Wage Discrimination: An In-Depth Analysis

One of the main barriers to achieving pay equity is wage discrimination. Unfortunately, wage discrimination still exists today, with gender pay gaps changing little in the past couple of decades in the U.S. For both employers and employees, it is important to know what wage discrimination is and how you can take steps to reduce it and strive for pay equity.

What is Wage Discrimination?

Wage discrimination occurs when individuals are paid differently despite having comparable skill sets and experience while performing similar jobs. To put it simply, if two workers work the same jobs, and have the same skills and experience, but one is being paid more than the other, then wage discrimination exists. Let’s take a look at some of the common forms of wage discrimination:

• Gender Pay Gap

If you want to achieve pay equity, the gender pay gap is one of the main areas of wage discrimination that you need to address. Today, American women earn $0.82 for every $1 that American men earn. The gender pay gap has been a pressing issue for decades and it is clear to see that more still needs to be done to close it.

• Racial Pay Gap

Individuals who are part of racial minority groups tend to face unequal pay for work. For example, when we look at median pay we can see that a typical black worker earns 24.4% less per hour than a typical white worker would in 2019. These wage discrimination trends exist in other racial groups too and it is a problem that the U.S. needs to solve if pay equity is to become a reality.

• Age Discrimination

Wage discrimination due to age can exist for both younger and older workers. For example, younger workers may be paid less due to an employer perceiving them as lacking in experience. On the other hand, employers may view older workers as less productive or less capable when it comes to technology.

• Disability Discrimination

Unfortunately, disabled individuals often face prejudice and unequal treatment from employers and colleagues in the workplace. As a result, this can lead to them being paid less for the same work as able-bodied employees. This is unacceptable and there are laws in place to prevent this type of wage discrimination from occurring.

As you can see, there is a wide range of areas where wage discrimination exists. On the road to achieving pay equity, employers and government officials need to realize the impact that wage discrimination has on businesses and people. With the right actions taken, we can ensure that there are equal opportunities and pay for all.

The Impact and Consequences of Wage Discrimination

There are significant negative impacts on individuals, businesses, and society as a whole when wage discrimination exists. For individuals, receiving a lower wage over a significant number of years gives them lower lifetime earnings and less financial security than they should have. This makes it more difficult for them to cover costs such as housing, bills, healthcare, and other essentials.

When looking at the bigger picture, we can conclude that wage discrimination impedes economic growth. When minority groups and women make less money, it means that they have less purchasing power when being consumers. A result of this is that consumers are demanding fewer goods and services which in turn leads to slow growth.

It is also important to note that wage discrimination further perpetuates broader social inequalities that exist within society. For example, the gender pay gap is a cause and consequence of the stereotypical unequal distribution of work within a home. If society expects women to take time out of the workforce to raise children and commit to caregiving responsibilities, this can contribute to them receiving lower pay. If these roles and expectations continue into the future, there will be a cycle of inequality from one generation to the next.

From this, you can see that wage discrimination and a lack of pay equity can have far-reaching consequences. It is crucial to tackle this to build a fair and just society. Doing this will benefit both individuals and communities in the long run.

Steps to Address and Prevent Wage Discrimination

To achieve pay equity and eliminate wage discrimination, there are some steps you can take. They apply to both organizations and individuals. With a collective effort, we can all make a difference and end wage discrimination for future generations.

• Educate Yourself and Others

It is important to recognize the different signs of wage discrimination. As well as this, you need to understand your and others’ rights. Once you are aware of this information, you can spread the knowledge to your coworkers and employees.

• Review Company Policies

If you are in a position of leadership, you can examine the company policies and compensation practices. From here, you can identify if wage discrimination exists within your organization. If you find any biases, take action to address them and promote pay equity.

• Promote Pay Transparency

Employers should share salary information with their employees to let them know that they are being fairly paid. When this happens, it makes it harder for wage discrimination to occur in the first place. By having everyone on the same page, employers can ensure that pay equity runs through their organization.

• Address Individual Cases

Employees may file complaints to HR or consider legal counsel regarding wage discrimination. As an employer, it is illegal to retaliate against any employees who file complaints. An employer’s job instead is to address individual cases and ensure that they pay fairly.

Conclusion

Wage discrimination is an ongoing issue that our society faces. You can counter this wage discrimination by taking the necessary steps to achieve pay equity for all members of the workforce. With this in mind, take action today and play your part in creating a fairer and more just society for all.