Analyzing the Reasons and Effects of Gender Pay Gap

Running Head: BUSINESS
BUSINESS

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Abstract
This study has been conducted in order to analyse the reasons and effects of gender
pay gap. The research background for the study has been presented in the introduction
section. The rationale has provided information of the issue and why it is a major
concern in UK. The third section presents the primary aims and objectives based on
which the study has been conducted. The fourth section deals with major barriers and
challenges faced while conducting the study. The next section provides a detailed
literature review regarding the issue and presents the relatable concepts and theories
for the study. The sixth section presents the methodologies used for the study and the
justification for their utilisation. The seventh section provides a detailed analysis of the
data collected via survey of 121 employees within various organisations in UK and
secondary data collected from Ons Data Sets. The final chapter presents the final
concluding perceptions received after conducting the project.

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Acknowledgement
Firstly I would like to thank my professor for providing me with this amazing topic that
can help me gain significant knowledge regarding the corporate world. Next, I would like
to thank my friends and family members for their support and help in conducting the
necessary research. I would like to thank all the respondents involved within the study.
Their views have been greatly respected and every single bit of information provided by
them has been taken into account. I am also highly thankful to my superiors and tutors
for helping me gain a detailed perspective regarding the study. The continuous support
and encouragement from my peers are greatly welcomed.

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Table of Contents
1. Introduction....................................................................................................................7
1.1 Background..................................................................................................................7
1.2 Research Aim..............................................................................................................7
1.3 Significance of Research.............................................................................................8
2. Research Rationale.......................................................................................................8
3. Research Objectives and Questions.............................................................................9
3.1 Research Objectives....................................................................................................9
3.2 Research Questions....................................................................................................9
4. Barriers and Scope......................................................................................................10
4.1 Barriers......................................................................................................................10
4.2 Scope.........................................................................................................................10
5. Literature review..........................................................................................................11
5.1 Introduction................................................................................................................11
5.2 Conceptual Framework.............................................................................................11
5.2 Concept of Gender wage gap....................................................................................12
5.3 Theories of Gender Wage Gap.................................................................................13
Occupational segregation................................................................................................13
Gender Role Theory........................................................................................................14
Human Capital Theory.....................................................................................................14
5.4 Measurement and Explanation of Gender Wage Gap..............................................14
5.5 Size of the wage gap and trends...............................................................................15
5.6 Factors of gender wage gap......................................................................................15
5.7 Reasons for Gender Wages Gap..............................................................................16
5.8 Gender equality in public sector................................................................................17
5.9 Characteristics of Gender Wage Gap.......................................................................17
5.10 Literature Gap..........................................................................................................19
5.11 Conclusion...............................................................................................................20
6. Methodology................................................................................................................20
6.1 Introduction................................................................................................................20
6.2 Research Onion.........................................................................................................20

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6.4 Research approach...................................................................................................22
6.5 Research design........................................................................................................23
6.6 Research Strategy.....................................................................................................23
6.7 Methods and Tools....................................................................................................23
6.8 Data Sources.............................................................................................................24
6.9 Ethical Consideration.................................................................................................24
6.10 Timeline (Gantt chart)..............................................................................................24
7. Findings.......................................................................................................................25
7.1 Introduction................................................................................................................25
7.2 Primary Data Analysis...............................................................................................25
7.3 Secondary Data Analysis..........................................................................................35
7.3.1 Gender Pay Gap Timeline......................................................................................35
7.3.2 Gender Pay Gap and occupations.........................................................................36
7.4 Summary....................................................................................................................37
8. Conclusion and Recommendations.............................................................................37
8.1 Conclusion.................................................................................................................37
8.2 Recommendations.....................................................................................................38
Reference List..................................................................................................................39
Appendices......................................................................................................................47

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List of Figures
Figure 1: Conceptual Framework....................................................................................12
Figure 2: Pay gap over time based on age.....................................................................18
Figure 3: Pay gaps (£ per hour) by full time and part-time work.....................................19
Figure 4: Research onion structure.................................................................................21
Figure 5: Gender of Respondents...................................................................................25
Figure 6: Age group of Respondents..............................................................................26
Figure 7: Employment status of Respondents................................................................27
Figure 8: Yearly salary received by Respondents...........................................................28
Figure 9: Are you satisfied with the salaries that you receive?.......................................29
Figure 10: Do you feel a significant growth in discrimination issues in your workplace?30
Figure 11: Do you agree that you are unhappy with the treatment you receive at the
workplace?.......................................................................................................................31
Figure 12: Do you feel that your treatment at the workplace contributes to low pay?....33
Figure 13: Do you feel that your gender has an impact on the payments received for
work?...............................................................................................................................34
Figure 14: What methods can be used to deal with gender pay gap issues?................35
Figure 15: Gender Pay Gap Timeline..............................................................................35
Figure 16: Gender Pay Gap and occupations.................................................................36

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List of Tables
Table 1: Gender of Respondents....................................................................................25
Table 2: Age groups of Respondents..............................................................................26
Table 3: Employment Status of Respondents.................................................................27
Table 4: Yearly salary received by Respondents............................................................28
Table 5: Are you satisfied with the salaries that you receive?........................................29
Table 6: Do you feel a significant growth in discrimination issues in your workplace?...30
Table 7: Do you agree that you are unhappy with the treatment you receive at the
workplace?.......................................................................................................................31
Table 8: Do you feel that your treatment at the workplace contributes to low pay?.......32
Table 9: Do you feel that your gender has an impact on the payments received for
work?...............................................................................................................................33
Table 10: What methods can be used to deal with gender pay gap issues?..................34

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1. Introduction
Gender Wage gap mainly refers the gap of paid remuneration between men and women
on the basis of work. It has caught the attention as many describes that women are
generally gets less payment than men at workplace with same working potential. The
variations between salary amounts vary with fundamental factors such as occupation
choice, skills, educational aspect and experience within the relevant sector. The
reasons behind lower payment also vary with working quality and personal preferences
for selective services. However, many scholars claim that wages gap has highly
affected with discrimination such as gender equality, race and disability. Wages gap
between employees may affect social quality and total economic out of the society.
1.1 Background
Gender pay equality within a sector-based workplace is highly influenced by several
thought process of the society and environment of the working background on the basis
of work potential of employees. Gender Wage gap is not a new concept in worldwide
working culture as the globalization of industrial concept involved women employees
more significantly in order to deliver more productive workforce within the development
of the sector (Hallward‐Driemeier, Rijkers & Waxman, 2017). However, the world
economic forum has claimed that gender wage gap is affecting the economic equality in
workplace and it is getting wider daily basis. This inequality between men and women
mainly based on the working hours, domestic and care responsibilities of women and
motherhood of the women. Is has been found that on average, women earn 77 cents for
every 1 dollar earned by men. Many economists say that gender pay inequality affects
the overall growth of GDP up to .9 percent. This contributes to increased issues with
conflicts in the workplace in regards to discrimination. Additionally, as stated by Heinz et
al (2016), gender pay inequality is hampering poverty rate and work force balance.