WUNRN
http://www.nwlc.org/resource/how-wage-gap-hurts-women-and-families
How the US
Gender Wage Gap Hurts Women & Families
April 10, 2015 - View the PDF - http://www.nwlc.org/sites/default/files/5.11.15_how_the_wage_gap_hurts_women_and_families.pdf
What closing the wage gap would mean to me
this year:[1]
§ Five months’ supply of
groceries $3,161.50
§ Three months’ rent and
utilities $1,950
§ Three months’ child
care payments $2,550
§ Four months’ health
insurance premiums $1,472
§ Four months’ student
loan payments $1,308
§ Seven tanks of gas
$434.50
Total: $10,876
Women in the U.S. who work full time, year
round are typically paid only 78 cents for every dollar paid to their male
counterparts.[2] This gap in earnings translates into $10,876 less per year in
median earnings, leaving women and their families shortchanged. Although
enforcement of the Equal Pay Act and civil rights laws has helped narrow the
wage gap over time, addressing the significant pay disparities that remain is
critical for women and their families.
Fair Pay Is Crucial for All Women
Women of color are paid less
than white, non-Hispanic men.
§ African American women
working full time, year round typically make only 64 cents for every dollar
paid to their white, non-Hispanic male counterparts. For Latinas this
figure is only 56 cents.[3]
§
Mothers are paid less than
fathers.
§ Mothers who work full
time, year round typically have lower earnings than fathers ($40,000 compared
to $56,999), meaning mothers only make 70 cents for every dollar paid to
fathers. [4]
§
Lesbian women still earn less
than men, regardless of their sexual orientation.[5]
§ Women in same-sex
couples have a median personal income of $38,000, compared to $47,000 for men
in same-sex couples and $48,000 for men in different-sex couples.[6]
§ Lesbian women are far
more likely than gay men to support children – 49 percent of lesbian and
bisexual women report having a child compared to 19 percent of gay and bisexual
men.[7]
§
Women with disabilities have a
wider wage gap than the wage gap between women and men overall.
§ Women with disabilities
working full time, year round are typically paid just 69.5 percent of what men
without disabilities working full time, year round are typically paid. [8]
§ Women with disabilities
working full time, year round are typically paid just 80.8 percent of what
their male counterparts with disabilities are paid.
§
Women are affected by the wage
gap as soon as they enter the labor force.
§ The wage gap is smaller
for younger women than older women, but it begins right when women enter the
labor force. Women 15-24 working full time, year round are typically paid
just 91.1 percent of what their male counterparts are paid. Among older women,
the gap is even larger. Women 45-64 working full time, year round are
typically paid just 73.6 percent of what their male counterparts are paid. For
women still working at age 65 and older the figure is 76.4 percent.[9]
§
Older women also experience a
wage gap in retirement income, due in large part to the wage gap they
experienced during their working years.
§ Based on today’s wage
gap, a woman who worked full time, year round would typically lose $435,049 in
a 40-year period due to the wage gap.[10] This woman would have to work more
than eleven years longer to make up this gap. A typical woman working
full time, year round who starts, but does not finish high school would lose
$332,704 over a 40-year period, [11] an enormous amount of money for women who
are typically paid $22,248 a year. This woman would have to work nearly
fifteen years longer to make up this gap. These lost wages severely reduce
women’s ability to save for retirement.
§ As a result of lower
lifetime earnings and different work patterns, the average Social Security
benefit for women 65 and older was about $13,466 per year, compared to $17,598
for men of the same age in 2013.[12]
§ In 2010, women 50 and
older received only 56 cents for every dollar received by men in income from
pensions and annuities.[13] One study found that the typical woman worker near
retirement with a defined contribution plan or individual retirement account
had accumulated $34,000 in savings, while her male counterpart held
$70,000—more than twice as much.[14]
§
Women and their Families Count on
Women’s Earnings
In 2013, women working full time, year round
typically had lower earnings than men ($39,157 compared to $50,033).[15]
Women’s lower wages hurt women and families who rely on women’s earnings for
all or part of their income.
