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STEM Report Points to a Means of Economic Security for Low-Income Women

By Margaret Kran-Annexstein

Job opportunities in science, technology, engineering, and math (STEM) are some of the fastest-growing industries in the country yet women’s presence in STEM education at the community college level is dropping. Between 2000–2001 and 2008–2009, the number of women earning associate’s degrees in STEM fields decreased by 25.7 percent. Meanwhile, jobs in STEM fields are expected to nearly double by 2018.

A new IWPR report, Increasing Opportunities for Low-Income Women and Student Parents in Science, Technology, Engineering, and Math at Community Colleges, proposes solutions for bridging this training and jobs gap for women. The report addresses obstacles faced by women in STEM fields, and how educational institutions and organizations can help women to overcome these challenges.

It is important to encourage all women, but particularly low-income women and student parents, to pursue STEM fields. STEM degrees can be a link to better economic security because they lead to jobs in fields with better pay and narrower wage gaps—a 14 percent wage gap exists in STEM jobs versus 21 percent in non-STEM jobs.

From the report:

Women at the community college level are more likely than men to enroll in educational fields and training for jobs in traditionally female occupations—such as child care workers, health aids, or administrative assistants—with low starting pay, flat wage trajectories, and poor benefits (Hegewisch et al. 2010; Negrey et al. 2001). By contrast, women who train for science, technology, engineering, and math (STEM) fields—fields typically dominated by men—see strong economic returns.

I always liked math and science in elementary and high school. However, somewhere along the way, I abandoned STEM education, just like many other women and girls. In this difficult economy, why do so many women steer away from fields that offer so many job opportunities? During the release event for the STEM report, Roberto Rodriguez, a member of the White House Domestic Policy Council, said that women and girls drop out or avoid STEM education because of a “lack of role models, gender stereotyping, and less family-friendly flexibility that exists in STEM fields.”

Sara Manzano-Díaz, who also spoke at the report release event, focuses a lot of her attention on the encouragement of young girls in her role as director of the Women’s Bureau in the U.S. Department of Labor. She sees that “education is the great equalizer” and by becoming role models and mentors for girls, we can encourage them to pursue STEM degrees and pave their way to fulfilling careers.

The report outlines steps that community colleges could be taking in order to recruit and retain women, especially mothers who face more challenges in completing their degrees and need flexibility in their study schedules. Increasing the number of student parents studying STEM fields can have lasting effects—not only on the quality of life of a graduate once they leave school, but also on their children. According to her research, author of the report Cynthia Costello found that children whose mothers pursue postsecondary education are more likely to receive college degrees themselves.

Women have made such huge leaps in education equality and this makes their minority presence in STEM fields of study all the more shocking.

The reality that women are highly underrepresented in STEM fields is distressing because those fields are in need of skilled workers in a shifting economy. It is also a missed opportunity to incorporate diverse perspectives in a growing industry.

“We need… more girls who believe they can grow up to invent and to discover,” said Rodriguez at the release event. “Invention and discovery in engineering and science is creative act. It benefits from a multitude of viewpoint…So without diversity we are paying inherently an opportunity cost here because that’s a cost in products not built, in designs not considered, ultimately in constraints that are not understood.”

Margaret Kran-Annexstein is a Communications Intern with the Institute for Women’s Policy Research.

Living on a Dime: Small Wages and Large Gender Wage Gap in Restaurant Industry, According to Recent Report

By Margaret Kran-Annexstein

If I were to tell you that there are workers in the United States being paid $2.13 per hour, you’d probably tell me that that’s impossible because the minimum wage in this country is $7.25 and anything less is illegal. Well, you’d be right of course, but unfortunately, regulations on the tipped minimum wage have not kept up with the federal minimum wage.

In February, the Restaurant Opportunities Centers United (ROC-United), in conjunction with the Institute for Women’s Policy Research and a number of other organizations, released Tipped Over the Edge: Gender Inequality in the Restaurant Industry. Among its other findings, this report exposes the restaurant business as an industry that has found a way to skirt the federal minimum wage, exacerbate the gender wage gap, and further reduce the economic security of employees by not providing health insurance or paid sick leave to most workers.

In 1991, the tipped minimum wage was 50 percent of the federal minimum wage. However, when the federal minimum wage increased in 1996, the tipped minimum wage remained the same and has not been adjusted. Today, under the Fair Labor Standards Act, the tipped minimum wage remains at $2.13 an hour, less than 30 percent of the generally accepted $7.25 federal minimum wage. Although some states choose to raise that minimum, these regulations allow the restaurant industry to shortchange a vast number of its employees—a disproportionate number of whom are women.

