Understanding the Gender Pay Gap

The Gender Pay Gap: An Overview

The gender pay gap refers to the difference in earnings between men and women working full-time jobs. This discrepancy exists across various age groups, with the gap widening as women advance in their careers. In 2022, women in the U.S. earned 82% of what men earned, which translates to a loss of over $500 billion annually for women.

Age Differences

The gender pay gap is smallest for women ages 25 to 34, where they earn 92 cents for every dollar men earn in the same age group. However, this gap increases as women age, becoming widest for women 45 to 64 years old.

Race and Ethnicity

The pay gap varies by race and ethnicity. In 2021, Latinas earned 57 cents, Native women 59 cents, Native Hawaiian and Pacific Islander women 65 cents, and Black women 69 cents for every dollar earned by white, non-Hispanic men.

Job Fields and Occupations

The gender pay gap is less pronounced in professions like food workers, writers, counselors, pharmacists, and social workers, where women earn between 97% and 99% of what their male colleagues earn. In contrast, the largest gaps occur among financial services sales agents, financial managers, and financial advisors, where the pay ratio between women and men is between 61% and 66%.

Mothers and Education

Mothers, especially those without childcare, face an even wider pay gap than women without kids. They also earn less than their male counterparts with the same educational background. Women with bachelor's degrees working full-time earn 26% less than their male counterparts.

Economic Factors

The gender pay gap has remained relatively stable over the last two decades. The slow pace of progress contrasts with the significant reduction in the gap during the preceding two decades. Economic factors, such as changes in union membership for men and global competition in manufacturing, have also shaped the gender pay gap.

Shrinking the Gap

Several factors are helping to reduce the gender pay gap, such as women earning more college and postgraduate degrees than men, delaying childbirth, and entering male-dominated fields. The pandemic has also played a role, boosting demand in female-dominated professions and making it easier for women to balance family and career.

Perspectives on the Gap

Contributing factors to the gender pay gap include occupational segregation, educational attainment, and gender discrimination. While some women may choose less demanding positions or occupations to accommodate family life, others may leave the workforce entirely. The "unexplained pay gap" refers to women's earnings being about 8% less than their male colleagues for the same job, even after controlling for other factors.

In conclusion, the gender pay gap remains a significant issue in the United States, with women earning less than men across various age groups and occupations. Numerous factors contribute to this discrepancy, and while progress has been made in some areas, more work is needed to achieve wage parity between men and women.