Tuesday, April 16, 2013

OJT: The Gender Wage Gap



Casey Schmidt

Introduction
Gender discrimination in the workplace has been a worldwide issue since the beginning of time. It is true that is has gotten tons better since the start of the push for equal pay for women but there is still wage discrimination in based on gender happening today in the workplace. One topic that causes gender discrimination that is important to know is the amount of on-the-job training the person gets. It is known that “wage effect of sex composition can be explained by gender differences in the amount of occupation-specific on-the-job training” that an individual is put through (Magnusson p. 87). Employers will discriminate based on gender on how much training someone gets, which ultimately will lead to a wage gap. “Several studies have shown significant differences in on-the-job training between women and men. In many cases, women receive less training than men” (Evertsson p. 79). It has been proven that women get less training time than men because to some employers, women are less valuable and more time and money should be put into training men because they have a better chance of being successful. The amount of on-the-job training someone gets has also been proven to “have a positive impact on wages, as well as on promotion routes” (Evertsson p. 79). If women are being trained less than men, then that means they will have an unequal opportunity to get promotions and higher wages. Thus, on-the-job training is a primary cause in wage related gender discrimination in the workplace.  

Why Women Don’t Participate in OJT
On-the-job training plays a key role in the wage gap between men and women in the workplace; but what are the reasons behind why women do not take part in OJT? A main reason that women are not given the opportunity to take place in training as much as men is because companies are fearful that women will have higher turnover rates. “If females are more likely to experience job turnover or breaks in the employment relationship than males, a firm will be less likely to invest in training females because managers may not believe that females will remain at the firm long enough to recover the cost of providing OJT” (O'Halloran p. 630). This assumption is premature for most companies. It is not fair to women for a company to assume they will leave their jobs and not equally train them because of it. Women are not getting the same training which leads to lower wages and chances for promotions because the employers are scared they will leave is not a legitimate reason for the discrimination. Studies also need to take into account the OJT durations and intensities of the training. Sometimes women may go through training but it is not as long or intense as what a man may go through. So even though women get the chance to be trained, they “experience OJT that comprises shorter durations than males” (O'Halloran p. 646). Also, sometimes females were only offered informal training. In a study it was found that “females were less likely to receive formal OJT than males” (O'Halloran p. 631). If women are not offered the chance to receive formal training that is as long and intense as males, how are they going to ever going to have equal pay between genders?

Another reason women do not have the opportunity to participate in OJT is because many women have to take a leave of absence when they get pregnant or because they have a child in general. Through a study done about female participation in OJT, when looking into family variable it was found that “women with at least one child younger than 7 years of age have significantly lower chances of receiving training than do men with or without children” (Evertsson p. 84). So, basically because a woman has a child, they are receiving lower wages than men because employers are not giving them the opportunity to take part in OJT. 

Devaluation Theory
The devaluation theory is “a frequently used sociological explanation of the negative wage effect of the female share of occupations” (Magnusson p. 87). There are many ways that women are devalued that directly come from OJT. The devaluation of women’s work is seen when the popular form of discrimination comes into play which is when “traditionally feminine tasks are undervalued because they are usually performed by or associated with women” (Magnusson p. 88). Many men still have the idea that women are supposed to be the “nurturers” and stay at home with the family and be the care takers. Even though women make up a huge portion of the work force, this mind set of some people still effects equality based on gender in the labor market. If an employer has this mind set, the chances of women participating in OJT is lowered; once again, making the wage gap between genders wider. Even though some studies prove to go against the devaluation theory as a component of why there is wage discrimination based on gender, it is important to know about and the risks that go along with it. 

Take Away Points
Everyone needs to be aware of the dangers of discrimination in the workforce. Gender discrimination is just one type that occurs. We have learned in class that there are many more types of discrimination that exist in the labor market. Women especially need to be aware that they may be discriminated against which could lead to lower wages. If women know that the amount of on-the-job training they receive directly correlates to their potential wages and chances for promotions, they will fight harder to get the training they need. OJT is not something I would have thought of as a cause to the wage gap based on gender but I am glad I know and can look for it in my future career. Men can also take away something from this too. They might be an employer that conducts OJT or someone that goes through it themselves and they need to stand up against the discrimination even if it doesn’t directly affect them. In addition, if they are the employer they could face legal claims so it is good to be aware of it so they can avoid legality issues. On-the-job training is a very good way to train employees and can have amazing benefits for everyone, but it has to be an equal opportunity program to be successful.   

References
Evertsson, M. (2002). Formal on-the-job training: A gender-typed experience and wage-related advantage. European Sociological Review, 20(1), 79-94. doi: 10.1093/esr/20.1.79

Magnusson, C. (2009) Gender, occupational prestige, and wages: A test of devaluation theory. European Sociological Review, 25 (1), 87-101. doi: 10.1093/esr/jcn035

O'Halloran, P. L. (2008). Gender Differences in formal on-the-job training: Incidence, duration, and intensity. LABOUR, 22(4), 629–659. doi: 10.1111/j.1467-9914.2008.00427.x

               



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