Where is the Gender Pay Gap Most Prevalent?

The gender pay gap, which is the difference between the average rate of pay for men and women, is at 80% in the United States. That number, however, takes into account a whole lot of factors. It’s looking at all workers across all races, ages, and industries. When you start examining different employment sectors and worker characteristics, you can see even more complexity coming into play.

The 80% statistic is one of the most important numbers we can look at when discussing and understanding the pay gap, because it demonstrates the scope of the problem. Why are women paid only 80% of what men are paid in America? However, the number doesn’t paint a complete picture of the problem of gender-based pay inequity in the US. To understand pay inequity better, let’s look at a few important issues.

Gender Pay Gap & Race

When you begin looking at how different racial groups are affected by the pay gap, you start to see the problem at an even more troubling scale.

The American Association of University Women (AAUW) reports the following breakdown of the gender pay gap when race is taken into consideration:

• Hispanic and Latinx women are paid 53% of what men make.

• Black or African American women are paid 61% of what men make.

• White (non-Hispanic) women are paid 77% of what men make.

• Asian American women have the smallest pay gap, but they still are paid only 85% of what men make.

• American Indian and Alaskan Native women are paid only 58% of what men make.

• Native Hawaiian or other Pacific Islander women are paid 62% of what men make.

The gender pay gap is narrowing over time, which is great news, but at its current rate, the pay rate for white women will reach white men’s pay in 2055, whereas the pay rate for Black women won’t become equal to white men until 2119, and Hispanic/Latinx women will not experience pay equity with men until 2229!

Gender Pay Gap & Location

Location plays a role in the gender pay gap, too. Louisiana has the nation’s largest pay gap, with women only making 69% of men’s earnings. California has the lowest pay gap, as women there earn 89% of what men make.

In general, urban areas tend to have slightly smaller pay gaps, whereas in rural areas, the gap is slightly larger. Los Angeles’s pay gap is 91 cents to the dollar between women and men, making it the metropolitan area with the smallest gap between men’s and women’s pay. Detroit has the largest pay gap of any city at 75 cents to the dollar.

Women in rural areas feel the pay gap the most. Rural jobs tend to pay less across the board than urban jobs, but the pay gap exacerbates that even more. In rural areas, women make 64% of what men make.

Gender Pay Gap & Industry

The Institute for Women’s Policy Research provides a report of women’s pay on an industry-by-industry level. They explain the following key takeaway concepts in their most recent analysis of the pay gap:

• In occupations primarily made up of women workers, such as Registered Nurses and education, men in those fields make significantly more than women.

• In male-dominated fields, where men make up the majority of workers, women still experience a significant pay gap.

• In some industries, employees are paid at or near poverty-level wages. Women are eight times more likely to work in these positions.

• If you compare by race, men of each race are paid more than women of the same race. For example, African American men in nearly every industry are paid more than African American women. White men are paid more than white women. Latinx men are paid more than Latinx women. This is consistent across industries.

What Can You Do?

Is there anything that you, as a manager or employer, can do to combat this significant cultural problem? According to  The Institute for Women’s Policy Research, correcting the pay gap would mean that 60% of women would immediately receive a pay raise. This would reduce the poverty rate of American women by half, and the poverty rate for working single mothers would drop from 28.9% to 14.5%. The IWPR also explains that correcting the gender pay gap would inject the national economy with $512.6 billion in available wages.

Of course, it’s not as simple as just giving everyone a raise. You can learn more about our most recommended strategies for promoting pay equity in the workplace through our free offer, Employer’s Guide to Pay Gaps and Gender Equity.

We would also love to talk to you about how we can support you as you develop an equitable pay strategy for your workplace. When it comes to hiring top talent, companies that understand the importance of pay equity are at a serious advantage over their competitors! Talk to us today to learn more about how we can help.