What Is the Gender Pay Gap?

How the Gender Pay Gap Works

Men out-earn women in both traditionally male-dominated and female-dominated professions, according to recent data from the Bureau of Labor Statistics (BLS).

Overall, women earn about 83 cents for every $1 earned by a man, according to data from the Census Bureau. That amount changes when you look at different groups and communities, as well as people in different professions.

For example, the median weekly earnings for male marketing managers in 2021 was $1,698, while female marketing managers earned $1,490 per week on average, according to BLS data. Despite the salary difference, the number of female employees was over 1.5 times that of males. 

Men earn more than women in other professions, too, such as computer system managers, human resource workers, food service managers, insurance underwriters, civil engineers, and many others. 

• Alternate name: Gender wage gap

There are a number of reasons why the gender pay gap exists. In an email to The Balance, Dr. Sasha Shillcutt, professor of anesthesiology, gender equity researcher, and founder of Brave Enough, explained that we as a society are “not conditioned to value women’s work the same as a man’s work.” Many people, according to Shillcut, believe women should be grateful for the work they have and do. 

Also, women often start out in their careers making less than their male counterparts.

“This is mainly due to their lack of negotiation skills, discrimination, and implicit bias,” Amanda Bullough, associate professor of management and global leadership at the University of Delaware, said in an email to The Balance. 

It can also be difficult for women to gather the same level of experience as similarly situated men.

“Women frequently get pushed out of the workforce in order to take on more family-related duties, including childbearing and childrearing,” Dr. Rebecca Gill, associate professor at the University of Nevada, Las Vegas, said in an email to The Balance. 

The labor force participation rate accounts for those working or looking for work and was 62.4% in August 2022. For all women age 20 and older, that number dropped to 58.4%, while, it went up to 70.1% for men 20 years and older.

While men could certainly do much of this work, the pay differential typically makes it less costly for a family to have the woman stay home, since she probably makes less money to begin with, according to Gill.

How the Gender Pay Gap Impacts Women of Color

The gender pay gap becomes greater for women of color. A Black woman’s median earnings are about 58 cents to a White man's $1, according to the National Partnership for Women and Families. The gap for Latina women is about 49 cents to a White man's $1. Native American women are paid about 50 cents for every $1 a White man makes. And Asian women earn about 75 cents for every $1 a White man makes.

Generational inequalities are likely the cause of this wider pay gap.

“If people of color can't afford higher education at parity with White [people], then people of color continue to be disadvantaged in developing their human capital, creating networks of educated and connected friends in college, and securing higher-paying jobs,” Bullough said.

Gender Wage Gap and Marginalized Women

The pay gap is also wider for other marginalized women, including women with disabilities and women in the LGBTQ community. This holds true despite legislation like the Americans with Disabilities Act and Title VII of the Civil Rights Act of 1964. These acts make discrimination based on sex or disabilities illegal. 

The Impact of the Gender Wage Gap

The impact of the gender pay gap is difficult to quantify. However, it's generally true that the lower the income a woman has, the less of a nest egg she is likely to have in retirement. In addition to having less money saved for retirement, women also carry nearly two-thirds of the nation’s student loan debt.

According to Gill, there are many reasons for the financial challenges women face in the workplace. One key reason is that women tend to be evaluated on their past education and experience, while men tend to be evaluated on their potential.

“This is because men are often seen to have more of the innate qualities of leadership, competence, etc.,” Gill said. “This sometimes means that women must obtain more education [and] experience than similarly situated men in order to land the same position. So women make up the majority of college students, etc. This can leave them burdened by more debt in order to land the same position.”

Unfortunately, many women may also be stuck in a situation where they have to pay off accumulating debt with their lower wages.

“The gender wage gap also contributes to the phenomenon whereby women who are divorced are much more likely than divorced men to end up impoverished,” Gill said. “It also perpetuates the cycle of undervaluing feminine-stereotyped work. It's just not good at all.”

Additionally, the gender pay gap can take a serious toll on a woman’s desire to thrive professionally.

“When you face a 35-year career, knowing you are working just as hard as your male colleagues and not being paid similarly, it erodes your morale, and the trust of your leadership and organization,” Shillcutt said.

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