As a student with many female friends working in the restaurant industry to help pay enormous tuition bills, I was disturbed by the findings of this report. The reality is that tipped workers often must rely on the generosity of their customers to make a living. Technically, employers are supposed to pay the difference if a worker does not make the minimum in wages plus tips but this requirement may not always be upheld or enforced. As one woman from Fort Worth, Texas testifies, “I can’t tell you how many times I made less than $20–$40 a day during the lunch rush…LOTS…I don’t understand how restaurants get away with not paying their employees minimum wage…”

Gender Segregation in the Dining Room

The notion that women and men should be paid equal wages is also overlooked due to hiring practices in the restaurant industry that solidify the gender wage gap. Female restaurant workers make on average 79 percent of what men do because women tend to hold the lower-paid positions in the restaurant world.

Women, especially women of color, hold a disproportionate amount of jobs in lower-paying restaurants while men dominate fine dining establishments—where wages can be 24 percent higher than wages in family style restaurants. Women who do obtain positions in fine dining are seldom hired as captains or martre d’s, the higher ranking, cushier positions with more supervising duties and less reliance on tips. One account from Tipped Over the Edge quotes a general manager refusing to hire a qualified women of color saying, “You don’t have the look to be a maître d’, but I can hire you as a hostess.”

There are laws that effectually set in stone wage inequality because these different ranks in restaurants hold different minimum wage requirements (the restaurant industry is one of the only sectors where you can find this discrepancy).

Many restaurant workers simply do not have enough money to support themselves: servers are forced to use food stamps at almost double the rate of the rest of the population. Rather than hold employers accountable to their staff, taxpayers have become responsible for the livelihood of many employed people through the size of their tips and the generosity of state programs.

“Try Not to Get Sick”

Not only do many restaurant workers receive painfully low wages, they often cannot afford to stay home when they get sick. In fact, ninety percent of restaurant workers lack paid sick days. One testimony from Tipped Over the Edge quotes a laughing manager telling a sick employee, who was concerned that if she did not go home she would make others sick, to “try not to cough.” Ninety percent of restaurant employees also lack employer-covered health insurance, making it even more difficult for them to seek medical care. Not only is this a violation of workers’ rights, it doesn’t make me feel very safe when I go out to try the best veggie burgers in DC.

My friends have to work in these unfair conditions but, unlike many restaurant workers, they have health insurance from their parents and are not providing for dependent children. For a single mother supporting a child on her own, Tipped Over the Edge shows that the restaurant industry can be a hostile work environment that lacks adequate living wages. Clearly change needs to come to the restaurant industry.

Margaret Kran-Annexstein is a Communications Intern with the Institute for Women’s Policy Research.

The Path to Pay Equity

By Caroline Dobuzinskis and Ariane Hegewisch

Yesterday, the U.S. Supreme Court ruled a class action lawsuit brought against Walmart by six plaintiffs representing 1.5 million employees did not have sufficient evidence to prove a corporate-wide policy in discrimination—and could not qualify as a class action suit for monetary damages.

This is potentially a major blow to the reduction of discrimination by large employers—and an obstacle in making pay equality a reality in the United States. IWPR research has shown that, through class action suits, consent decree litigations imposed on employers requiring changes in policy or behavior can help to eliminate discrimination in the workplace. Transparency and monitoring can ensure that these changes take hold in the long term, and create a shift in corporate policy away from discriminatory practices in corporate hiring and promotions.

Still a Long Way to Go for Pay Equality

The gender wage gap is real and will be around for some time. Women’s median annual earnings are only 77 percent of men’s and, according to an IWPR estimate, pay equity will not be reached until 2056.

Discrimination has been shown to be one of the factors that create the gender wage gap. Even after estimates control for age, experience, education, occupation, industry and hours of work, 41 percent of the wage gap remains.

In principle, the groundwork for eliminating pay inequality was laid almost five decades ago when President Joseph F. Kennedy signed the Equal Pay Act (EPA) in 1963 to prevent pay discrimination against women. In 1964, Title VII of the Civil Rights Act made it illegal to discriminate in terms of pay or employment conditions, on the basis of race, color, religion, sex, or national origin. After these historic legislative advances, progress in closing the gender wage gap has slowed in recent decades.

Experts Weigh in on Pay Fairness

A recent briefing on Capitol Hill attracted a standing-room-only crowd interested in hearing how to make pay equality the new reality—both in principle and in practice. The June 9 briefing was organized jointly by IWPR and the National Women’s Law Center, and was sponsored by longstanding pay equity champions Senator Barbara Mikulski and Congresswoman Rosa DeLauro who recently reintroduced the Paycheck Fairness Act to both Houses of Congress.

