Eliminating the Gender Pay Gap

PAY GAP

First, let's review what progress women have made in achieving equal pay.

PAY GAP BETWEEN MEN AND WOMEN
1963	41 cents
1983	36 cents
1993	28 cents
2013	22 cents
2025	16 cents

Progress?

In 2009, the Lilly Ledbetter Fair Pay Act was signed into law. Yet today, the median wage of a woman working full-time and year-round in the United States is only 84 percent of a man's average earnings. For two decades now, the pay gap has narrowed very little. Women continue to make less than men at all levels of the wage distribution, so there is more work to be done to ensure fair pay for all.

It's not all about discrimination. There are several reasons why the pay gap exists, so let’s take a look at them.

Education

Women at every education level are paid less than men and the gap widens as the education level increases. Some of this is attributable to the fields of study and careers that are chosen by women and men. Women continue to be significantly underrepresented in engineering and computer science, for example.

Location

The gap is different depending on which area you live in.

• In Wyoming, women earn 68% of men's salaries.
• But in Vermont, women earn 93% of men's salaries.

Race

The pay gap varies by race.

• At the low end, Hispanic women earn only 55% as much as non-Hispanic white men.
• At the other end of the spectrum, Asian women earn 85% as much as non-Hispanic white men, although some subgroups earn more.

Age

Age also plays a role

• Women 25 to 34 make 92% of what men in the same age group earn.
• Women 55 to 64 make 79% of what men in the same age group earn.

Employment Gaps

Research shows that the pay gap is partially attributable to women interrupting their careers to care for family. Women with children at home are more likely to leave the workplace or work less than the fathers.

Gender Discrimination

Other research suggests that the pay gap may also be due to gender discrimination. Women are almost twice as likely as men to say they have been discriminated against at work because of their gender. A recent McKinsey study reports that, “For every 100 men promoted and hired to manager, only 72 women are promoted and hired.” More women are working in senior positions, but it is still difficult for them to move up.

Due to the pay gap, women lose an average of $400,000 over a 40-year period. College educated women lose close to 1.1 million dollars.

In other regions like Europe (EU-28), women earn on average 85% of their male counterparts.