Gender pay-gap data shows the future is far from female, in earnings at least
David Dodwell says the recent UK pay-gap data shows that women still face the most basic form of workplace discrimination. Perhaps the knowledge that women are becoming the biggest consumer group will encourage their elevation to senior executive levels
The UK survey findings were sobering, suggesting that 89 per cent of women work for a company with a pay gap that favours men, with half working for a company that pays men at least 9 per cent more than women. Only 11 per cent of women work in companies that pay them equally or better.
Apparently the worst sectors are construction, finance and insurance, and the education sector, where the gap is 20 per cent or more.
But before I completely capitulate on my argument that discrimination covers many more segments of the community than women, I recall fascinating US government data unveiled last year on pay gaps linked with ethnicity as well as gender. It discovered that the Asian-American community saw the worst male-female pay gaps – with Asian-American women earning 20 per cent less than Asian-American men – and the narrowest gap between Black/African Americans (just 10 per cent less).
But guess what? Asian-American men were the US’ best-paid group, with average annual incomes of US$63,000, and Asian-American women were better paid (at an average US$50,800) than any other segment of the population except White males, who earned an average of US$56,400.
In short, Asian women in the US may face pay discrimination compared to Asian men, but compared to every other group in the society – male or female – they today fare relatively well.
By the way, that same US data showed that pay discrimination between men and women gets worse as we age. The average 34-year-old American woman earns just 11 per cent less than her male counterpart. But at the age of 64, she earns on average 26 per cent less. Age discrimination is alive and well.
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The irony here is that the likely benefits of eliminating gender-based discrimination have been self-evident for quite a long time. Statistics abound on how companies with better gender balances provide better and more consistent performance.
But there are other important reasons why our failure to encourage equal female participation in the workforce is powerfully counterproductive. For a quick summation of some of the evidence, you can do worse than browse chapter 3 of Joseph Coughlin’s Longevity Economy, titled “The Future is Female”.
We need women in senior management for many reasons, but perhaps most simply because, as our societies age, it is women who are clearly becoming the biggest consumer group in our communities. As Joe Coughlin, at Massachusetts Institute of Technology’s AgeLab has noted, in the US, the over-50s control 83 per cent of all household wealth, and in 2015 spent US$5.6 trillion – compared with US$4.9 trillion spent by the under-50s. Women dominate spending decisions in this part of the population not just because they account for most of the over-50s, but because they are by far the predominant consumer decision-makers.
For this reason, Coughlin says tongue-in-cheek that every company’s “Chief Consumption Officer” should be a middle-aged woman. That is a message powerfully directed towards Silicon Valley, which is predominantly male and under 30. He points to epic product missteps that would never have been made with more women in senior positions.
Many difficult and controversial things still need to be done to make sure we capture the full potential of women in the workplace. Many are being discussed, and some are even being acted upon as I write, but some have not even begun to register in the public mind. For me, the most obvious and pressing of these is the need to revamp our education systems to enable women in their 40s, after children have risen into their teens, to re-skill systematically for what in future is likely to be a further 30-year career.
So many things still to be done, even after foundational work in Camden back in the 1970s. At least we have a massive new UK data set to drive the mission forward.
David Dodwell researches and writes about global, regional and Hong Kong challenges from a Hong Kong point of view