Getting Granular on Wage Gaps

It’s still #womenshistorymonth and March 14th marked #womensequalpayday which symbolizes how far into the year women must work to earn what men earned in the previous year. We wanted to dig a little deeper into this and highlight specific types of wage gaps across different populations.

In the United States, there are significant wage gaps based on gender, race, and ethnicity. Here are some statistics on the wage gap rates for different groups:

Gender Wage Gap:

• On average, women in the US earn 82 cents for every dollar earned by men.

• This gap is even larger for women of color:

  • Black women earn 63 cents for every dollar earned by white, non-Hispanic men.

  • Hispanic women earn 55 cents for every dollar earned by white, non-Hispanic men.

  • Native American women earn 60 cents for every dollar earned by white, non-Hispanic men.

  • Asian American women earn 87 cents for every dollar earned by white, non-Hispanic men, but there is significant variation within the Asian American community.

Race Wage Gap:

• White, non-Hispanic workers earn more on average than workers of color.

• Black workers earn 75 cents for every dollar earned by white, non-Hispanic workers.

• Hispanic workers earn 74 cents for every dollar earned by white, non-Hispanic workers.

• Native American workers earn 78 cents for every dollar earned by white, non-Hispanic workers.

• Asian American workers earn more on average than white, non-Hispanic workers, but there is significant variation within the Asian American community.

Motherhood Wage Gap:

The wage gap for mothers is also significant in the United States. Mothers often face discrimination and bias in the workplace, and they may be penalized for taking time off for caregiving responsibilities. Here are some statistics on the wage gap for mothers:

• On average, mothers earn 70 cents for every dollar earned by fathers.

• The wage gap for mothers is larger for women of color:

  • Black mothers earn 50 cents for every dollar earned by white, non-Hispanic fathers.

  • Hispanic mothers earn 46 cents for every dollar earned by white, non-Hispanic fathers.

  • Native American mothers earn 55 cents for every dollar earned by white, non-Hispanic fathers.

  • Asian American mothers earn 77 cents for every dollar earned by white, non-Hispanic fathers, but there is significant variation within the Asian American community.

• Mothers who take time off for caregiving responsibilities may face a larger wage penalty:

  • Women who take just one year off from work for caregiving responsibilities earn 39% less on average than women who do not take time off.

  • Women who take more than two years off earn 48% less on average than women who do not take time off.

Trans Women Wage Gap (reference article):

“Female-presenting people tend to experience all the discrimination that cis women [non-transgender women] experience—plus the discrimination they face as transgender individuals” -Sarah Kaplan, Director for University of Toronto’s Institute for Gender and the Economy

• The ability to earn a living wage decreases when transitioning from male to female by nearly one third (B.E. Journal of Economic Analysis & Policy).

• Some see an increase in earnings when transitioning from female to male.

• 50% of transgender individuals earn 15k or less a year despite 71% having some level of post-secondary education (2011 Trans PULSE survey conducted by Toronto’s Sherbourne Health Centre).

• Transgender individuals experience double the rate of unemployment compared to the general population (2011 Trans PULSE survey conducted by Toronto’s Sherbourne Health Centre).

• Any LGBTQIA+ affiliations seen on a woman’s resume received a lower response rate from employers compared to a woman’s resume who was perceived to be heterosexual.

• After getting over the hurdle of landing employment, trans individuals often face barriers to advancement, widening the wage gap even more between them and their cis gendered counterparts.

(It is important to note that these statistics represent averages and do not capture the full range of experiences within each group. Additionally, the wage gap is influenced by a complex set of factors including education, occupation, industry, and more)