gender pay gap

Since the equal pay law of 1963, the gender pay gap has been improving at an extremely slow rate. Women in 1963 were paid approximately 60 cents on the dollar compared to men. In 2015 we have not made much progress. Women only earn 78 cents on the dollar as men. That means we’ve only increased 18 cents in 50 years! Economist Evelyn Murphy, chair of the federal wage project, has estimated that over a lifetime of work (47 years), women have lost a total of the following in wages; High school graduates lost $700,000, college graduates lost $1.2 million, and career school graduates lost $2 million.

The wage gap not only has an effect on women’s current financial situation and their ability to save for retirement, but also shows that lower wages translate into lower contributions to their social security benefits. This results in decreased social security benefits for women due to the fact that benefits are determined by the amount of lifetime contributions. In 2012, the average social security benefit for a 65-year-old woman was $12,520 per year, compared to $16,396 for a 65-year-old man. Coupled with the fact that women have fewer savings than men due to to the lower pay rates and longevity of women compared to men overall, we are seeing twice as many women over the age of 65 living below the poverty line. If the wage gap were closed, in addition to women earning more, saving more and receiving higher Social Security benefits, women would also be contributing much more to Social Security, which would be beneficial for everyone.

The gender pay gap is not just a national problem. We see this gender pay gap internationally as well. CNN reports that the United States ranks 65th out of 142 countries in the world for the gender pay gap. The top countries were Burundi with 83 percent, Singapore and Norway with 80 percent. Italian women only earned 48 percent of the male salary, and Israel only 47 percent. The lowest percentages are observed in Syria, Pakistan and Jordan. This is clearly an international issue for women all over the world. It is necessary to take action to change not only our nation, but also the entire world.

There are several steps we can take as women to help close this gap. Public awareness on this issue is essential. Also, many experts agree that women need to learn to better negotiate their wages with potential employers. However, negotiation skills are tricky for women because sometimes self-promotion, which works for men, can backfire on them. Some tactics that have proven effective for women are knowing how much their skills are worth, exhibiting a positive attitude, and discussing common goals and what they personally would contribute. There are workshops that can help educate women on how to become successful negotiators. Another way we can improve the gap is to encourage our corporations to be fair to all employees. Companies can use audits to monitor and address gender pay gaps. Companies must know that paying fairly is the ethical and legal thing to do. It would also improve the productivity and overall morale of her female employees. In addition to the equal pay law of 1963, President Obama signed the Lilly Ledbetter Fair Pay Act in 2009, which offers more protection against unfair pay. This law allows women to file a lawsuit against the company for 180 days after the pay discrimination occurs. The AAUW website offers information and support to help women fight for their right to equal pay.

Most economists agree that we have not seen a significant improvement in the gender pay gap in the last 50 years. Closing the gender pay gap would help not just the women of our country, but our entire economy, as well as our social security program. We all need to take steps to educate ourselves on this issue by reading the many government reports that are available online to increase our awareness. Women, as a whole, need to be able to better negotiate our wages and hold employers accountable for discrimination. The media continues to discuss this issue, and economists continue to report on and analyze this 78 percent national pay gap. We must continue as individuals to work to close this gap through some of the methods discussed, as well as find new ways to help. Women deserve equal pay for equal work.

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