Gender Pay Gap Report: Theories, UK Statistics, and Implications

This report provides a comprehensive analysis of the gender pay gap, focusing on UK statistics and two key theories: the same gender referent theory and the reward expectations theory. It examines the history of the gender pay gap, highlighting its persistence and decline over time. The same gender referent theory, developed by Crosby, suggests that women often compare their earnings with other underpaid women, leading to satisfaction despite lower pay. The report discusses the advantages and limitations of this theory, including reduced conflict and potential for unjustified salary distribution. The reward expectations theory, proposed by Berger, posits that individuals with high rewards are expected to be more competent, and that gender should not influence pay expectations. The report concludes by emphasizing the importance of addressing the gender pay gap to promote fairness and economic equity. Desklib offers this report and many other solved assignments for students.

Running head: GENDER PAY GAP
Gender Pay Gap
Name of the Student
Name of the University
Author’s Note:

1
GENDER PAY GAP
Executive Summary
The major objective of the report is to learn about the entire concept of gender pay gap. Several
organizations have kept an imbalance in the payment structures of both male and female
employees. It is highly unprofessional and unethical as all employees should get payment,
according to their effort and hard work. This report has provided statistics of gender payment gap
for the country of UK. Two theories of gender payment gap, same gender referent and reward
expectations are being explained in this report with proper details.

2
GENDER PAY GAP
Table of Contents
1. Introduction..................................................................................................................................3
2. Discussion....................................................................................................................................3
2.1 History of Gender Pay Gap....................................................................................................4
2.2 Same Gender Referent Theory..............................................................................................6
2.2.1 Developer of the Same Gender Referent Theory with Details.......................................6
2.2.2 Major Segments of the Same Gender Referent Theory with Examples.........................6
2.2.3 Main Advantages and Limitations of the Same Gender Referent Theory......................7
2.3 Reward Expectations Theory.................................................................................................9
2.3.1 Developer of the Reward Expectations Theory with Details.........................................9
2.3.2 Major Segments of the Reward Expectations Theory with Examples...........................9
2.3.3 Main Advantages and Limitations of the Reward Expectations Theory......................10
3. Conclusion.................................................................................................................................11
References......................................................................................................................................13

3
GENDER PAY GAP
1. Introduction
The gender pay gap or gender wage gap could be referred to as the average different
within remunerations for both working man and woman (Graf, Brown and Patten 2018). This
type of working woman is being considered as less paid than male employees and there exist 2
distinctive numbers about the pay gap, which include non-adjusting pay gap and adjusting pay
gap. The adjusting payment gap subsequently takes into account various alterations within the
hours worked, job experiences, education and occupations chosen (O’Reilly et al. 2015). The
reasons majorly link to different factors like economic, social and legal and then extend beyond
their equal payments for equal works. This gender payment gap could be referred to as a major
problem from the perspective of public policies, even when the cause for gap is completely
voluntarily.
It helps in reduction of economic outputs and ensure that the female employees are highly
dependent on the welfare payments, mainly during their old age (Auspurg, Hinz and Sauer
2017). In the UK, the gender pay gap amongst the full time staff subsequently stands at 8.9% and
there is little change from the year of 2018 as well as a sharp decline for only 0.6% since the year
of 2012. This gender pay gap amongst each and every employee has fallen from 17.8 percentage
in the year of 2018 to 17.3 percentage in the year of 2019 and is declining majorly (Boll et al.
2016). This report would be outlining a brief description on the gender payment gap with
discussion on two popular and significant theories of gender payment gaps, namely, same gender
referent theory and reward expectations theory with relevant description.
2. Discussion

4
GENDER PAY GAP
2.1 History of Gender Pay Gap
According to the Meta analyses for the year of 2005 by Rudolf Winter Ebmr and Doris
Weichselbaumer, there are over 260 published pay gap studies for more than 60 countries; it is
being observed that the raw wage differentials in the entire world have declined majorly from
more than 65% to 30% (Boll et al. 2016). Such distinct and huge decline was mainly for better
endowments of labor market for female employees, which include better education, work
attachment and training. The next Meta analyses of forty one empirical studies for the respective
wage gap was eventually performed in the year of 1998 and it provided the result of similar time
trend within the estimated payment gaps for reduction in roughly 1% in one year. When the pay
growth would continue for the female executives at present rates, this type of gap within the
respective earnings of both male and female executives would not be stopped until the year of
2019 (Webber 2016). The statistics of gender payment gap for the country of Great Britain is
provided below:

