Setting realistic wages

Abstract

C omparable worth, as a means of equalizing the incomes of women and men, is a slogan that has captured, the imaginations of many people. In fact, comparable worth is an ill-defined concept that means many things to many people. To some, its assumptions are untenable. To others, its promises are unachievable. Above all, its implementa t ion would fundamenta l ly alter our e m p l o y e e re la t ions system by requi r ing a huge bureaucracy to administer it and by turning wage setting over to equal employment commiss ion adminis t ra tors and j udges~su re ly among the most unqualified t o handle such problems. In this article a definition of comparable worth is given (which could be unacceptable to others); the role of job evaluation or, in most cases, a wage-classification system in setting wages and salaries will be discussed: the question of whether job evaluation or a wage-classification system can prove discrimination will be examined; and the potential impact of a comparable worth doctrine both on the general wage and salary structure and current wage and salary administrat ion will be analyzed. Like all good politicians, comparable worth advocates are long on generalities and short on specifics. It is much simpler to believe that the adopt ion of a comparable worth scheme will end discrimination than to deal with the details and mechanisms of the system that have fostered and perpetuated discrimination. Particularly, definitions of comparable worth are often lacking or vague. In many instances, comparable worth is confused or used interchangeably with the well-accepted and legally mandated doctrine of equal pay for equal work. The equal pay doctrine pertains to equal pay for the same or closely related jobs. Comparable worth, as defined here, relates jobs that are dissimilar in their con ten t s fo r example, the office worker and c r a f t sman-and purports to demonstrate that if such jobs are of equal value to the employer or society, the persons employed in them should be equally compensated. This definition of comparable worth, which encompasses the term as used in the literature by both its proponents and opponents, immediately raises a number of very practical questions that must be answered before any legislature, court, or administrat ive agency pushes a sector of the economy into a comparable worth system. Some pract ical ques t ions relat ing to the comparab le worth issue are: