Despite increased awareness of the issue in recent decades, the gender pay gap continues to be a serious issue in the workplace. Even though employment law mandates equal pay regardless of gender, the difference in salary between women and men remains. While the gap has narrowed over the years, several factors play a significant role in the issue. For a rundown of the main facts regarding the gender pay gap, see the answers to common questions below.

Understanding the Gender Pay Gap

How wide is the gender pay gap?

Calculated as the median annual earnings of women to the same cohort of men, the gender pay gap is said to be at 80% in 2017. This means that women only earn 80 cents for every dollar men make. This figure, called the uncontrolled gender pay gap, is broad and fails to account for other factors, including job type, years of experience, and educational attainment.

On the other hand, the controlled gender pay gap factors in job title, industry, experience, and education to its statistic. With these in mind, the difference is narrower at 98%—women get paid 98 cents for every dollar men are paid.

What kinds of factors contribute to the pay gap?

Despite adjusted measures, there’s still a gap, and it significantly varies across races, too. Several studies point to gender discrimination as one factor that’s hard to measure or quantify. However, this only focuses on one dimension—the difference in pay for equivalent work. For this, fair employment law can address the issue.

There’s another factor at play called the opportunity gap. Women have lower chances of holding higher-level, better-paying jobs relative to their male counterparts. Although both genders start their careers on the same level, females move up the corporate ladder at a slower pace than men. The reason for the disparity is the time spent out of the workforce. Women who took breaks to care for their families bear a “time-off” penalty upon their return, which affects their career and pay. Moreover, compared to males, female workers are over-represented in less lucrative fields like healthcare, education, and community and social services. 

How can the pay gap be changed?

Companies need to provide equal opportunities regardless of gender, which is one of the main pillars of employment law. They must recognize wage discrepancies in the workplace and address the issue instead of skirting around it. Workers should be compensated based on quantifiable measures like merit, skills, experience, and educational level, and not because of their race or gender. Changing social views regarding gender roles also play a key role.

If you believe a gender pay gap exists in your work environment, get in touch with MacVean, Lewis, Sherwin & McDermott, P.C. in Middletown, NY. Helping clients throughout Hudson Valley since 1885, they have provided unparalleled legal advice on employment law cases, including discrimination and unlawful termination. Call (845) 343-3000 or visit them online to learn more about their practice areas, such as corporate law and commercial litigation.