A Study on Average and Median Gender Wage Ratio in Canada

PROJECT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
OBJECTIVE....................................................................................................................................1
LITERATURE REVIEW................................................................................................................1
METHODOLOGY AND DESCRIPTION OF DATA...................................................................3
EMPIRICAL RESULTS..................................................................................................................4
DISCUSSION..................................................................................................................................4
CONCLUSION AND RECOMMENDATION ..............................................................................5
FUTURE RESEARCH....................................................................................................................6
REFERENCES................................................................................................................................7
APPENDIX......................................................................................................................................8

INTRODUCTION
Title: A study on Average and median gender wage ratio in Canada”
Income inequality is replicated as extreme concentration of income or wealth with small
percentage of population. It is the extent where income is distributed unevenly in particular
country as this is very significant indicator of equity in economy and has presence of
implications for other social results like crime and life satisfaction. It has been articulated as
contributing factor to gender wage gap for multiple decades. In Canada, there in increment in
average income he bottom 90% of income group prior to adjusting for inflation. Conversely,
average income among top 1% has rose over similar duration and this disproportionate raises in
top income have multiple consequences for overall gender wage gap due to representation of
women in top income groups (Anderson and et.al., 2019). This paper will give brief study on
average and median gender wage ratio in Canada with context to Quebec, Ontario and British
Columbia.
The Gender wage gap is considered as difference in earnings of men and women at
workplace. This is broadly recognised as indicator of economic equality of women along with
existence to some extent in every country throughout the world. The data would be gathered
from 1990 to 2011 for attaining the objective of research.
OBJECTIVE
This research is performed for evaluating average and median gender wage ratio in
Canada. It is on basis of assumption that gender wage ratio would be influenced through income
inequality.
Hypothesis
H0: Null hypothesis: There is no statistical significant difference in the mean value of female to
male earnings ratio with regards to Quebec, Ontario and British Columbia.
H1: Alternative hypothesis: There is a statistical significant difference in the mean value of
female to male earnings ratio with regards to Quebec, Ontario and British Columbia.
LITERATURE REVIEW
According to Card, Lemieux and Riddell (2018), since year 1981, gender pay gap is
difference among earnings of male and female which is expressed as proportion of earnings of
male. It has decreased by 21% in Canada with various decrease occurring prior to year 2011.
There are numerous trends which had occurred in post World War II which had contributed for
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purpose of improvements in gender pay gap. Further, labour force participation of women has
raised on significant basis and driven simultaneously through raise in proportion of employed
women and fall in propensity of employed women for withdrawing workforce on motherhood or
marriage. However, Beaudoin (2018) had argued that women have entered workforce with
higher education with formation of substantial gain in attainment of education over past decades
with increasingly acquired post secondary education, specifically at university's degree at
bachelor or above the level. At the current state, females have also decreased the time of their
interruptions related to family work like child care, pregnancy, partner's job and relocating for
their spouse so that they might have more work experience compared to case in the past. In the
same series, social policy support for purpose of employment of women in terms of job protected
maternity along with parental leave along with replacement of partial income for expansion of
leave with legislation addressing labour market's unfair treatment.
As per views of Javdani and McGee (2019), pay inequality among male and female is a
persistent phenomenon as per labour force survey, 70.2% female aged 15 years and older in
Canada had participated and this which shows that $0.87 for each dollar earned through men
measured with similar number of hours. The Equal pay day is used in different countries for
spreading awareness related to gender pay gap. On basis of gender pay gap of country, equal pay
day is considered as date which symbolise that when women must be stop for getting paid for
rest of the year compared to men. Gatto, Plesca and Antonie (2018) has critiqued that among
bottom 90% of individuals, the average annual earnings declined on slight aspect in early 1980s
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and remained at $37000 through much of the rest of 1980s and early 1990 which has gradual
raise around $44000 by the mid stage of 2010. From the period of 1978 to year 2011, the average
annual earnings within group has raised with average of 0.3% each year.
