A new U.S. Census Bureau report and observations stemming from Equal Pay Day highlight the persistent gender pay gap in America and reveal how women earn significantly less than men across various levels of education and professions.
A New Report
The U.S. Census Bureau recently came out with a report that revealed the ongoing issue of pay inequality in America, and since March 12 was Equal Pay Day, it’s only right we take a look at what the issue is and why it is continuing
What is Equal Pay Day
First, let’s take a moment to understand what Equal Pay Day is and why it exists. According to the National Committee on Pay Equity (NCPE), Equal Pay Day originated in 1996 to spread public awareness about the gap between men’s and women’s wages.
A Significant Date
Equal Pay Day’s date is chosen based on how much more women have to work in order to make the same pay as men from the previous year.
Spreading Awareness
Historically, grassroots organizations advocating for equal pay, such as Women’s business and professional associations, labor groups, and civil rights organizations, held events on Equal Pay Day to spread awareness and understanding about this issue.
Wearing Red
Outside of organizations hosting events to spread awareness, the NCPE also encourages people to wear red on Equal Pay Day to represent how far women and minorities are “in the red” with their pay.
The Official Statement
The NCPE website explains, “Because women earn less, on average, than men, they must work longer for the same amount of pay. The wage gap is even greater for most women of color.
84 Cents Per Dollar
The U.S. Census Bureau’s recent report revealed that women earn roughly 84 cents for every dollar that men make.
Making the Analysis
In order to make their analysis, the U.S. Census Bureau didn’t just compare men’s and women’s salaries. Instead, it evaluated the pay differences between individuals with equal levels of education and factored in those who may be out of work for things like childcare.
Factors at Play
The U.S. study identifies field of study, chosen profession, and work hours as key factors influencing the wage gap. Yet, even these considerations don’t fully explain the disparity.
Education Differences
For graduates of top universities, the choice of field plays a larger role in pay differences, but for the rest of the population, larger factors that come from work hours and weeks are more pronounced.
Regardless of Education
The report also revealed that this figure is consistent across all levels of education, from those with post-secondary certificates to graduates of top-tier universities.
Persisting Issues
Despite women now making up over half of the college-educated workforce and joining the labor force at unprecedented rates, the wage gap has continued to persist, leading many to view this as a systemic issue.
More than America
It is also worth noting that the gender pay gap isn’t just a problem persistent throughout the American workforce but one that is seen throughout the world.
New Data from Australia
Recent data from Australia has revealed large gender pay gaps at several Australian employers, with some companies showing more than 50% disparity in favor of male employees and the national Australian average sitting at 19%.
83 Cents for Every Dollar
Payscale Inc. made a comprehensive report that agreed women in the U.S. earn 83 cents for every dollar earned by men and found a larger gap for working mothers and women of color.
Factors of the Gap
There are many factors that influence the extent of the pay gap, like race, ethnicity, age, and motherhood status, with women of color, older women, and mothers facing the largest difference in pay.
Inflation on the Rise
On a related note, recent economic data back in America shows a 0.4 percent increase in consumer prices in February, resulting in a 3.2 percent year-over-year rise.
Exceeding the Fed’s Expectations
This inflation rate exceeds the Federal Reserve’s 2 percent goal and could potentially affect future interest rate decisions and impact employment and wages across the board.
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The post Equal Pay Day: Illuminating America’s Persistent Wage Imbalance first appeared on From Frugal to Free.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
