Gender differences in salary negotiation explain a portion of the gender gap. 2016. Readers can access the data we analyze and report in this paper in the EPI State of Working America Data Library. However, the adjusted gender wage gap really only narrows the analysis to the potential role of gender discrimination along one dimension: to differential pay for equivalent work. 1999. Over the past three and a half decades, substantial progress has been made to narrow the pay gap. Instead, it can potentially happen at every stage of a womans life, from girlhood to moving through the labor market. Pub. The typical non-naturalized foreign-born woman is paid 80 cents per dollar of what a foreign-born man is paid ($11.26 as a share of $14.02). And widowed women are twice as likely as widowed men to be living below the poverty line (Brownet al.). But the gender wage gap is not the only factor that contributes to womens lower lifetime earnings. 16. In a 2016 study, economists Francine Blau and Lawrence Kahn found that the unexplained portion of the gender wage gap narrowed dramatically in the 1980s, shrinking from between 21 and 29 percent of the gap in 1980 to between 8 and 18 percent of the gap in 1989. It also means that when older women are given a choice between staying home to care for family or staying in the workplace, the latter option is relatively less advantageous. Shortchanged in Retirement: Continuing Challenges to Womens Financial Future. Educational attainment is not enough to close gender earnings gaps. Effects of Health Care Provider Work Hours and Sleep Deprivation on Safety and Performance. The Joint Commission Journal on Quality and Patient Safety,vol. The Equal Pay Act of 1963 is a United States labor law amending the Fair Labor Standards Act, aimed at abolishing wage disparity based on sex (see gender pay gap). For instance, Blau and Kahn (2016) find an unadjusted penalty of 20.7 percent, a partially adjusted penalty of 17.9 percent, and a fully adjusted penalty of 8.4 percent.10. Also some high-wage firms have adopted pay-setting practices that disproportionately reward individuals who work very long and very particular hours, including weekends or late nights. Source: EPI analysis of the March Current Population Survey. 7-8, 509528. From the early 1960s to the 1990s, more men and women moved into nontraditional occupations. By 2015, they were equal to 82.7 percent of mens real wages at the mediana substantial reduction in the wage gap. A large body of research accounts for, diagnoses, and investigates this gender pay gap. But this literature often becomes unwieldy for lay readers, and because pay gaps are political topics, ideological agendas often seep quickly into discussions. In a 2014 study, economist Claudia Goldin found that the unexplained, or residual, gap makes up more of the gap today than it did in the 1980s. 82.7 percent of mens wages. Kathleen Geier is a Chicago-based writer and researcher. Pay or Compensation Discrimination Privacy Policy Contact Us. Men in Nursing Occupations: American Community Survey Highlight Report. at 9205 (Rep. Findley) ("I think we need to consider some of the possible side effects of [the EPA] and go into the whole proposal for. 2005. American Time Use Survey Public Data Series. The presence of alternative ways to measure the gap can create a misconception that data on the gender wage gap are unreliable. Economic Policy Institute. 2007. 2013. 2008). Upon its initial enactment, the EPA was "the first step towards an adjustment of balance in pay for women.[12] As a part of the Fair Labor Standards Act of 1938, the EPA was subject to the scope and exceptions of covered employees and employers contained within that act. The Equal Pay Act 1970 has now been mostly superseded by Part 5, chapter 3, of the Equality Act 2010. It is often suggested that women who are planning to have children seek out mother-friendly occupations, sacrificing higher pay for work environments that are more conducive to balancing professional and family responsibilities whether because they are lower stress or offer greater flexibility. Only 60 percent of men and 62 percent of women have access to paid sick days (Williams and Gault 2014). Other research shows that from the beginning of their working lives, women experience a gender wage gap that is still expected to swell significantly over the course of their careers, regardless of education or work experience (Goldin 2014). Events Womens wages increased as more women had increased their participation in the labor force, increased their educational attainment, and entered higher-paying occupations. A number of factors may be contributing to these differences, such as the mix of predominant industries or cultural differences. Rec. And this segregated distribution of men and women across jobs matters to the gender wage gap. Number and Real Median Earnings of Total Workers and Full-Time, Year-Round Workers by Sex and Female-to-Male Earnings Ratio: 1960 to 2015, Program on Race, Ethnicity, and the Economy PREE, Economic Analysis and Research Network EARN. 4, 876892. 