Gender Pay Equity - Myth or Reality? A Review of the Literature

A review of the literature indicates that Australia has a persistent gender wage gap. Between 1990 and 2009, women experienced a gender wage gap of between 15 and 17 per cent below male average weekly earnings. The causes of pay inequality in the workplace are multiple and complex and are embedded in existing industrial, legal and social structures. Educational attainment, skills differentials, occupational and industry characteristics, wage setting mechanisms, labour market tenure and engagement, as well as family responsibilities and discrimination are amongst the identified factors contributing to gender pay inequity. The concept of equal pay for women and men has been on the policy agenda in Australia for over century. Important social and legislative changes, including the Commonwealth Sex Discrimination Act 1984, which preclude discrimination on the basis of gender, have also add weight to the recognition of equity. Any identified level of pay inequality according to gender, is likely to have important implications for national productivity. Gender pay equity is however, not only an important economic imperative it is also likely to have significant legal and social implications.