Discussion Prompt

What Constitutes a Fair Wage?

Wage inequality has been a hot-button topic in recent years. Currently, no federal laws have been passed to ensure fair wages; however, some states have taken it upon themselves to ensure fair wages among individuals of all ages, genders, and races. While we can see glimpses of change regarding wage inequality, is it enough? What else can be done?

The webpage"State Equal Pay Laws"provides an overview of the states that have adopted provisions to encourage wage equality. As you review the list of adopted provisions by state, consider how effective these laws will be at ensuring equal pay in that state. Do you think increased state regulation will help advance equal pay? Keep these examples in mind as you approach the discussion prompt below.

European Approaches to the Gender Pay Gap [from the textbook, p. 175, section 6.2]

"The policies of other nations can offer some insight into how to address pay inequality. Iceland, for example, has consistently been at the top of the world rankings for workplace gender equality in the World Economic Forum survey. A new Icelandic law went into effect on January 1, 2018, that makes it illegal to pay men more than women, gauged not by specific job category, but rather in all jobs collectively at any employer with twenty-five or more employees, a concept known as an aggregate salary data approach. The burden of proof is on employers to show that men and women are paid equally or they face a fine. The ultimate goal is to eliminate all pay inequities in Iceland by the year 2022. The United Kingdom has taken a first step toward addressing this issue by mandating pay transparency, which requires employers with 250 workers or more to publish details on the gaps in average pay between their male and female employees.

Policies not directly linked to salary can help as well. German children have a legal right to a place in kindergarten from the age of three years, which has allowed one-third of mothers who could nototherwise afford nursery school or kindergarten to join the workforce.33 In the United Kingdom, thegovernment offers up to thirty hours weekly of free care for three- and four-year-old children to help mothers get back in the workforce. Laws such as these allow women, who are often the primarycaregivers in a household, to experience fewer interruptions in their careers, a factor often blamed for the wage gap in the United States.

The World Economic Forum reports that about 65 percent of all Organization for Economic Cooperation and Development (OECD) countries have introduced new policies on pay equality, including requiring many employers to publish calculations every year showing the gender pay gap. Steps such as the collection and reporting of aggregate salary data, or some form of early education or subsidized childcare, are positive steps toward eventually achieving the goal of wage equality."

Answer the following questions:

1. What are your thoughts on the lack of current U.S. policy to eliminate the gender pay gap? Should the U.S. be a leader in trying to eliminate wage discrimination? What obstacles might be preventing the U.S. from doing so?
2. Would increasing the government's involvement in the gender pay gap be advantageous? Why or why not?
3. Go online and search for new policies that companies in the U.S. have implemented to try to eliminate the gender pay gap. How do these policies compare with the European ones, and which do you feel are the most effective? I'm