21689. U.S. Census Bureau, Washington, DC. The median hourly wage is $15.67 for women and $18.94 for men. Economic Policy Institute, Briefing Paper No. Rec. It is what is left when researchers control for all observable characteristics. Median annual hours of work by mothers increased even more dramatically, rising 960 hours from 1979 to 2012 (Appelbaum, Boushey, and Schmitt 2014). 2015. 14681. "[9] The EPA protects both men and women. 2007. The EPA, Section 206(d)(1), prohibits "employer[s] [from] discriminat[ing] on the basis of sex by paying wages to employees [] at a rate less than the rate [paid] to employees of the opposite sex [] for equal work on jobs [requiring] equal skill, effort, and responsibility, and which are performed under similar working conditions[.]" 2013. (2005) (Sponsored by Senator, Paycheck Fairness Act, H.R. In 2015, the gap between mens and womens hourly wages was smallest among the lowest-earning workers, with 10th percentile women earning 92.0 percent of mens wages. Hersch, Joni, and Leslie S. Stratton. But it would not be correct to conclude that this helps disprove the role of discrimination, because the lack of experience itself is a function of social expectations and norms that disadvantage women in the workplace. Instead, mothers in the workplace are simply judged more harshly in regard to their employer commitment than women without children. Warwick Economics Research Paper Series No. She holds a masters in public affairs from the University of Texas at Austin and a Ph.D. in economics from the University of Wisconsin at Madison. 5056 Prohibiting Discrimination in Pay on Account of Sex, HR 78A-B1, 06/19/1944, Records of the U.S. House of Representatives (ARC 4397822)", "Federal Employment And Labor Laws / Equal Pay Act of 1963 EPA 29 U.S. Code Chapter 8 206(d)", Women in America: Indicators of Economic and Social Well-being, "Pay Equity & Discrimination - Institute for Women's Policy Research", "5 Facts About the State of the Gender Pay Gap", Status of Women (Presidential Commission), Report to the American People on Civil Rights, John F. Kennedy Presidential Library and Museum, U.S. Department of Housing and Urban Development, John F. Kennedy Federal Building (Boston), John F. Kennedy Special Warfare Center and School, Kathleen Cavendish, Marchioness of Hartington, https://en.wikipedia.org/w/index.php?title=Equal_Pay_Act_of_1963&oldid=1110265711, United States federal civil rights legislation, Anti-discrimination law in the United States, Short description is different from Wikidata, Creative Commons Attribution-ShareAlike License 3.0, prevents the maximum utilization of the available, tends to cause labor disputes, thereby burdening, affecting, and obstructing, burdens commerce and the free flow of goods in commerce; and. Throughout we use wage gap and pay gap interchangeably to refer to the wage gap. Interactive tools and videos bringing clarity to the national dialogue on economic inequality. But switching to a fully adjusted model of the gender wage gap actually can radically understate the effect of gender discrimination on womens earnings. 2000e-2(h) (2006) ("It shall not be an unlawful employment practice under this subchapter for any employer to differentiate upon the basis of sex in determining the amount of the wages or compensation paid or to be paid to employees of such employer if such differentiation is authorized by the provisions of [the EPA]."). Research has consistently shown that women with children are paid less than women without children and men with or without children.11 In short, there does seem to be a motherhood penalty for earnings. 2002. Among workers who have a college degree, the share is 75.2 percent; and among workers who have an advanced degree, it is 73.4 percent. Gender and Dynamic Agency: Theory and Evidence on the Compensation of Top Executives. White privilege Rec. Amsterdam: Amsterdam University Press. L. No. Blau, Francine D., and Lawrence M. Kahn. Women do indeed make choices, but those choices do not occur in a vacuum. And an analysis of 3 million participants in money manager Vanguards fund showed that the median amount accumulated in defined-contribution retirement accounts (i.e., 401(k)s and the like) was 34 percent less for women than for men (Brownet al.). Getting a Job: Is There a Motherhood Penalty? American Journal of Sociology, vol. 66, 204225. Additionally, women with two children were more productive than women with one child. Figure 3: Race versus ancestry. Unequal Pay Day for Immigrant Women. If gender differences in teachers attention or perception of academic excellence influence these choices about college major and occupation, then it will affect pay outcomes. Some say that these differences in how men and women are distributed across occupations explain much of the gender wage gap. The labor force participation rate of older women has grown in the past two decades, but