Chapter 27: Internal Compensation Discrimination: Empirical and Theoretical Developments
Daniel E. Martin INTRODUCTION A majority of Western nations maintain anti-discrimination laws which ostensibly prevent discrimination in employment processes. However, prescriptive versus descriptive outcomes suggests that discrimination remains a significant barrier to equality in the employment process (Sidanius and Pratto, 2001). While research has established the existence of discrimination across the human resources process, little attention has been paid to job evaluation which leads to the structuring of pay and the relative value of positions across organizations. Discrimination theories have generally tried to explain race and sex inequality in organizations based on out-group hostility or perceived competition. Economists have theorized markets drive selection of the most productive employee without consideration of demographics to maximize profits (Becker, 1959; England, 1992); social psychologists have suggested in-group preference (Brewer and Brown, 1998; Fiske, 1998) or hierarchy maintenance (Sidanius and Pratto, 1999). Interdisciplinary theories have suggested an additive perspective in the multiple jeopardy–multiple advantage hypothesis (Ransford, 1980); suggesting that membership in multiple low social categories will be offered fewer economic benefits. THE EQUAL PAY ACT, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964 AND POINT FACTOR JOB EVALUATION SYSTEMS The United States recognized and provided for the protection of women and minorities against pay discrimination by enacting the Equal Pay Act (EPA) of 1963 and Title VII of the 1964 Civil Rights Act. After 30 years 344 Internal compensation discrimination 345 of anti-discrimination legislation, the gender discrepancy between salaries is well established (US EEOC, 2000) but the impact of job evaluation on...
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