Lower earnings have a serious
impact on the economic security of the more than 7.3 million families headed by
working single mothers.[16]
§ Working single mothers
with children struggled to make ends meet in 2013. Over a quarter, or more than
2.0 million, of all such families were poor. Almost an additional 2.5 million
working single mother families were struggling to make ends meet, falling
between 100 and 200 percent of the Federal Poverty Level (FPL), meaning that
more than six in ten (61.9 percent) of working single mother families lived
below 200 percent of the FPL.[17] In 2013, the FPL for a single mother with two
children was just under $18,800.[18]
Most two-parent families depend
on women’s wages, and so also suffer when women receive unfair pay.
§ Nearly 1.4 million
married couples with children relied exclusively on women’s earnings at some
point in 2013, representing 5.6 percent of all married couples with
children.[19]
§ In 2013, more than 14.8
million married couples with children relied on both parents’ earnings,
representing 59.7 percent of all married couples with children.[20]
The wage gap impacts single
women with no children as well, who are also working to support themselves.
§ In 2013, the typical
never-married woman with no children working full time, year round was paid
70.0 percent of what a man working full time, year round was paid.[21]
Fair pay impacts married women
with no children who are more likely to be solely supporting their family than
married women with children.
§ Nearly 4.2 million
married couples with no children relied exclusively on women’s earnings at some
point in 2013, representing 11.3 percent of all married couples with no
children.[22]
§ In 2013, almost 14.6
million married couples with no children relied on both partners’ earnings,
representing 39.2 percent of all married couples with no children.[23]
§
Closing the Wage Gap Would
Significantly Improve Families’ Finances
Women have higher rates of economic insecurity
than do men. In 2013, women were more likely to live in poverty (14.5
percent of women compared to 11.0 percent of men).[24] Women are thus more
likely to rely on public benefits like Medicaid, the Supplemental Nutrition
Assistance Program (SNAP, formerly food stamps), and housing assistance.[25]
Bringing women’s earnings in line with men’s earnings would greatly improve the
economic situation for women and their families. An additional $10,876
per year is enough to:
. . . pay the median cost of rent
and utilities for a year with nearly $700 to spare, or the median mortgage
payment and utilities for nearly a year months,[26]
Almost 1.4 million properties nationwide
defaulted on a mortgage in 2013.[27] Earnings lost due to the wage gap
could have made a substantial difference in helping these families stay in their
homes. They could also affect whether a family can afford to pay rent.
. . . or feed a household of four
for a year and five months with more than $100 to spare,[28]
The difficult economy has stretched family
budgets for basic needs, particularly for households headed by women. In Fiscal
Year (FY) 2013, women were about 61 percent of nonelderly adult recipients and
64 percent of elderly adult recipients. Additionally, more than half (57
percent) of all SNAP households with children were headed by a single adult, 92
percent of whom were women.[29] With the continuing economic crisis, SNAP
participation remains high: SNAP served 46.5 million people in 22.7 million
households on average each month in FY 2014.[30]
. . . or pay a year and four months
of full-time child care costs for a four-year-old with nearly $500 to
spare,[31]
Child care expenditures consume a large
percentage of families’ earnings, especially those earned by low-income and
single mother families. In Nebraska, the state at the national median for
child care costs, providing care for a four-year-old represented 32.3 percent
of a single mother’s income and 9.9 percent of a two-parent family’s
income.[32]
In 2011, the most recent year for which data
is available, families living in poverty who paid for child care spent an
average of 30.3 percent of their income on care, and families earning between
100 and 200 percent of the federal poverty line devoted an average of 18.0
percent of their income to care. Even higher-income families (above 200 percent
of the FPL) paying for child care spent 6.3 percent of their income on
care.[33] If women took home the earnings lost due to the wage gap, this
financial pressure would be partly alleviated.
. . . or pay for two years and five months of family health insurance premiums
in an employer-sponsored health insurance program with over $200 to spare.[34]
Women spend a substantial amount of their
income on out-of-pocket health costs and health insurance premiums, and they
are more likely than men to experience serious financial hardship as a result
of medical bills. In 2010, the most recent year for which these
statistics are available, one-third of working-age women spent 10 percent or
more of their income on these expenses, and nearly one-third of women who had
medical bill or debt problems were unable to pay for basic necessities like
food, heat, or rent because of their medical bills.[35] Closing the wage gap
would provide essential help for women to pay for their medical expenses.
