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PRIVATE SECTOR PAY EQUITY LAW WILL HURT SALARY OF WOMEN IN MALE-DOMINATED PROFESSIONS

Author: Mark Milke 2001/11/29
VICTORIA: The BC division of the Canadian Taxpayers Federation (CTF) today submitted its recommendations to the government-appointed task force studying a possible pay equity law in B.C.'s private sector.

"The CTF supports stronger enforcement of anti-discrimination laws in apple-to-apple comparisons of private sector jobs, but does not support spurious 'equal value' comparisons being imposed on the private sector" said CTF-BC director Mark Milke. "Ironically, the Ontario experience with a similar law suppressed the wages of women who have begun to enter traditionally 'male' job sectors in large numbers, both in white-collar and blue-collar jobs."

The submission: Equal pay for equal work - or for "equal value" can be found by clicking here. These are the highlights:

  • "Pay equity" - equal pay for work of equal value - is distinct from the concept of equal pay for equal work. The Canadian Taxpayers Federation (CTF) supports equal pay for equal work.
  • Pay equity legislation in Ontario has the unintended and perverse result of suppressing wage growth for women who entered previously male-dominated fields, both in blue-collar and white-collar jobs. Just as women have begun to enter male-dominated jobs in large numbers, pay equity legislation threatens to suppress their wage gains in such jobs. This has been the experience in Ontario according to a University of British Columbia study published in 2000.
  • Where apples to apples comparisons are made - single, university-educated women on average earn $600 more per year than single, university-educated men. As women and men begin to make different choices - to interrupt their careers or to raise children - the average earnings of men and women begin to diverge, and as a result, comparisons begin to be of the "apple-to-orange" variety, not the apple-to-apple variety.
  • Even the former government - sympathetic to claims of systemic discrimination in the private sector - published statistics that noted that the much-touted "wage gap" between the average earnings of men and women - once other factors such as education and unionization were considered - shrunk from 27% to 13%. Further analysis of the 13% reveals that the statistical assumptions behind the figure are highly questionable and spurious in some cases.
  • The CTF recommends the government not proceed with legislating equal pay for work of equal value - "pay equity" - in the private sector, as it is statistically questionable and philosophically spurious.
  • The CTF recommends the government vigorously enforce laws against wage discrimination in clearly identifiable identical jobs. The CTF supports increased and vigorous enforcement against age discrimination in apple-to-apple comparisons, but not apple-to-orange comparisons.

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    Federal Director at
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    Federation

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