Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.
Katherine Haan ContributorKatherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.
Written By Katherine Haan ContributorKatherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.
Katherine Haan ContributorKatherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.
Contributor Kelly Reilly, J.D., M.B.A. Editorial DirectorAs editorial director for Forbes Marketplace Services, Kelly oversees the brand's Home Improvement, Small Business, Legal, Education and Sports Betting verticals. Kelly brings more than a decade of digital editorial and leadership experience with maj.
Kelly Reilly, J.D., M.B.A. Editorial DirectorAs editorial director for Forbes Marketplace Services, Kelly oversees the brand's Home Improvement, Small Business, Legal, Education and Sports Betting verticals. Kelly brings more than a decade of digital editorial and leadership experience with maj.
Kelly Reilly, J.D., M.B.A. Editorial DirectorAs editorial director for Forbes Marketplace Services, Kelly oversees the brand's Home Improvement, Small Business, Legal, Education and Sports Betting verticals. Kelly brings more than a decade of digital editorial and leadership experience with maj.
Kelly Reilly, J.D., M.B.A. Editorial DirectorAs editorial director for Forbes Marketplace Services, Kelly oversees the brand's Home Improvement, Small Business, Legal, Education and Sports Betting verticals. Kelly brings more than a decade of digital editorial and leadership experience with maj.
Updated: Mar 1, 2024, 11:11am
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The gender pay gap refers to the difference between the average earnings of men and women in the workforce. Despite attempts to narrow the gap, women still earn 16% less than men on average. [1] This gender pay gap statistics report will delve into the latest statistics, uncover where the gap is still present and discuss factors that influence pay disparity between men and women.
There are two types of gender pay gaps: the controlled and uncontrolled gap. The controlled gap measures the difference in pay between men and women performing the same job, with the same experience and qualifications. The uncontrolled gap represents the overall difference in pay between men and women, considering all the jobs and industries in which they work.
In 1963, a woman made 59 cents for each dollar earned by a man; in 2010 that number had increased to 77 cents per every dollar—an improvement of half-a-cent on average annually. [5]
The Center for American Progress projects that gender pay equity won't become a reality until 2056. [2]
The gender pay gap extends to nearly every profession, but the disparity in earnings particularly impacted some job titles between men and women. Understanding how the gender pay gap affects specific job titles is crucial to understanding the problem and developing targeted solutions.
Despite the push for equal pay for equal work, women continue to earn less than men in nearly every occupation, from entry-level positions to the C-suite. Even when controlling for job characteristics, women at the executive level still earn only 95 cents for every dollar earned by men, and in the uncontrolled group, the pay gap widens to 73 cents. [4]
The pay disparity is also reflected in entry-level positions, where research from the National Association of Colleges and Employers shows a gap of 18.4% between the average annual salaries earned by women and men, with women earning $52,266 compared to men's $64,022. [6]
There are a few areas where women earn higher salaries than their male counterparts. Women earn 3% more than men as compliance officers and vocational nurses, and 2% more as wholesale and retail buyers. [7]
Despite the previous examples of gender pay disparity in the workforce, there is one job role where men and women earn equal pay: teaching assistants. Both genders earn an average of $34,424 per year in this role. [7] Educational guidance counselors come in close second, with men earning a mere $104 more on average. [7]
Physical and social science jobs, along with physical therapy, are among the professions with the smallest gender pay gap, with women earning just 2% less than men. [7]
When it comes to earning power, not all jobs are created equal. According to our study, real estate brokers have the largest gender pay gap, with men earning 60% more than their female counterparts. Coming in second place is personal finance advisors, where men earn 58% more than women in the same role. [7]
Physical and social science occupations are known for having the narrowest gender pay gap in the workforce. However, even in this field, men still earn 9% more on average than their female counterparts. [7]
In the legal field, men earn an average of 59% more than women. [7] This disparity in payroll is the largest among various industries.
The gender pay gap varies from location to location, reflecting differences in the economies and labor markets of different states and cities. On average, women earn less than men in every state and the District of Columbia, and the gap is wider in some places than others. [7]
When it comes to the gender pay gap, certain states have wider disparities than others. Wyoming has the largest pay gap with women earning $18,877 less than men. New Hampshire and Utah also have relatively large gaps, with respective disparities of $16,686 and $16,562. [7]
Vermont has the narrowest gender pay gap in the U.S. On average, women in Vermont earn only $3,872 less than their male counterparts. Alaska and Nevada also have relatively small wage gaps, with respective disparities of $6,849 and $7,492. [7]
The gender pay gap is a persistent issue not just in urban areas, but also in rural communities.
Understanding how the pay gap varies among different demographic groups can help shed light on the complex and interconnected factors that contribute to gender-based wage disparities.
The gender pay gap affects women of different ethnicities and races differently. Latinas, Black women and Native American women all experience wider pay gaps than the average for all women.
A 20-year-old woman starting full-time work can expect to earn $407,760 less over a 40-year career compared to a man in the same position. [3]
This pay gap persists throughout their careers, with Black women, Native American women, and Latinas having to work decades longer to close the lifetime wage gap.
Many might believe a higher education level equates to higher pay. However, this does not hold true for women when it comes to the gender pay gap.
The gender pay gap can significantly impact a woman’s retirement. This is due to women’s lower earnings and higher share of part-time work.
Additionally, women receive lower pension benefits than men, further exacerbating the difference in retirement savings. Altogether, these factors mean that women have less than men in three key areas of retirement: Social Security, pensions, and savings. [1]
The gender pay gap affects women’s earning potential and long-term financial stability, leading to a significant difference in retirement benefits compared to men. The pay gap varies by industry, location, ethnicity, age, motherhood status and education level, with some groups experiencing a much wider gap than others.
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ContributorKatherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.
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