Informing policy. Inspiring change. Improving lives.
1200 18th Street NW, Suite 301
Washington, DC 20036
202 785-5100
iwpr@iwpr.org

A College Student’s Take on the Gender Wage Gap

By Lauren Hepler

In honor of Equal Pay Day, IWPR intern Lauren Hepler observes the impact of the gender wage gap as she looks to start a career after college.

In this economy, it is very scary to be a college student getting ready to graduate in just one short year. And with media profits tanking, it is even more daunting to be a journalism major set to graduate in 2012. Sadly, it is worse to be a female journalism student set to graduate knowing that women still only make an average of 77 percent of men’s yearly salaries (according to median yearly earnings in 2009).

Family friends of college grads, professors, and anyone who knows one—or follows one on Facebook— are curious about where we will land our first real jobs. With unemployment among people age 20-24 at 15.4 percent and showing no signs of easing, I would imagine that many other college students share my unsentimental notions on the issue. I will work wherever I can get a job.

This anxiety about finding any job at all often obscures the reality that we are still confronted with: Women make only make 77 percent of men’s median yearly salaries.

For a student used to living on a shoestring budget, the potential financial impact of the gender wage gap is daunting. On average, monetary losses due to the wage gap over a lifetime add up to $700,000 for a high school graduate, $1.2 million for a college graduate, and $2 million for a professional school graduate.

That is not chump change. That is money that could be spent paying back overwhelming student loans, financing homes or generally saving for the future—all things young people are constantly told to do but often can’t because of budget constraints.

Unfortunately, it appears this cash will not be materializing anytime soon. According to new IWPR research, if progress continues at the current rate, it will be 45 more years (or the year 2056) when men’s and women’s wages finally balance out.

In fact, one of the most alarming facts about the gender wage gap is that the rate of progress is actually slowing down (despite a small gain in the number of women in management positions). From 1980 to 1993, the gender wage gap narrowed by 12.9 percent. But in the 16 years from 1993 to 2009 the gap narrowed a meager 3.1 percent.

College history classes often hark back to the 1960s as the tipping point for gender discrimination, praising the shattering of the glass ceiling for women in the workforce. Now, half a century later, how far have we really come?

The Gender Earnings Ration 1955-2010 (click to enlarge)

In 1960, women, on average, earned only 60 percent of men’s wages for a year of full-time work. In 2009 that number had risen to 77 percent, with women still making almost a quarter less than their male counterparts.

And that’s just the national average. The numbers are even more jarring when comparing state-to-state, or across racial and ethnic categories.

In Wyoming, for instance, women still make just 64 percent of what men earn in a year. West Virginia and Louisiana are only slightly better, at 67 percent, which is roughly equivalent to the national average in the late 1980s.

As a percentage of white men’s yearly earnings Asian women average 82.3 percent, while white women average 75 percent, black women 61.9 percent, and Hispanic women just 52.9 percent of what a man earns.

Despite the bleak outlook for the immediate future, actions are being pursued to correct the imbalance in the gender wage gap, with the Supreme Court last week hearing arguments on the Dukes v. Wal-Mart gender discrimination case.

And there is a need for urgency on the issue.  A report by the American Association of University Women (AAUW) Educational Foundation shows that the gender wage gap starts early in a career and then widens dramatically. Just one year out of college, female graduates on average make only 80 percent of their male counterparts’ salaries. Ten years down the road, the report found that the gap widened, with women receiving just 69 percent of men’s earnings by that point in their careers.

This phenomenon is even more counterintuitive considering that in the last decade women have consistently outnumbered men at American colleges, with women averaging about 57 percent of enrollment. Despite making huge gains in education and being better prepared than ever to enter the workforce, complacency on the gender wage gap continues to hamper the careers of American women.

As a student preparing to go on the job hunt, I know I am not exempt from this problem. However, I certainly don’t want to wait until I reach retirement age (I will be 66 in the year 2056) to get the same pay as men in my field.

Lauren Hepler is the Communications Intern at the Institute for Women’s Policy Research. She is majoring in journalism and women’s studies at George Washington University.

