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LABOR & EMPLOYMENT LITERATURE WATCH: PAY EQUITY AND THE GENDER PAY GAP

May 6, 2022


Over the past few years, gender pay equity has become an increasingly prevalent
topic in the news, popular culture, and politics. Take, for example, the case of
women’s soccer; earlier this year, US Soccer and their female players reached
settlement which included $24 million in back pay to current and former
players.[1] Many states and localities have been adopting legislation to address
gender pay equity in various ways. The Illinois Equal Pay Act of 2003 (IEPA),
which prohibits employers from paying unequal wages to women or African-American
employees performing the same or substantially similar work, was recently
amended to require employers to proactively verify their compliance with pay
equity laws.[2] Predictably, we have seen a large corresponding increase in the
number of clients seeking economic analysis of pay equity on behalf of their
clients, both large and small.

Economists have a long history of studying the gender pay gap, dating back to
work in the 1960s by Jacob Mincer and Gary Becker when human capital theory was
first established. Academic economists have both tracked the empirical gap
between the earnings of men and women and expanded upon theoretical
understandings of the mechanisms through which discrimination may play a part in
labor market outcomes.[3] In this Labor & Employment Insights we will provide an
update on where the literature surrounding pay equity and the gender pay gap is
currently focused. Specifically, we will focus on the impacts of selection into
jobs, gender differences in responding to sudden changes in the labor market,
and COVID-19. 

[1] Das, Andrew. “U.S. Soccer and Women’s Players Agree to Settle Equal Pay
Lawsuit.” The New York Times, February 22, 2022,
https://www.nytimes.com/2022/02/22/sports/soccer/us-womens-soccer-equal-pay.html.
Accessed April 26, 2022.

[2] Gurrieri, Vin. “5 Things To Know As Illinois Pay Transparency Law Kicks In.”
Law360 Employment Authority, March 17, 2022,
https://www.law360.com/employment-authority/articles/1474872. Accessed April 26,
2022.

[3] A foundational, though highly academic, overview of this research can be
found in Cain, Glen G., 1986. “The economic analysis of labor market
discrimination: A survey,” Handbook of Labor Economics, Volume I, in:
O.Ashenfelter and R. Layard (ed.), Chapter 13, Elsevier.

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MEET THE AUTHORS

 * Abby Turner
   
   she/her/hers
   
   Principal
   
   Tallahassee
   
   +1-850-402-4230 aturner@crai.com
 * Sara Muehlenbein
   
   Associate Principal
   
   Tallahassee
   
   +1-850-402-2881 smuehlenbein@crai.com

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