Pay equity, minimum wage and equality at work
Rubery, J.
J Rubery - 2003 - equalpayinternationalcoalition.org
Summary
Jill Rubery's 2003 working paper, "Pay equity, minimum wage and equality at work: theoretical framework and empirical evidence," commissioned by the International Labour Office (ILO), provides a comprehensive analysis of the role of minimum wage policies in advancing pay equity and gender equality. The paper's methodology involves a detailed review of the theoretical underpinnings of pay discrimination, particularly gender discrimination, and its embeddedness within the organization of labor markets and pay structures. It synthesizes existing empirical evidence and explores the advantages and disadvantages of minimum wage policies compared to more targeted equal pay interventions. Furthermore, Rubery's work examines stakeholder attitudes towards minimum wages and reviews country-specific experiences with minimum wage instruments to identify their potential and actual effectiveness in reducing pay disparities. The study considers not only gender but also other forms of discrimination (e.g., based on ethnicity, national origin, age, and disability) that disproportionately affect workers at the bottom of the occupational hierarchy. The paper's findings highlight that pay discrimination, especially against women, is deeply ingrained in labor market organization and reward structures across countries. Rubery argues that minimum wage policies can serve as an efficient and effective tool to reduce gender pay inequality, provided they are set at a sufficiently high level to significantly improve the pay of low-wage workers, where women and other discriminated groups are often overrepresented. By establishing a floor to the wage structure, minimum wages can help undermine gendered social orders and narrow the gender pay gap, contributing to broader goals of non-discrimination, equality, and decent work. The research contrasts the impacts of general minimum wage policies with those of more specific equal pay policies, evaluating their respective capacities to challenge existing pay hierarchies and improve the economic standing of vulnerable worker groups. The paper concludes by identifying ongoing knowledge gaps and stressing the need for continuous research and policy monitoring to maximize the effectiveness of minimum wage and pay equity strategies.
Key Findings
- - Pay discrimination, particularly against women, is deeply embedded in labor market organization and existing pay structures.
- Minimum wage policies can be an effective tool for reducing gender pay inequality, especially when set at a level high enough to substantially improve the wages of low-paid workers.
- A higher minimum wage has the potential to significantly impact gender wage equality by challenging established gendered social orders in the workplace.
- The paper compares the efficacy of broad minimum wage policies against more targeted equal pay policies in narrowing the gender pay gap.
- Establishing a wage floor is crucial for addressing pay discrimination that affects various disadvantaged groups, including those discriminated against based on sex, ethnicity, age, or disability, who are often found at the lowest rung of the occupational hierarchy.