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The Truth About the Gender Pay Gap: Do Women Get Paid Less?

Written by Salary.com Staff

March 12, 2024

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When it comes to the gender pay gap, there is a lot of debate about whether women actually do get paid less than men for the same work. Some argue it is a myth, while others say the pay gap is very real and an example of ongoing workplace inequality.

In this article, we will dig into the data and research around the gender pay gap to try to get to the truth of the matter once and for all. Does the so-called pay gap really exist? If so, what factors contribute to it? We will look at the reasons behind the pay gap, from overt bias to more subtle issues like differences in pay negotiation.

You are in for a surprise at what the research and experts have to say about the state of the gender pay gap today. Let us examine the facts and myths surrounding this hot-button issue of why do women get paid less than men.

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The Origins of the Gender Pay Gap: Do Women Get Paid Less and How it Happened

For decades, women have earned less than men for doing the same jobs. This injustice originated long ago and developed over time due to discrimination and bias. Up to this point, many are still asking—do women get paid less than men and why?

There was less consideration for women to land higher-paying jobs and faced barriers to career advancement. Companies routinely pass over them for promotions in favor of male colleagues. They also often deny women access to leadership roles.

Implicit biases and stereotypes also negatively impact women's pay. There were beliefs that women were not primary breadwinners. Many also see them as people not capable as men in certain tasks. This leads employers to undervalue and underpay female employees.

Although illegal today, the pay gap persists in subtler forms. Eliminating it will require ongoing efforts to counter unconscious biases, ensure equal access to opportunity, and establish fair compensation practices regardless of gender. The labor force is making progress, but achieving equal pay remains an urgent issue.

Do Women Get Paid Less Than Men: Examining the Data

The reasons behind the pay gap are complex. While discrimination and bias are factors, the data shows that choice of occupation and hours worked also impact the gap. On average, women work fewer hours and are more likely to take breaks from work for child-rearing. Women also tend to choose lower-paying fields like teaching, nursing, and social work.

Still, about 40% of the pay gap remains unexplained. There is evidence that women face discrimination and encounter unconscious bias during the hiring and promotion processes. They are less likely to receive raises. Companies also view them as less qualified for leadership roles, even when their credentials are equal to men's.

Although the job market is progressing, they need more work to do to achieve equal pay. Government policy, corporate initiatives, and individual actions can all help in closing the gender pay gap over time. They do this through promoting pay transparency, flexible work set ups, and a more equitable division of childcare responsibilities. Overall, achieving equal pay will take a collaborative effort across society.

Do Women Get Paid Less Than Men: The Adjusted and Unadjusted Pay Gap

The raw gender pay gap compares the median annual pay for all working women and men, despite job, experience, education, or other factors. According to recent data, women earn about 82 cents for every dollar men earn. This is known as the unadjusted pay gap.

However, when accounting for job choice, experience, education, and other compensable factors, the adjusted pay gap is closer to 98 cents on the dollar. The remaining 2 percent difference is the adjusted pay gap, and it is due to gender discrimination and unconscious bias.

The key point is that while discrimination is still a factor, it does not fully explain the pay gap between men and women. Women’s choices, such as job or career choices, also play a significant role. That said, society and employers still have work left to do to achieve full pay equity.

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Do Women Get Paid Less Than Men: Occupational Segregation

Women tend to work in a range of professions than men. This occupational segregation by gender leads to the gender pay gap. Women gravitate towards “female-dominated” careers like nursing, teaching, and social work. These jobs typically pay less than those in male-dominated fields requiring similar levels of education and skill.

For various reasons, including both choice and societal pressures, women are more likely to choose careers in people and social services. Many see crucial jobs as “women’s work” and undervalue them. This results in lower pay for jobs primarily employing women. Closing the gender pay gap will require society to value the work women do and the skills required for those roles.

Do Women Get Paid Less Than Men: Other Contributing Factors

To address the question, “Do women get paid less than men?” urges people to consider other additional factors. Unconscious bias refers to social stereotypes about certain groups of people that individuals form outside of their conscious awareness. Hiring managers and executives may make judgments about candidates based on gender, leading them to favor male applicants over females with equal qualifications. Studies show that unconscious bias contributes significantly to the gender pay gap.

The Ripple Effect of Gender Pay Gap

The gender pay gap has far-reaching consequences that affect not just women but society as a whole. When women earn less, it makes it harder for their families and communities to earn and save money. Considering women make up half the workforce, their lower pay and earning potential have a ripple effect throughout the economy.

Families lose $10,000 in income each year due to the pay gap. This makes it more difficult to pay for essentials like housing, food, and childcare. Over a lifetime, the pay gap leads women to earn hundreds of thousands less than men, reducing their ability to save for retirement and their financial security later in life.

Communities suffer as women's lower pay means less spending at local businesses and less tax revenue to fund schools, infrastructure, and healthcare. When the gender pay gap narrows, it can help boost the economy. While companies work to address the complex causes of the pay gap, its effects make it clear why pay equity is so important. When women thrive, we all benefit.

Steps to Close the Gender Pay Gap: How to Ensure Women Get Paid Fairly

Closing the gender pay gap will require collaborative effort and action from all parties involved.

To ensure women receive equal pay for equal work, employers must conduct salary audits to identify pay discrepancies between male and female employees in the same roles. Once identified, employers must rectify unfair pay differences.

Companies must train managers and HR professionals on the impact of implicit bias and how to evaluate employees objectively based on merit and performance.

On an individual level, women must learn effective negotiation strategies to advocate for their worth upon hiring and when asking for raises. Do not be afraid to inquire about the pay range for a position before the interview process and negotiate from there.

Legislation can help by reducing pay secrecy, ensuring fair compensation, and providing access to key data on wage and hiring practices.

With effort and accountability, the gender pay gap can become a thing of the past. But achieving this goal will require action, not just words. Collectively fostering open communication and a shared commitment to equal opportunity can ensure people receive fair pay based on their skills and contributions alone.

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Conclusion

When it comes down to it, the gender pay gap is complicated. There are a lot of factors that contribute to the average difference in earnings between men and women. While some of it boils down to different choices, there does seem to be at least some amount of discrimination and bias at play too.

The good news is that the gap has been shrinking over time as attitudes change and policies try to address the imbalance. But there is still work that everyone needs to do to ensure women have the same opportunities and compensation as equally qualified men. The truth is that equal pay strengthens the economy and families. So, let the conversation continue, and take steps in workplaces and government to close the gender pay gap for good.

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