5
GENDER PAY GAP
Figure 1: Gender Pay Gap in Great Britain
(Source: https://www.bbc.com/news/business-43586574)
The data revealed that the men are majorly being paid more than different women in most
of the businesses in the United Kingdom (Bishu and Alkadry 2017). As a result, the women in
these businesses are often highly demotivated and the organizational management does not take
any step for them. In spite of having different campaigns and efforts, the women’s rights groups
have stated that the gender pay gap was increased than men in the previous year and almost 78
percentage of the top most organizations within Great Britain have reported to have a gap in the
favor of men (Weaver et al. 2015).

6
GENDER PAY GAP
2.2 Same Gender Referent Theory
2.2.1 Developer of the Same Gender Referent Theory with Details
The gender payment gap majorly persists within the Western countries, since both
women and men consider it to be normal for female employees to earn less than the male
employees (Blau and Kahn 2017). There are two different and distinct theoretical concepts,
which explain legal wage gap, namely same gender referent theory as well as reward
expectations theory. The first and the foremost theory is the same gender referent theory, which
state that the female employees compare their low earnings in the primary aspect with that of the
other underpaid women and they try to remain satisfied eventually (Leslie, Manchester and
Dahm 2017). Moreover, they do not even complain about such circumstance. The theory of same
gender referent theory was being developed in the year of 1982 by Crosby. He has described it as
the paradox of the respective female employee for understanding the higher work satisfaction of
women coexisting with the relatively lower rewards in comparison to the male employees. The
major explanation of this specific paradox also provide guidance to the utilization of other
female employees for proper comparisons regarding work (Davies, McNabb and Whitfield
2015).
2.2.2 Major Segments of the Same Gender Referent Theory with Examples
The theory of same gender referent states that the women remain satisfied with their
salaries or wages, as compared to men, since they do not feel demotivated with such difference
in wages with the men (Miller 2016). After checking the level of gender separation in most of the
companies, it is highly logical that the female employees will select any other woman for
subsequent comparison. For example, as these women are being rewarded lesser than other men,
the rewards and recognitions of the women are often referred to as unjustified as compared to

7
GENDER PAY GAP
men (Guimarães and Silva 2016). However, the women are unable to understand the difference
and hence they do not refer to any issue to their respective organization. On the contrary, they
compare with their fellow women colleagues to check if they are getting proper payments or not
(Auspurg, Hinz and Sauer 2017).
2.2.3 Main Advantages and Limitations of the Same Gender Referent Theory
There are some of the most important and significant advantages of this particular same
gender referent theory for all women and these are provided in the following paragraphs:
i) Lack of Conflict between Employees: The first and the foremost advantage of the same
gender referent theory for all women is that there exists a major conflict between employees
(Olsen et al. 2018). The unresolved conflicts due to salaries or wages could eventually have a
negative effect on the leader and employee relationship. As a result, it could result in loss of
trust, reduced motivation, incremented health risks and stresses, reduced productivity and
performances, lack of employee retention, increased employee absenteeism and lowered morale.
This type of conflict is responsible for involving extra issues related to stress and frustration.
Moreover, it even involves lack of motivation (Fleming 2018). However, since the women
employees are not at all frustrated about their salaries, it is not creating a difficult situation for
the organization.
ii) Maintains a Healthy Competition amongst Male and Female Employees: The
second important and significant advantage of the same gender referent theory for all women is
that it helps to maintain a healthy competition amongst the male and female employees
(McChesney 2017). This type of healthy competition is required to ensure that both types of the
employees are satisfied with their salaries and they would not create any type of issue for the
work. Moreover, the women employees do not even refer to the men employees for

