Pay Equity

Author(s):

  • Rosemary Hays-Thomas

Document type: Encyclopedia Entry

Appears in: Work and Family Encyclopedia

Year: 2006

Topic:

  • Diversity
  • Ethnicity
  • Gender
  • Income
  • Public Policy

Discipline:

  • Psychology

Abstract:

Pay equity literally means “pay fairness.” The concept of equity implies that one receives proportionally fair outcomes in return for what one invests in a relationship or situation, when comparisons are made with appropriate others (Adams, 1965). When applied to jobs, the term “pay equity” refers to a particular strategy for reducing or eliminating the wage gap between or among groups such as women and men, or various ethnic groups. This strategy involves the use of compensation policies that assign wages after a careful determination of the content of jobs, such as the skill or effort required, the burden of responsibility, or the job’s working conditions. This process should be conducted in a manner that assures that the sex, ethnicity, or other demographic characteristics of job incumbents do not bias the evaluations of the job so as to inflate or deflate wages unfairly.

Link:Pay_Equity encyclopedia