1

The Persistence of the Gender Wage Gap: Causes and Implications in North America

Name

Institutional Affiliation

Course

Professor

Date
 2

The Persistence of the Gender Wage Gap: Causes and Implications in North America

Introduction

Despite decades of policy reforms and advocacy, gender inequality in pay persists as a

pressing issue in North America. In almost every industry and vocation, women are still paid less

than men, which is indicative of more ingrained structural obstacles to pay parity. Although there

has been a gradual decrease in the gender wage gap over time, women in North America still

only make $0.82 for every $1 made by males. (WHO, 2022). This paper argues that the gender

pay gap stems primarily from cultural biases about women’s work as well as institutional

practices that disadvantage women, such as lack of paid family leave and occupational

segregation. If left unaddressed, the impacts of pay inequity extend beyond individual women to

negatively affect family economic security and the overall productivity of the North American

economy. Tackling pay discrimination will require not only new policies, but also transforming

social norms and structures to finally value the paid labor of women on par with men.

Gender Wage Gap in North America

The gender wage gap in North America varies across demographic groups and economic

sectors, but pervades nearly all labor market outcomes. Overall, women in the US only make 82

cents for every dollar earned by males, which results in a $10,157 annual pay disparity (U.S.

Census Bureau, 2021). In Canada, women make $0.87 for every male dollar, leaving a national

gap of 13.3% (Statistics Canada, 2022). However, aggregate statistics often mask deeper

disparities. Black and Hispanic women receive barely 63 cents and 57 cents every dollar earned

by white males, respectively, indicating that the pay disparity is worst for women of color

(AAUW, 2022). Education does not eliminate the disparity; even women with advanced degrees
 3

make less than males with similar qualifications (Ecklund et al., 2022). Pay gaps widen

significantly for mothers, known as the “motherhood penalty” (Budig, 2014). One Canadian

study found a 7% wage penalty per child among professional women. In male-dominated fields

like finance and technology, women earn 20-30% less than men in similar roles (Polachek,

1987). Occupational segregation concentrates women in lower-paying jobs, but does not fully

explain the wage gap. Tackling inequity will require addressing cultural biases and structural

barriers that affect wage setting.

Structural functionalism provides insights into how core social structures and institutions

contribute to maintaining gender inequality in pay. Functionalists argue that each part of society

serves important purposes that keep the overall system stable. For example, the gendered

division of labor functions to match workers with roles deemed suitable based on gender norms,

such as women in caregiving jobs. From this view, occupational segregation assigns women to

lower-paid jobs to fill essential societal needs, while hierarchy ensures men receive higher pay as

“family providers”. Yet this theory risks justifying unfair practices and ignores conflict. By

emphasizing shared values and social cohesion, structural functionalism fails to address

inequalities that benefit some groups over others (Collins, 1994). This perspective overlooks how

pay gaps disadvantage women economically and are not inherent to a functioning society.

Feminist theory provides a better lens for critiquing the patriarchal power structures that devalue

women’s work. Overall, structural functionalism provides useful macro-analysis of social

institutions, but cannot sufficiently explain why gender stratification in wages persists or how to

reform systems to achieve pay equity.

Feminist perspectives reveal how culturally ingrained gender biases result in the

devaluation of women’s work. Theorists argue patriarchal norms portray women as secondary
 4

citizens whose primary domain is the private sphere, while men occupy the privileged public

sphere of politics and paid labor (Collins et al., 1993). This ideological separation of “women’s

work” from paid employment leads to the assumption that jobs involving domestic skills or

caregiving deserve less compensation, even though these roles require significant effort and skill.

Gender stereotypes that portray women as more passive and nurturing also channel women into

lower-status roles. Socialization further instills these biases in boys and girls from a young age,

discouraging women from pursuing high-paying, male-dominated fields (Correll 2004). The

cumulative result is a pervasive cultural devaluation of women’s paid and unpaid labor that

manifests in discriminatory wage setting practices. Achieving pay equity will require dismantling

institutionalized patriarchal norms as well as reshaping gender socialization to promote equal

worth and opportunities for women in all employment fields and roles.

Legislative Reforms in North America

A range of legislative reforms have attempted to promote gender pay equity in North

America, but with limited efficacy thus far. Equal pay for equal labor is mandated in the United

States by the groundbreaking Equal Pay Act of 1963, which applies to both men and women.

This forbids wage discrimination based on gender in an establishment for positions requiring

about equivalent ability, effort, and responsibility under comparable working circumstances

(U.S. EEOC, 2022). Further safeguards are offered under Title VII of the historic Civil Rights

Act of 1964, which outlaws discrimination in the workplace on the basis of sex and other

protected characteristics (Timmins, 2021). In Canada, the Equal Wages Guidelines enacted in

1956 promote pay equity across gendered occupations and industries. When comparing

occupational classifications with a preponderance of male and female employees, these criteria
 5

analyze competence, effort, responsibility, and working circumstances and demand equal

compensation for work of equivalent value (CBC news, 2015).

