Relationship Between Wage Rate And Gender Essay


Discuss about the Relationship Between Wage Rate and Gender.



Gender pay gap is the disparity of wages between male and female employees. It is mostly expressed as the percentage of earnings earned by male employees (Lips 2013). Lack of women leadership and flexible senior roles highly contribute to the pay gap within different industry. Moreover, social stratification and stereotyping in the society also contribute to the discrimination between male wage and female wage (Tharenou 2013). Moreover, in some of countries, women are less likely to attain high level of educational qualification. This study will highlight the relationship between wage rate and gender in Australia. The study will mostly focus on Sydney in Australia for evaluating the business topic. Women employees are significantly neglected in the workplace of Sydney and they are less likely to get leadership role than their male counterparts are. The workplace in Sydney is highly diversified in terms of gender.

Research Background

Over the years, women are significantly neglected in the society in some countries. Male employees in Australia are still getting 20% more wage than female employees. Furthermore, male and female employees are being paid differently despite of working in same position ( 2017). Women are less likely to get higher position in their organization. This factor is primarily responsible for lower wage of women employees than male employees get. This discrepancy is also occurring due to recruitment patterns and employment practice. The full time wage discrimination in Sydney is stand at 18%, where female employees are getting 82% of a male employee wage (ABC News 2017). In this sense, a women employee has to work additional 65 days in a year for getting same wage like a male employee.

Problem Statement

Sydney has the largest gender pay gap in Australia, where wage structure in highly dependent on gender of the employees. As per the survey of 2015, Sydney represents 26% wage gap in terms of gender in the workplace (Wilkins 2017). Though equity pay is implemented in most of the industries of Sydney, still this act is not actually practiced in the workplace of the industries. Social stratification of Australian society is also hindering the women for getting higher qualification and applying for higher position in their workplace ( 2017). Moreover, low paying jobs occupied by women are giving more chance to low quality males towards occupying higher organizational position.

This research study is aimed at identifying the relationship between the wage rate and gender in Sydney.

Is there a relationship between wage rate and gender in Australia?

  • To identify the employment practice in Sydney
  • To evaluate the gender diversity in the workplace of Sydney
  • To identify the reasons behind the wage discrimination between male and female employees in Sydney

Dependent Variable and Independent Variable

Dependent Variable: Wage

Independent Variable: Gender


H0: There is significant relationship between wage rate and gender in Sydney

H1: There is no relationship between wage rate and gender in Sydney

Gender Diversity

Gender diversity is the form of equal treatment acceptance of both male and female employees in the workplace. Gender diversity represent equal portion of male and female employees in the workplace of an organization. According to O’Reilly et al. (2015), in gender diversity, women employees get equal priority in terms of wage and promotional areas. On the other hand, Chzhen, Mumford and Nicodemo (2013) opined that diversity oriented organizations provide some extra privileges to the women employees. However, Sydney is still lagging behind in this organizational practice. In this state, women employees are automatically assigned with low responsibility jobs and get lower salaries than those of male employees. As per Australian Council of Superannuation Investors, the company boards in Sydney are getting older because of hiring women employees in non-executive roles (Vecchio et al. 2013). This practice highly reflects on the wage structure of women employees in the organizations of Sydney. In this way, clear wage discrimination can be found between the male and female employees of the Sydney.

Wage discrimination for gender diversity

Australia has achieved significant progress in gender equality in the workplace of the organizations. However, women employees are still experiencing discrimination and inequality in the workplace of the organizations in Sydney. At the workplace, women employees are highly facing gender pay gaps and barrier in getting leadership roles. The female employees also get less employment opportunities because they are to give time to their families and perform caring responsibilities. According to Charlesworth and Macdonald (2015), more than 30 reputed companies are still there in Australia, which do not have any female member in their boards. Moreover, 58 organizations have just 1 member in their boards. Therefore, a significant amount of wage discrimination can be found between male and female employees of Australia. On the other hand, Olson (2013) opined that the social concept of Sydney also prevents women to achieve higher business related degree. Therefore, they are lagging behind on occupying higher responsibility jobs and thus get lower ware rate than those of male employees.

Theory in Relation to workplace diversity (Gender Diversity)

Scott Page’s theory of diversity management states the dynamic behavior of groups in problem solving and innovation of an organization. The set of principles of this theory define that increasing organizational complexity has driven organizations to adopt organizational diversity. As per this theory, diversity is not only restricted to superficial characteristics and it incorporates different perspectives and heuristics (Peetz 2015). Diverse workforce means diverse problem solver for the complex organizational problems. Moreover, there are various organizational issues, which can best be solved by women employees. This need has driven organizations to adopt gender diversity in their workplace.

Special Investigation

Both male and female employees get additional remuneration apart from their basic salaries. These additional remunerations are in terms of bonuses, allowances, overtime and superannuation. It has been found that the male employees in Sydney earn quite more additional remuneration than those of female employees. Women employees working in full time jobs get 18.1% additional remuneration on their basic pays ( 2017). On the other hand, male employees in full time jobs get 25% extra remuneration on their basic pays. Moreover, 23.1% gender pay gap has been found in Sydney at the base pay level of the employees (Wilkins 2017).

