The Value of Work: The Gendered Outcomes of Organizational Wage Reforms

This study explores the influence of organizational practices on gender in/equality in a unique setting: the reformed Israeli kibbutz. The transition of the kibbutz from all members receiving an allowance to waged labor provides an opportunity to explore the impact of wage determination systems on gender pay inequality. The study uses a mixed-method approach: descriptive statistics of administrative data, in-depth interviews, and a focus group with kibbutz management. The findings demonstrate that a “market-based logic,” embedded with gendered preconceptions of “women’s work,” can seep into an organization through a shift in the wage determination system, and increase gender inequality. The findings also highlight the lack of organizational awareness about the gendered consequences of this shift, or even their uncritical acceptance of the “value hierarchy” as ordained by the market. The study thus supports the theory positing gender as a hidden but integral aspect of reward systems in contemporary labor markets. HIGHLIGHTS The choice of a wage determination system is critical for gender inequality. “Women’s work” is valued higher by analytical job evaluation systems, which reduce gender biases. Market-based wage determinations introduce biases and increase organizational gender inequality. Management prefers market-based wage determinations due to competition and costs. The “free market” not only obscures gender hierarchies but also legitimizes them.