Factors which help to explain the rising female participation ratio include:
The structural changes in the UK economy with the relative decline in the primary and secondary sectors of the economy which are ones predominately with male employees given both some explicit expectations of males being required in farm and factory based jobs.
The growth of the tertiary sector, which has offered in particular, increased possibilities of female participation in the workforce.
Some employers have favoured using part-time employees to minimise costs of employment that would follow if full-time staff were employed as a result of legislation that has tended to give more protection for full-time employees.
Female part-time work has increased in part due to changes in social attitudes to women working since the early 1970s.
These changes in social attitudes to working have thus helped change the supply of labour, which made such a difference to the activity rate of women, particularly in the tertiary sector of the economy.
The greater availability of crèches, nursery education and child minders has facilitated the growth in part-time and full-time employment.
As regards the decline in male employment levels since 1972 (about three million less be 1996):
- The process of deindustrialisation, which has seen the relative decline of the manufacturing sector, which therefore had been a major sources of male employment. Relative contributory factors include competition from overseas sources of supply and the favourable impact of a high exchange rate at various times since 1972.
- The decline in the size of the coal industry in recent years.
(c) Critically examine the factors, which might explain the differences in women’s and men’s average earnings.
The chart shows that women’s average earnings as a percentage of men’s earnings vary between about 50% (Netherlands, Switzerland and the UK) and 70% or more (such as in Italy, Denmark and France).
The text makes clear that this sex differential is not explained by the comparison of part-time earnings by females with those of men but relates to full-time working.
Women are more likely than men to move in and out of the labour force, with many taking a particularly long breaks in their career to raise children. Time spent outside of labour means a valuable loss of experience and therefore relatively lower marginal revenue productivity.
The age at which women tend not to be economically active due to child-bearing is just the age at which most progress up the career ladder is made by those with greater attachment to the labour force.
Until relatively recently females enjoyed many fewer educational opportunities than males and did not on average attain as high a level of qualification as men. This resulted in a correspondingly lower marginal revenue productivity.
The supply of female labour has increased in recent years as more women have chosen to be economically active. Other things being equal an increase in the supply of female labour will lower the female wage rate.
In many cases females are second wage earners in their families and may be willing to supply their labour at a lower rate.
Discrimination. Academic studies which have attempted to explain differences in pay by gender have been unable to account for all of the difference in economic terms. In other words, discrimination remains an important factor.
(e) Evaluate how EU labour market polices might affect wage differentials between men and women in the UK.
Perhaps the most significant impact of EU labour market legislation on the UK is that following the change of government in 1997, the UK signed the European Union’s ‘Social Chapter’ of the Maastricht Treaty. This covers rights to:
- Equal treatment of men and women
- Improvements in living conditions and working conditions
- Freedom of movement
- Social protection
- Fair remuneration in employment
- Vocational training
- Health protection and safety at the work place
- Freedom of association and collective bargaining.
Many of these rights are uncontroversial, although others might be taken to be a treat to the labour market flexibility by imposing unnecessary costs on employers. This was the reason why the UK refused to sign the chapter in the first place, leading top accusations that the UK was gaining unfair competitive edge over rival member states. This is sometimes called ‘social dumping’. The UK has passed much labour market legislation, which is in line with the spirit of the social chapter. Before the time of signing, for example, it had already been established as a legal principle that work of equal worth should receive equal pay. This can be seen as important in ensuring equal treatment for men and women.
