The extent to which skill and competency-based systems used by work organizations in the United Kingdom may contribute to maintenance of the pay gap between men and women was examined through a review of the following: pertinent literature from the United Kingdom and United States; 15 published case studies; current Institute for Employment Studies research on assessment/measurement of competencies; and information from a workshop at which practitioners in large public and private organizations discussed issues in using skill- and competency-based pay and training systems. Among the study's main findings were the following: (1) women are more likely than men to undervalue the skill levels of their jobs; (2) although men and women managers do not differ greatly in the competencies they possess, women are consistently rated lower on leadership ability by managers; (3) the process of translating skills/competencies to individual performance criteria is complex and liable to gender bias; (4) performance appraisal remains the main method for assessing performance; and (5) skill-based pay is less likely to cover female employees. Areas for further research were also identified. (Appended are a 59-item annotated bibliography and a summary of published case studies of pay/training systems. The bibliography contains 94 references.) (MN)