Impact of Organizational and Labour Market Factors on Inter-Gender Wage Gap: Perspectives of Sri Lankan Women

Abstract

Purpose: Institutional and organizational factors are crucial as they are purported to have a significant influence on inequality. Organizations are the institutions that determine wage rates and the treatment of male and female employees. They may exhibit wage equality or inequality, which is subsequently reflected in labor markets (Hultin & Szulkin, 2003). Therefore, it is essential to understand how these factors influence the wage gap. This research aims to analyze the experiences and perspectives of selected women in depth to identify the critical factors leading to gender-based wage inequality. Design: Following a systematic literature review, the study employed a qualitative methodology, specifically a case study analysis, wherein the author conducted in-depth interviews with three women. A 'narrative quoting' technique was utilized in the analysis. The sample comprised women who hold high managerial positions in the corporate sector. Findings: Key dimensions identified as affecting the gender wage gap were inflexible work policies, limited opportunities for women, stagnation in promotions and progression, lack of gender representation, negotiation incapability, male dominance, sex segregation and sex similarity, and insufficient technological education and networking. Originality: This study was conducted to examine organizational and labor market-related factors that affect the gender-based wage gap, which is an under-explored area of study. The research utilized a qualitative method to conduct an in-depth analysis and derive factors that have not been previously examined in the Sri Lankan context. Notably, factors that are not readily captured through quantitative analysis are discussed herein. The results of this study will assist policymakers in identifying root causes behind gender wage inequality related to organizations and the labor market.