Women and Immigration

http://www.iwpr.org/publications/pubs/organizations-working-with-latina-immigrants-resources-and-strategies-for-changeby Mallory Mpare

The U.S. has often been dubbed the “nation of immigrants” and this is no less true today.  However, the face of immigration has drastically changed while policies and practices have failed to adapt. There is a long history of immigrant men seeking opportunity in—well—the land of opportunity by working to provide for families, often left behind in their countries of origin.

No longer is this the singular scenario.

Immigrant women have increasingly sought to reunite their families while also seeking new employment and educational opportunities in the U.S. for themselves. Instead of being met with uplifting and economically empowering opportunities, these women experience disproportionately higher rates of domestic violence, on the job violence, employment discrimination, and sexual exploitation.

At an IWPR release event on March 25 at the Woodrow Wilson Center for the report, Organizations Working With Latina Immigrants: Resources and Strategies for Change, Sara Manzano-Díaz, Director of the Women’s Bureau, U.S. Department of Labor, noted that “comprehensive immigration reform is part of winning the future.” The report notes that, currently, nonprofit organizations and congregations play an integral role in advancing the rights and well being of immigrant families.

In the report, IWPR explored how nonprofits and congregations work with immigrant women, especially low-income Latinas, to better enable them to safely navigate through life in a new, and sometimes hostile, environment. The report notes that although these organizations serve as a vital resource to immigrant women, they face obstacles such as negative public dialogue, restrictive policies and an ever dwindling funding stream which hinder their ability to meet the full needs of immigrant women.

While increasing immigrant women’s access to resources is important, if immigrant women must seek out these resources in a hostile environment, their access will surely remain limited. Of the 280 groups in the study, 120 are involved in some type of advocacy, and seek change a social and political structure which—they feel—deny the rights of immigrant women. Immigrant rights— like women’s rights and human rights—are about preserving personal agency, and allowing space and resources for people to make decisions about their own lives and the lives of their families.

In her presentation at the Wilson Center, Cynthia Hess, Study Director and co-author of the report outlined the wide range of services that nonprofit organizations offer to immigrant women such as English classes, child care, health services, and access to affordable transportation. She noted that, in many cases, religious groups have stepped in to provide services when the government has not, and that a climate of fear—for both documented and undocumented immigrants—may prevent Latina immigrants from seeking services. Fear of being pulled over by the authorities can even lead immigrants to avoid driving.

Perhaps it is a coincidence that IWPR’s report was released on the 100th anniversary of the Triangle Shirtwaist Factory tragedy. Many of the victims of that tragedy were working immigrant women and girls. In the days leading up to the Triangle factory tragedy, women organized around their concerns , protesting and forming unions to protect their interests.  However, one well-known factory, The Triangle, refused to recognize these unions and would face tragic consequences as a result.

IWPR’s report, Organizations Working with Latina Immigrants, also shows that there are consequences for ignoring the needs of immigrant women and the challenges they face in trying to earn a living in their adopted country.

Other speakers and panelists at the March 25 launch event included Sonya Michel, Director of the United States Studies program at the Wilson Center; Patricia Foxen, Associate Director of Research at the National Council of La Raza (NCLR); Pierluigi Mancini, Executive Director of CETPA (professional mental health counseling services for the Latino community); Jen Smyers, Associate for Immigration and Refugee Policy with Church World Service; Cecilia Menjívar, Cowden Distinguished Professor of Sociology at Arizona State University; Lydia Guzman, President of Somos America; and, Mary Odem, Associate Professor of Women’s Studies and History at Emory University. Speaking on behalf of IWPR were Heidi Hartmann, President, and co-authors of the report and Study Directors, Jane Henrici and Cynthia Hess.

Mallory Mpare is the Communications Fellow at the Institute for Women’s Policy Research.

