Why Do Women Today Earn More Than Their Mothers, But Still Less Than Their Brothers? A Gendered Organization Perspective

Employees' perceived fairness of their pay is critical for their satisfaction, commitment and job engagement. Women comprise nearly 50 per cent of the modern workforce; therefore, their satisfaction with their pay is crucial for organizations. However, statistics show that the gender pay gap is still persistent all around the world, and has even widened post the Covid-19 pandemic. To move ahead, taking a few steps backwards sometimes becomes imperative. This paper is a stepping stone in that direction as it argues that the widening of the 'gender pay gap' is deeply rooted in the institutionalization of 'gendered notions' in organizations. To efficiently tackle gender-related power imbalance in organizations, it is important to understand how a 'gendered organization' came into being and its effects cascaded over the decades. Moreover, this area of research has numerous scholarly contributions that span more than a hundred years. This wide gamut of research not only intimidates new scholars but also makes it extremely difficult for them to extract relevant information. To bridge this gap, the main objective of this study is to present a crisp review on the evolution and institutionalization of 'Gendered Organizations' and discuss their impact on gender-related issues, particularly, the 'Gender Pay Gap'. Drawing on Institutional, Human Capital and Feminist Theories, this paper sheds light on the seminal work by gender scholars and illustrates how gender pay gap is a consequence of institutionalized gendered norms and occupational sex segregation. This review enhances the comprehensive contemplation of gender-related issues in organizations and encourages practitioners to devise concrete means to battle its social impact.