Research Methodology

Research Approach

Research approach facilitates in getting accurate understanding regarding the topic of the research. Two forms of research approaches are available in conducting research study namely inductive and deductive. Inductive approach forces in creating related theories and models for getting relevant research outcome (Tuohy et al. 2013). Deductive approach will be chosen for this research study, as it assists in using previously created theory and models in conducting research study.

Research Design

Research design facilitates in effectively conducting research study by providing clear understanding about the topic of the research. Three sorts of research designs are available in conducting the research study. These approaches are explanatory, exploratory and descriptive. Exploratory design aids in assessing research background. Explanatory design facilitates in finding out the variance among various research variables (Farrokhyar et al. 2014). However, descriptive design will be selected to conduct this research study. It will facilitate in getting proper explanation of the research topic towards enhancing research outcome.

Research Strategy

Four types of research strategy are available for gathering accurate information regarding research topic. Focus group and case study are mostly used for secondary research study. This research study will use primary method of research study. Therefore, interview and survey method will be used for gathering relevant information regarding the research topic. In interview method, organizational heads will be interviewed for assessing the accurate information regarding the topic of the research. On the other hand, local employees of Sydney will be selected for conducting survey method and getting their views on the research topic.

Data Collection

This research study will use both primary and secondary sources for collecting relevant data about the research study. This research study will be basically based on primary method of data collection. However, secondary sources will also be used for getting relevant information regarding the research topic. In secondary sources, online journals, websites and magazines will be used for getting relevant information regarding the research topic (Tuohy et al. 2014). In primary method, both qualitative and quantitative techniques will be used for gathering information of the research study. In quantitative technique, local employees of Sydney will be selected for gathering authentic information regarding wage discrimination based on gender. On the other hand, managers of some randomly selected organizations in Sydney will also be selected for conducting qualitative technique.

Sample Size

50 local employees working the organizations of Sydney will be chosen for survey method and 5 managers of randomly selected organization in Sydney will be selected for interview method. Moreover, random sampling method will be used for collecting information from the selected sample size.

Operational definition and measurement

Operational definition is applied on collection procedure and getting concise definition of a measure. The variables are first defined by conceptual definition and secondly, the variables are defined through operational definition for getting accurate meaning. The acceptable margin of error in the research study will be 3%.

Data Analysis

Statistical data analysis will be used for analyzing the collected data and converting general information to specific information. Moreover, mean, median and mode will be used in statistical method for analyzing the data.

Expected Outcome

It has been found that Australia is progressing in mitigating gender gap in the organizations. However, most of reputed organizations are still lagging behind in providing more scope to women employees. Therefore, it is expected that there is significant relationship between the wage rate and gender in the organizations of Sydney. Women employees are not getting top organizational position and therefore, their ware rate is significantly low than those of men employees. In order to mitigate this gender gap and bring equal pay system, the organizations in Sydney should strictly follow equal payment act.

Reference List

ABC News. 2017. Australian men paid average of 20 per cent more than women. [online] Available at: [Accessed 6 Jan. 2017].

Charlesworth, S. and Macdonald, F., 2015. Australia’s gender pay equity legislation: how new, how different, what prospects?. Cambridge Journal of Economics, 39(2), pp.421-440.

Chzhen, Y., Mumford, K. and Nicodemo, C., 2013. The Gender Pay Gap in the Australian Private Sector: Is Selection Relevant Across the Earnings Distribution?. Economic Record, 89(286), pp.367-381.

Farrokhyar, F., Amin, N., Dath, D., Bhandari, M., Kelly, S., Kolkin, A.M., Gill-Pottruff, C., Skot, M. and Reid, S., 2014. Impact of the surgical research methodology program on surgical residents’ research profiles. Journal of surgical education, 71(4), pp.513-520.

Lips, H.M., 2013. The gender pay gap: Challenging the rationalizations. Perceived equity, discrimination, and the limits of human capital models. Sex Roles, 68(3-4), pp.169-185.

O’Reilly, J., Smith, M., Deakin, S. and Burchell, B., 2015. Equal Pay as a Moving Target: International perspectives on forty-years of addressing the gender pay gap. Cambridge Journal of Economics, 39(2), pp.299-317.

Olson, J.E., 2013. Human capital models and the gender pay gap. Sex roles, 68(3-4), pp.186-197.

Peetz, D., 2015. Regulation distance, labour segmentation and gender gaps. Cambridge Journal of Economics, 39(2), pp.345-362.

Tharenou, P., 2013. The work of feminists is not yet done: The gender pay gap—a stubborn anachronism. Sex roles, 68(3-4), pp.198-206.

Tuohy, D., Cooney, A., Dowling, M., Murphy, K. and Sixsmith, J., 2013. An overview of interpretive phenomenology as a research methodology. Nurse Researcher, 20(6), pp.17-20.

Vecchio, N., Scuffham, P.A., Hilton, M.F. and Whiteford, H.A., 2013. Differences in wage rates for males and females in the health sector: a consideration of unpaid overtime to decompose the gender wage gap. Human resources for health, 11(1), p.1. 2017. Sexuality and Gender Diversity | Western Sydney University. [online] Available at: [Accessed 6 Jan. 2017].

Wilkins, G. 2017. Company boards getting older and still lagging on gender diversity. [online] The Sydney Morning Herald. Available at: [Accessed 6 Jan. 2017].

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