. . . or pay for two years and
seven months of student loan payments with almost $100 to spare.[36]
Student loan payments can consume a
considerable portion of a woman’s earnings, especially in the years immediately
following post-secondary education. In 2013, it is estimated that seven in ten
college seniors graduated with student loan debt. The average debt for
students with loans was $28,400.[37] Closing the wage gap would enable
women to pay down student loan debt much faster.
Every Woman
Matters.
Every
Dollar Matters.
The Wage
Gap Matters.
-----------------------------
[1] National Women’s Law Center (NWLC)
calculations for each item based on the following sources: Groceries - U.S.
Department of Agriculture (USDA), Official USDA Food Plans: Cost of Food at
Home at Four Levels, U.S. Average, June 2013 (2013), available at http://www.cnpp.usda.gov/USDAFoodPlansCostofFood (last
visited April 8 2015). Calculation is based on the USDA thrifty food plan for a
family of four (two adults 19-50 and children 6-8 and 9-11) estimated at
$632.30 per month. Child Care - Child Care Aware of America, Parents and the
High Cost of Child Care: 2013 Update (Nov. 4, 2013), Appendix 1, available athttp://www.naccrra.org/about-child-care/cost-of-child-care.
Average costs for child care in a center in Nebraska for a four-year-old
($7,800 annually in 2013 or $650.00 per month). Nebraska cost for this type of
child care falls at the median of all state averages (including the District of
Columbia). Rent and Utilities - U.S. Census Bureau, American Housing
Survey: 2013, Table C-10-AO. Housing Costs—All Occupied Units,available at http://www.census.gov/programs-surveys/ahs/ (last
visited April 8, 2015). Median housing costs for renters ($850 per month in
2013). Health Insurance Premiums - U.S. Department of Health and Human
Services, Agency for Healthcare Research and Quality, Medical Expenditure Panel
Survey: 2013. Table II.D.2 (2013) Average total employee contribution (in
dollars) per enrolled employee for family coverage at private-sector
establishments that offer health insurance by firm size and State: United
States, 2013, available athttp://meps.ahrq.gov/mepsweb/data_stats/summ_tables/insr/state/series_2/2013/tiid2.htm.
Average monthly employee contribution for employer-based family coverage
($4,421 annually or $368 per month). Loan Payments - The Project of
Student Debt, Student Debt and the Class of 2013 (Nov. 2014), available athttp://ticas.org/sites/default/files/legacy/fckfiles/pub/classof2013.pdf.
Average monthly payment for a class of 2013 bachelor’s degree graduate with the
average student debt of $28,400 for students who had loans. Calculation assumes
ten-year standard repayment plan and all debt in the form of direct
unsubsidized loans and single taxpayer status (6.8 percent interest). Initial
monthly payment of $327 calculated using the Department of Education’s loan
repayment calculator available athttps://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimato....
Tanks of Gas - Calculations based on average tank of gas in 2013 and about a
17-gallon gas tank. Gas prices from U.S. Energy Information Administration,
Weekly Retail Gasoline and Diesel Prices, available athttp://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_nus_w.htm (last
visited April 10, 2015). Average cost of all grades of gasoline in 2013 rounded
to $3.58 per gallon.
[2] NWLC calculations from U.S. Census Bureau,
Current Population Survey, 2014 Annual Social and Economic Supplement
[hereinafter CPS, 2014 ASEC], Table PINC-05: Work Experience in 2013 – People
15 Years Old and Over by Total Money Earnings in 2013, Age, Race, Hispanic
Origin, and Sex, available at http://www.census.gov/hhes/www/cpstables/032014/perinc/toc.htm (last
visited Sept. 29, 2014). Women working full time, year round had median annual
earnings of $39,157 in 2013. Men working full time, year round had median
annual earnings of $50,033 in 2013.
[3] Id. White, non-Hispanic
women make 77 cents for every dollar made by their white, non-Hispanic male
counterparts.
[4] NWLC calculations based on CPS, 2014ASEC
using Miriam King et al, “IPUMS, Current Population Survey: Version 3.0)”,
available at https://cps.ipums.org/cps/index.shtml. Mothers and
fathers have at least one related child under 18 at home. Figures are median
annual earnings for 2013.
