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What Is the Pay Gap? The pay gap is the difference in men's and women's median earnings, usu- ally reported as either the earnings ratio between men and women or as an actual pay gap, as defined below. The median value is the middle value, with equal numbers of full-time workers earning more and earning less. Earnings ratio - Women's median earnings Men's median earnings Pay gap - [Men's median earnings - women's median earnings] Men's median earnings In 2015, median annual earnings in the United States for women and men working full time, year-round were $40,742 and $51,212, respectively (Proctor et at, 2016). 2015 earnings ratio = $40,742 $51,212 _ 80% 2015 pay gap = [$51,212 - $40,742] = 20% $51,212 Earnings can also be reported on a weekly basis. The gender pay gap in weekly earnings tends to be slightly smaller than the pay gap in terms of annual earnings. In 2015, the pay gap in median weekly earnings was 19 percent (U.S. Bureau of Labor Statistics, 2016a). Where do the data come from? Federal agencies such as the U.S. Census Bureau, the U.S. Department of Education, and the U.S. Bureau of Labor Statistics conduct surveys of indi- viduals, households, and businesses to gather information about people's salaries and other earnings. Most reports on national workforce participation, pay, and pay differences depend on data from the Current Population Survey (CPS) (wwwcensus. gov/cps), the country's primary source of labor force statistics. The CPS is a monthly survey with a sample of 100,000 households sponsored jointly by the Census Bureau and the Bureau of Labor Statistics (U.S. Census Bureau, 2016a). 6 On the positive side, a handful of states have particularly robust laws governing equal pay. For example • California hmits the excuses employers can use to pay women less than they pay men to only a "bona fide factor other than gender," such as education, training, or experience (as opposed to reasons based solely on gender stereotypes). • Maryland prohibits employers from assigning or directing employees into less -favorable career tracks—known as "mommy tracking"—or withhold- ing information about promotions. • Massachusetts prohibits employers from asking potential employees about their salary history. • Tennessee subjects employers who violate the law to high fines and damage payments, emphasizing the seriousness of a violation. AAUW advocates for all states to pass and enforce equal pay laws in addi- tion to developing other innovative ideas that chip away at the gap. We con- tinue to push for federal pay equity legislation, regulation, and enforcement to protect employees and assist employers. AAUW also educates the public about this persistent problem and its effect on working families. These efforts are critical as we work to close the gender pay gap. 3 J 3 27