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Tag Archives: Equal Pay Day

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By Lilli DeBode, guest blogger, senior at Kent Place School

Last Tuesday, April 9th was Equal Pay Day, the day symbolizing how far into 2013 women need to work in order to earn what men earned in 2012. You can hear all the numbers and statistics, see all of the graphs and tables, but nothing puts it into perspective quite like this. Women need to work roughly a third of a year longer in order to make what their male counterparts make. Let that sink in.

2013 marks the 50 year anniversary of the passing of the Equal Pay Act. A half a century ago, John F. Kennedy said that this act would help to end “the unconscionable practice of paying female employees less wages than male employees for the same job.” But 50 years later we still need to have an equal pay day. And although the situation is a lot better, we’re not that close to equality (four months is a pretty long time).

One solution that could make a huge difference is the Paycheck Fairness Act, which has been passed by the house twice. The act would combat a key component to gender wage gap: pay secrecy policies. In 2011, a poll showed that 50% of employees and 61% of employees in the private sector have worked in an environment where discussion of wages and salaries are either prohibited or discouraged by managers. By keeping employees from finding out the salaries of their coworkers, employers are able to carry on pay discrimination without any trouble. The Paycheck Fairness Act would ban retaliation against workers who discuss their wages, fundamentally banning pay secrecy.

President Obama spoke about fair pay in his State of the Union speech two months ago, showing that this longstanding problem has not been forgotten in Washington. This is a promising sign that more steps will be taken towards finally closing the gender wage gap in the near future.

Sources and Resources: To learn more about Equal Pay Day click here. Read this USA Today article to learn more about the gender pay gap.

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I just learned that April 17 was Equal Pay Day. Assuming that the average woman earns 22 percent less than the average man, she would have to work until mid-April to equal his pay.

For women’s pay statistics, I like to look at the Institute for Women’s Policy Research (IWPR). In a recent paper, they say the gap is 17.8 percent because a typical woman’s median weekly earnings are $684 while for men, $832.

Calling it “occupational segregation,” the IWPR reports that jobs we associate with women pay less than “male occupations.” For example, female secretaries earn $651 a week and even that is $16 less than their male counterparts. Similarly, female cashiers earn $373 weekly and male cashiers, $411. You can see that in lower paying “female” jobs, still men earn more. (All amounts are for median weekly earnings.)

For the wage gap in occupations dominated by men, the IWPR shows that although the wages are higher, again, women take home less. The median weekly earnings for female drivers/sales workers/truck drivers is $511 a week. A male in the same category? $712. Female janitors/building cleaners? $418. Male janitors/building cleaners? $514. Female CEOs? $1464. Male CEOs? $2122.

Focusing on the wage gap for professional women, Harvard economists Clauda Goldin and Lawrence Katz cite children as the reason because women take more time off for child rearing and that time off decreases their lifetime earnings. Even women with career continuity tend to select lower paying specialties like general practitioners rather than neurosurgeons or salaried in-house council rather than a high pressure law firm. And, for working mothers with an MBA, 15 years after graduation, the gender pay gap is 25%.

Super Freakonomics tells us that women are subject to greater pay discrimination for being obese or having bad teeth.

The Bottom Line: Supply and demand for men and women differ in labor markets.

If you would enjoy reading more about the gender pay gap, the occupational charts are fascinating in the IWPR report. For a lighter approach,  the Freakonomics blog quotes Goldin and Katz. But, if you prefer seeing their conclusions firsthand, you can look at one of their papers here.

And finally, an interesting fact: It matters where you live. Washington, D.C. has the smallest wage gap while Wyoming has the largest. This Huffington Post article tells more.

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