The Gender Pay Gap Shrinks, But Why so Slowly?

One of the most widely researched issues regarding gender differences in the workplace is pay (Blau and Kahn, 2007). Study after study has investigated that in comparison with men most women experience notable pay differences. The gender pay gap is reality. The aim of this paper is to clarify to what extent the gender pay gap exists, and to develop propositions for analysing the reasons for the gender pay gap. This conceptual paper strives to integrate the analyses of the gender pay gap determinants from the perspectives of human capital theoretical model, contingency theory, several societal theories and feminist/gender theories. By exploring four different theoretical directions, I propose alternative factors as influencing the differences in the salaries of male and female employees. I also argue for the importance of the additional factors such as market-based contingencies and individual preferences in an effort to broaden a traditional understanding of the gender pay gap.