Gender Wage Gap

There has been an argument among the Left and the Right about whether the gender wage gap is a myth or if it is real. The left argues that the gender wage gap is real and that women are paid less than men because employers treat women differently. On the other hand, the right argues that the gender wage gap is a myth since women tend to work in low-wage professions such as teaching and administrative assistants. Throughout this article, I'll begin by discussing the progress that has been made in narrowing the gender pay gap before delving into how parenthood affects the earnings of women in the long run. Next, I'll be discussing the differences in hourly wages between women with a Bachelor's degree and men with a Bachelor's degree. Towards the end of this article, I'll be discussing some solutions for removing the gender wage gap.

            The gender wage gap is defined as the difference between the earnings of men and women. This gap has remained pretty stable for the past two decades. According to "The Enduring Grip of the Gender Pay Gap" by Rakesh Kochhar, “American women typically earned 82 cents for every dollar earned by men. That was about the same as in 2002, when they earned 80 cents to the dollar." There is no definitive explanation for why progress towards eliminating the wage gap has stalled. Women and men tend to begin their careers at the same time, and women are more likely than men to have at least a Bachelor's degree. Furthermore, the pay gap between college-educated men and women isn't really that different from the pay gap between men and women who don't possess a college education. One explanation for why there is a pay gap between men and women is parenthood, since mothers tend to lose a significant amount of time in their career due to taking care of children at home. Due to this, mothers tend to lose a lot of earnings and limit their career progression. On the other hand, fathers are more likely to be engaged in the labor force and to spend most of their time at work so that they can provide for their family. This leads to more career progression and higher earnings for fathers in the long run.

            Moreover, motherhood has a drastic effect on the earnings of women in the long run, since women who take a break in their careers after becoming mothers tend to never recuperate that lost time and earnings. Some mothers may not re-enter the labor force or work for pay after having children. Some mothers may choose to volunteer their time at non-profits or other charitable organizations. Age and parenting also play a large role in the earning potentials of both men and women. According to "The Enduring Grip of the Gender Pay Gap" by Rakesh Kochhar, "In 2022, mothers ages 25 to 34 earned 85% as much as fathers that age, but women without children at home earned 97% as much as fathers. In contrast, employed women ages 35 to 44 – with or without children – both earned about 80% as much as men." The data shows that there is a significant difference in the earnings potential of women without children and women with children.

            The education level of both employed mothers and women without children at home also plays a large role in their earnings potential. According to "The Enduring Grip of the Gender Pay Gap” by Rakesh Kochhar, "Among employed women ages 25 to 34, some 61% of women without children at home had a bachelor's degree or higher level of education in 2022, compared with 37% of mothers. It follows that among women ages 25 to 34, those without children at home (a more highly educated group, on average) earned more than women with at least one child at home.” The data clearly shows that having kids can have a detrimental effect on the earnings of women, while women without kids tend to earn more and have better career progression.

When comparing the earnings of mothers with women without children at home who have the same level of education, there isn't any statistical difference present. Employed women between the ages of 25 and 34, who possess at least a Bachelor's degree, whether they are mothers or women without children at home, will earn at least 80% as much as fathers in 2022. Women between the ages of 25 to 34 who possess only a high school diploma and no further education, mothers earned 79% as much as their counterparts (fathers), and women with no children at home earn 84% as much as their counterparts.

            When looking at the differences in earnings between mothers and fathers through the lens of parenthood, It's clearly apparent that the widening of the pay gap present between mothers and fathers is driven by the rise in income of fathers. Fathers who are between the ages of 25 to 34 tend to earn more than their counterparts (mothers) and more than men who have no children at home. There isn't a substantial difference between the earnings of employed mothers and women with an equal level of education who don't have children at home, but there is a gap in their labor force/workplace engagement between the two groups. Regardless of whether they have a college education or graduated from high school, mothers who are 25 to 34 years old are less likely to be employed or looking for work due to the majority of their time being committed to raising their children. Younger mothers also tend to work fewer hours than women without any children at home.

Even though the share of women who possess at least a bachelor's degree has increased since 1982. According to "The Enduring Grip of the Gender Pay Gap" by Rakesh Kochhar, "In 1982, 20% of employed women ages 25 and older had a bachelor's degree or higher level of education, compared with 26% of employed men. By 2022, 48% of employed women had at least a bachelor's degree, compared with 41% of men." The data clearly shows that women still haven't seen their pay gap close. This can be attributed to the fact that the return on investment (ROI) of going to college has evolved over the years for both men and women. The wage premium for going to college increased rapidly during the 1980s and then stagnated in the subsequent years. Nonetheless, educational attainment has raised the earnings of women and narrowed the gender wage gap. According to "The Enduring Grip of the Gender Pay Gap" by Rakesh Kochhar, “In 2022, women with at least a bachelor's degree earned 79% as much as men who were college graduates, and women who were high school graduates earned 81% as much as men with the same level of education.” The data clearly shows how, regardless of the level of education a woman has, they tend to face challenges in the labor market. Furthermore, both women and men who major in a STEM field tend to make more money in the long run due to the high demand for STEM workers.

            Now let's look at the economic forces that are shaping the changes in the gender gap. The differences in earnings between men and women can be largely attributed to the fact that men and women tend to be employed in different occupations that pay different wages. The wages of men didn't change that much from the 1980s to the early 2000s. This can be related to the fact that union membership among men has declined, there has been a decline in jobs that require physical labor, and the outsourcing of manufacturing jobs, which has reduced the demand for employment in the manufacturing sector. During this same time frame, the earnings of women increased substantially, as they increased their level of education and entered into occupations that pay well, such as the healthcare sector and information technology. The economic climate also drastically altered the earnings of both men and women, and this change occurred during the Great Recession (2007-2009). The labor force participation rate for both men and women declined significantly during this period. More recently, the COVID-19 pandemic and recession have also resulted in a significant change in the earnings potential of both men and women. This pandemic/recession also led to widespread job losses for jobs held by women.

Some solutions to eliminating the gender wage gap would be to encourage more men to play a larger role in raising and taking care of their kids. This will help alleviate the burden that is placed on women and allow them to contribute/spend more time focusing on their career/job. Furthermore, this will also allow the father to spend more time with his kids and be a part of their child's life. Moreover, progress in closing the wage gap is interdependent on evolving cultural and societal norms related to work-life balance and the role that discrimination plays in the jobs that society deems women and men should hold. These gender stereotypes and discrimination that both men and women face tend to impede societal and economic progress.