Among the next 9%, this had decreased slightly around $98000 in early 1980s and
increased with $137000 by mid of 2010s and gain over year with averaging 0.9% over the
period. Further, next 0.9% the average annual gains were twice of past group at 1.9% every year
with average earning from $180000 in early mid 1980s to over $350000 in year 2015. As per
views of Hara (2018), in terms of timing, next 9% had faced smaller growth in the 1980s
compared to 19910 by 0.2% and 0.9% respectively. The average earnings of the next 0.9% and
very important of top 0.1% had reached peak around year 2000 at dot-com bubble and before
global crisis in year 2007. Till early 2010s, earnings of top groups had returned to level observed
in mid 2000s.
According to views of Behr and Theune (2018), the impact of trends on overall gender
earnings gap is identified through two factors such as earnings of women relative to those of men
within every group and representation of women within every earnings group. Both of these
factors are appropriately addressed in analysis. The share of female in group of top earnings
raised with consideration of over the period from 1978 to 2015. On the contrary, Buchanan,
McFarlane and Das (2018) stated that female are significantly under represented in every group
by end of period. From the mid of 2000s onwards, female accounted for 48% of every earners
and just over 50% or earners in bottom 90%. Simultaneously, it has been clearly stated that gains
made in women representation and apart from this women left significantly under represented in
every top earnings group. The annual earnings of women relative to those of men which varied
across the top earnings of group. The women's and men's earnings are compared and bounded
through top and bottom with similar thresholds.
Consequently, if male and female were equally likely to attain these earnings groups,
with range of possibilities of annual earnings in every group is large that one will not expect
average earnings of female and male to be automatically equalized and disappearance of pay
gap.
METHODOLOGY AND DESCRIPTION OF DATA
The analysis has been performed with application of three way anova as this is used for
identifying that there is presence of interaction effect among three independent variables on a
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continuous dependent variable. This is extension of two way anova which just reflects interaction
in two independent variables. It is also known as three factor Anova as it is statical mode to
identify their effect on three factors of the outcome With use of this method, there is retained of
adjusted p values along with critical F values per family error rate. Moreover, there is used of
SPSS syntax to obtain outcome of three way anova.
With reference to our artificial data set replicated as three way has presence of statistical
significant three way interaction for purpose of illustrating the process. In our data set, variables
Quebec, Ontario and British Columbia are categorical variable. For purpose of performing this
interaction, firstly there is extraction of two way interaction to perform in depth analysis. There
would be examination of year to Quebecratio * Ontarioratio interaction, Quebecratio * British
Columbia interaction and British Columbia * Ontarioratio interaction.
Apart from this, there is presence of numerous assumptions as its dependent variable
which must be measures at continuous level which is year in particular data set. On basis of
independent variables Quebec, Ontario and British Columbia are categorical variable with
absence of significant outliers.
EMPIRICAL RESULTS
While analysing, its results it has been extracted that Quebecratio and Ontarioratio is
about 0.126 which shows that it is greater than 0.05 (0.126 > 0.05) so null hypothesis is accepted.
In simple words, it could be elaborated that there is no statistical significant difference in the
mean value of female to male earnings ratio with regards to Quebec and Ontario. When there is
presence of statistical significant interaction had reported main effected could be misleading. So,
with this context, there is requirement of engaging to identify mean difference in Qubec, Ontario
and British Columbia.
DISCUSSION
On basis of above study, it had been discussed that Canadian women had earned 87% and
gender parity has attained in public sector. The Canadian women are less likely for being
employed compared to Canadian men. In simpler terms, gender pay gap is variation among
wages earned through men and women. The recent statistics of Canada reflects that gender wage
Gap in Ontario is 26% and in simpler terms this could be elaborated that each male earned $1
and on similar note female earned 74 cents. In year 1987, when pay Equity Act was passed then
gender wage gap was about 36%. It has been narrowed on slower aspect over the time and Pay
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