The Gender Gap in Employment Pay and Pensions: Exploring Job Segregation and Pay Disparity

1. July 24th 2007 The Gender Gap in Employment, Pay and Pensions Jay Ginn Visiting Professor Centre for Research on Ageing and Gender Sociology Department University of Surrey, Guildford j.ginn@surrey.ac.uk

2. Patriarchy – 6 structures of male domination Women are: • Exploited by the expropriation of their household labour • Economically disadvantaged relative to men • Marginalised in state policies • Controlled by male violence or threat • Experience a sexual double standard • Portrayed as ‘lesser’ humans by cultural institutions From Theorising Patriarchy by Sylvia Walby (1990) ‘The primary purpose of religion is to control women’ George Monbiot, Radio 4, Any Questions, 2007

4. The Gender Gap in Employment, Pay and Pensions1. Gendered Employment In 1975, 90% of men were employed 60% of women (many of them PT) Now, 79% of men are employed 70% of women are employed (42% of them PT) Slow convergence to equal employment rates, - but not to equal employment

5. The Gender Gap in Employment, Pay and PensionsJob segregation persists a) Horizontal– women work in different (lower paid) occupations • Eg the 5 Cs (cleaning, caring, catering, cashiering and clerical) - small private companies, where pay is lower Women are: Men are:: 76% of cleaners/domestics 83% of directors/CEOs 73% of kitchen/catering assistants 79% of ICT managers 74% of waiters 71% of marketing/sales managers 72% of retail assistants 68% of financial managers/CS 95% of receptionists 63% of medical practitioners b) Vertical: - men occupy higher grades (higher paid) • 1 in 9 University Vice Chancellors are women • 1 in 6 directors/Cos of large organisations • 1 in 4 top civil servants • 1 in 3 doctors • 3 in 10 Head Teachers in sec. schools and FE

6. The Gender Gap in Employment, Pay and PensionsWhy does horizontal job segregation exist? In 1974, ¼ of girls and of boys - 5+ O levels 1/8 “ “ - 2+ A levels In 2003, 49% boys and 59% girls - 5+ good GCSEs 35% “ 44% girls - 2+ A levels Girls now outperform boys in school and HE, but they • Choose different subjects, so different occupations • Choose jobs/hours that fit their family commitments Women’s jobs are valued less highly than men’s. - cook vs decorator - pickers vs warehouse operatives - machinists vs welders (Fords) - speech therapy vs dental technicians (Enderby case, MSF) ‘Equal Pay for Work of Equal Value’ hasn’t worked, needs legal reform

7. The Gender Gap in Employment, Pay and PensionsWhy does vertical segregation exist in Britain? • Attitudes and expectations concerning gender roles - eg ‘gendered ageism’: women are never the right age for promotion 2. Motherhood restricts employment and earnings in Britain - lack of affordable, quality childcare services, so PT local work - lone mothers fare worst, cannot earn enough to pay for childcare, very few employed full time (Motherhood also reduces ability to save in private pensions)

8. Gender segmentation in labour markets Increasing feminisation of the workforce Decreasing Income Security Elite Salariat Skilled core workers Part-timers Temporary/short contract FORMAL SECTOR INFORMAL SECTOR Casual Labour Home-based paid workers Unpaid family labour

9. The Gender Gap in Employment, Pay and Pensions2. Gendered Pay Gender gap in hourly pay, 2005: Pay Gap Women’s full time pay/ Men’s full time pay =83% 17% Women’s part time pay / All men’s pay =62% 38% White people earn more than those from ethnic minorities But the gender gap in hourly pay varies Black African/Caribbean 13% Indian 12% (low empt rates among Asian women, especially Pakistani/Bangladeshi)

10. The Gender Gap in Employment, Pay and PensionsWhy are women paid less? • Lower hourly pay • Bonuses, overtime etc less available to women • Job segregation - horizontal (occupational, sectoral) and vertical • Fewer hours employed • Flexible work patterns (eg term time work, job shares) • Fewer years employed – career breaks

11. The Gender Gap in Employment, Pay and PensionsNational Minimum Wage, NMW NMW applies to 1.3 million jobs, 3% of men’s jobs but 7% of women’s 66% of jobs paying NMW are held by women, mainly PT • 27% of hairdressing jobs pay NMW • 22% of cleaning jobs • 15% of retail jobs • 13% of childcare jobs • 12% of textile jobs • 9% of food processing jobs • 8% of social care jobs NMW helps to narrow the gender pay gap at the lower end (should be enhanced by London Weighting)

12. Source: Ginn and Arber 2002

13. The Gender Gap in Employment, Pay and Pensions3. Gendered Pensions • Pension schemes designed for a ‘masculine life-course’, ie full time continuous employment (Beveridge expected women to depend on a husband as wives or widows) • Women disadvantaged in pensions, especially private (occupational and personal) pensions • Pension income depends on lifetime earnings • Occupational DB schemes less accessible to women (PT excluded until 1980s and early leavers lost)

14. The Gender Gap in Employment, Pay and PensionsIndividual income from state and private sources, men and women 65+ (DWP,2006)

15. Source: Ginn and Arber 2002

16. The Gender Gap in Employment, Pay and Pensions% men and women receiving income support, age 65+

17. Caring Roles & poor childcare and eldercare services Earnings-related pension Years-related pension And no allowances for caring PT jobs Gaps Short Years, Low Lifetime Earnings Low hourly pay Low pension for carers (mainly women) Gender bias and ‘women’s jobs’ Worst Scenario for Women LABOUR MARKET PENSION SYSTEM Private pensions dominate

18. Caring Roles shared Goodchildcare and eldercare services Residence-based pension Earnings-related state pension has Allowances for caring Quality PT jobs Pd Mat Leave Equal Lifetime Earnings Equal hourly pay Equal pension for carers (mainly women) No gender bias in employment Best Scenario for Women LABOUR MARKET PENSION SYSTEM

19. The Gender Gap in Employment, Pay and PensionsConclusions • Gender segregation, family caring and the undervaluation of women’s jobs still restrict women’s pay • Privatisation of services worsens women’s pay and conditions • NMW helps the lowest paid but needs to be increased, especially in London • Better childcare and eldercare facilities would help women to maintain full time employment • Higher state pensions, with allowances for caring, would help to equalise women’s and men’s retirement income

20. Thank You Jay Ginn Centre for Research on Ageing and GenderSociology Dept, Surrey University, Guildford,UKj.ginn@surrey.ac.uk Recent books Gender, Pensions and the Lifecourse. How pensions need to adapt to changing family forms, Bristol: Policy Press (Ginn, 2003) Women, Work and Pensions. International issues and prospects, Buckingham: Open University Press (Ginn, Street and Arber, eds, 2001).