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Top 5 Recent IWPR Findings

By Jennifer Clark

When IWPR posted a “Top 5” list of our most revealing research findings in December, we were so encouraged by the level of interest our readers showed in the post, that we decided to turn it into a regular roundup. Although intending to compile another “Top 5” list, the first four months of 2011 were so action-packed that we couldn’t limit ourselves to just five. From Social Security to employment discrimination, here are the top IWPR findings from 2011 (so far):

1.       Without access to Social Security, 58 percent of women and 48 percent of men above the age of 75 would be living below the poverty line.  If you watch cable news, read reputable newspapers, or even tune in to late night television, you would get the impression that the Social Security system, which helped keep 14 million Americans over the age of 65 out of poverty in 2009, is broken. Social Security does not contribute to the deficit and is forbidden by law to borrow money to pay for benefits.  In fact, Social Security is actually running a surplus—a big one—at $2.6 trillion, an amount that is projected to increase to $4.2 trillion by 2025.

2.       Although many groups advocate for immigrant rights at the local, state, or national levels, very few advocate specifically for the rights of immigrant women. A new IWPR report, Organizations Working with Latina Immigrants: Resources and Strategies for Change, on the challenges facing Latina immigrants in the United States, explores the specific challenges faced by immigrant women—higher poverty rates than their male counterparts and greater risk of sexual, domestic, and workplace violence—and spotlights the organizations that are trying to help.

3.       The gender wage gap has narrowed only 13 percentage points in the last 55 years. With the ratio of women’s to men’s earnings stagnating at 77 percent in recent years, IWPR projected that, if current trends continue, the gender wage gap will finally close in 2056—45 years from now. In terms of how the gender wage gap breaks down by occupation, IWPR also found that women earn less than men in 107 out of 111 occupational categories, including female-dominated professions like teaching and nursing.

4.       Women’s career and life choices do not completely explain  the gender wage gap. IWPR’s new report, Ending Sex and Race Discrimination in the Workplace: Legal Interventions That Push the Envelope—a review of over 500 sex and race discrimination settlements –offers distressing evidence of the factors that keep women’s median earnings lower than men and keep women out of better paid jobs. These include discrimination in hiring, sexual harassment of women trying to work in male-dominated jobs, preventing women from getting the training that is required for promotion (or only requiring that training of women), and paying women less for the same work than men. The report finds that ensuring transparency in hiring, compensation, and promotion decisions is the most effective means for addressing discrimination.

5.       On-campus child care centers meet only five percent of the child care needs of student parents. IWPR’s report, Improving Child Care Access to Promote Postsecondary Success Among Low-Income Parents, explores the challenges facing 3.9 million student-parents, 57 percent of whom are also low-income adults, enrolled in colleges across the U.S. Costly off-campus care centers—in many states the cost exceeds median income—are unrealistic for many, leaving some student parents devoting up to ing 70 hours per  week to jobs and caregiving, leaving little time for classes or studying. Postsecondary education provides a path to firmer economic stability for low-income families, but without child care on campus, the path often seems more like an uphill climb.

6.       Both businesses and employees in San Francisco are generally in support of paid sick days, as the nation’s first paid sick days legislation sees benefits four years after passage. San Francisco’s Paid Sick Leave Ordinance (PSLO) went into effect in 2007.  Four years later, IWPR analyzed the effects of the ordinance in the new report, San Francisco’s Paid Sick Leave Ordinance: Outcomes for Employers and Employees, which surveyed over 700 employers and nearly 1,200 employees.  Despite claims from opposing groups that this kind of legislation is bad for small businesses, IWPR’s survey found that two-thirds of employers in San Francisco support the law, including over 60 percent of employers in the hotel and food service industry.

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

A Partial Fix for Closing the Wage Gap: End Segregation in the Labor Market

by Barbara Gault

So, the wage gap is still going strong, even though women have surpassed men in terms of number of higher degrees received. Women are now more likely than men to get bachelors’ degrees, master’s degrees, and Ph.D.’s. Is it just a matter of needing time to catch up?

According to recent IWPR statistics, at the current rate of change it will take until 2056, or 45 more years, until we see equality. How do we accelerate change? One method is to equalize access to high paying jobs.