it is still lower than older mens (DOL 2015). It also protects administrative, professional and executive employees who are exempt under the Fair Labor Standards Act. The CVF has six competencies that are clustered into three groups. Since working longer later in life yields less than it would for a man (DOL 2015), this leaves less room for women to catch up on retirement savings. Status of Women in the States (online database). The gender pay gap is a fraught topic. This definition is based onthe definition of "traditional" occupations included in the Carl D. Perkins Vocational and Technical Education Act of 1998 S.250-6. Belonging to a certain race or age group does not immunize women from experiencing the gender wage gap. Human capital factors such as education and experience made up about 25 percent of the wage gap in 1979, but only 8 percent in 1998. Examining this raw gap, we hope to have a more thorough conversation about the ways a large basket of factors interact and create the wage gap women experience when they cash their paychecks. At the low end, the gap has not closed as much, but the existence of the minimum wage likely kept wages of low-paid men and women closer together even in the 1970s. 2006. Put another way, we cannot look at our adjusted model and say that discrimination explains at most 13.5 percent of the gender wage gap. Indeed, there may be nothing to correct. For example, Davis and Gould (2015) have shown that had the gender wage gap closed and had wages grown with productivity since 1979, the median womans wages would be nearly 70 percent higher today. 2015. The observed patterns of decreased labor supply and earnings substantially reflect womens choices given family constraints and the inflexibility of work schedules in many corporate and finance sector jobs, the report explains. One thing the data clearly show is that women have not been able to educate themselves out of the gender wage gap, at least in terms of broad formal credentials. Economic Policy Institute. 2008. According to the most recent data, as of 2015, womens hourly wages are 82.7 percent of mens hourly wages at the median (Figure A), with the median woman paid an hourly wage of $15.67, compared with $18.94 for men (Figure B). constitutes an unfair method of competition. [11] The EPAs four affirmative defenses allow unequal pay for equal work when the wages are set "pursuant to (i) a seniority system; (ii) a merit system; (iii) a system which measures earnings by quantity or quality of production; or (iv) any other factor other than sex[.]". Federal Protections Against National Origin Discrimination National Bureau of Economic Research Working Paper No. What can the size and trajectory of this residual gap tell us about the scope of discrimination in the workplace? Livestream upcoming NASCAR races online on FOXSports.com. : 12, 21 The EEOC investigates discrimination complaints based on an individual's race, color, national origin, religion, sex (including sexual orientation, Sex segregation in occupations is a reality; women dominate some occupations, just as men dominated others. Bertrand, Marianne, Claudia Goldin, and Lawrence Katz. Certainly, they would feel inclined to do so in marginal instances where the labor market is plentiful. Not only is the gender pay gap highest among workers age 55 to 64, but recent studies suggest that women face robust age discrimination in the labor market, and that age discrimination against women is worse than it is for men (Neumark, Burn, and Button 2015; Farber, Silverman, and von Wachter 2015). Dynamics of the Gender Gap for Young Professionals in the Corporate and Financial Sectors. State of Working America Data Library. A gender pay gap exists both within and between industries and occupations (Goldin 2014). Women are more willing to move for a husbands employment than vice versa (Abraham, Auspurg, and Hinz 2010). [29] In summary, the study stated: Goldin, Claudia, and Cecilia Rouse. Equal Employment Opportunity Commission (EEOC) is a federal agency that was established via the Civil Rights Act of 1964 to administer and enforce civil rights laws against workplace discrimination. So even recommending that women choose better-paying occupations does not solve the problem. After giving birth, womens pay lags behind pay of similarly educated and experienced men and of women without children. Men constitute greater shares of certain types of jobs, or occupations, and women greater shares in others. Figure M shows more simply how gender segregated our occupations still are in the United States. Goldin (2014) argues that womens labor market choices are strongly conditioned by social norms and expectations regarding who bears the burden of domestic work as well as employer indifference toward this burden. For men, its the opposite: fathers are seen as more committed than childless men. 2301 et seq. For details on the methodology used, see the Documentation section of the Economic Policy Institutes State of Working America Data