One on One with Sara Manzano-Diaz, Director of the U.S. DOL Women’s Bureau

Sara Manzano-Diaz, Director of the Women's Bureau at the U.S. DOL

by Caroline Dobuzinskis

IWPR was honored to have Sara Manzano-Díaz as keynote speaker at a launch event at the Woodrow Wilson Center for our latest report on immigration, Organizations Working with Latina Immigrants: Resources and Strategies for Change. We also had the opportunity to interview Ms. Manzano-Díaz, the Director of the Women’s Bureau at the U.S. Department of Labor (DOL), for this blog on her work championing for the rights of working women and for families.

Ms. Manzano-Díaz’s resume includes judicial, state, and federal titles: Deputy Secretary of State for Regulatory Programs at the Pennsylvania Department of State (appointed by Governor Edward G. Rendell), Deputy General Counsel for Civil Rights and Litigation at the U.S. Department of Housing and Urban Development, Assistant Attorney General in New York, and a Judicial Assistant and Pro Se Attorney in the New York State Judiciary. She also served as co-chair of The Forum of Executive Women’s Mentoring Committee, which mentors young professional women as they begin their careers, and participated in Madrinas, a program that provides mentors for at-risk Latina girls to encourage them to finish high school and attend college. Ms. Manzano-Díaz holds a Bachelor of Science degree in Public Relations and Communications from Boston University and a Juris Doctor degree from Rutgers University School of Law.

IWPR:  Please tell me about your background: What led you to pursue a degree in law?  What inspired you to pursue work in the civil service—specifically for women and families?

Sara Manzano-Díaz:  Since the age of five I envisioned myself becoming a lawyer. Growing up in a Puerto Rican household, I became the family translator at a very young age. As a result, a love for advocacy grew from that experience. I became an advocate for my own family, which fueled a passion to advocate for all working families and women. Now, I represent 72 million working women as Director of the U. S. Department of Labor’s Women’s Bureau.

IWPR:  What influence do you think the Women’s Bureau has on policy?  How does it help to empower women?

SMD:  When the law was passed in 1920 creating the office, the Women’s Bureau was given authority to formulate standards and policies that promote the welfare of wage-earning women, improve safety and working conditions, and advance their opportunities for profitable employment. One of the agency’s early achievements was the inclusion of women under the Fair Labor Standards Act of 1938, which, for the first time, set minimum wages and maximum working hours.  As the advocate for women within the Labor Department, the agency was also instrumental in the development of the Family and Medical Leave Act, Pregnancy Discrimination Act and the Equal Pay Act.

In the 21st Century, our vision and the policy direction of the program still remains one of empowering all working women to achieve economic security. That translates into preparing them for high paying jobs, ensuring fair compensation, promoting workplace flexibility as well as helping homeless women veterans reintegrate into the workforce. Empowerment of women makes the world work and strengthens the American economy.

IWPR:  What are your goals for the Women’s Bureau?

SMD:  During my tenure, I want to see the Women’s Bureau continue to make a real difference in the lives of women of all races and to help families who have suffered in this economy. Our four priorities include: equal pay, workplace flexibility, higher paying jobs for women and assisting women veterans experiencing homeless. Lucrative jobs exist for women in the skilled trades, green sector and other non-traditional industries. Our goal is to link women to occupations in high-growth and emerging industries that can move them and their families into middle class status. Later this spring, we expect to publish a guide that links women to the green job sector nationwide. Another project will help Latino women, the fastest growing female population in America, achieve financial security through a financial literacy course in Spanish.

IWPR:   The anniversary of Equal Pay Day will be on April 12th this year. How far do you think we have come since the 1963 passage of the Equal Pay Act? What do we have left to accomplish for gender equality?

SMD:  Women continue to make great strides since passage of the Equal Pay Act of 1963. This administration supports the Pay Check Fairness Act and we are working hard every day towards economic security for women. In 1963 women earned $.59 on average for every dollar earned by men, today women earn $.81 on the dollar (based on the 2010 Census). As part of the President’s Equal Pay Taskforce, we are working to ensure that women have the tools to get fair pay in the workplace.

IWPR:  You have had a very accomplished career. What do you consider your greatest achievement?

