Gender Wage Gap in Canada: Causes and Earning Differentials

Introduction: The Gender Earnings Gap in Canada

"Young women heading into the workforce, be warned: you may think it's an even playing field when you get there, but be prepared to earn less than the men from your graduating class and in the cubicles next to you" (Donaldson, ¶1).

The earning potentials between men and women in Canada reflect little to no change since the 1980s. According to Jeff Atkinson, in the article "New Report Reveals a Widening Gap Between Men and Women in Canada," a 10-year study found that women's earnings dropped. Contrary to the pattern in 1998, when women's earnings increased, most women's earnings in Canada subsequently decreased. The study revealed that in 1998, women earned 75 cents for every dollar earned by men with the same qualifications. By 2008, earnings had slipped to just 68 cents compared to men's dollar.

In the different provinces of Canada, work-life balance decisions, education levels, and other variables are cited as potential contributors to gender-based pay differences. Additional factors such as age and gender bias are similarly associated with lower earnings for women relative to men.

Key Factors Driving Pay Differentials

According to the Conference Board of Canada, out of 17 peer countries, Canada earns a "C" grade and is ranked 12th in gender pay gap differentials (Conference Board of Canada, Key Messages Section). Canada ranks alongside the United Kingdom and Finland, with a gap of 21%. The gap has decreased from levels seen in the 1980s and 1990s. Significant increases in educational attainment have contributed to narrowing the gender gap, but women lose ground when taking time off to give birth and start families. Absence from the workplace during this period causes women to lose wages and reduces the raises they receive compared to men who have not experienced similar interruptions.

From all the data examined, the pay differential between men and women in Canada can be attributed to a variety of factors. The main contributors include:

• The Canadian province in which the worker resides
• The educational level of the worker
• Age
• Family status (e.g., married, single, etc.) (Donaldson; Atkinson; Women's Income…; Conference Board of Canada, Key Messages Section)

Other factors noted in the research include work-life balance and sexist bias. The choices made by workers across different genders affect every aspect of their careers, including promotions, wage increases, and bonuses.

Analysis of multiple data sources reveals a definite gap in earning differentials between men and women in Canada. According to the Canadian 2006 census data, the Society for Canadian Women in Science and Technology (SCWIST) reports: "First, young women experienced no growth in median earnings during this period, even though their educational levels kept increasing" (Donaldson, ¶13), while median earnings for men increased slightly during the same 2000–2005 period. Both men and women experienced significant decreases in pay during 1980–2000. Using data from the Canadian 2001 census, the median average pay for men was $29,276 and for women was $17,122, as reported by the Canadian Association of Social Workers in "Women's Income and Poverty in Canada" (Women's Income…, ¶1). The average median for 2005 ranged from $37,680 for men to $32,104 for women, according to the 2006 census.

According to Rampell in the New York Times, "the gap between men's and women's earnings narrows greatly when you adjust for factors like career path and experience. But at the top of the income scale — jobs paying more than $100,000 — the salary gap between equally qualified men and women is still vast" (Rampell, ¶1). The differential earning gap between men and women demonstrates that, regardless of salary level, disparities persist.

Education and Its Effect on the Wage Gap

Education levels have led to notable changes in reducing the gap between genders, particularly when comparing more- and less-educated workers. The Conference Board of Canada cites the following differences based on education level and gender:

• Women aged 25 to 29 holding a graduate or professional diploma and working on a full-time, full-year basis earned 96 cents for every dollar earned by their male counterparts in 2005.
• Women with a bachelor's degree earned 89 cents for every dollar earned by their male counterparts.
• Women with a registered apprenticeship or trades certificate earned only 65 cents for every dollar earned by their male counterparts.
• Young women with no high school diploma earned 67 cents for every dollar earned by young men with the same level of education (Conference Board of Canada, Is the gender… Section, ¶4).

Exceptions to these patterns appear in service occupations, where women earn 72 cents to the dollar, and in managerial positions, where women earn 86 cents to the dollar compared to men in the same roles.

Conclusion: Addressing Persistent Inequality

The evidence reviewed leads to the conclusion that a definite earnings differential between men and women in Canada exists and can be attributed to a wide variety of reasons. While some reasons for the differential may be considered valid — such as the loss of wages, raises, and bonuses due to time away from work for childbirth — most lack genuine justification. Women often settle for lower-paying jobs in order to balance time at work with time spent raising a family. While the gap appears to be decreasing, significant changes still need to be addressed and implemented to resolve the gender earnings gap.

Factors such as marital status, age, and parental status represent areas where earning differentials should not exist. Compensation and raises should reflect job performance, accuracy, efficiency, experience, and job quality, among other work-related criteria. External personal factors should carry very little weight in determining the salary of any worker, regardless of gender.

It is also important to note that Canada is not unique in this regard. The earnings gap worldwide reflects that very little progress has been made globally in addressing income inequality between men and women.