Closing the Gender Pay Gap: The Problem and Some Solutions

IMG_0041This article was originally published in the February issue of Queen of the Castle Magazine .

Did you get all sweaty when you read the title of this article? Money? Bias? I don’t want to talk about this. This article is here to empower and inform you, it’s a little uncomfortable to be paid less. Facing reality is the first step to close the pay gap.

You thought you would go to college; graduate with your bachelor’s and make more money than those without a degree. Just don’t expect to make more than a man with an associate’s degree.

According to the Institute for Women’s Policy Research in 2013 full-time women with a bachelor’s degree earned an annual median income of $50,000 while their male counterparts earned $70,000 and men with an associate’s degree earned $50,000.

Has your jaw dropped open yet? You can go to two additional years of college but be paid the same as a man with less-education or $20,000 less than one with the same education?! Sit down for this next one…

College-educated women born between 1955-1959 working full-time year round lost nearly $800,000 in wages by the age of 59.  Well that’s for the entire United States, there’s much less gender bias here in Wisconsin.

Unfortunately, no. The average annual median income for all full-time women in Wisconsin is $36,000 and $46,000 for men.That means women earn about 78 cents for every dollar their male counterpart earns. Nationally, Wisconsin ranks 22/50 for gender equality in pay compared to neighboring Minnesota who ranks 10/50.

Things are improving for millennial women in Wisconsin. In 2011-2013 millennial women made about 87 cents for every dollar their male counterpart earned.5 Wisconsin is expected to close the gender pay gap by 2068.6

You have the same debt, education, and experience as your male counterparts. Why are you being paid less?! You deserve the same pay. What can you do to get it?

  • Talk wages. This is taboo advice for many of us who were raised conservatively and it’s frequently frowned upon by employers. Here’s the thing, ignorance only benefits the employer. Minnesota and Illinois both have laws that prohibit employer retaliation against employees who inquire about other employees’ wages or disclose their own. Write your congressmen and let them know you want similar protection in Wisconsin.
  • Know your price. Go to websites like payscale.com, salaryexpert.com, cbsalary.com and others. Be sure to check male along with the appropriate years of experience and education. Pay estimates for women are typically lower. You’re worth the same amount an employer pays a man.
  • Negotiate. After arming yourself with the information above, you have objective data for negotiating. The She Negotiates blog (shenegotiates.com) has a lot of helpful advice to get you started negotiating. Remember, if you don’t ask you won’t receive.

What about your daughter or granddaughter? She still faces earning less her entire career.

 

  • Encourage her to pursue a STEM career. STEM stands for Science, Technology, Engineering and Math. Women in these fields face a smaller pay gap than other fields earning about 80-94% of their male counterparts.
  • Discuss finances with her. Get your daughter or granddaughter involved in financial discussions early on. Help her understand the basics of budgeting, investing, and saving. These will help her set financial goals in the future and make the most of her income.
  • Be sure she knows value isn’t determined by gender (or any other demographic). Talk with her about being a valuable employee.
  •  Be conscious of your own gender bias. Even women still have gender bias. Have you ever read the name Dr. Smith and assumed it was a man?

There is a lot you can do about the gender pay gap. Change starts by knowing your value and asking for what you deserve. You can continue to improve the state of pay equality for future women, your daughters and granddaughters by empowering them with knowledge, confidence and tools for their success.

Pay equality isn’t an “us” vs “them” war. Bias is often brushed under the rug and many men don’t know the depth of the problem. I don’t know a dad out there who would say his daughter should earn less than his son for equal work. Inform the men in your life about the gender pay gap so they can become part of the solution. Empower yourself to command your value in the marketplace, you’ve earned it!

Be smart and know your value, be honest with yourself about the wage gap, and empower yourself and others to ask for what you deserve.

 

For more information:

National Science Foundation, Division of Science Resources Statistics. 2008. Science and engineering degrees: 1966–2006 (NSF 08-321). Arlington, VA: National Science Foundation. 

The Status of Women in the States:2015 Employment and Earnings Report Figure 2.4, Figure2.5, Table B2.1, Table 2.1, Table B2.2, Figure 2.2