As IWPR’s new fact sheet, shows, the most common jobs for men and women are quite different. Of the ten most common jobs for men and women, there is overlap in only one. The best paid professions which are more common to  men are Chief Executive Officer (CEO), computer software engineer, and manager; the best paid professions more common for women are accountants, registered nurses, and elementary and middle school teachers. In the ten lowest paid occupations, close to two-thirds of workers are women, and in the highest paid occupations, two-thirds of workers are men. The proportion of women who are machinists, carpenters, and electricians hovered at below 10 percent between 1972 and 2009. Fewer than 10 percent of civil engineers were women in 2009.

And sex segregation is not improving. The index of dissimilarity, a tool that economists use to measure the degree of sex segregation overall in the labor market, found that in the 37 year period between 1972 and 2009 we saw progress in this area for the first 25 years, and then progress essentially dropped off starting in 1996 and continues to stagnate.

Women’s representation in some high paying fields, notably computer science, has actually gotten worse. Segregation in the labor force is a natural by-product of sex segregation in educational focus. Whereas in 1989 women were more than 30.2 percent of computer science bachelor degree recipients, in 2008 they were only 17.6 percent. Similarly, the proportion of math bachelor degree recipients that were women dropped in that same time period, from 46 to 43 percent. Engineering bachelor degrees increased, but only slightly, from 15.2 to 18.5 percent. On the other hand, women receive more than 70 percent of psychology degrees, and they are also the vast majority of degree holders in education.

We see the same gendered patterns in receipt of associates’ degrees. The percentage of women receiving associates degrees in computer and information sciences, engineering and engineering technology, and math and science, all dropped between 1997 and 2007.

An analysis released by IWPR yesterday found that of 111 occupations for which we had sufficient data, women earned less than men in 107 of them. These within-occupation wage gaps do reflect pure discrimination, but sex segregation can of course occur even within occupations. One of the largest wage gaps we found was in retail sales, where women only earn 64.7 percent of what men earn. 

In the Walmart vs. Betty Dukes case currently before the Supreme Court we hear stories of differential retail sales assignments being used as a justification for paying men more (men work in the tools department, which pays more, and women work in the cosmetics department, which pays less).

To end occupational segregation and the wage gap, there are clear steps that employers, policymakers, and even teachers and parents can take:

  • Education: Encourage girls and women to go into nontraditional, higher paying jobs.   The National Girls Collaborative provides access to an array of programs encouraging girls to pursue careers in fields of Science, Technology, Engineering and Math (STEM).
  • Unionization: Improve access to unions.  Unionized jobs have lower wage gaps.
  • Enforcement: Address issues contributing to hostile work environments through Department of Labor and Equal Employment Opportunity Commission (EEOC) interventions in order to eradicate this problem. Investigate common occupations with the highest sex segregation, and those with most profound wage gaps, as these are likely to be hotbeds of harassment and hostility.
  • Awareness: Address the unequal division of caregiving work.  The recent White House Women in America report found that women still do more housework and child care work, allowing men to spend more time at paid work and leisure.  IWPR’s research found that even teen girls shoulder an unfair burden of care for siblings and housework, while boys spend more time at leisure.
  • Support: Build greater family supports for workers and learners, including expanding support for student parents, who make up roughly a quarter of students at colleges and universities.
  • Development: Think of ending inequality as a key component of sustainable community development by working to make communities family friendly: include child care as a part of city and state economic development plans, and co-locate child care with public transportation and housing.  For ideas like these, check out the Cornell University’s website on child care and economic development with useful tools including those for assessing the economic development importance of child care to communities.
  • Advocacy: We need a whole new wave of kitchen table advocacy and consciousness-raising on the pervasiveness of sex discrimination.   Some argue that Walmart shouldn’t be held responsible for sex discrimination because the problem is too widespread throughout the whole society.  We somehow managed to desegregate schools and universities even though segregation was widespread at one point in our history. We need to approach unequal pay the same way.
  • Communication: The Paycheck Fairness Act was not passed this year, which would have outlawed retribution for sharing salary information – but we can use the anonymity of the Internet to share such information with one another through discussion forums, blogs and social media.  Also, women need to join forces to address the unequal distribution of labor within the home.
  • Negotiation: And we do need to negotiate, but not because it will make us any allies in the short term, but as a form of advocacy.  When women negotiate like men, it is not always met with a warm reception.  Negotiate as an act of solidarity, so that  we’ll all get used to it, and gradually shift our stereotypes of how nice women workers are supposed to act.

