Impact of college degree on gender wage gap

Press release See also: Investing in the infrastructure to support a 21st century economy Working women are paid less than working men.

Impact of college degree on gender wage gap

More typically, a respondent will have asserted that pay disparities are caused by nondiscriminatory factors. The Commission will need accurate information about all the variables on which the employer relies, for each employee similarly situated to the charging party.

The employer should be asked to provide and explain all of its reasons for a compensation differential to reduce the need for burdensome repetitive requests.

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Once a respondent provides one or more legitimate nondiscriminatory reasons for a statistically significant compensation pattern, the reasons must be analyzed to determine whether they explain the compensation disparity.

The investigator should contact ORIP or RAS to consider more sophisticated statistical tests for this purpose, including multivariate analyses. A multivariate analysis shows the extent of the relationship between one or more independent factors e.

CP, an African-American financial assistant in an investment firm, alleges that she receives lower pay than similarly situated employees who are not African American.

The investigator obtains detailed information about the jobs that CP identifies as similar, determines which ones can be compared for Title VII purposes, and then requests the salary and race of all employees in those jobs.

The investigator performs the threshold statistical test to determine whether a statistically significant difference in compensation patterns exists. Fifty-five 55 out of seventy-five 75 African American employees, and thirty- six 36 out of one hundred twenty employees not African American earn less than the median.

The investigator asks the employer to explain the pay disparity. The respondent alleges that the pay differential is attributable to differences in length of service, education, and performance.

Feb 28,  · Combining both effects, in , the gains to a college degree for men was $6, more than it was for women – by , that male advantage had increased more than 50%, to $9, Feb 28,  · The college/high school earnings differential has in general stopped growing since about The decline in the gains from college have been highly unevenly distributed. The income gains from a. Aug 19,  · After removing all other biases, neither education, nor occupational prestige, nor career success seems to protect women from the gender wage gap.

After consulting with RAS, the investigator asks the respondent to provide data on each of these factors for all the comparators. RAS performs additional statistical tests and concludes that the compensation factors proffered by the respondent do not satisfactorily account for the pay differential.

Disparate Impact Disparate impact analysis is aimed at "practices that are fair in form, but discriminatory in operation. In the area of compensation, practices that may fall within disparate impact analysis include: A disparate impact analysis can rely on the same statistical methods described above with respect to disparate treatment.

Gender Wage Gap By Ethnicity

Under the disparate impact method, the investigator must attempt to determine what particular practice or policy caused the impact. For example, if an employer provides extra compensation to employees who are the "head of household" -- i.

Once a disparate impact has been established, the investigator should determine whether the challenged compensation practice or policy is "job related for the position in question and consistent with business necessity.

CP, a janitor, files a charge alleging discriminatory pay because he is Hispanic. The investigator determines through statistical data that the high school degree requirement has a disparate impact on Hispanics.

The investigator also determines that the higher salary does not correlate with any difference in duties or responsibilities, and therefore is not job related and consistent with business necessity. Therefore "cause" is found.

Non-base Compensation Base salaries or wages often make up only part of the compensation package for employees. Employee compensation also can consist of stock options, bonuses, perquisites, and other payments made as remuneration for employment.

Non-base compensation can be discriminatory even if base compensation is not. Non-base compensation items -- such as bonuses, commissions, and perquisites -- usually are a function of an employer policy defining who is eligible to receive them, and in what amount.

As a result, the job content of particular jobs likely will be irrelevant in defining the pool of employees who are similarly situated to the charging party.

There are two issues the investigator should explore: Eligibility If all employees are eligible for the same non-base compensation, then no potential exists for discriminatory application of eligibility standards.

However, if some employees are not eligible for the same non-base compensation, then the investigator should determine whether, for each type of non-base compensation at issue, the eligibility standards are applied consistently and without regard to the protected characteristic involved e.

The statistical methods discussed earlier in this Manual Section can be used to analyze eligibility criteria under the disparate treatment or disparate impact methods of proof, as appropriate.People with college degrees have a far easier time finding a job than those without a degree.

Among to year-olds with a college degree, the jobless rate as of March was percent. 4. 4. The Web and Gender Inequality. Women Online: Access and Rights Gender-Based Violence Online.

Ending discrimination against women and girls — in health, education, political representation, and labour markets — is a powerful way to boost economic growth and unlock human potential.

Although prior research has examined the gender wage gap and discrimination in China, there is a little literature that analyze how the college degree (or college premium) affect the gender wage differential in . Occupational segregation accounts for a large portion of the gender wage gap, even after controlling for human capital characteristics such as educational attainment and work experience, a finding which has been documented by numerous studies (Cotter et al., ; Cotter et .

The Rising Cost of Not Going to College. For those who question the value of college in this era of soaring student debt and high unemployment, the attitudes and experiences of today’s young adults—members of the so-called Millennial generation—provide a compelling answer.

Impact of college degree on gender wage gap

Wages and salaries constitute nearly three-fourths of total family income—a share that is even greater for the middle class. Thus, analyses of wage and compensation trends are central to understanding the living standards of American families.

The Myth of the Gender Wage Gap | PragerU