While 94% of survey respondents agreed that the gender pay gap is an important issue to address, a lingering 5% believe that the pay gap is a myth.
(And a brave 1% admitted that they know it’s important, but don’t get it).
Of the 5% that said the gender pay gap is a myth, the majority worked in finance or quant roles. So what is it about the economics of the gender pay gap that creates disbelief?
Let’s get into it.
Is the gender pay gap a myth?
No, but it is commonly misunderstood.
In the United States, women earn $0.83 cents on the dollar. This is the number that you’ve likely heard—it’s all over social media on Equal Pay Day in March. This number is “uncontrolled” or “unadjusted,” meaning that it accounts for all men and all women in the U.S. regardless of title, industry, education, or other factors.
In some states (like the one I live in), that gap is much larger—up to $0.68 cents on the dollar.
The “controlled” or “adjusted” gender pay gap, on the other hand, is quite small. This is the data that compares men and women at the same title, industry, education, etc. The adjusted gender pay gap is $0.99 cents on the dollar.
This means that in the majority of cases in the U.S., men and women who do the same job are paid the same. This occurs because compensation discrimination by gender is illegal. According to the Equal Pay Act (1963), men and women in the same workplace must be given equal pay for equal work.
However, a one-cent difference remains. This is statistically significant—it’s still not a zero-cent difference and that gap can compound over time.
The TLDR: The gender pay gap exists and can be measured in two ways. The unadjusted gap is $0.83 cents on the dollar and the adjusted is $0.99. Regardless of the way you measure the pay gap, the U.S. has not reached complete equity.
Even the adjusted pay gap shows inequities in certain industries and identities
According to the U.S. Department of Labor, about 32% of the unadjusted pay gap can be explained by differences in education, industry, and competition:
“Women are two out of every three full-time workers in occupations that pay less than $30,000 per year, and fewer than one in three full-time workers in jobs paying an average of $100,000 or more…
However, most of the disparity in women and men’s pay cannot be explained by measurable differences.”
Meaning that there is some unconscious bias at play.
This is most obvious when comparing the adjusted pay gap within a single occupation.
Consider the role of chief executive, where women with the same title and responsibilities as their male counterparts make 72 cents on the dollar.
Women truck drivers make 77 cents on the dollar.
Female lawyers make 87 cents on the dollar.
The list goes on.
In addition, the adjusted pay gap is wider for women of color, women with children, and women over 35.
What you can do to address the gender pay gap
Maybe the pay gap doesn’t represent what you thought it did, maybe it does.
Based on what we can measure and what we can’t, the largest agreed upon factor in creating the gender wage gap is this:
Women’s labor is still undervalued by society.
To convince naysayers that the pay gap is an issue worth addressing, we need to distinguish between unadjusted and adjusted data—not only addressing inequities in roles, but getting more women in high-paying industries and leadership salaries.
Your organization can make strides towards pay parity by:
- Conducting a pay audit to see where inequities exist by gender and race
- Implementing family-friendly policies that support women in more competitive industries
- Formally sponsoring women through ERGs, mentorship programs, and male allyship
Even if you’re not in a leadership position, you can still make an impact
As long as talking “comp” is taboo, women are at a disadvantage. Whether or not your company adopts a policy of salary transparency, you can help break this stigma and empower women with knowledge.
Here are 3 ways to share your salary with women and underestimated groups:
- When salary questions come up, extend a general invitation to your network—either online or in-person. “I’m happy to share my salary one-on-one, just let me know if you’re interested.”
- Share a recent salary instead of your current comp. “When I started in this role/title in 2020, I was making this much.”
- Research the salary range for your title and share where you land within the range. “Based on Glassdoor’s comp ranges for X title, I fall right in the middle.”
Gender allies can help create pay parity within their networks by openly talking about their compensation.
(And a reminder that your employer cannot prohibit you from discussing salary with coworkers. Your right to discuss your wages is protected under the National Labor Relations Act. Similar laws exist internationally.)
And if you’ve read this far, a quick story about my GG
In her fifteenth year of teaching, my great-grandma made $1700.
That year, a male teacher started at her school with a salary of $2000.
It was his first year of teaching, he had no prior experience and (as was accounted for in compensation at the time) he had no spouse or children. My GG was furious.
According to my paternal grandma, GG petitioned the principal and went so far as to take it to the school board. Why was this male teacher allowed to make more than her?
You have a husband, they said.
He needs the income to provide for a family, they said.
You are a woman, they did not say.
Despite all her efforts, they never adjusted her salary to exceed or equal that of her male peers (or juniors).
This. This is why women keep talking about the gender pay gap. Because even though my GG was snubbed in the 1950s, women still only make 83 cents on the dollar in 2023.
For GG’s sake, we can do better.
Organizations working to close the gap:
- Utah Women & Leadership Project – Gender Pay Gap Committee
- Equal Pay Today (US)
- Gender Pay Gap Association (UK)
Rachel Cottam 