Equitable societies that comprise large middle classes are created by institutions, and not by natural market forces. Equity is shaped by society and the institutions, including the policies and practices that are used to govern the economy, society, and in particular, its labor market. The institutions play a major role in regulating the workplace such as working time regulations, the type of employment contract, minimum wages, and collective bargaining. Also, there are institutions that redistribute income and provide support to the unemployed and the poor. Building just societies implies designing institutions that provide support for the creation of quality jobs with recent wages and working conditions. This essay is based on a discussion of the statement “Institutions are the building blocks of just societies” (Berg, 2015, p. 1). The discussion is in reference to gender equality in the labour market. This essay argues that the absence of certain institutions that govern the labour market is the contributing factor to the inequality experienced by ethnic minorities and/or migrant workers in many countries.
Social institutions help a society realize its basic needs. Contemporary society is composed of various social institutions that all assist it to meet its needs and realize other goals. Examples of social institutions are such as the economy and the labour market, which are shaped by law and policies. These social institutions are responsible for the development of social structures, which are the building blocks of society (Browne, 2011). Institutions are part of overarching systems that provide governance to the economy and the labour market. Thus, institutions as building blocks of just societies do not work independently. Therefore, in societies where institutions provide equal pay, there is less urge for wealth to be redistributed through taxes and transfers (Berg, 2015). Social policies are part of the larger systems that constitute labour market institutions and they can influence wage levels and gender equality. For this reason, the policy that focuses on ‘equality of opportunity’ could be short-sighted because they are directed at specific ‘equality of outcomes’ (Corak, 2013; Piketty, 2014).
Sovereign States are well-established systems and institutions, which are both indispensable and basic building blocks of the international system. Labour market institutions that are responsible for the development of just societies are collective bargaining, social protection policies, and the regulation of employment contracts (Berg, 2015). According to the United Nations (2005), it is the responsibility of such institutions to “guarantee the rights of their citizens, to protect them from crime, violence and aggression, and to provide the framework of freedom under law in which individuals can prosper and society develop” (p. 6). Thus, in order to create building blocks of sustainable development needed to enhance brighter futures for workers and their families, governance is required to reduce poverty and achieve decent work for all, especially minority groups. Gender equality in the labour market can be achieved when males and females are given equal rights, and responsibility, and treatment (Gammage, 2010).
Labor market institutions are the building blocks of just societies. Nonetheless, in recent decades, there has been a rise in income inequality within countries in the US and the UK. Thus, a lack of provisions such as those of care services can determine women’s ability to remain or enter the labour market, resulting in gender and income inequality (Berg, 2015). The absence of public care services has affected women's ability to participate in paid work. This translates into lower benefits and earnings, compared to employees who receive public care services. When there is an absence of public care services, labour market institutions can mediate women’s entry into the labour force by providing public care services but also develop more flexible forms of employment through legislation. Gammage (2010) noted that women involved in the labour market are hindered from achieving equality because of the absence of institutions that child care services. Thus, developing institutions that provide childcare services to women could solve the problem of gender inequality in the labour market.
Berg (2015) pointed out that “Building just societies means designing institutions that support the creation of quality jobs with decent wages and working conditions, as well as enacting policies to support those who cannot work or who are unable to find work” (p. 1). For example, the development of programs that can promote gender equality in the market labour can create a just society. For example, gender equality laws in the UK such as the UK Equality Act 2006, UK Gender Equality Duty 2007, and UK Equality Strategy – Building a Fairer Britain 2006 –2016 have been established to promote gender quality in the labour market (Pascall, 2014). The UK Equality Act 2010 has played a major role in building a just society because requires employers in the labour market not to discriminate, or harass a person because of their gender or for sex reasons employment. Such an institution (law and policy) has affected workers’ access to the labour market as more women can now get employed in the same job position as men (Pascall, 2014
Labour market institutions have the ability to facilitate women’s entry into the labour market through the provision of public care services. According to Berg (2015), after they enter in labour market, women could work in female-related occupations, part-time work where they have low wages, hours of work and access to benefits compared to their male counterparts. Women are treated like a minority in the labour market, and the issue of gender has been responsible for that inequality. The lack of institutions that can create just societies compelled women to get employed in low-wage work and get employed in sectors that have lower collective bargaining coverage (Corak, 2013). Subsequently, countries like the UK and the U.S. have set minimum wage policy tools in an effort to raise the wages of low-wage workers. Such policy is passed with the aim of reducing gender wage gaps in the labour market and solving the wage inequality problem. Gautie and Schmitt (2010) have noted that minimum wages and salary can be used in the labour market to correct the discriminatory practices that result in inequalities in terms of differential wages for the same work.
