Abstract:

This study examines recent research on the gender pay gap. It reviews and evaluates statistical discrimination and human capital models to explore the disproportionate representation of women in the labor force. In addition to the trend, this study considers the consequences of discrimination and occupational segregation in the labor market. The study also attempts to determine whether and how specific factors, such as education, discrimination, and employment across sectors of the U.S. economy, influence the income gap between men and women. Both traditional and market mechanisms are at play. Continued progress towards reducing occupational Segregation requires that women enter a broader range of traditionally male occupations and that more men enter historically female occupations. The present study reveals that income inequality between men and women primarily stems from market forces. The market factors of education and discrimination are the primary areas where women suffer disadvantages that result in their lower income.