The Gender Wage Gap
3/4 of a Dollar Doesn't Stretch Far Enough

 

It’s Tuesday, and the average American woman has just now earned the same pay (in seven days) that the average American man made last week (in five days).  This is the gender wage gap in America, where nationally, women at the end of 2001 made 75.7 cents for every dollar a man made.  Contrary to popular belief, one-third to one-half of this wage difference is not linked to differences in experience, education or other legitimate characteristics.


The Institute for Women's Policy Research estimates that collectively, women lose over $100 billion annually in wages due to unequal pay.  Every family faces the negative impact of these lost wages.  For this reason, the National Committee on Pay Equity declared Tuesday, April 16 "Equal Pay Day."

 

Ohio's Gender Wage Gap

Ohio's wage gap has typically been worse than the national average.  In 2000, according to Current Population Survey figures from the US Census, women in Ohio made a median wage of $10.80 an hour -- 74 percent of the $14.64 hourly median wage for men.  The overall gender wage gap in Ohio has decreased since 1979, when women made only 61 percent of median male wages.  The gap decrease occurred partly because women's wages increased by 10 percent, but the other half of the story is that men's wages fell 10 percent during the same time period.

 

Similarly, the wage gap between African American men and women is masked by the fact that black men lost 23 percent of their wages since 1979.  Ohio's black women have seen less of a wage increase than white women in the past two decades, and they now earn one dollar less per hour than white women.  Even after the steep wage cut for black men, African American women in 2000 still made $10.00 an hour to black men's median hourly wage of $11.44 an hour.  That's 87 percent of the black male median wage.

 

Nationally and in Ohio, gender gaps don't disappear with higher levels of education.  On average, women often make less than men with lower levels of education.  Ohio still has dramatic differences in wages between men and women at every education level.

 

On the other hand, the gender gap decreases dramatically in unionized workplaces, where Ohio women make 16 percent less than men. Ohio's union women make a median wage of $13.46 an hour, 24 percent more than non-union women, who make a median wage of $10.25 an hour.  Click here for more information on working Ohio.

 

Where Does the Wage Gap Come From?

People cite a variety of reasons for the gender wage gap, and not all have to do with discrimination.  Women are often concentrated in lower paying fields of work.  On average, they tend to have lower educational attainment than men.  Because most women take care of a disproportionate amount of child and house care, they are less likely than men to move continuously up a career ladder.  Many who temporarily leave the workforce to have children are at the same age when many men start building careers. 

 

But still, studies show that up to half of the gender wage gap have nothing to do with any of these explanations.  Instead, it comes from many different forms of discrimination: not valuing skills and jobs commonly held by women, crowding women in low-paying fields and expecting that women are not aggressive or ambitious enough to do a job well.  And further, because the wage gap exists, families who send one parent to work have a financial incentive to send a man.  When family leave benefits and decent child care aren't available, it makes it that much harder for women to build strong, continuous careers.  Much has to be done before equal work means equal pay, regardless of sex.

 

What Can be Done? 

The 1963 Fair Pay Act made wage and benefit discrimination illegal toward women and men at the same workplace who do jobs requiring equal skill, effort, responsibility and work conditions.  The Act allowed wage differences based on merit systems.  In 1964, Title VII of the Civil Rights Act prohibited discriminatory hiring, termination, pay and work terms on the basis of race, color, religion, national origin and sex (including pregnancy and birth).  In the 1970's courts ruled that jobs don't have to be identical, only "substantially equal" in order to require equal pay. 

 

In recent years, Fair Pay advocates have pushed for legislation based on the idea of "comparable worth."  Within each workplace, men and women would have to be paid equally for jobs that scored the same in skill, effort, responsibility and work conditions.  For example, it has been argued that nurses and tree-trimmers should have equivalent wages.  Comparable worth is intended to eliminate wage penalties that only exist because a person works in a female-dominated field. 

 

Beyond fair pay legislation, family leave for women and men and decent, affordable and accessible child care are necessary steps toward eventually eliminating the gender wage gap.

 

 

 

 

According to an analysis of data in over 300 job classifications, women earned less in every one. 
-Business and Professional Women USA

 

 

In 1998, female PR managers made 31 percent less than male managers;
female elementary school teachers made 9 percent less than male teachers;
and female retail workers made 32 percent less than male retail workers. 
-US Bureau of Labor Statistics

 

 

Nationally, African American women make 65 percent of white men's earnings, and Latinas make only 52 cents to the white male dollar. Men of color also earn less than white men. African American men make 81 percent, while Latinos make 62 percent of white male wages.
-Business & Professional Women USA

 

 

The gender wage gap alone results in an average annual loss of more than $4,000 per American family.
- AFL-CIO Institute for Women's Policy Research

 

 

In 2000, women with children made 2/3 the wages of men with children.
- Bureau of Labor Statistics
 

 

Women made up 57.3 percent of the Ohio workforce in 2000.
- State of Working Ohio, 2001

 

 

25 percent of US women, compared to 10 percent of US men, were part-time workers in 2000.
- Bureau of Labor Statistics

 

 

Nationally, women receive an average of $194 a week in unemployment benefits, compared to $241 a week for men. 
-US Department of Labor
 

 

Only 57 percent of Ohio women receive health insurance from their private-sector employers.
-State of Working Ohio, 2001
 

 

15 states, not including Ohio, have put laws in place that making unequal pay for equal work a violation.
-Working Women Network
 

 

The US is one of only six countries out of 152 surveyed by the United Nations that does not have a paid maternity care policy for women.
-PayEquityNow!
 

 

The US poverty rate among single working mothers would drop from 25 percent to 13 percent if they made wages comparable to male earnings.
-AFL-CIO Institute for Women's Policy Research


A Note on Figures

You may notice that wage gap figures vary slightly depending on the source.  This occurs for several different reasons.  On average, women work fewer hours than men, so statistics that compare annual salaries without adjusting for differences in hours can show larger earnings differentials.  Wage and salary data alone, like that used on this page, don't capture disparities in non-wage compensation, like family health coverage and pension coverage that women are less likely to receive.  In general, the more variables you control for, the more you can attribute differentials to discrimination alone.  Yet, what this page shows is that no matter how it's measured, women's wages are still behind men's.

 

Sources

Bureau of Labor Statistics, Institute for Women's Policy Research, National Academy of Sciences, State of Working Ohio, 2001, National Committee on Pay Equity, Legal Information Institute
 

Links

On the Gender Wage Gap: 

www.ewowfacts.com/wowfacts/pdfs/women/27genderequity.pdf
www.cfpa.org/issues/workcompensation/equalpay/keystats.cfm

Gender Wage Gap, Causes and Solutions, WKSU


On the Wage Gap and Women of Color:

www.feminist.com/fairpay/minori.html


On Family Leave:

www.iwpr.org/pdf/famlve2.pdf


On Comparable Worth:

www.ilr.cornell.edu/library/pdfs/CRSGenderWageGap0601.pdf

 

 

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