Barbara Gault is the Executive Director and Vice President of the Institute for Women’s Policy Research.

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.

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.

Wal-Mart in Trouble, Yet Again

The world’s largest private employer is feeling the heat for myriad reasons. All you ever hear about Wal-Mart these days is a plethora of criticisms. From their shortcomings in providing adequate healthcare for employees, to Wal-Mart’s effect on the environment, to the adverse effects on the communities where Wal-Marts open — we’ve heard it all. From a legal perspective, at present there are a slew of lawsuits pertaining to discrimination and violation of wage & labor laws.
Over 50 members of Congress have asked that Wal-Mart disclose information about its wages for Congressional review to assess whether gender biases in wages exist. In September 2006, a class-action suit was filed against Wal-Mart contractors concerning sweatshop conditions at their overseas sites. Aside from Wal-Mart’s practices abroad that allow the retail conglomerate to have such competitive prices, there are plenty of domestic concerns to discuss that are raised on a regular basis. Last week proved no exception. On February 6, the United States Court of Appeals for the Ninth Circuit affirmed the district court’s decision in Dukes v. Wal-Mart, certifying a class action suit against Wal-Mart alleging sexual discrimination under Title VII of the 1964 Civil Rights Act.
A case that began with six female Wal-Mart employees in June 2001 has the possibility to become the largest civil rights case in history. The plaintiffs allege that Wal-Mart discriminates against women in wages and promotions. The class, which is the single item in contention, includes all women employed at any Wal-Mart since December 1998, “who have been or may be subjected to Wal-Mart’s challenged pay and management track promotions policies and practices.” This case covers at least 1.5 million women in approximately 3,400 stores, making this case monumental.
Evidence supporting the plaintiff’s case that women are not getting the same pay for the same work & are getting fewer promotions is convincing. According to Richard Drogin, the statistical analyst hired by the plaintiffs, it takes women an average of 4.38 years from the date of hire to be promoted to assistant manager, while it takes men 2.86 years. The average salary of a female manager is $89,280, compared to $105,682 for male managers. For workers receiving an hourly wage, women make 6.7% less than men in comparable positions. Additionally, Wal-Mart’s total workforce consists of 72% women, yet women hold only 33% of its managerial positions. Ninety-two percent of Wal-Mart’s cashiers are women, but only 14% of store managers are women. These figures are most certainly striking.
The women filing suit against the world’s largest retailer are hoping that the case will go to trial, and so am I. Employers in this nation have gotten away with discrimination in employment for far too long.
- Layla Moughari, IWPR Research Intern

Wal-Mart Loses Round 1

Wal Mart
A Wal-Mart in Bloomington Indiana (Photo by Jason Grote, flickr)

In 2001 a class action lawsuit was filed against Wal-Mart. The suit claims that Wal-Mart instituted a policy of gender bias in salary and hiring practices keeping women out of top managerial positions and paying them less than men working in the same position. The suit claims that these policies affected almost 1.5 million Wal-Mart employees . On Tuesday, February 7, a US District Court of Appeals voted 2-1 that the class action lawsuit could proceed with arguments against Wal-Mart and its alleged unfair wage and promotion practices.
This is a big win for women in the workforce. The latest research on the wage gap from IWPR shows that women still make about $0.77 to every man’s $1.00 for full-time year-round workers. IWPR also found that nationwide a higher proportion of women (35.5 percent) than men (28.9 percent) work in professional and managerial jobs. This statistic makes it even more disappointing that Wal-Mart, the nation’s largest employer, seems to have a problem promoting women to achieve parity in management with men.
Renowned feminists such as Martha Burk have argued for years now that one of the best ways to assert and enforce equality in the workforce could be through class action lawsuits and other court actions. The courts have the authority to force businesses and other organizations to follow laws like the Equal Pay Act of 1963 which were put in place to guide the US toward equality in the workforce. The progression of the case represents another step toward equality for women.
- Elisabeth Crum

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