The US Gender Pay gap is still here in 2024
What is the gender pay gap?
As stated by Oxfam, the gender pay gap is the difference in earnings between women and men. Women are paid less than men for many reasons—including gender discrimination in hiring and workplace policies, lost earnings potential when leaving the job market to take care of children, and insufficient worker protection laws.
In 1938 the Fair Labor Standards Act was signed into law, which purposefully excluded sectors in which Black workers were concentrated. The gender pay gap affects all women and those women of colour are among the most affected. Whilst the gender pay gap means that many women are being paid less than their male counterparts which affects their living conditions, savings and retirement it is also a sign of a broken value system.
The gender pay gap scale
Forbes released data early in 2024 to show the statistics of the current Gender Pay gap in the US.
Women earn 16% less on average than men, with women of colour being among the lowest paid workers in rural areas.
On average women earn 84 cents for every dollar a man makes. Black and Hispanic women are on average making just 56 cents for every dollar that rural white men are making.
The pay gap is apparent at all levels as a 20 year old woman starting out in full time work can stand to lose $407,706 over the course of a 40 year career compared to her male counterpart. Women lose this through the unequal pay from start through to losing out on promotions and pay raises, to the discrimination to childcare. Oxfam report that women are 5-8 times more likely than men to have their employment affected by caregiving responsibilities. Women are often punished for family responsibilities whilst men’s career continue to climb and allowed extra flexibility.
Education and the pay gap
Many will argue that the level of education is what affects the pay gap, but studies show that a woman with a bachelor’s degree will earn 74 cents for every dollar earned by their male counterparts with the same level of education.
Women would have to have at least one extra degree/qualification to reach similar pay levels of their male counterparts.
Retirement and the pay gap
The gender pay gap not only affects women during their careers, but has lasting impacts in retirement. On average, women contribute 30% less to their retirement accounts compared to mend, largely due to lower earnings. Women are also likely to receive 20% less in social security benefits, this can reflect their reduced wages as well as time spent over caregiving responsibilities.
Women face greater financial insecurity throughout life into retirement which often leads to more women facing poverty during their later years.
Pay gap by location
Forbes found which state has the widest and narrowest pay gap on average.
Widest pay gap = Wyoming with a -$18,877 difference in pay
- New Hampshire was next with a -$16,686 difference in pay
- Utah with a -$16,562 difference in pay
Narrowest pay gap = Vermont with women earning $3,872 less than men
Pay gap by industry
The gender pay gap varies by occupation and industry, with only a few professions showing equal or similar earning between genders. For instance, teaching assistants come out on top for pay parity with men and women both earning an average of $34,424 per year. Another example is educational guidance counsellors, where the pay gap in minimal, with women earning an average of only $104 less than their male counterparts.
Pay disparity can be much more pronounced in other industries. Real estate brokers show the largest pay gap, where men earn 60% more than women. Roles where earning can depend heavily on factors such as, networking, negotiation power where men may have structural advantages. Legal occupations also show a significant pay gap with men earning 59% more than women. This industry is known for it’s tough culture where women encounter career barriers.