Why Do Women Still Earn Less Than Men?
Why Do Women Still Earn Less Than Men?
By Laura Fitzpatrick
Last year's tax returns may already be signed, sealed and delivered, but April 20 is the day the average American woman will finally finish earning her 2009 salary — at least, the one she would have received if she were a man. That's because U.S. women still earned only 77 cents on the male dollar in 2008, according to the latest census statistics. (That number drops to 68% for African-American women and 58% for Latinas.) To highlight the need for change, since 1996 the National Committee on Pay Equity, an advocacy-group umbrella organization, has marked April 20 as Equal Pay Day. There are some signs of progress: the first bill Barack Obama signed into law as President targeted the U.S. pay gap, and the Senate is considering a bill that is meant to address underlying discrimination. But the question remains: Why has it taken so long? Nearly half a century after it became illegal to pay women less on the basis of their sex, why do American women still earn less than men?
The answer depends on whom you ask — and so does the size of the gap. Some say 77% is overly grim. One reason: it doesn't account for individual differences between workers. Once you control for factors like education and experience, notes Francine Blau — who, along with fellow Cornell economist Lawrence Kahn, published a study on the 1998 wage gap — women's earnings rise to 81% of men's. Factor in occupation, industry and whether they belong to a union, and they jump to 91%. That's partly because women tend to cluster in lower-paying fields. The most-educated swath of women, for example, gravitates toward the teaching and nursing fields. Men with comparable education become business executives, scientists, doctors and lawyers — jobs that pay significantly more.
Still, workers don't choose their industry in a vacuum. "Why do you think [male-dominated industries] are sex-segregated?" says Terry O'Neill, president of the National
By Laura Fitzpatrick
Last year's tax returns may already be signed, sealed and delivered, but April 20 is the day the average American woman will finally finish earning her 2009 salary — at least, the one she would have received if she were a man. That's because U.S. women still earned only 77 cents on the male dollar in 2008, according to the latest census statistics. (That number drops to 68% for African-American women and 58% for Latinas.) To highlight the need for change, since 1996 the National Committee on Pay Equity, an advocacy-group umbrella organization, has marked April 20 as Equal Pay Day. There are some signs of progress: the first bill Barack Obama signed into law as President targeted the U.S. pay gap, and the Senate is considering a bill that is meant to address underlying discrimination. But the question remains: Why has it taken so long? Nearly half a century after it became illegal to pay women less on the basis of their sex, why do American women still earn less than men?
The answer depends on whom you ask — and so does the size of the gap. Some say 77% is overly grim. One reason: it doesn't account for individual differences between workers. Once you control for factors like education and experience, notes Francine Blau — who, along with fellow Cornell economist Lawrence Kahn, published a study on the 1998 wage gap — women's earnings rise to 81% of men's. Factor in occupation, industry and whether they belong to a union, and they jump to 91%. That's partly because women tend to cluster in lower-paying fields. The most-educated swath of women, for example, gravitates toward the teaching and nursing fields. Men with comparable education become business executives, scientists, doctors and lawyers — jobs that pay significantly more.
Still, workers don't choose their industry in a vacuum. "Why do you think [male-dominated industries] are sex-segregated?" says Terry O'Neill, president of the National