Library (epi.org/data/). The number for total charges reflects the number of individual charge filings. Similarly, men choose male jobs to earn relatively more.. Fifty-four-year-old Jack Gross was reassigned in 2003 from his position as a claims administration director at FBL. [23], The EPA did not originally cover executives, administrators, outside salespeople, and professionals, but the Education Amendments of 1972 amended the EPA so that it does. Evidence also shows that men benefit disproportionately from incentive pay (Albanesi, Olivetti, and Prados 2015). Framing the question of pay fairness (as this question does) implies that mens pay is very closely aligned with their productivity. However, men and women face different social incentives for negotiation, and there is evidence that women are more likely to be penalized when they negotiate (Bowles, Babcock, and Lei 2006). Liability under the EPA is established by meeting the three elements of the prima facie case, regardless of the intention of the employer. The data below can be saved or copied directly into Excel. The Class of 2016: The Labor Market Is Still Far from Ideal for Young Graduates. Phone: 202-775-8810 epi@epi.org A common thread in these data is that the burden of parenthood is distributed differently in various countries. Disadvantages are compounded when women work part time involuntarilythey are willing and able to work full time but can only obtain part-time work. And the relatively fast growth of mens wages at the 95th percentile has kept this gap from closing as much as the median gap (Economic Policy Institute 2016). American Association of University Women. More evidence that childrens disparate test scores may be the result of cultural factors, not innate differences, is found in the fact that in some states girls scored better at subjects in which cultural cues might have suggested they should be more gifted, and the same was true for boys. U.S. States House of Representatives elections: This page was last edited on 14 September 2022, at 14:35. Studies that have directly explored worker productivity show little evidence of a motherhood penalty on productivity. 2000e-2(a). Race Discrimination Time, Money, and Who Does the Laundry. Association of American University Women. 2014. Furthermore, evidence shows that as womens participation in a particular occupation rises, pay within that occupation falls (Miller 2016; Oldenziel 1999). Lockley, Steven W., Laura K. Barger, Najib T. Ayas, Jeffrey M. Rothschild, Charles A. Czeisler, and Christopher P. Landrigan. She holds a bachelors degree in international political economy from Georgetown University. The U.S. Authoritative, up-to-date data on the living standards of American workers. 1085. 241, 25366 (codified as amended at 42 U.S.C. Asians, for example, are stereotyped as being good at math. The Equal Pay Act 1970 was an Act of the Parliament of the United Kingdom that prohibited any less favourable treatment between men and women in terms of pay and conditions of employment. 88-352, 701718, 78 Stat. Report By Elise Gould, Jessica Schieder, and Kathleen Geier October 20, 2016. Also all professional, managerial, and administrative personnel[.]"). 1999. 2, 95108. But among girls who reported similar levels of confidence as boys, the gender gap in performance disappeared (OECD 2015). Getting a Job: Is There a Motherhood Penalty? Economist Claudia Goldin argues that women in high-wage professions experience a wider gender gap because they are penalized for not working long, inflexible hours (Goldin 2014). Featherstone, Liza. The log of the hourly wage is the dependent variable. In short, one should have a very precise question that he or she hopes to answer using the data on the wage differences between men and women workers. different wages are paid to employees of the opposite sex; the employees perform substantially equal work on jobs requiring equal skill, effort, and responsibility; and. 1, 217229. The Congress did not ignore the EPAs economic consequences on the salaries and employment opportunities for both men and women. Senator Bennett proposed his amendment to ensure that in the event of conflicts between Title VII and the EPA, "the provisions of the [EPA] shall not be nullified." 3, 276295. Institute for Womens Policy Research. International Covenant on Civil and Political Rights | OHCHR Marianne, Claudia Goldin, and Lawrence Katz administrative personnel [. ''... Use wage gap and pay gap 3, of the Equality Act 2010 that women choose better-paying does. Francine D., and Prados 2015 ) EPA was `` the first step towards an of... Managerial, and investigates this gender pay gap interchangeably to refer to the wage.... Bertrand, Marianne, Claudia Goldin, Claudia, and Lawrence M. Kahn of... With one child stereotyped as being good at math good at math now been mostly by... ( Goldin 2014 ) the burden of parenthood is distributed differently in various countries those do... 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