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RESEARCH REPORT:
Does the proportion of women in senior management positions have an effect on gender
income inequality?
Introduction
The pay disparity between men and women has been a subject of debate and friction among the
genders because women are acquiring similar levels of education and command equivalent
experience. The gender barrier in male-dominated careers is also getting blurred as more and more
women find work in formerly men dominated careers referred to as gender revolution
(Goldscheider, Bernhardt & Lappegard, 2015). Previously, women were disadvantaged in the
workplace due to different levels of education, experience, and burden of family according to Kahn
(2014). Studies have reported that the wage gap is thinning according to Blau (2013). The
introduction was too short minimum 150-200 words
Literature review
There is limited justification that can explain the gender wage inequality. In the past women
lacked education, skills, and experiences to work in both private sector as well as the public sector.
Considerations regarding number of hours and educational qualifications partly discriminated
against women. Women college graduates have surpassed men in attaining educational
qualifications (Mandel & Semyonor, 2014). Reports from the third world countries exhibit a
previous pattern similar to Europe and USA bordering on discrimination (Seema, 2015).
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Segregation in promotion opportunities has contributed to male and female wage differentials
(Mandel, 2013).This study aims at exploring the wage disparity among male and female workers.
A possible explanation is discrimination of women in the workplace whether private or public.
Previous studies on wage differences have been inconclusive. The contribution of lack of college
education as observed in the developing countries of India, Middle East explains why women are
economically disadvantaged in the workplace. Income inequalities are based on educational
qualifications and experience that majority of women lack in the third world countries (Seema,
2015).
Kahn studied gender income inequality in Europe and Organization of Economic
Cooperation and Development (OECD) and discovered that the level of education and
discrimination are the primary determinants of the wage difference between men and women in
the countries covered in the study (Kahn, 2014). The study recognizes the labor markets controlled
by supply and demand of labor of which women have become active participants. Women have
progressed in education acquiring significant doctoral degrees and professional qualifications
(Blau, 2014). Mandel, 2013 pointed out to possible women segregation in upward mobility in
promotion opportunities. Wage disparities are evident in many countries according to Kahn. In
Belgium, wage disparity is at 6%, Japan, 27% and South Korea 37% (Kahn, 2014). In another
study, Autor et al. reported that wage difference is contributed to by demand for skills, graduates
supply, and labor unions efforts (2016). The same study found out that the declining minimum
wage value is attributed to the 30-55% of the tail end wage growth in addition to the wage gap
declining over time (Blau & Kahn, 2016).Education and especially college education is important
in building a career and career progression. Education gives all people an opportunity to build
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experience and excel in their careers. There is sufficient evidence to show that women graduate
from college in large numbers. The entry of women in professions previously male-dominated
show that the income differentials that exist will be wiped out in a short while as women get into
executive position out of their qualifications, experience, and hard work.
lterature review is not clear.
Requirement: Only two paragraphs and using 4 resources
including gender discrimination and education levels. balance.
Results
Table 1
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The above figure shows the relationship between gender and the compensation (in
thousands). In the male category, there is no woman executive for a total compensation of
$1356000. For a total of $1734000, there is only one woman executive. For a total of $1618000,
there are at least two woman executive. It should be noted that this is a representation on the
compensation committee. Under female executives with a total of $883000, there is no woman.
One woman is present for a compensation of $1185000 for female executives. Finally, there are at
least 2 women amongst the female executive with $1635000 compensation rate. The data therefore
show the disparity in which compensation for women is spread both in female and male categories.
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The effect of having a female representative in the compensation the study shows improves
the prospects of executives getting a higher wage. Lack of representation in the compensation
committee is evident to present discriminatory tendencies in remunerating executives. In case one
were all executives were male, and no female representation in the remuneration committee the
average wage for the executive was $1356, compared to a situation where all executives were
women and no representative in the remuneration committee the executive salaries were the lowest
implying gender bias in fixing compensation. The finding on the significant contribution of female
members of the compensation committee shows that when the number is increased to two, there
is a significant increase in compensation of executives. There is little disparity in all cases where
there were two female members of the compensation committee.
Table 2
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Regarding table two shows the results of another study examining the contribution of
female-male ratio and bargaining coverage assisted by unions on wage. Wage inequality is more
pronounced in the United States as compared to Denmark and Norway.
Discussion
The two study results show evidence of discrimination as the determinant of wage disparity
between male and female. This corroborates the wage disparity due to discrimination on women
regarding promotion opportunities as reported by Mandel, 2013. In the case where there was no
female representation in the compensation committee, the wages of executives were significantly
low. The findings indicate that women participation in leadership positions will help correct
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mismatch between educational qualifications, experience, and discrimination at the workplace.
Unions that negotiate higher wages have no role in fixing executive wages this partially explain
the wages stagnation in the United States compared to the welfares states of Denmark and Norway
(Kahn, 2014).
Areas of further research are to compare the effect of discrimination on wage differentials across
countries. The effect of education on female executive’s access to leadership positions
and lastly, the effectiveness of women CEO in multinational companies compared to
their male counterparts a longitudinal study. discussion paragraph words have to more
than literature review words, also must using 4 resources.
Conclusion
Education, experience, and gender play a crucial role in income inequality. The explanation of
income inequality can only be deduced from discrimination. Study reports have shown
that women have excelled in education at the highest level possible and in professions
previously male-dominated. There are some multinational companies like Pepsi that has
been led by a female CEO for over five years. In controlling for education and
experience, there is no viable explanation why there should be a change in income based
on gender. With reduced discrimination is countries that are progressive there has been
diminishing difference in earnings comparing the welfare states in Norway and Denmark.
Conclusion paragraph is not necessary it can be combined with discussion paragraph.
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References list
1Autor, David. H. , Alan Manning & Christopher, Smith. (2016). The contribution of the
minimum wage to US wage inequality over three decades: A Reassessment, American
Economic Journal, Vol. 8 (1), 58-99,
Blau, Francine. D. & Kahn, Lawrence. M. (2016). The Gender wage Gap: Extent, Trends and
explanations, IZA-Discussion papers no. 9656
Goldscheider, F. Bernhardt, E. & Lappegard, T. (2015). The gender Revolution: A Framework
for understanding changing family and demographics behavior, Population and
development review, Vol. 41 (2), p. 207-239
Kahn, Lawrence. M. (2014) Wage compressions and the Gender pay gap.
https://wol.iza.org/articles/wage-compression-and-gender-pay-gap/long
Mandel, H. & Semyonor, M. (2014). Gender Pay gap and employment Sector: Sources of
earning disparities in the United States, 1979-2010, Demographics, Vol. 51, p. 15971618
Seema, J. (2015). The roots of gender inequality in developing countries, Annual review of
economics, Vol. 7 (1), 63-88
Reference list problems for example :Last name, first initial year, tittle,viewed March 2018,
http://XXXXX
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1.The introduction was too short minimum 150-200 words
2.Reference list problems for example :Last name, first initial year, tittle,viewed March 2018,
http://XXXXX
3.lterature review is not clear.
Requirement: Only two paragraphs and using 4 resources
including gender discrimination and education levels. balance.
4. discussion paragraph words have to more than literature review words, also must using 4
resources.
5.Conclusion paragraph is not necessary it can be combined with discussion paragraph.
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