This post was written by Jane Pendergast, College/University Partner Director at AAUW New York State, as part of our PowHer the Vote 2017 campaign.
The Gender Pay Gap presents a fascinating statistical subject for economists and sociologists and a frustratingly static problem for all U.S. women. The gap moves up or down some each year depending on your location, demographic group, educational level, or age, but it affects our lives just about the same year after year. This past year, things got a bit better for most groups – statistically. But not enough to make a difference in individual lives. What can we do? Here are some concrete ideas for right now.
A few current statistics will help. For 2016, New York State women had the narrowest wage gap nationally, at median earnings that were 89% of men’s, slightly ahead of California women at 88%, Florida women at 87%, D.C. women at 86%, but tragically ahead of Utah women at 70% and West Virginia women at 72%. These numbers compare all women’s earnings with all men’s.
But if you compare women in individual racial or demographic groups with white men, the differential is very revealing and even more tragic. Asian women made 87% of white men’s earnings, white women made 79%, but black or African American women made 63% of white men’s earnings, and Hispanic or Latino women made 54% of white men’s earnings.
We hear that women choose lower paying work because of their family focus. That’s possible, but the carefully developed body of statistics on the Gender Wage Gap shows that women in the same job and with the same level of experience in the job as men have a significant pay gap. Check out AAUW’s The Simple Truth for details.
Time and age are also factors in the Gender Wage Gap. Women beginning their work life in their teens or twenties start out at a 90% gender wage gap, but as time and their careers progress, the gap widens to 83% in the 35-44 age range and expands to 76% when a woman is 65 or older. Education can help women by raising their absolute income level, but it is not a solution to the Gap, since the Gap is there at all educational levels and even widens at higher educational levels. The Simple Truth at aauw.org.
Women’s comparative prosperity or poverty are directly related to The Gender Wage Gap. Student debt for college graduates or non-graduates is a greater burden for women nationwide, with women accounting for two thirds of total student debt, because women take out higher debt and have a harder time paying off their debt. Check out Deeper in Debt at aauw.org for details. Further, in a recent study from the Institute for Women’s Policy Research, researchers found that providing equal pay to women would have a dramatic impact on their families – and the economy.
Nearly 60% of women would earn more if working women were paid the same as men of the same age with similar education and hours of work. Nearly two thirds (65.9%) of working single mothers would receive a pay increase. And possibly more important: The poverty rate for all working women would be cut in half, falling from 8.0 % to 3.8%. The very high poverty rate for working single mothers would fall by nearly half, from 28.9% to 14.5%. The number of children with working mothers living in poverty would be nearly cut in half, dropping from 5.6 million to 3.1 million.
The U.S. economy would have produced additional income of $523.6 billion if women received equal pay; this represents 2.8% of 2016 gross domestic product (GDP). Check out The Impact of Equal Pay on Poverty and the Economy at iwpr.org for details.
What can we do? Companies can perform salary audits to monitor and address the Gender Pay Gap. Women can learn strategies to better counter the wage gap such as salary negotiation. From a public policy standpoint, states and large cities are stepping up to pass Equal Pay Acts (New York State has passed a strengthened law) and, recently, Ban the Salary History Question laws. New York City passed Ban the Salary History Question legislation last year that just went into effect on October 1st. California, Delaware, Massachusetts, and the city of Philadelphia have passed similar laws, and Westchester County introduced the legislation last year, with plans to push for passage this coming year.
New York State introduced a Ban the Salary History law last year that passed the Assembly but was not voted on in the Senate, and lawmakers promise to push for passage this year. The Paycheck Fairness Act, introduced in the U.S. Congress, would improve the scope of the Equal Pay Act with enhanced federal enforcement and stronger incentives for employers to follow the law
Importantly, related legislation such as a higher minimum wage, paid family leave (enacted in New York State and being implemented now), expanded affordable child care, more affordable housing, expanded legal services, measures to reduce student debt, all would have a strong positive effect on families and the lives of women. These are laws that may exist at any level of government.
Thus – informing ourselves about the Equal Pay issue and candidates’ positions – at all government levels – can make a huge difference. The World Economic Forum predicted last year that it would take 170 years for the pay gap and opportunity gap to close worldwide. Our informed votes and advocacy can truly make a difference here in the U.S., where we can affect equal pay.