Pay Secrecy Often Goes Hand in Hand with Pay Discrimination

At the briefing, Ariane Hegewisch, Study Director at IWPR, argued that protection from pay discrimination exists in principle. But close to half of all workers and over 60 percent of private sector workers cannot discuss their pay—making pay equality difficult to ensure in practice.  Some workers can face disciplinary action, and even immediate dismissal, if they are caught discussing wages.

Fatima Goss Graves, Vice President for Education and Employment at the National Women’s Law Center, noted that the issue of pay secrecy did not receive much media attention in reporting on Walmart v. Dukes despite plaintiffs in the case expressing fear at employer retaliation if they discussed pay.

While pay secrecy policies and practices do not prove the presence of wage discrimination, IWPR’s recent research on sex and race discrimination settlements suggests that pay secrecy and wage discrimination often go hand in hand.

Carol Golubock, Director of Policy at SEIU- Service Employees International Union, added that in principle workers have the right to discuss their pay under the National Labor Relations Act of 1935 (NLRA). Because of weak enforcement and the absence of punitive damages or injunctive relief, however, many employers continue to get away with having explicit pay secrecy clauses.

Paycheck Fairness Act Prevents Pay Secrecy

All experts on the panel at the briefing emphasized the positive changes that could be brought through passage of the Paycheck Fairness Act—focusing in particular on its capacity to prohibit employer retaliation against workers who discuss salaries and wages. The impact of reducing pay secrecy could reach also hourly workers, helping them to ensure they are receiving their due through minimum wage and overtime laws.

The Paycheck Fairness Act would also spur growth in the economy and assist working families. Goss Graves pointed to the wider benefits that equal pay can have on families, especially single mothers, and communities. As overall tax revenues increase, more money is put in the economy, and more money available to keep children out of poverty and address their needs.

Adding to the discussion on pay equality, one panelist presented another facet of the unequal pay conundrum that lies outside of legislation. Lilla Hunter-Taylor, CEO of an employee recruitment company called The Staff Hunter, said she frequently encounters clients seeking women candidates because women do not negotiate as aggressively as men.

Caroline Dobuzinskis is the Communications Manager at the Institute for Women’s Policy Research (IWPR). Ariane Hegewisch is a Study Director with IWPR.

Addressing Concerns of Immigrant Women Helps Communities Nationwide

by Claudia Williams

In recent years, the United States has experienced one of the largest waves of immigration in its history. The immigrant population has almost doubled since the 1990’s and the number of undocumented female immigrants has increased significantly. Immigrant women also make up more than half of new legal immigrants arriving to the United States.

While many immigrant women come to the United States in search of better opportunities, they are often vulnerable to poverty and discrimination and face many barriers in their day to day life, making it harder for them to achieve economic security and to advance in their careers.

Public policies are fundamental to integrating immigrant women into U.S. society. The U.S. Congress,  however, has failed to pass comprehensive immigration reform to address the complex challenges our current immigration system creates. In the absence of reform at the national level, many states and localities have introduced and passed anti-immigrant legislation. This is particularly unfortunate for immigrant women, who besides sharing risks with their male counterparts also experience particular difficulties that are more common or unique to them.

IWPR recently released a study that identified some of the challenges Latina immigrants face, such as limited proficiency in English, disproportionate exposure to violence and harassment, and lower earnings and rates of educational attainment. Also, as caregivers, immigrant women are more affected than their male counterparts by the lack of affordable and reliable child care and reproductive health services.

IWPR’s research also found that constant fears of deportation and family separation have led many immigrant women to live in the shadows. Immigrant women may be working “under the table,” without having access to quality jobs and educational opportunities, mainly due to their immigration status. Resulting economic instability prevents immigrant women from contributing fully to our society—we lose valuable resources that could help our country move forward.

Advocacy and service organizations working on the ground with immigrants recognize that an overhaul of the current immigration system is needed. However, advocates and researchers also need to focus more on the concerns of immigrant women. In most policy discussions little or nothing is said about how certain policies (such as the DREAM Act (Development, Relief and Education for Alien Minors), 287(g) and Comprehensive Immigration Reform) would specifically affect women. IWPR’s study found that the limited attention women’s issues receive is an important gap within the immigration grassroots and advocacy movement. Out of 280 organizations interviewed for the IWPR study, only eight advocated with a specific focus on the rights and needs of immigrant women.

