Techopedia conducted a comprehensive investigation into the U.S. gender pay gap, aiming to identify the factors contributing to pay inequality and spotlight areas needing attention to close the gap. The findings reveal stark disparities in earnings between men and women across various states and industries, emphasizing the need for focused efforts to address wage inequality.
Key Findings from the Investigation
State-Specific Insights
- Utah emerges as the least favorable state for American women, with women earning an average of 73.1% of men’s earnings ($47,907 compared to $65,512).
- New York offers a more favorable environment, where women earn 87.5% of what their male counterparts make.
- Despite these variances, no state currently provides women with at least 90% of men’s average earnings.
Ethnic Disparities
- Among ethnic groups, Hispanic women are notably marginalized, earning an average of just 57.5% of men’s earnings.
- Black women earn about 69.1%, while white women earn 80%. Conversely, Asian women experience the smallest pay gap, earning only 1.4% less than men.
Industry Representation
- Women hold only 31.7% of executive roles in e-commerce, illustrating their underrepresentation in key decision-making positions like CEO, CTO, and CMO.
- In male-dominated industries such as finance and insurance, women earn just 61.3% of what men earn, with female sales agents in financial services earning a mere 55 cents for every dollar a man makes.
- Interestingly, women earn nearly as much as men in construction (96.4%) and mining and oil and gas extraction (95.4%).
Influence of Education
- Research indicates that the pay gap widens as women pursue higher education, with disparities increasing from 17% for those without a high school diploma to 21% for those with a bachelor’s degree.
- This trend suggests that men enhance their earning potential more significantly than women as they advance their education.
Age Factor
- Women experience their highest earning potential in their early 20s, with a pay gap of just 7.5% compared to men.
- However, this gap widens significantly with age, reaching 83.3 cents on the dollar by their mid-30s to early 40s and dropping to 77.2 cents in their mid-50s to early 60s.
Despite various contributing factors, identifying the exact cause of the gender pay gap remains complex. A Pew Research survey indicates that 50% of respondents attribute the disparity to differential treatment of women by employers, while 42% believe it results from women’s choices in balancing work and family. Moreover, 48% of employed American women feel pressured to prioritize home duties.