SMD:  As an attorney, I have spent my career advocating for the voiceless. President Obama and [Secretary of Labor Hilda Solis] share that vision and passion to care for the most vulnerable members of society. I feel fortunate to have the opportunity to work for two historic individuals and know that the work we do will impact the lives of working class women and families. As Director of the Women’s Bureau, I get to advocate on a national scale and represent women of all ethnicities in the fight for their economic security, from rural women to single moms to homeless women veterans.

Caroline Dobuzinskis is the Communications Manager with the Institute for Women’s Policy Research.

Dukes v. Wal-Mart and the Importance of Class Action Lawsuits in Addressing Systemic Sex Discrimination in the Workplace

By Jennifer Clark and Ariane Hegewisch

The Supreme Court heard arguments on Tuesday to decide whether the lower courts rightly certified the one million or more women at Wal-Mart as a class. According to Wal-Mart’s own salary data, women earn on average $1,100 per year less than men, differences that cannot be explained by experience or performance, and women are much less likely to get promotions than men.

An unprecedented number of amicus curiae (or ‘friend of the court’) briefs were submitted to the court, from groups as varied as the Chamber of Commerce, the NAACP, and the American Sociological Association, as well as the Institute for Women’s Policy Research. Below is a roundup of resources that break down what is at stake, not just for the million-plus women affected by this specific lawsuit, but for the country’s ability to address systemic employment discrimination.

New Research

Key to the Wal-Mart case is not just whether the class should be certified, but on which basis it should be certified. The lower courts certified the case on the basis of ‘injunctive relief,’ which asks primarily for changes to personnel policies and practices to prevent future discrimination; it does not ask primarily for monetary damages (although the women would still be entitled to get back pay for any discrimination they suffered).  This approach is what Wal-Mart and its proponents take issue with. They argue that if there was class certification, then the certification should be on the basis of monetary damages—a procedure that requires, as it happens, a much higher burden of proof than certification on the basis of injunctive relief. Wal-Mart also claims that class certification is not necessary in the first place, because if there were discrimination anywhere, Wal-Mart reasons, then it could be tackled just as effectively by each woman suing Wal-Mart on her own.

IWPR's new report on sex and race discrimination in the workplace.

Ending Sex and Race Discrimination in the Workplace: Legal Interventions That Push the Envelope, a new report released yesterday from IWPR, finds otherwise. The report reviews injunctive relief in over 500 court-supervised employment discrimination settlements—also known as consent decrees—involving alleged sex and/or race discrimination in employment. The report finds that class action lawsuits are much more likely than other settlements to introduce changes to make a long term and sustained impact on discrimination. For instance, over 70 percent of certified class action settlements, compared to five percent of other settlements, mandate the introduction of objective and transparent criteria for job assignments and promotions. Lack of posting of promotion opportunities, or of criteria for being admitted to the training programs that were essential requirements for promotions, is a key complaint by women at Wal-Mart. More information on employment discrimination consent decrees are available on IWPR’s website.

Selected Amicus Briefs

In support of the Respondents (Betty Dukes, et al.)

  • Institute for Women’s Policy Research reviews social science literature and research and argues that individual employment law suits hardly ever lead to injunctive relief; and class action lawsuits, because of their emphasis on best practice injunctive relief (changes to employment policies and practices) play a significant role in remedying systemic employment discrimination.
  • National Women’s Law Center and the American Civil Liberties Union, et al., filed a brief arguing that, despite the size of the class, sex stereotypes, and discrimination in the workplace bring up issues that are common to the class of 1.5 million women.
  • American Sociological Association, et al., filed a brief that establishes social science research as a rigorous and valid form of analyzing workplace culture and discrimination, and then argues that social science research has found that corporate policies that allow unchecked managerial decisions can lead to biased decision-making.
  • U.S. Women’s Chamber of Commerce, National Partnership for Women and Families, and California Women Lawyers filed a brief that argues class action lawsuits, while rare, have benefited both employees and employers in promoting systemic reforms that comply with the law and work within corporations’ own needs and existing infrastructures.

