Several explanations have been put forward to explain why the gender-wage gap persists in Australia. Pick two and critically evaluate each. Summary of Argument: Recent history has shown a dramatic increase in the proportion of female workers in the labour market (Loudon, McPhail & Wilkonson 2009). With workplace diversity on the rise in Australia (French, Lewis & Phetmany 2000), legislation and changing cultural values have changed the way these women have been able to enter the workforce. Legislation such as the Sex Discrimination Act 1984 has made it unlawful to discriminate against anyone on the basis of their gender, family commitments/choices or marital status throughout all areas of employment (Sex Discrimination Act 1984 …show more content…
Supportive work of Baum (2002), Walby & Olsen (2004), Selmi (2000) and Budig & England (2001) agree that withdrawals from the workplace by women due to family choices/commitments has a huge impact on their acquisition of human capital and is a “legitimate source of earnings differences” (Walby and Olsen 2004, p. v). Key Point Two: Cassells et al (2009) indicate that occupational segregation within the labour market is an important explanation for lower female wages. Baron & Cobb-Clark (2010) argue that the affect of labour market position and job status has heavy implications on employment outcomes/returns. This is particularly apparent among high-wage earners where a strong presence of glass ceilings is felt (Kee 2006). Olsen & Walby (2002) also explore labour market rigidities and market failures in the form of discrimination. Watts (2003) argues that an “inefficiency of labour market matching processes” (Watts 2003, p. 651) exists in Australia. The flow on effects of occupational segregation such as low female unionisation rates and its historical implications are also examined by Loudoun, McPhail & Wilkinson (2009). Conclusion: In conclusion, there are many explanations for the continuing gender-wage gap in Australia, each which are supported by …show more content…
66, no. 2, pp. 204-225 Cassells, R, Miranti, R, McNara, J & Vidyattama, Y 2009, The impact of a sustained gender wage gap on the Australian economy, National Centre for Social and Economic Modelling (University of Canberra), Canberra French, E, Lewis, D & Phetmany, T 2000, ‘Cross-Cultural Diversity, Leadership and Workplace Relations in Australia’, Asia Pacific Business Review, vol. 7, no. 1, pp. 105-124 Kee, H 2006, ‘Glass Ceiling or Sticky Floor? Exploring the Australian Gender Pay Gap’, Economic Record, vol. 82, no. 259, pp. 408 – 427 Loudoun, McPhail & Wilkinson 2009, Introduction to Employment Relations, 2nd edn, Pearson Australia, New South Wales, Australia Olsen, W & Walby, S 2004, Modelling Gender Wage Gaps, Equal Opportunities Commission, Manchester, UK Olsen, W & Walby, S 2002, The impact of women’s position in the labour market on pay and implications for UK productivity, Women and Equality Unit, London, UK Pocock, B 1999, ‘Equal Pay Thirty Years On: The Policy and Practice’, Australian Economic Review, vol. 32 no. 3, pp 279–285 Selmi, M 2000, ‘Family leave and the Gender Wage Gap’, North Carolina Law Review, vol. 78, no. 3, pp. 707-782 Sex Discrimination Act 1984 (Commonwealth of Australia) s. 14, viewed 20th August 2011, http://www.comlaw.gov.au/Details/C2011C00443 Watts, M 2003, ‘The Evolution of Occupational Gender Segregation in Australia: Measurement and