However, significant gaps persist due to difficulties enforcing pay equality on a systemic

level. Very few women file legal claims over pay discrimination, and proving differential

treatment is challenging on a case-by-case basis, often requiring clear proof of intentional bias.

Anti-discrimination laws also do not adequately address key factors like occupational

segregation, discriminatory hiring and promotion patterns, retaliation against workers who

discuss pay, and overall lack of pay transparency (Feder & Levine, 2010). Some states and

provinces have passed more progressive laws, such as wage transparency statutes or proactive

auditing for inequities. But in the absence of national-level reforms, the U.S. and Canada

continue to lag behind many developed nations in pay equity protections. While existing legal

measures have certainly helped move closer to pay fairness, their limited scope and usage reveals

the urgent need for expanded, proactive policy measures to equitably govern pay.

The repercussions of pay inequity extend far beyond individual women to negatively

impact families, communities, and the economy overall. Persistent wage gaps contribute to

higher poverty rates among women, particularly single mothers, who struggle to provide for

families without pay parity. The gender gap also hinders family financial stability and retirement

savings, as women have less income to contribute over a lifetime (Caryn, 2016). On a macro

level, the underpayment of women results in a loss of economic potential. Estimates suggest

closing the wage gap would boost American GDP by 5% and Canadian GDP by 4% over the

next decade. At a societal level, pay equity strengthens public health, democratic participation,

and community empowerment by uplifting women economically (Equal Pay Today, 2022). In

short, gender pay discrimination does not just harm individual women workers, but rather
 6

undercuts shared prosperity across North American society. Realizing pay equity’s benefits will

require transforming how society values women’s paid and unpaid labor.

Conclusion

In conclusion, the gender wage gap remains a pressing issue facing North America,

stemming from deeply rooted biases that undervalue women’s work. While legislative reforms

have promoted some progress, pay inequity continues to harm women across occupations and

demographic groups through discriminatory wage-setting practices. Achieving equitable pay will

require multifaceted efforts, from enforcing anti-discrimination laws to actively dismantling

systemic occupational segregation. However, transforming social norms is equally vital to

advance gender equality. Through research, I realized that pay equity is not just a women’s issue,

but one fundamentally tied to shared prosperity and economic justice across society. My insights

reinforce that ensuring women’s work is valued fairly will take commitment from institutions,

communities, families, and individuals to enact lasting social change. Though the path forward is

challenging, it remains essential for creating a North America where equal pay is a reality, not

just an ideal.
 7

References

American Association of University Women. (2022). The simple truth about the gender pay gap.

https://www.aauw.org/resources/research/simple-truth/

Caryn E. Medved (2016) The new female breadwinner: discursively doing and undoing gender

relations, Journal of Applied Communication Research, 44:3, 236-

255, DOI: 10.1080/00909882.2016.1192286

CBC news. (2015). Women's pay gap will take 118 years to close at current pace, world

economic forum says | CBC news. CBC. https://www.cbc.ca/news/business/gender-

equality-workplace-1.3326221

Budig, M. J. (2014). The fatherhood bonus and the motherhood penalty: Parenthood and the

gender gap in pay. Third Way. https://www.thirdway.org/report/the-fatherhood-bonus-s

and-the-motherhood-penalty-parenthood-and-the-gender-gap-in-pay

Collins, P. H. (1994). Shifting the center: Race, class, and feminist theorizing about motherhood.

In M. J. Glenn, G. Chang & L. R. Forcey (Eds.), Mothering: Ideology, experience, and

agency (pp. 45-65). Routledge.

Correll, S. J. (2004). Constraints into preferences: Gender, status, and emerging career

aspirations. American sociological review, 69(1), 93-113.

https://doi.org/10.1177/000312240406900106

Ecklund, H., Lincoln, A. E., & Tansey, C. (2012). Gender segregation in elite academic science.

Gender & Society, 26(5), 693-717. https://doi.org/10.1177/0891243212451904

 8

Equal Pay Today. (2022). What closing the gender pay gap could mean for women and the

economy. Closing gender pay gaps is more important than ever | UN News

Feder, J., & Levine, L. (2010). Pay equity legislation.

Government of Canada. (2022). Pay equity: Equal pay for work of equal value.

https://www.canada.ca/en/employment-social-development/programs/pay-equity.html

Polachek, S. W. (1987). Occupational segregation and the gender wage gap. Population

Research and Policy Review, 6, 47-67.

Statistics Canada. (2022). The gender wage gap in Canada: 1998 to 2018.

https://www150.statcan.gc.ca/n1/pub/75-004-m/75-004-m2019004-eng.htm

Timmins, B. T. (2021). Little change in gender pay gap over past 25 years, study finds. BBC

Breaking News, World News, U.S. News, Sports, Business, Innovation, Climate,

Culture, Travel, Video & Audio. https://www.bbc.com/news/business-59542790

U.S. Census Bureau. (2021). Income and Poverty in the United States: 2020.

https://www.census.gov/library/publications/2021/demo/p60-273.html

U.S. Equal Employment Opportunity Commission. (2022). Laws & guidance: Pay

discrimination. https://www.eeoc.gov/laws/guidance/pay-discrimination