Gender Wage Gap
The Gender Wage Gap refers to the difference in income and benefits that men and women experience in the workforce. This gap oftentimes negatively affects women throughout their lives, even as they enter retirement.
What is the Gender Wage Gap
The Gender Wage Gap is the difference in pay between men and women in the workforce. This gap is apparent in the several ways that it has been measured, whether that is by cross-examining the annual pay of full-time male and female workers or hourly pay, even after taking into account differences in education levels or industries.
Although women have increased their representation in male-dominated industries, women still have a higher presence in lower-paying industries – even furthering the gender wage gap. Additionally, the gap is usually even wider for women of color.
Definition of Gender Wage Gap
Gender Wage Gap Examples
Aerospace
On average, 12.2% of the aerospace sector workforce consist of women. In a survey conducted across the aerospace industry, approximately one-third of women felt that they needed to switch industries to further advance their careers. Since a large portion of the aerospace industry workforce consists of previous military and airline pilots, it has proven to be a difficult task to balance the male to female ratio within the workforce.
Architecture
On average, 11.1% of architectural managers consist of women. In the architecture industry, along with other male-dominated industries, the disparity in pay between men and women discourages women and makes them feel undervalued. Thus, they may seek jobs in other industries with higher perceived pay equity, ultimately creating a cycle of a wage gap and lower female representation among the workforce.
Software Development
On average, 18.1% of the software development workforce consist of women. In 2020, male software engineers were offered higher salaries than their female counterparts for the same role and company 59% of the time. 60% of female engineers reported receiving lower offers despite their similar education and years of past work experience.
Why Closing the Gender Wage Gap is Important
Higher Efficiency
Employees who see peers and role models who look like them or are from a similar background tend to feel more comfortable in their workplace and perform better in the long run.
Stronger Designs
Companies should consider their lack of diversity a weakness. Generally, without female leadership and employees, they will design their products and services without considering half of their target audience or key buyers.
Better Reputation
If the company has a bad reputation surrounding their gender wage gap, some of the general public may no longer support the company and if possible, refrain from purchasing their products or services.
Gender Wage Gap Statistics
42% of women face gender discrimination
According to Pew Research Center, four-in-ten women compared to about two-in-ten men (22%) face gender discrimination in the workplace. Earnings inequality is the most frequently reported type of gender discrimination.
30% less earnings for women in Q3 of 2020
According to the U.S. Census Bureau records for the third quarter of 2020, women earned 30% less than men, with that pay gap increasing with age.
$0.54 per dollar earned for Hispanic Women
According to American Progress, the gender wage gap is more significant for women of color, when comparing median earnings of full-time, year-round workers.
Gender Wage Gap Resources
Employment and Earnings by Occupation
This US Department of Labor interactive visualization tool shows the percentage of women in over 300 occupations.
Income Transparency
This New York Times article discusses income transparency as a way to promote pay equity within companies and across industries.
Girls in STEM Subjects
This Global Citizen article shares the importance of encouraging girls from an early age to pursue science, technology, engineering, or mathematics subjects.
How To Close The Gender Wage Gap
Compensation transparency
Women cannot negotiate effectively or determine if they are being paid fairly in a lack of transparency. While most companies are hesitant to share their compensation data, more companies are beginning to lead the way and publish and break down their pay data.
Mentorship and Education
According to Diversity, Equity, and Inclusion executives, having strong mentors can help employees manage issues about equal pay and increase their understanding of their value and worth within their organization.
Strong Female Leadership
Having an equal or higher ratio of female executives and officers typically helps companies acknowledge their pay inequities and eventually implement equal pay across genders.