discrimination in the labour market Flashcards
what are the conditions necessary for wage discrimination?
bias - Discriminatory attitudes towards particular groups, such as gender or ethnic minorities, can lead to wage discrimination
Women and men may not receive equal pay for the same work based on gender
information asymmetry - This occurs when employers have more information about labour productivity, skills or qualifications than employees
Employers may exploit the lack of transparency to justify paying lower wages to certain individuals
Regulation - When government agencies fail to enforce legislation or regulate, employers may feel they can engage in discriminatory practices without fear of repercussions
gender discrimination
The gender pay gap is a form of discrimination that occurs when a women is paid less than a man who is doing exactly the same job
The gender pay gap for full-time employees in 2023 was 7.7%. This is due to the following:
Women are concentrated in lower-paying occupations. They make up 77% of workers in health and social work
Fewer women are in senior and leadership positions
In 2022, only 1 in 25 of CEOs in Britain’s largest publicly listed companies are women
Career progression can be interrupted by maternity leave and family responsibilities
ethnicity discrimination
Ethnic pay gaps show the difference in the average pay between workers from minority ethnic backgrounds in a workforce, compared to white workers
Ethnic minorities in the UK face both wage and employment disparities
Minority groups are more likely to work in lower paid sectors such as hospitality and retail. These sectors also tend to offer fewer opportunities for career advancement
E.g In 2023, UK-born black employees had a pay gap of 5.6% less than white employees
Non-UK-born black employees has the highest pay gap, earning 12% less than UK-born white workers
Ethnic minorities are also underrepresented in leadership positions within businesses
E.g Only 4.6% of UK leadership roles are held by minority ethnic groups