In Support of the Petitioner (Wal-Mart Stores, Inc)

  • U.S. Chamber of Commerce filed a brief that argues the Ninth Circuit Court of Appeals decision to uphold the class certification of the 1.5 million women misread the scope of Rule 23(b)(2) in certifying class action lawsuits.
  • Society of Human Resource Management filed a brief arguing that personnel decisions made by individual managers against the backdrop of a larger company-wide diversity policy are not inherently discriminatory.

Around the Web

The National Women’s Law Center argues that Wal-Mart is not too big to be held accountable for employment discrimination. At AAUW, Holly Kearl outlines the basics of why the Wal-Mart case matters. On the National Partnership for Women and Families (NPWF) blog, NPWF Director of Workplace Fairness Sarah Crawford stresses the importance of this case in the efforts to achieve fair pay. On Huffington Post, Martha Burk, director of the Corporate Accountability Project at the National Council of Women’s Organizations, provides some numbers on Wal-Mart’s gender bias.

Jennifer Clark is the Development Coordinator at the Institute for Women’s Policy Research.

Ariane Hegewisch is a study director at the Institute for Women’s Policy Research. Her most recent report is Ending Sex and Race Discrimination in the Workplace: Legal Interventions That Push the Envelope.

Gay Marriage a Boon to DC’s Economy

By Robert Drago

A year ago today, the District of Columbia legalized same-sex marriage, and according to the Washington Post, the number of marriages soared from 3,100 in the year prior to 6,600 in the year since.  According to a court representative, the number of marriages usually varies by less than 100 from one year to the next, suggesting the increase was mainly due to same-sex couples (the District does not track the gender of marriage partners). In fact, it is likely that the difference of 3,500 additional marriages understates the marriages of same-sex partners, because the national marriage rate has been falling, undoubtedly due to the economic insecurity experienced by millions of Americans in the last few years.

Although you might not know it from media coverage of national politics, the District is a shockingly poor city. A recent IWPR publication reported that the rate of poverty among all black women and girls in the District is 26 percent, and the rate for single mothers is 37 percent. This is a city that needs some help.

Gay marriage can be a boon to the local economy.  Assuming that in 2010, same-sex marriages in DC cost the same as the national average of  $24,000, then gay marriage generated $84 million dollars of additional consumer spending last year.

The Williams Institute has documented the economic benefits of same-sex marriage and civil unions in Colorado and elsewhere. These analyses suggest reasons why the $84 million figure might be overstated  (e.g., purchasing wedding attire or holding wedding receptions outside of the District), but far more reasons why it would be understated – particularly given the high cost of living in Washington DC, and additional spending when wedding guests come in from out of town and stay in hotels, eat in restaurants, and shop.

It might be a coincidence that over a similar time period, Washington, DC saw a net increase of 22,000 new jobs, and was one of only two states to enjoy a decline in the unemployment rate of two percent or more. Then again, maybe gay marriage created some desperately-needed jobs in the District.

Voices for International Women’s Day

By Caroline Dobuzinskis

International Women’s Day is important for a myriad of reasons, but they all add up to one: achieving equality for women. This day calls on us to remember that women still have to achieve equal access to education, employment, health care, roles in government leadership, resources, and income.  Research from IWPR shows that it will take until 2056 for women to achieve pay parity with men in this United States, based on the pace of progress over the course of the past fifty years.

Slowing progress, women continue to dominate professions traditionally done by women, which typically pay less, despite sometimes having higher education requirements. Women now account for over 95 percent of all kindergarten teachers, librarians, dental assistants and registered nurses in 2009. As further evidence of this, women now make up 61 percent of the local government workforce, with the highest number—at 22 percent— working as elementary and middle school teachers.

Today on Twitter, many men and women used their voices to call for change and progress.

The conversation on the significance of International Women’s Day has been spirited. The Ms. Foundation for Women tweeted “We have far to go. U.S. ranks 37th out of 42 highly developed nations in terms of gender equality.” Musician and women’s rights advocate as Oxfam Global Ambassador, Annie Lennox wrote: “Women perform 66 percent of the world’s work, earn ten percent of world’s income and own one percent of the world’s property.”