[5] M.V. Lee Badgett, Holning Lau, Brad Sears,
Deborah Ho, The Williams Institute, Bias in the Workplace: Consistent Evidence
of Sexual Orientation and Gender Identity Discrimination (Jun. 2007)http://williamsinstitute.law.ucla.edu/wp-content/uploads/Badgett-Sears-Lau-Ho-Bias-in-the-Workplace-Jun-2007.pdf at
14.
[6] Gary J. Gates, The Williams Institute,
Same-sex and Different-sex Couples in the American Community Survey 2005-2011
(Feb. 2013) http://williamsinstitute.law.ucla.edu/wp-content/uploads/ACS-2013.pdf.
Figures only include people in labor force. Due to data limitations, they
do not include lesbian or gay individuals who are not part of a couple. These
figures are median annual personal income for all workers in the labor force – these
figures differ from the median annual earnings for full-time, year-round
workers reported for the wage gap and are not directly comparable.
[7] Gary J. Gates, The Williams Institute,
Family formation and raising children among same-sex couples, National Council
on Family Relations, Family Focus on LGBT Families Issue FF51 (Dec.
2011), http://williamsinstitute.law.ucla.edu/wp-content/uploads/Gates-Badgett-NCFR-LGBT-Families-December-2011.pdf.
[8] NWLC calculations from CPS, 2014 ASEC
using CPS Table Creator, available athttp://www.census.gov/cps/data/cpstablecreator.html (last
visited Sept. 30, 2014). Ratio of median person earnings for men and women
working full time, year round, with and without a disability.
[9] Supra note 2.
[10] Id. These
calculations were not adjusted for inflation and assume a constant wage gap
overtime. Assumes a constant gap of $10,876 annually, calculated by subtracting
women’s median earnings ($39,157) from that of men ($50,033).
[11] NWLC calculations from CPS, 2014 ASEC,
Table PINC-03: Educational Attainment— People 25 Years Old and Over, by Total
Money Earnings in 2013, Work Experience in 2013, Age, Race, Hispanic Origin,
and Sex, available at http://www.census.gov/hhes/www/cpstables/032014/perinc/toc.htm (last
visited Sept. 30, 2014). This compares median earnings for men and women with
some high school who did not graduate or receive a G.E.D, who are 25 and older,
and who worked full time, year round. Men in this group had median
earnings of $30,565 while women in this group had median earnings of $22,248
for a gap of $8,318 annually. This calculation assumes a constant gap and is
not adjusted for inflation.
[12] NWLC calculations based on U.S. Social
Security Administration, Annual Statistical Supplement to the Social Security
Bulletin, 2014 (Feb. 2014), Table 5.A16-Number and average monthly benefit for
adult beneficiaries, by sex, type of benefit, and age,
December 2013, available athttp://www.ssa.gov/policy/docs/statcomps/supplement/2014/5a.html#table5.a16.
The average monthly benefit for all female beneficiaries 65 and older was
$1,122.20, or about $13,466 per year as of December 2013, compared to $1,466.49
per month, or $17,598 per year for all male beneficiaries 65 and older. Benefits
are slightly higher for both women and men receiving benefits as retired
workers.
[13] Employee Benefit Research Institute, EBRI
Databook on Employee Benefits, Tables 8.1 and 8.2 Retirement Annuity and/or
Employment-Based Pension Income Recipiency, Males and Females (Sept.
2011), available at http://www.ebri.org/pdf/publications/books/databook/DB.Chapter%2008.pdf (last
visited Dec. 30, 2013). Based on annual figures for pensions and
annuities, ($8,400 for women versus $15,000 for men).
[14] Leslie E. Papke, Lina Walker, & Michael
Dworsky, Retirement Security for Women: Progress to Date and Policies for
Tomorrow (2008), available at http://www.brookings.edu/~/media/projects/retirementsecurity/03_retirement_women.pdf
f.
[15] Supra note 2.
[16] NWLC calculations from CPS, 2014 ASEC,
Table POV-15: Families with related children under 18 by householder’s work
experience and family structure, available at http://www.census.gov/hhes/www/cpstables/032014/pov/pov15_100.htm (last
visited Sept. 29, 2014). The term “single mothers” refers to female-headed
families with children. Figure includes all individuals with work experience
during the year, not just full-time, year-round workers.