8
GENDER PAY GAP
understanding their salary gaps and hence issues are eradicated successfully (Dias, Joyce and
Parodi 2018). These women employees only refer to their gender or other women staff for
understanding the gaps majorly.
iii) Balanced Work Environment: The third important and significant advantage of the
same gender referent theory for all women is that it helps in ensuring a balanced working
environment for all employees (Rimmer 2016). As the men and women employees are working
together, without having issues related to salaries, a balance is being maintained in the working
environment eventually. Hence, organizational conflicts are reduced to a high level.
In spite of having different advantages, few limitations are also present for this particular
same gender referent theory and these limitations are provided in the following paragraphs:
i) Conflict amongst Female Employees: The first and the foremost significant limitation
of the same gender referent theory for all women is that since the employees refer or compare to
the salaries of one another, there exists a high chance that the female employees might be having
major conflicts amongst themselves and they would not be able to control the situation under
every circumstance (Leslie, Manchester and Dahm 2017). Employee retention hence can be
disturbed to a high level and there would be a lack of employee motivation and engagement
within the respective organization.
ii) Unjustified Salary Distribution to the Female Employees: The second distinct and
noteworthy limitation of the same gender referent theory for all women is that the female
employees are obtaining unjustified salaries, in comparison to the men staff (Blau and Kahn
2017). It is highly unprofessional and unethical for the female employees, as even after giving

9
GENDER PAY GAP
same effort, they are not getting salary as needed. Hence, it is a major limitation for the
organization.
2.3 Reward Expectations Theory
2.3.1 Developer of the Reward Expectations Theory with Details
Reward expectations theory subsequently suggests that different individuals, who are
receiving high rewards are eventually expected to be highly competent than the group members,
who are not receiving high level of rewards (Bishu and Alkadry 2017). This particular theory is
the social psychological theory was being proposed by Joseph Berger as well as his fellow
colleagues in the year of 1964. It eventually explains how the expected competency forms the
major basis for different status hierarchies within the smaller groups (Webber 2016). This
specific theory eventually states that both women and men employees value gender as the status
variables, which yields low expectations regarding the amount of every gender being paid for
equal work. The theory states that both women and men employees should get equal payment
and can expect equal rewards from the organizational management (Auspurg, Hinz and Sauer
2017). As a result, a balance is maintained subsequently.
2.3.2 Major Segments of the Reward Expectations Theory with Examples
The theory refers to different status characteristics and deals with the role that certain
pieces of social information like gender, race as well as special abilities play for organizing
different employees (Graf, Brown and Patten 2018). The characteristics of labor market of every
staff and the amount of data provided for the employees of both men and women, refer to the
fact that these employees should get equal payments and work specifications should not be
hampered, according to their gender inequality. They are getting experienced in the occupations
and ensure evidence of gender specified evaluation standard is being emerged (Boll et al. 2016).

10
GENDER PAY GAP
Unlike same gender referent theory, rewards expectations theory does not emphasize on gender
inequality and all women get equal payments without complexity.
2.3.3 Main Advantages and Limitations of the Reward Expectations Theory
There are some of the most important and significant advantages of this particular
rewards expectations theory for all women and these are provided in the following paragraphs:
i) Improvement of Employee Morale: The first and the foremost important and
significant advantage of the rewards expectations theory is that it helps in improving employee
morale to a high level (Weaver et al. 2015). The female employees as a result feel good about
coming to the work place, since they believe that their skills and talents are being valued
eventually. After paying them the equal of their subsequent salary, a strong and effective work
ambience is being present in the organization without much issue and complexity. Moreover,
conflicts are resolved eventually (Graf, Brown and Patten 2018).
ii) Improvement of Employee Retention: The second important and significant advantage
of the rewards expectations theory is that it helps in improving employee retention to a high
level. One of the major advantages is that it is helpful for remaining competitive when it comes
to retention of talented employees (Blau and Kahn 2017). With pay equality, the management
can signal to the female employees that they intend to reward them for their high performances
the similar method, by which men are rewarded.
iii) Attraction of a High Talent Pool of Applicants: The third vital and significant
advantage of the rewards expectations theory is that it helps to attract a high talent pool of
different applicants (Leslie, Manchester and Dahm 2017). It is required to find different
employees, who are good enough at their jobs. As a result, the pool to qualified applicants is

11
GENDER PAY GAP
expanded. It is true whether the organization is recruiting young female employees or who are
fresher from colleges. Due to such wider variety of different employees, the organization is able
to get a chance to get hold of various talented employees of all gender, race and age. These
employees also expect rewards from their employees and are able to get hold of a better position
and high motivation, similar to their male colleagues (Graf, Brown and Patten 2018).
iv) Pay Equity Considerations: Another distinct and important significant advantage of
the rewards expectations theory is that it there exist pay equity considerations, irrespective of
race and gender (Davies, McNabb and Whitfield 2015). The equal payments provide a chance to
the employees to understand that the current wage practices of the country are being eventually
followed by the respective organization.
In spite of having different advantages, one limitation is also present for this particular
rewards expectations theory and this specific limitation is provided in the following paragraphs:
i) Competition amongst Employees: The first and the most significant and noteworthy
limitation of this particular rewards expectations theory is that a major competition is being
prevailed amongst the employees (Guimarães and Silva 2016). Both the male and female
employees are competing in the same working environment, as a result equality issues get
started.
3. Conclusion
Therefore, from the above discussion, a conclusion can be drawn that the gender payment
gap is the major different within average gross hourly earnings amongst men and women. It is
made on the basis of salaries that are paid directly to the staff before income tax as well as social
security contribution gets deducted. The gender payment gap does not consider all types of