A better understanding of women’s challenges and circumstances would represent an important step forward in filling this gap. Many of the issues directly affecting women also affect men and children, so addressing these challenges would be beneficial to the entire immigrant community.

Claudia Williams is a research analyst at the Institute for Women’s Policy Research.

Young Women Need Paid Sick Days (Too)

by Claudia Williams

While some workers lacking paid sick leave can take time off without losing pay, many lose pay when they are out sick and cannot afford to take a single day off. This is particularly the case for young women. At an early stage in their careers, many younger women workers are living day to day and others juggle multiple jobs to make ends meet.  With limited wealth and savings, a large debt from college or even a steady income, younger women often find themselves between a rock and a hard place when illness strikes. Younger women are often not in a position to take lower pay when sick, especially when medical expenses are involved.

While part-time and low-income workers’ concerns are widely discussed, the needs of younger workers are almost unheard of, as it is usually assumed that their health status—without the burdens of chronic health conditions and age—is excellent, and that they don’t yet have care giving responsibilities.

Data from the National Health Interview Survey (NHIS), however, shows that young workers need paid sick days just like everyone else. In fact, of those private sector workers that reported having fair or poor health, 30 percent were 35 years or younger and a larger portion were young women (18 percent compared to 12 percent for young men). The same data show that a majority of young workers lack paid sick days; only 37 percent have paid sick days, compared to 58 percent of all workers.

Across the board, younger workers have limited access to paid sick days, no matter what they do for living, what their schedule looks like, or the size of the business they work for. For instance, whether young workers are employed in high-end jobs like legal occupations or in lower paying occupations like  health support, data from the NHIS show that only one out of five workers with paid sick days in those occupations are  between 18 and 35 years old.

For younger workers concentrated in traditionally low-income occupations or small businesses, the picture is even grimmer. Along with part-timers, these workers are most often afflicted, and women are overrepresented in this type of work arrangement. The outlook is especially challenging for young women with care giving responsibilities on top of lower earnings: paid sick days are even more essential for them to to stay afloat. For single mothers, usually with limited resources and often living in poverty, having paid sick days can make a big difference when medical problems arise.

Paid sick days are essential to all workers, but even more so to those with limited resources, including younger workers who are more vulnerable and have fewer resources than many of their older counterparts.

Claudia Williams is a Research Analyst with the Institute for Women’s Policy Research.

Where’s My 20?

By Sara Manzano-Díaz, Director of the U.S. Department of Labor’s Women’s Bureau

This is a guest blog post on the important theme of Equal Pay Day. The struggle to gain equality in pay for women is ongoing, and affects women and their families.


As the economy of the United States slowly recovers, one faction of the population is still struggling for wage equality—women. The American workforce today is more female and more diverse. Women account for nearly half of our nation’s workers. Yet, women on average still earn 20 percent less than their male counterparts.

Since passage of the landmark Equal Pay Act in 1963, the pay gap has steadily narrowed by just one-half a cent each year. Over the past five decades the landscape of pay equity for women has remained one of “haves” and “have nots.” This is particularly true for women of color. Data indicates that the wages of women of color significantly lag that of whites.

According to recent reports by the U. S. Department of Labor’s Bureau of Labor Statistics, women who were full-time wage and salary workers had median weekly earnings of $657 compared to $819 for men. When you look at the wages of African American and Hispanic women, however, the wage gap widens.

For example, African American women earn about 70 cents and Latinas about 60 cents of every dollar paid to all men. These aren’t simply statistics, they’re real numbers that affect the pocketbooks of women who face the day-to-day bread and butter issues of taking care of their families.

So, why does the pay gap matter? The pay gap shines a bright light on the disparity of income available to maintain the households of American families, particularly those of single women and women of color. For millions of working women, the gap means 20 percent less income to pay for housing, gas to get to work, utilities, food, college education for children, and retirement savings.

Over a 40-year career, a woman cumulatively loses nearly $380,000 in earnings. For the average working woman that is almost $150 a week in lost household income to sustain their families. Equal pay is not just a woman’s issue—it’s a family issue.

As a woman and a public servant, I am proud of the Labor Department’s role in advocating for issues that positively improve equal pay for women and their families. And, we want to assure women that this administration will continue to enforce the laws that protect wages, to level the playing field for employers who play by the rules, and to work toward fixing policies that impact women in the workplace.

And as a working woman, I know what my missing 20 percent has cost me over my lifetime. What has that 20 percent cost your family?

More information on the impact of the pay gap is available at http://www.dol.gov/wb/equal-pay-toolkit-20110412.htm.

Sara Manzano-Díaz is Director of the U. S. Department of Labor’s Women’s Bureau.

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.

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