Critique of Neoclassical Theory on Gender Inequality in the Workplace

This assignment delves into the issue of gender inequality in the workplace, identifying it as a significant form of discrimination. It highlights how societal gender norms contribute to this inequality, despite ongoing movements for women's rights. The assignment focuses on critiquing the neoclassical and human capital theory, which posits that differences in occupational sectors are due to varying investments in human capital, often favoring men. The theory suggests that men receive higher salaries because they are perceived to possess more valuable skills and knowledge. However, the assignment also addresses criticisms of this view, noting that women continue to face inequality and potential termination even when demonstrating high productivity. It references scholarly sources to support its arguments and critiques.

ACTIVITY 1: INEQUALITIES AND DISCRIMINATION IN THE WORKPLACE
To be completed after Workshop 2 – due in following week.
Based on the content of this week’s workshop, identify an example of inequality experienced in the
workplace and discuss a theory that explains why it exists. Your discussion should seek to critique the
theory that you outline. You must use academic sources, include in-text citations and a Reference List.
One of the major inequality observed in the workplaces is gender inequality. The
socialization of gender is one of the main factors that is responsible for the reinforcement of
the inequality in gender. The inequality is a type of discrimination in sex that generally
results to an ill-treatment of individuals due to their gender (Tolbert and Castilla 2017).
Despite of various rights and movements for women, inequality still persist for women in
their workplaces. Women are being discriminated and their opportunities of growth are being
narrowed in their employment sector. According to the gender statistics in 2016, it has been
found that though there exist lesser number of men as compared to women in terms of
population, women are still expected to be submissive and stay behind the men in the
corporate world (Tolbert and Castilla 2017). One of the famous theory explaining the
existence of inequality and discrimination of gender in the occupational sectors is the
neoclassical and human capital theory (Devi and Raju 2014). According to the neo classical
economists, difference in the occupational sector is mainly characterized by different
investments in human capital. According to the theory of human capital, men in the
workplaces receive more salaries compared to the women since it is assumed that men
possess more human capital as compared to a woman. Human capital refers to all the talents,
intelligence, knowledge, skills, experience and abilities an individual has which the employer
considers useful for the employment offered. Economists supporting this theory explains that
women are generally not dedicated towards the professional jobs and hence they cannot be
relied upon. Women lacks the chance of promotion and better salaries due to the believe that
they are not efficient employees and they fail to fit with the core corporate values of an
organization. Witz in his theory criticized this view and highlights the fact that female
employees in the current era, still faces inequality and the chances of being terminated even
though they deliver high productivity at workplace (Fitzsimons 2015).
References
Devi, R. and Raju, D.V., 2014. A study on women Gender issue and inequality in
workplace. International Journal of Business and Administration Research Reviw, vol3, (5).
Fitzsimons, P., 2015. Human capital theory and education. In Encyclopedia of educational
philosophy and theory (pp. 1-4). Springer Singapore.
Tolbert, P.S. and Castilla, E.J., 2017. Introduction to a Special Issue on Inequality in the
Workplace (“What Works?).
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