Gender pay gap has decreased over the last several decades in the US federal workforce (Bolitzer & Godtland, 2012). The most significant contributor is women’s increased human capital. As human capital theorists contend,... [ view full abstract ]
Gender pay gap has decreased over the last several decades in the US federal workforce (Bolitzer & Godtland, 2012). The most significant contributor is women’s increased human capital. As human capital theorists contend, education and work experience are the critical factors in determining earning levels of workers (Becker, 1993; Mincer, 1993). Lewis and Oh (2009) revealed that women’s work experience and education levels have increased sharply over the period between 1983 and 2003 in the federal sector, and they attributed the narrowed gender pay gap to the reduced gap in work experience and education between women and men. Changes in women’s college majors are another important factor that explains reduced gender pay gap. As women increasingly choose lucrative majors such as engineering and business, gender based pay inequality has been decreasing (Loury, 1997).
Despite these positive changes, gender pay gap still persist in the federal workforce (Bolitzer & Godtland, 2012). With the emphasis on the performance-oriented management, governments make efforts to focus more on results than on process, which in turn helps changing the human resources management practices from seniority-based to performance-oriented. Noting the potential relationship between performance pay and pay inequality, Shrek (2007) argued that increased use of performance pay increases income inequality, because good performers are rewarded on their high productivity. Studies demonstrated that women’s performance ratings are not lower than men’s in the federal government (Lewis, 1997). This presents the possibility that if performance appraisal ratings reflect employee performance and if women’s performance is as high as men’s, then, gender pay gap would be smaller in the federal agencies with performance-oriented culture. This study examine the possibility using data from a Merit Principles Survey and from central personnel data file, managed by the Office of Personnel Management.
References
Becker, G. S. (1993). Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (Third ed. ed.). Chicago, IL: University of Chicago Press.
Bolitzer, Benjamin, & Godtland, Erin M. (2012). Understanding the Gender–Pay Gap in the Federal Workforce Over the Past 20 Years. The American Review of Public Administration, 42(6), 730-746.
Lewis, G. B. (1997). Race, Sex, and Performance Ratings in the Federal Service. Public Administration Review 57(6), 479-489.
Lewis, G.B., & Oh, S.S. (2009). A Major Difference? The American Review of Public Administration, 39(2), 107-124.
Loury, L. D. (1997). The Gender Earnings Gap among College-Educated Workers. Industrial and Labor Relations Review, 50(4), 580-593.
Mincer, J. (1993). Studies in Human Capital. Brookfield, VT: Edward Elgar.
Sherk, James. (2007). Performance-Based Pay Driving Increase in Inequality WebMemo #1505: The Heritage Foundation.
