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Gender Pay Gap, Voluntary Interventions and Recession: The Case of the British Financial Services Sector
Author(s) -
Healy Geraldine,
Ahamed M. Mostak
Publication year - 2019
Publication title -
british journal of industrial relations
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.665
H-Index - 70
eISSN - 1467-8543
pISSN - 0007-1080
DOI - 10.1111/bjir.12448
Subject(s) - recession , collective bargaining , commission , gender pay gap , economics , earnings , labour economics , financial services , psychological intervention , turnover , ethnic group , demographic economics , business , wage , finance , political science , macroeconomics , law , psychology , psychiatry , management
State institutions and trade unions put pressure on the British financial services sector to reform its gendered practices and reduce its gender pay gap following both the recession and the Equality and Human Rights Commission (EHRC) Inquiry (2009). This article considers the effect of these pressures by comparing the gender pay gap pre‐, during‐ and post‐recession periods. Using Labour Force Survey data, the article finds a marginal pay gap reduction in the post‐recession period, a reduction that was greater in financial services than in the rest of the economy. However, the financial services pay gap remained resilient and substantially higher at the top of the earnings distribution. Union membership and collective bargaining were shown to reduce the pay gap including for women members with children. In contrast, countervailing factors, including ethnicity and post‐recession longer working hours, contributed to the pay gap. The study reveals the limitations of voluntary interventions against a resilient gendered culture.