Collective bargaining is one of the important institutions that can be used to compress the wage distribution improve working conditions in the workplace, and eventually assist improve gender and wage equality. Gammage (2010) cited the importance of having f collective bargaining power in the labour market to compress the wage distribution and lower the current gender wage gaps. Nonetheless, the institution though important has fewer women compared to men because of their lower union membership. This is supported by Hayter and Weinberg's (2010) perception that collective bargaining agreements could reduce the wage gap that results from gender inequality in the labour market. Collective bargaining in the labour market could ensure that gender equality in the workplace. Gammage (2010) argued that in most cases gender concerns tend to be excluded in collective bargaining negotiations. Subsequently, there is a need to improve women’s voices and promote gender equity in the labour market. Therefore, labour market institutions such as collective bargaining have the capability to foster gender equality in the labour market. Nonetheless, explicit policies are needed to change the gender distribution experienced in labour. Without addressing gender inequality in the labour market, women will continue to earn less compared to men and experience a gender ceiling (Hayter, 2010)
According to the International Labour Organization (2011), there has been a rise in the number of women participating in the formal labour market. This has been attributed to the rising levels of educational attainment created by education systems in society such as schools, colleges, and universities. Subsequently, this has contributed to greater social equality between women and men. In addition, better education provided by educational institutions has improved the educational performance of women, and this could promote gender equality in the workplace (ILO, 2011). Nonetheless, women continue to face widespread hurdles in seeking to realize the goal of equality of treatment and opportunity in employment. As a building block of society, institutions of learning can equip women with the opportunity to gain new and higher-level skills that could both assist more women to enter the labour market. This could contribute to decreasing gender disparities being experienced in the labour market. Overcoming the challenges faced by women in accessing education opportunities like men is the first step to improving gender inequalities in the labor market. For example, institutions can be put into place to improve girls’ access to basic education; and overcome logistic, cultural and economic hurdles to apprenticeships by young women (ILO, 2011). Subsequently, meeting the training needs of women would increase the number of them labour market and take place where older women did not have equal opportunities.
Cazes and de Laiglesia (2015) have contended that in the last 25 years, fixed-term contracts and temporary employment have increased in both advanced countries and emerging countries. To some extent, the expansion of employment contracts has resulted in social and economic implications. For example, the extensive application of temporary contracts has contributed to dysfunctions experienced in labour market performance. It has resulted in labour market segmentation which is characterized by continued inequalities in labour market (Cazes, & de Laiglesia, 2015). Berg (2015) pointed out that employment contracts which are temporal have been associated with low rates of transition of workers, especially women.
Most of the time, having a temporary contract means having a job with lower quality, with reduced (if any) access to training and fringe benefits, such as paid sick leave, unemployment insurance and retirement pension, and higher insecurity due to reduced protection in case of termination of the employment relationship and often lower pay and fewer prospects of upward mobility. In reference to gender equity concerns, employment contracts in segmented labour markets are more attractive to women than men (Dolado, Ortigueira & Stucchi, 2011). Therefore, gender equity is less likely to prevail when temporary contracts are put into place. To ensure gender equality, labour market institutions are needed to solve the temporary employment contract issue.
To sum it up, institutions in the labour market are the building blocks of just societies. The institutions include collective bargaining, social protection policies, and the regulation of employment contracts. Educational programs that provide equal opportunities can equip women with skills, making them more competitive in male-dominated labour markets. Laws for equality and policies for equality of opportunity, and the use of programs to improve educational levels, temporary contracts, and collective bargaining are all linked to the development of just societies.
References list
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