Analysis of Wage Discrimination in Canada: A Microeconomic Perspective

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Introduction
The report will discuss and elaborate concepts of microeconomics. Microeconomics refers to the
specific branch of economics that defines and strategizes for developing an understanding of the
behaviours of individuals and firms. These attributes are studied and examined in order to
develop effective business decisions related to the allocation of resources and establishing an
effective interaction between individuals and firms. The report will cover the topic of Wage
Discrimination in relation to microeconomics. The business scenarios wage discrimination will
be studied in reference to the Canadian markets and the economy. The report will cover for
discussing two different articles collected from different sources and will support for identifying
the topic within the articles with the real inferences.
Wage Discrimination can be described as discrimination practised between different sections of
the population. Wage discrimination is highly practised between the genders i.e. male and female
sections of the population. In the contemporary business environment, wage discrimination has
taken various forms and is practised based on the caste, creed, and age of the representative.
Wage discrimination is practised towards the minority group such as the black men and women
and white women. Discriminatory wages are provided to different sections of the population for
the same job specifications and duties. Discrimination is practised by providing decreased wages
and earnings for the same levels of job performance and responsibilities. It is the interest of
microeconomics as it contributes to the development of strategic business decisions and policies
that develops for business development.

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Summary of Article 1
In the words of Jorden Press from Canadian Press Canada observes a pay gap of $1 million each
year in similar job profiles and services. The working men in Canada exceed pay received in
similar job profiles by 1 Million as compared to women. According to a new report adding in
insights from Canada's highest-paid CEO, it is evidently clear that women face the scenarios of a
double pane glass ceiling for the top of Canada’s corporate ladder (Press, 2019). The struggle
women face in competitive Canadian industry includes for firstly getting to the top of the
position and then earning an equitable amount as their male counterparts earn for the given
position.
In the article, it has been identified that women only earn 68 cents for every dollar made by their
male counterparts. This has been surveyed through 249 publicly traded companies and 1200
named executive employees in the Canadian markets and economy. The article also depicted that
the wage gap is 68 cents only at the senior level and top management positions shared by the
men and women in similar industries (Press, 2019). The in reviews and opinions of Statistics
Canada calculation the overall pay gap is 87 cents based in other industries and sectors of the
economy. The articles provide that men earn $950,000 more as compared to the women
counterparts in a similar executive job and job roles.
It can be stated with the readings and observations of the article that wage discrimination is a
serious issue in the Canadian markets and industries. The women are paid lower on a regular
basis for similar job requirements and job activities. The article has focused on higher pay gaps
in the executive levels where the pay is already high (Press, 2019). The equity issue arises as for
why women are paid less even when not lower similar job profiles are assorted. Corporate

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Canada is facing these issues without considering the level of qualifications and background
knowledge is assessed by female competitors (Press, 2019).
Similar pay gaps have been witnessed in the country’s top 60 corporate who are publically
trading. The article displayed various reasons that have supported this discrimination in the pay
gap. The article specifies that complex and challenging work environments are not effectively
managed by women in various scenarios (Press, 2019). The article states reasons such as women
at top level fails to provide with effective reasoning for complex work-related queries and issues.
The article also identifies a lack of confidence and risk-taking as a major reason for issue in the
wage gap in the Canadian corporate. According to Macdonald organizations with a larger share
of women to be representing the executive levels tends to be smaller organization and therefore
the gap in wage and pay is exceedingly high. As the organizations where pay gap is larger
organizations controlled and regulated through their male counterparts.
Summary of Article 2
The article developed by Geoff McMaster has depicted the issue of falling ranking of
Canada as the industrialized country in the globe. The article has developed for reflection on the
issues of increasing the pay gap in the Canadian markets. According to the article women only
make around 74 cents to every dollar made by the male counterparts. The article has developed
that the figure gap has grown in the time duration to 88 cents (McMaster, 2017). It has also been
established that men work for longer time durations as compared to women in various segments
of the market and the industry. The article provided that according to World Economic Forum
Canada has fallen to 35th place in the industrialized nations down from 14th for 2006. It has
been established in the article that Alberta is the lowest ranked provinces in the country.

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The article provided that increased in the severity of the problem due to ignorance subjected to
towards it. At the University of Alberta, it was researched that even when women work for lesser
hours than men in different domains of the industry are paid lesser to the number of hours men
would work less (McMaster, 2017). The organizations working in this sector have also reduced
the costing implied in order to demonstrate the removal of equality. Harper's Conversation cut
the budgets by 40% to ensure a reduction in operations. Even after repetitive efforts developed
by Prime Minister Justin Trudeau’s, there is a lack of effective federal organizations supporting
the correcting gender equality and reduction in pay gap.
The article has identified that there is a gap due to occupational segregation. Certain job profiles
and responsibilities are only identified to be accomplished by their male counterparts. The
markets and economies have a tendency to relate male counterparts towards job irrespective of
their work profiles and work qualifications (McMaster, 2017). Women are still traditionally
feminized for certain occupations that are traditionally clerical work, caregiving, and positions in
the service sector industry. The article has developed an understanding that there is a lack of
value in the jobs identified with the women and often the job related to men are considered to be
more valuable and rewarding.
The research and investigation undertaken in the resource sector in the Alberta region have
identified that women are intrinsically deployed to work and occupation that is aligned to non-
masculine nature (McMaster, 2017). The nonmasculinity of work and job profiles are identified
as a major reason for higher wage gaps. The increasing unemployment rate is identified as a
reason for the wage gap in certain industries where only men are preferred as the working
population.

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Even when men and women both work for the same time duration and are providing for the same
job-related efforts, women are paid less in comparisons. The factor of employer bias and
discrimination also plays a major role in discriminating the wages and pays between the genders.
The notation is that women are observed as more family oriented rather than being go-getters or
hunters for job goals and objectives (McMaster, 2017). The article has also provided for there is
diplomacy established in relation to the women being perceived in the working sectors and
domains. The article has provided that women being aggressive and leaning into the work tasks
and profiles are also not considered effective or desirable in the working domains. According to
the world economic forum, it will take around 170 years to close the wage gap globally.
The article has identified distinctive drivers forcing Canada towards wage gap. The movement of
women in the labour markets has strategically contributed to the increasing wage gap. In the
labour markets, women are paid less and they work more in the sectors of caregiving. The
women work in sectors with more unpaid labour as compared to the men working in the same
fields and segments (McMaster, 2017). Women are more likely to indulge in a job that does not
exceed pressure and requires undertaking risk related job profiles. Women do not work in
structured sectors of the economy and tend to incline towards work where lower pay is rewarded
in relation to other benefits and rewards.
Conclusion
It has been identified and observed from the above discussions that wage discrimination is
exceedingly increasing in the Canadian markets. Differential wage systems and policies are
followed in different sectors to establish for irregularities in the markets. It has been identified
with the through readings of the articles that women are more discriminated and paid

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differentially. The articles have considered executive positions to the labour market; the
scenarios in both the sectors have depicted for discriminative payment and wage policy. The
article has also enabled to gain extended knowledge towards different reasons and driving factors
that contribute to increasing pay differences. The authors have paid extreme importance to
details and analysis of different areas contributing to increased levels of wage discrimination.

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References
 McMaster. G., (2017). Canada’s gender wage gap shows little sign of closing.
[Online]. Folio. Retrieved from: https://www.folio.ca/canadas-gender-wage-gap-
shows-little-sign-of-closing/
 Press. J., (2019). Canada's Gender Pay Gap Means Male Execs Make Almost $1M
More Than Women In Similar Jobs: Study. [Online]. HuffingtonPost. Retrieved from:
https://www.huffingtonpost.ca/2019/01/02/canada-gender-pay-gap-
executives_a_23631843/