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“What is the gender pay gap in the US?

gender pay gap

In 2009, when looking at thirteen industries, the lowest was “financial activities”, at 70.6 percent. The exact figure varies because different organizations use different methodologies to calculate the gap. A 2023 United Kingdom survey found that managers were 15% less likely to give promotions to women who work remotely compared to the office, and were 30% less likely to give promotions to men verbatim. In 2023, research at PayScale showed that women’s average pay as a percent of men’s increased from 83% to 99% when controlling for job title, education, experience, industry, job level, and hours worked. The median pay, the point at which half of people earn more and half earn less, is 17.9% less for employed women than for employed men.

Women are much more likely than men (61% vs. 37%) to say a major reason for the gap is that employers treat women differently. There are some notable differences between men and women in views of what’s behind the gender wage gap. In 2023, full-time, year-round working women earned 83% of what their male counterparts earned, according to the Census Bureau’s most recent analysis. In addition to findings about the gender wage gap, this analysis includes information from a Pew Research Center survey about the perceived reasons for the pay gap, as well as the pressures and career goals of U.S. men and women.

gender pay gap

It was March 12 in 2024, representing a widening of the gender pay gap in recent years despite the expansion of pay transparency legislation, which has been shown to close pay gaps. The median salary for men is higher than the median salary for women https://seobiglist.com/the-benefits-of-starting-a-website/ and has been since Payscale started tracking the gender pay gap. Payscale can help employers monitor the controlled and uncontrolled pay gap in their organizations. When data are controlled for job title and other compensable factors, the gender pay gap narrows to $0.99, which is a gap. The gender pay gap is based on data science and studied by multiple accredited institutions working on independent datasets. The gender pay gap is the difference in pay between men and women.

Which industries have the biggest and smallest gender pay gap?

  • However, Asian women earn 87% as much as white men, making them the group of women with the smallest pay gap relative to white men.
  • As of April 2022, the average gender pay gap is 8.3%, although men get paid less than women for part-time work.
  • A 2010 research review by the majority staff of the United States Congress Joint Economic Committee reported that studies have consistently found unexplained pay differences even after controlling for measurable factors that are assumed to influence earnings – suggestive of unknown/unmeasurable contributing factors of which gender discrimination may be one.
  • A common way to look at the gender pay gap is as a percentage of how much women make compared to men (as a fraction of a dollar).
  • Responsible for work assignments, training, performance evaluation, and ensuring work standards are met.
  • The gender pay gap measures the difference in median hourly earnings between men and women who work full or part time in the United States.

Other important factors are increased pay rates for overtime and evening/night-time work, of which men in Finland, on average, work more. In Australia, the Workplace Gender Equality Agency (WGEA), a statutory Australian Government agency, publishes data from non-public-sector Australian organizations. GAO concluded that “federal agencies should better monitor their performance in http://hi-ce.org/papers/1995/making_systems_dynamic_modeling/index.html enforcing anti-discrimination laws.”

WHAT DOES THE GENDER PAY GAP HAVE TO DO WITH THE RACIAL PAY GAP?

gender pay gap

The next chart plots cross-country estimates of the share of women who are not involved in decisions about their own income. This is shown in the chart here, where ‘low-pay’ refers to workers earning less than two-thirds of the median (i.e. the middle) of the earnings distribution. The chart here plots the proportion of women in senior and middle management positions around the world. You can explore data for other countries using the ‘Change country’ button on the chart. One chart shows the proportion of women out of all individuals falling into the top 10%, 1%, and 0.1% of the income distribution.

gender pay gap

Occupations with low female representation — Protective Service (25% women), Transportation & Material Moving (22% women), and Installation, Maintenance & Repair (5% women) — show the widest controlled gender pay gaps. Additionally, 10 states without pay transparency closed the controlled gender pay gap. Overall, 38% of states have closed the controlled gender pay gap in this year’s sample.

  • In particular, most high-income countries have seen sizeable reductions in the gender pay gap over the last couple of decades.
  • GAO concluded that “federal agencies should better monitor their performance in enforcing anti-discrimination laws.”
  • While pay transparency laws increase the likelihood of closing the controlled gender pay gap, it doesn’t happen immediately.
  • Department of Education, researchers Judy Goldberg Dey and Catherine Hill analyzed some 9,000 college graduates from 1992 to 1993 and more than 10,000 from 1999 to 2000.
  • Justin Sandefur at the Center for Global Development shows that education also fails to explain wage gaps if we include workers with zero income (i.e. if we decompose the wage gap after including people who are not employed).

Parenthood and motherhood penalty

We leveraged this sample to provide insights into the controlled and uncontrolled gender pay gap. The uncontrolled gender pay gap for Black or African American executive women is the lowest at $0.64, followed by Hispanic executive women at $0.67. In fact, the controlled gender pay gap is wider than the uncontrolled gender pay gap for the Protective Service occupation. Real Estate & Rental/Leasing and Arts, Entertainment & Recreation also closed the controlled gender pay gap, despite the overrepresentation of men in these industries. When accounting for job and other compensable factors, the controlled gender pay gap varies significantly across industries. Both the uncontrolled and controlled gender pay gaps also widened by $0.01 compared to last year.

Occupational segregation

Studies also show that mothers tend to receive smaller salary raises and have fewer opportunities to rise in their careers compared to childless women and men. Although the gender pay gap has indeed narrowed, this phenomenon is https://kenyanrides.com/types-of-work-and-residence-permits-in-kenya.html essentially only significant for childless men and women. Studies have shown that an increasing share of the gender pay gap over time is due to children. Some critics of the notion that discrimination causes the gender wage gap argue that the gap disappears once analysts control for job characteristics (e.g., location, tenure, job role, level, performance).

Gender differences in job roles, aspirations

The gender pay gap can be a problem from a public policy perspective because it reduces economic output and means that women are more likely to be dependent upon welfare payments, especially in old age. Claudia Goldin found that the gender pay gap is largely caused by women having children, and that other causes for the pay gap include discrimination and “greedy work”. The Glass Ceiling model is a systemic form of gender discrimination utilized to uphold the gender pay gap by barring women from higher-level and higher-paying roles due to occupational bias and gender-based wages. This matters when it comes to the topic of gender pay gap because female-dominated fields pay less on average, and this affects the wage gap. While this is true for new mothers, some studies show that both new mothers and fathers report being affected by “flexibility stigma” in the workplace. The researchers also found that the amount of child-related gender inequality has increased significantly over time, from approximately 40 percent in 1980 to 80 percent in 2013.

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