Laserfiche WebLink
INTRODUCTION <br />1 n 2017, women working full time and year-round in the United States typically were paid just <br />80 percent of what men were paid, a gap of 20 percent (Fontenot et al., 2018). <br />The gap has narrowed since 1960, due largely to <br />women's progress in education and workforce <br />participation and to men's wages rising at a slower <br />rate. At the rate of change between 1960 and 2017, <br />women are expected to reach pay equity with men <br />in 2059. But even that slow progress has stalled in <br />recent years. If change continues at the slower rate <br />seen since 2001, women will not reach pay equity <br />with men until 2106 (figure 1). <br />The gender pay gap has lifelong financial effects. For <br />one, it contributes directly to women's poverty. In <br />2017, 13 percent of American women ages 18-64 were <br />living below the federal poverty level, compared with <br />9 percent of men. For ages 65 and older, 11 percent of <br />women and 8 percent of men were living in poverty <br />(Fontenot et al., 2018). <br />The pay gap follows women throughout their time in <br />the workforce, and even after they leave the workforce. <br />Employers' use of women's prior salary history to set <br />their wages in new jobs means wage discrimination <br />carries forward from job to job, compounding over <br />time. And because women typically are paid less than <br />men during working years, women receive less income <br />than men do from Social Security, pensions, and other <br />sources when they retire. (Fischer & Hayes, 2013). <br />Other benefits, such as disability and life insurance, are <br />also smaller for women because these benefits usually <br />are based on earnings. <br />The impact of the pay gap has also broadened in <br />recent years as a result of changes in family structure. <br />Between 1967 and 2015, the proportion of mothers <br />working outside the home and contributing at least <br />FIGURE 1: Women's Median Annual Earnings as a Percentage of Men's for Full-time, Year-round Workers <br />1960-2017 and Projections <br />Projection of 1960 — 2017 Trend <br />Projection of 2001— 2017 Trend <br />Equity in 2059 <br />Equity in 2106 <br />0 <br />CO <br />o <br />O <br />O <br />0 <br />O <br />0 <br />O <br />0 <br />O <br />O <br />N <br />O <br />N <br />O <br />N <br />O <br />100% <br />95% <br />90% <br />80% <br />75% <br />70% <br />65% <br />60% <br />55% <br />50% <br />0 <br />O <br />N <br />Source: AAUW analysis of Fontenot (2018) <br />AAUW • www.aauw.org <br />THE SIMPLE TRUTH ABOUT THE GENDER PAY GAP 1 Fall 2018 Edition <br />