12
GENDER PAY GAP
distinct factors, which might play a vital and significant role to understand and identify the
number of gender strategies eventually. There are some of the most important and distinct
resolution calls, which include clear targets for the European Union countries for reducing of the
gender pay gap in the next 5 years, investments in the early children education as well as care
service, investment in the family friendly working arrangements for ensuring that there is an
equal participation in the women within the labor market, sufficient provisions for the old
women like credits for the care periods, benefits of the survivors and sufficient minimum
pensions and even promoting proper vocational training as well as lifelong learning for all
women, especially high promotion of entrepreneurship for women. The above provided report
has clearly outlined a detailed analysis of gender payment gap with description of two popular
and significant theories of same gender referent theory as well as reward expectations theory.

13
GENDER PAY GAP
References
Auspurg, K., Hinz, T. and Sauer, C., 2017. Why should women get less? Evidence on the gender
pay gap from multifactorial survey experiments. American Sociological Review, 82(1), pp.179-
210.
Bishu, S.G. and Alkadry, M.G., 2017. A systematic review of the gender pay gap and factors that
predict it. Administration & Society, 49(1), pp.65-104.
Blau, F.D. and Kahn, L.M., 2017. The gender wage gap: Extent, trends, and
explanations. Journal of Economic Literature, 55(3), pp.789-865.
Boll, C., Leppin, J., Rossen, A. and Wolf, A., 2016. Magnitude and impact factors of the gender
pay gap in EU countries. Report prepared for and financed by the European Commission–
Directorate-General for Justice, European Union (Hrsg.), Hamburg.
Davies, R., McNabb, R. and Whitfield, K., 2015. Do high-performance work practices
exacerbate or mitigate the gender pay gap?. Cambridge Journal of Economics, 39(2), pp.537-
564.
Dias, M.C., Joyce, R. and Parodi, F., 2018. The gender pay gap in the UK: children and
experience in work. Institute for Fiscal Studies, London.
Fleming, N., 2018. How the gender pay gap permeates science and engineering. New
Scientist, 237(3167), pp.22-23.
Graf, N., Brown, A. and Patten, E., 2018. The narrowing, but persistent, gender gap in pay. Pew
Research Center, April, 9.

14
GENDER PAY GAP
Guimarães, C.R.F.F. and Silva, J.R., 2016. Pay gap by gender in the tourism industry of
Brazil. Tourism Management, 52, pp.440-450.
Leslie, L.M., Manchester, C.F. and Dahm, P.C., 2017. Why and when does the gender gap
reverse? Diversity goals and the pay premium for high potential women. Academy of
Management Journal, 60(2), pp.402-432.
McChesney, J., 2017. The gender pay gap and the representation of women in higher education
administrative positions: The century so far.
Miller, C.C., 2016. As women take over a male-dominated field, the pay drops. New York
Times, 18.
O’Reilly, J., Smith, M., Deakin, S. and Burchell, B., 2015. Equal pay as a moving target:
International perspectives on forty-years of addressing the gender pay gap. Cambridge Journal
of Economics, 39(2), pp.299-317.
Olsen, W., Gash, V., Sook, K. and Zhang, M., 2018. The gender pay gap in the UK: evidence
from the UKHLS.
Rimmer, A., 2016. Five facts about the gender pay gap in UK medicine.
Weaver, A.C., Wetterneck, T.B., Whelan, C.T. and Hinami, K., 2015. A matter of priorities?
Exploring the persistent gender pay gap in hospital medicine. Journal of hospital
medicine, 10(8), pp.486-490.
Webber, D.A., 2016. Firm‐level monopsony and the gender pay gap. Industrial Relations: A
Journal of Economy and Society, 55(2), pp.323-345.