U.S. gender wage gap/ women’s earnings 2023/ post-pandemic wage gap/ pay equity, Paycheck Fairness Act/ Newslooks/ NEW YORK/ J. Mansour/ Morning Edition/ The U.S. gender wage gap widened for the first time in 20 years, with women earning 83 cents for every dollar men earned in 2023. Economists link the trend to pandemic-related disruptions, with wage disparities more pronounced for minority women. Persistent structural issues, such as undervalued care work, continue to impact wage equity.
Understanding the Gender Wage Gap Widening Quick Look
- Current Wage Gap: Women earned 83 cents to each dollar earned by men in 2023.
- Pandemic Impact: Wage gap reflects disruptions as women re-entered lower-wage roles post-pandemic.
- Demographic Variances: Wage gaps widened for Black and Asian women, narrowed slightly for Latinas.
- Structural Challenges: Persistent undervaluing of care work continues to affect wage equality.
- Legislative Response: Debate ongoing over measures like the Paycheck Fairness Act.
Gender Wage Gap Widens in U.S., Reaching New Post-Pandemic Highs
Deep Look
In 2023, the gender wage gap between U.S. men and women working full-time widened for the first time in two decades, with women earning 83 cents for every dollar earned by men, according to the U.S. Census Bureau’s annual report. This widening gap, down from a historic high of 84 cents in 2022, highlights the pandemic’s enduring impact on gender equity in the workforce.
The wage disparity is particularly stark for women of color. According to Census Bureau data, Hispanic women saw a slight narrowing of the wage gap due to increased full-time employment. However, the gap widened for Black and Asian women, while it held steady for white women.
The report’s findings suggest that while most women have returned to the workforce post-pandemic, many are in low-wage industries where they are overrepresented, such as hospitality, social work, and caregiving. Although wages increased across the board in 2023, the average earnings for men outpaced those of women.
Pandemic Setbacks and the Wage Gap
S.J. Glynn, chief economist at the U.S. Department of Labor, explains that the 2023 data underscores how far women were behind before the pandemic. “The pandemic slowed the progress toward wage equity,” Glynn noted, as many women stepped back from the workforce, only to re-enter it in lower-paying roles as the economy recovered.
A report by the National Women’s Law Center and the National Partnership for Women and Families highlights that Hispanic women’s labor force participation surged by 5% in 2023, while overall full-time female employment remained static. Matthew Fienup, from California Lutheran University’s Center for Economic Research & Forecasting, sees this as a promising trend but warns against drawing conclusions from a single year’s data. Despite gains, the wage gap remains substantial, especially for Hispanic and Black women, whose median full-time earnings continue to lag behind those of their white counterparts.
In 2023, Latinas earned a median full-time salary of $43,880, compared to $50,470 for Black women, $60,450 for white women, and $75,950 for white men. Their increased representation in full-time roles did not prevent median wage gains for women overall from slowing, which economists attribute to their concentration in lower-paying jobs.
Structural Challenges Persist
Persistent structural issues also continue to impact wage equity, with caregiving work, often unpaid or low-paid, particularly affecting women. Seher Khawaja, director of Economic Justice at Legal Momentum, emphasizes that the wage gap will remain until societal value is placed on this essential work. “Our economy heavily relies on women performing unpaid or underpaid care work, especially for children and older adults. Until this work is adequately valued, the gender pay gap will persist,” Khawaja explained.
Jocelyn Frye, president of the National Partnership for Women & Families, points out that the wage gap worsens when part-time work is considered. Including part-time roles, Latinas earned just 51 cents to each dollar earned by white men in 2023, down from 52 cents the previous year. An analysis by the Institute for Women’s Policy Research found that the slight narrowing in wage gaps for Latinas could stem from a marginal increase in their representation in higher-paying occupations, though many still occupy low-wage positions.
Legislative and Policy Debates
Legislative action to address the gender wage gap remains contentious. The Democratic-led Paycheck Fairness Act, which aims to strengthen protections for pay equity, has seen resistance from Republicans, who argue that it could lead to unnecessary litigation. The bill seeks to update the Equal Pay Act of 1963 by protecting workers from retaliation for discussing pay, a step advocates argue would expose wage discrimination.
The issue of pay equity also has broad implications, Khawaja notes. “It’s not only women who suffer. Families and children are affected by insufficient income, perpetuating cycles of poverty and economic insecurity.” As policymakers debate, the lack of consensus has hampered advancements in equitable compensation.
The ripple effects of these structural inequalities are profound, Frye notes, especially given the obstacles to family-supportive policies like paid family leave. While many Democrats and Republicans agree on the need to address structural challenges, legislative solutions remain limited. Vice President Kamala Harris, who reiterated her support for the Paycheck Fairness Act this week, has highlighted the work of equal-pay activist Lilly Ledbetter, who championed the fight for fair pay.
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