Equal Pay Day: What Is the Gender Pay Gap?
March 24th is Equal Pay Day. Holistic’s Lisa Alvarado, Leah He, and Maggie Heaps share some facts and thoughts on the gender pay gap.
What is Equal Pay Day? March 24th is the day on average that women have to work until to earn approximately what a White male earned in the previous year. So essentially, this means women (half of the population) have been working for free for almost the first 3 months of 2021!
This is rooted in historic systems of patriarchy and sexism that inevitably inform the nature of working environments and the gender pay gap.
There is an even greater variance by demographic as we see intersectionality play out where gender and racial/ethnic identity meet, and thus some of these women’s Equal Pay Days fall even later in the year.
For every $1.00 earned by a White male:
Black Women earn: $0.63 – Equal Pay Day: August 3, 2021
Native Women earn: $0.60 – Equal Pay Day: September 8, 2021
Latina/Hispanic earn: $0.55 – Equal Pay Day: October 21, 2021
Asian Women earn: $0.85
White Women earn: $0.79
For more information visit: womenemployed.org
- Lisa Alvarado, Director of Facilitation
The gender pay gap in the labor market has been a universal and persistent theme over the decades. While women increasingly participate in male-dominated occupations over the years, gender inequality still exists. According to the historical income table from the US Census Bureau, the percentage of women's earnings as men's earnings in 1960 was only 60.7%, and the figure increased to 82.3% in 2019. Although the gap is narrowing over time after extensive control of human capital and working hours, there is still a significant difference between men’s and women’s income.
Why do women get less in the job market? What are the drivers of the gender pay gap? How do female employees fight for equal pay rights? In early studies, many economists explain the huge gap in earnings with workplace discrimination and the difference in human capital. However, wages can be affected by many other factors as well – the gender pay gap may arise from factors including international differences, education background, occupational segregation, and years of experience.
Women's History Month is the perfect time for us to voice gender inequity and empower women in the workplace!
-Leah He, Data Analyst
The average woman makes $0.82 for every dollar a man makes and for women of color, it can be as low as $0.55 on the dollar. Companies should prioritize looking at their data to see if these statistics are true for them, and if they are, take action to change it. There need to be policies in place that force them to avoid unconscious bias when hiring, promoting, and compensating women. It’s up to everyone to be transparent about their compensation data and work to bridge any gaps.
A common argument is that women don’t ask for raises as much as men do; this is false. A Harvard Business Review study found that women are asking for raises at the same rate as men, but men are more successful in receiving those raises. Women who lobbied for themselves received a raise 15% of the time, while men received a raise 20% of the time. Why is that? If asking for raises isn’t the problem, why are we receiving them disproportionally?
Companies need to take inventory of their practices and set goals to meet the needs of women if they aren’t already. There are many factors that possibly contribute to the gender pay gap. Regardless, everyone, not just women, should lobby for equal pay as well as increased leadership opportunities and mentorship for women. Pay equity should be a no brainer, and while we’re seeing progress, we still have a ways to go. This conversation needs to extend to all women and especially historically marginalized groups.
-Maggie Heaps, Communications Associate
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