Wage inequality in UK Essay Example | Topics and Well Written Essays - 2500 words

Wage inconsistency in UK - Essay ExampleThus, one viable interpretation, non necessarily the correct interpretation, of the disparities in wage based on gender, race, ethnicity or localities that may be ascertained in the United Kingdom is that the disparities are due to the differential productivity of labour going from differences in gender, race, ethnicity, neighbourhood or on how each tender group would trade leisure for work. Lately, however, scotchs have acknowledge the role of institutional and social factors on how wage grade may differ crossways social groups based on gender, race, ethnicity, or locality. The institutional or social factors may be a result of discrimination, differential power parity, or political dominance. There is not much theorizing in this area of flying field by conventional economists and, in the literature, the discrimination, differential power parity, or political dominance is typically not articulated by a comprehensive or fundamental soc io-economic theory but by trial-and-error models using dummy variables that represent stratification by any one of the social variables like gender, race, ethnicity, or locality. ... Demand and supply for consummate and unskilled labour before and after globalisation Source Towers 2006, p. 6 At the same time, a phenomenon that is seen to be affecting how disparities are being affected by economic events is globalization. Towers (2006, p. 6), for instance, posited that with globalisation, the demand for skilled labour has shifted rightward while those for unskilled labour has shifted leftward. The rightward shift in the demand for skilled labour and the leftward shift in demand for unskilled labour are shown in Figure 1. The rightward and leftward shifts in the demand for skilled and unskilled labour, of course, is translated to higher real wage rates for skilled labour and disdain real wage rates for unskilled labour. Based on Tower (2006, p. 6), therefore, it is also viable to indicate that to the extent that skilled and unskilled labour has been associated with gender as well as gender dominance, exploitation, or the like, globalization can been seen as a variable that can exacerbate or moderate income inequality based on genders. Further, to the extent that opportunities or exposure to skills training and the like can differ across social groups, globalisation can also exacerbate or moderate income inequalities across races, ethnicity, and localities. Figure 2. record wage differential between men and women in the United Kingdom 1978-1999 Source Gosling and Limeux 2004, p. 280 The working boldness of the work of Gosling and Limeux (2004) is that there is wage disparity in the United Kingdom in favour of men. The logarithm of differential shown in Figure 2, however, shows that wage rates of women are rising faster than the wage rates of men. Thus, Figure 2 suggests that with globalisation, women has been increasing their wage rates faster than the mens