Some women may not have the opportunity to advocate on behalf of their rights, consumed with finding basics of survival. Médecins Sans Frontières tweeted about its efforts to bring surgery to women suffering from obstetric fistulas, which can be life-threatening when left untreated.

In the political arena, Secretary of State Hillary Clinton announced during the launch of the 100 Women Initiative aired live yesterday on the State Department’s website, “I believe that the rights of women and girls is the unfinished business of the 21st century.” And former civil rights activist, Rep. John Lewis (D-GA) commented on Twitter: “On the 100th IWD, there are still too many women in too many parts of the world who are left out and left behind.”

These are just a few of the statements made today in honor of International Women’s Day. It is inspiring to see such an outpouring of support for women’s issues. This conversation should carry on beyond today as a reminder there is still work to be done.

Caroline Dobuzinskis is the Communications Manager with the Institute for Women’s Policy Research.

What’s at Stake for Women Workers in Wisconsin and Beyond

by Jennifer Clark

Protests at the Wisconsin State Capitol. Photo courtesy of CindyH Photography

The budget battles in Wisconsin, Indiana, and across the Midwestern United States have inspired a barrage of commentary about what the successful passage of the proposed state laws to strip public sector unions of their collective bargaining power would mean for public sector workers (not good), black workers (really not good), and the future of the labor movement (really, really not good). Another group with a significant stake in the outcome of these debates over public sector union bargaining power is women.

First, let’s review a few facts about women and labor unions in general. Although unionized women earn more than non-unionized women on average and have access to more benefits, such as paid leave and health insurance, public sector employees are actually paid less than their private sector counterparts, once their qualifications are taken into account. An IWPR report on job retention and low-income mothers found that union membership contributed to keeping moms on the job. In 2010, across race and ethnic groups, male union membership is lowest for Asian men, but Asian women have the highest membership rate of all groups of unionized women.  Black men have the highest union membership, but black women are also more likely than white women to be unionized.  Hispanic women have the lowest rate of union membership compared to other groups of women.

Although male workers are still the majority of union membership, the gap between unionized men and women over the last 25 years has narrowed considerably, with women representing the majority of new workers organized during that time. (For more on women and unions, visit IWPR’s Women in Unions initiative page.)

(Click to enlarge)

Public sector unions like the American Federation of State, County, and Municipal Employees (AFSCME) and the American Federation of Teachers, however, have a majority female membership (52 percent and 60 percent, respectively), which makes the legislative outcome of public sector union bargaining power of particular interest to women workers. Furthermore, as you can see in the figure at left, women are 52 percent of the state public sector workforce and a whopping 61 percent of public workers at the local level (Figure 1).

If we focus on public sector employees at the local level, it becomes clear that women and their families will receive the brunt of the effects of these anti-union bills floating around state capitols in the Midwest. The most common occupation for local public sector women workers is elementary and middle school teachers (22 percent).  The most common occupation for local public sector male workers? Police and sheriff’s patrol officers, a group whose union representatives would be excluded from proposed legislation.

This isn’t to say that men won’t be impacted by any effort to strip public sector unions of their bargaining rights. At the state level, three of the five most common public sector occupations for men are in teaching fields.  Indeed, fire fighters and police unions have come out to protest in support of public sector employees–a blow to public sector union rights is a blow to all union rights.

As more women become breadwinners, women’s families will also feel the effects of any proposed legislation that affects women’s wages. In the U.S. workforce, four in ten women work in female-dominated professions. For example, elementary and middle school teachers–the occupation that is most common for local public sector women–are 81 percent female. Moreover, women earn less than men in 104 out of 108 of the occupational categories, including teaching, for which there is enough data to calculate the wage gap.

With so many women in the public sector at the state and local level, and with a proposed budget bill that would strip public sector unions—especially those representing female-dominated professions—of their bargaining rights, what is the outlook for women workers in Wisconsin and beyond?  Not good.

(This post was updated March 3, 2011)

Jennifer Clark is the Development Coordinator with the Institute for Women’s Policy Research.

Go to Home Page