[17] Id. Federal poverty
line used in these calculations refers to the Census Bureau’s federal poverty
thresholds used to calculate poverty levels.
[18] U.S. Census Bureau, CPS, 2014 ASEC, Table
POV35: Poverty Thresholds by Size of Family and Number of Related
Children, available at http://www.census.gov/hhes/www/cpstables/032014/pov/toc.htm (last
visited Oct. 8, 2014). Exact figure is $18,769.
[19] NWLC calculations from U.S. Census
Bureau, America’s Families and Living Arrangements Survey: 2014, Table FG1:
Married Couple Family Groups, by Family Income, and Labor Force Status of Both
Spouses: 2014,available at http://www.census.gov/hhes/families/data/cps2014FG.html (last
visited April 8, 2015). Family households are used in this figure to be
consistent with the statistics on single mothers. Data are from the CPS, 2014
ASEC but are for the year 2013. No children means no own children under 18
present in the household. There may be older children who could possibly
live with these couples.
[20] Id.
[21] NWLC calculations from CPS, 2014 ASEC
using CPS Table Creator, available athttp://www.census.gov/cps/data/cpstablecreator.html (last
visited Oct. 8, 2014). Figure is the ratio of median annual person
earnings, compared to men regardless of marital status and number of related
children under 18 living in the household. No children means no own children
under 18 present in the household. There may be older children who could
possibly live with these women.
[22] Supra note 19. Family groups
are used in this figure so these data are not directly comparable to the
earlier statistics on single mothers. Data are from the CPS, 2014 ASEC but are
for the year 2013. No children means no own children under 18 present in the
household. There may be older children who could possibly live with these
couples.
[23] Id.
[24] NWLC, Insecure and Unequal: Poverty and
Income Among Women and Families, 2000-2013 (Sept. 2014), available at http://www.nwlc.org/sites/default/files/pdfs/final_2014_nwlc_poverty_report.pdf.
Poverty rates are for people 18 and older.
[25] NWLC, Cutting Programs for Low-Income
People Especially Hurts Women and Their Families (Feb. 2015), available at http://www.nwlc.org/resource/cutting-programs-low-income-people-especially-hurts-women-and-their-families.
[26] Supra note 1 – Rent and
Utilities. Median housing cost for owners was $929 per month in 2013.
[27] RealtyTrac®, 1.4 Million U.S. Properties
with Foreclosure Filings in 2013 Down 26 Percent to Lowest Annual Total Since
2007 (Jan. 16, 2014), available at http://www.realtytrac.com/content/news-and-opinion/2013-year-end-us-foreclosure-report-7963.
Data are from the 2013 Year-End Foreclosure Report.
[28] Supra note 1 – Groceries.
[29] Kelsey Farson Gray, Mathematica Policy
Research, Characteristics of Supplemental Nutrition Assistance Program
Households: Fiscal Year 2013, at xviii and 50 (Dec. 2014), available athttp://www.fns.usda.gov/sites/default/files/ops/Characteristics2013.pdf.
[30] NWLC calculations from USDA, Food and
Nutrition Service, Supplemental Nutrition Assistance Program Data (March 6,
2015), available at http://www.fns.usda.gov/pd/34SNAPmonthly.htm
(last visited April 10, 2015).
[31] Supra note 1 – Child
Care.
[32] Id. at Appendix
3.
[33] U.S. Census Bureau, Who’s Minding the
Kids? Child Care Arrangements: Spring 2011, Detailed Tables, Table 6: Average
Weekly Child Care Expenditures of Families with Employed Mothers that Make
Payments, by Age Groups and Selected Characteristics: Spring 2011 (2013), available athttp://www.census.gov/programs-surveys/sipp/data/tables/2008-panel/2011-....
[34] Supra note 1 – Health
Insurance Premiums.
[35] R. Robertson and S.R. Collins, The
Commonwealth Fund, Women at Risk: Why Increasing Numbers of Women Are Failing
to Get the Health Care They Need and How the Affordable Care Act Will Help
(2011),available at http://www.commonwealthfund.org/Publications/Issue-Briefs/2011/May/Women-at-Risk.aspx.
[36] Supra note 1 –Loan Payments.
[37] Id.