The gender pay gap persists in 2024, with women earning approximately 84 cents for every dollar earned by men in the US. This figure has remained stagnant for two decades, highlighting the ongoing challenges in achieving workplace gender equity. This article delves into the reasons behind this disparity, its impact across various professions, and potential solutions for closing the gap.
Headshot of Darden professor Allison Elias
Darden Professor Allison Elias, author of “The Rise of Corporate Feminism,” discusses the persistent gender pay gap.
Understanding the Gender Pay Gap
The gender pay gap represents the difference in median earnings between full-time working women and men, as calculated by the U.S. Census Bureau. While the commonly cited 80-cent statistic provides a general overview, it doesn’t fully capture the experiences of women of color, who often face even wider pay disparities compared to white, non-Hispanic men.
Factors Contributing to the Pay Gap
The gender pay gap stems from a complex interplay of factors, often categorized as supply-side (women’s choices) and demand-side (employers’ choices).
Historically, women have faced lower educational attainment, occupational segregation into lower-paying jobs, and less continuous work experience. However, these trends are not solely attributable to women’s choices. Legal constraints, economic structures, societal gender norms, and even childhood socialization significantly influence women’s career paths and preferences.
On the demand side, gender discrimination, both conscious and unconscious, contributes to lower pay and fewer promotion opportunities for women. Quantifying the impact of implicit bias remains challenging.
The Pay Gap Across Professions
The gender pay gap tends to widen in higher-paying positions, partially due to the minimum wage establishing a baseline for lower earners. Larger disparities are observed in managerial and professional roles, which are generally more gender-integrated, compared to jobs requiring only a high school diploma.
For MBA graduates, the gap widens over time. Research indicates that parenthood disproportionately affects women’s earnings, with factors like career breaks and reduced working hours significantly impacting long-term income. The “motherhood penalty” contrasts sharply with the “fatherhood bonus” often observed in men’s earnings. High-paying jobs demanding extensive overtime (“greedy jobs”) further exacerbate the gap, as women often prioritize work-life balance over excessive overtime.
Furthermore, research shows that women receive and claim less credit for collaborative work, particularly in male-dominated fields. This dynamic underscores the need for revised performance evaluation systems that accurately assess individual contributions in team-based settings.
Progress and Potential Solutions
Despite persistent inequalities, significant progress has been made since 1960. Women have achieved higher educational attainment levels and greater representation in fields like business and medicine. Increased access to birth control and shifting societal norms have also empowered women to prioritize career advancement.
However, the largest pay gaps persist in high-paying, demanding jobs. Economist Claudia Goldin highlights the challenge of “greedy jobs” that reward long hours with disproportionately higher pay, often at the expense of flexibility.
Addressing the gender pay gap requires multifaceted solutions. While individual negotiation skills are important, systemic changes are crucial. Banning salary history inquiries, promoting pay transparency, and conducting pay equity audits are promising strategies for organizations and governments. Federal legislation like the Paycheck Fairness Act aims to further these efforts by expanding equal pay protections and promoting transparency. The ongoing conversation surrounding occupational segregation, particularly in lower-paying sectors, also warrants attention. Addressing these complex issues requires a combined effort from individuals, organizations, and policymakers to achieve true workplace equity.
