the betterment of society. When women step away temporarily to fulfill this role, they transfer skills and capabilities to the next generation, ultimately benefiting society as a whole (Unknown, 2012).

It has also been observed that in the United States, women face more challenges in the workplace than male employees. If an employee is also a mother, she must navigate even more obstacles to meet job requirements. Despite these obstacles, women are reported to start new businesses at twice the rate of men. The constant increase in the number of female entrepreneurs highlights the fact that women are capable of handling significant economic responsibilities, yet they are very often considered less capable than men and are paid less for their efforts (Unknown, 2012).

Men are usually paid more due to the conservative argument that they are the primary financial providers for the household. A recent survey, however, indicated that in the United States, forty-one percent of women are the sole breadwinners of their families. It was also observed that female workers contributed eighty-three percent to the Gross Domestic Product (GDP) of the United States. Women routinely bear expenses that high-income men do not. Despite these realities, government programs that helped women provide for their children have been discontinued, and funds intended for the Women Business Development Plan were cut (Unknown, 2012).

A study conducted in the United States disclosed the following facts related to gender discrimination:

Although conditions of gender discrimination in the workplace are said to be improving in the United States, the facts above make clear that a great deal of progress remains to be made. Women who are victims of economic discrimination are more likely to also suffer domestic abuse, since a lack of financial autonomy leaves them with fewer options to escape difficult circumstances (Unknown, 2012).

Environment of the Current Workforce

Currently, women constitute approximately forty-eight percent of the total workforce, while men contribute fifty-two percent. The participation of male and female employees at middle and lower management levels is nearly equal, but the situation differs significantly at the top level. Women also earn lower wages than men across all levels (Parcheta and Kaifi et al., 2013). About sixty-two percent of all women are employed in the workforce. Women hold only forty-three percent of top-level management positions, compared to fifty-seven percent for men (Unknown, 2012).

The Glass Ceiling

Beyond earning less than men at equivalent positions, women also report hitting the so-called "glass ceiling" in their attempts to reach top-level management. This term was popularized by the Wall Street Journal and describes the transparent, invisible barrier that prevents women from advancing to senior leadership positions. Typically, employees promoted to top-level management come from finance, sales, and production departments. Women, however, are more commonly employed in human resource management and administration, and therefore have far fewer opportunities to be promoted to the top tier (Parcheta and Kaifi et al., 2013).

The Pay Gap Between the Genders

Many critics argue that the pay gap between male and female employees results from personal choices. According to a study by the American Association of University Women (AAUW), one year after graduation, female employees were earning only eighty-two percent of what their male classmates earned. Another report found that ten years after graduation, female workers earn sixty-nine percent of what their male counterparts are paid (Hallman, 2013).

This pay gap is partly attributable to choices made by men and women, particularly regarding college major and career path. Women more commonly pursue teaching, while men more commonly choose technical careers. Teaching salaries are generally lower than those in technical fields, contributing to the overall pay gap (Hallman, 2013).

Beyond career and major choices, researchers found that seven percent of the pay gap one year after graduation remains unexplained, and twelve percent of the gap ten years after graduation is similarly unexplained. Parenthood, while a matter of choice, produces very different outcomes for men and women. One study found that twenty-three percent of female employees left their jobs after becoming mothers, and seventeen percent shifted to part-time work. By contrast, only one percent of male employees left the workforce and only two percent moved to part-time employment after becoming fathers. Furthermore, women who transition from part-time back to full-time work face a "motherhood penalty," while male employees face no equivalent disadvantage. Employers also demonstrate a preference for hiring childless women over mothers (Hallman, 2013).

Conclusion and Recommendations

Promotion rates for men are also higher than for women, in part because male employees are more able to relocate when transferred. Society generally accepts a family relocating for a father's job transfer, but does not extend the same acceptance to a family relocating for a mother's transfer. Consequently, female employees face greater obstacles to relocation and, therefore, lower promotion rates (Parcheta and Kaifi et al., 2013).

Research suggests that gender inequity in employment is directly linked to fertility rates: an increase in gender inequality in employment tends to coincide with an increase in fertility rates and a corresponding decline in economic growth. Beyond fertility, gender inequality in employment prevents nations from leveraging their female workforce as a competitive advantage. Furthermore, a greater proportion of female employees is associated with a less corrupt workforce, as women are statistically less likely to engage in corrupt behavior (Klasen and Lamanna, 2010).

The data presented in this paper make clear that gender discrimination persists in the professional environment of the United States. This gender gap has negative effects on employee productivity and overall economic growth. Reducing this gap will require coordinated efforts at the government, organizational, and individual levels. The rate of education among women should be increased, as educated women are better equipped to recognize and assert their value. Women should also be empowered to develop negotiation skills and self-confidence. Equal access to resources must be provided to both men and women, and awareness campaigns should target the attitudes of both male and female employees. Dismantling the conservative and informal cultural norms embedded in organizations is another essential step. Because gender inequality carries significant economic costs, governments should prioritize its reduction as a means of achieving elevated economic growth and stronger developmental outcomes (Rao and Frugte et al., 2009).