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Rachel Greszler is research fellow in economics, budget, and entitlements in the Grover M. Hermann Center for the Federal Budget, of the Institute for Economic Freedom, at The Heritage Foundation. Read her research.
Whether it’s the result of political pressure or wanting to stay ahead of progressive trends, a number of larger companies are conducting internal audits to investigate whether they could be accused of having a so-called “pay gap” between men and women.
Google - Conducts - Audit - Year - Year
Google conducts such an audit every year, and this year produced a surprising result. According to The New York Times, Google’s analysis found that more men than women were being underpaid.
As a result, Google will award $9.7 million out of a compensation fund, the majority of it going to men. The fund was established to remedy compensation gaps revealed by the annual study.
Study - Results - Analysis - Labor - Department
The study’s results conflict sharply with analysis conducted by the Labor Department, which is currently investigating the tech giant. Janet Herold, regional solicitor for the Labor Department, said her department’s analysis at this point indicates discrimination against women, and that this discrimination is “quite extreme.”
The Labor Department is also suing Google to force it to hand over data that Google believes reveals confidential information and violated employees’ privacy.
Google - Effort - Company - Women - Men
Google is also facing an employee-led effort that claims the company significantly underpays women compared to men.
So who’s right? Google, its employees, or the government?
Well, it depends on how you measure pay between groups.
Across the U.S., broad-based pay comparisons show that women make 20 cents less on the dollar than men. But after accounting for important factors such as one’s education, hours spent at work, occupation, and experience, the gap drops to between 3 and 5 cents. And even that doesn’t account for harder-to-measure factors.
Government - Operations - Google
The government has little insight into the day-to-day operations of Google and has to rely...
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