The gender wage gap refers to the difference in wages between men and women. Despite theEqual Pay Actpassing in 1963 and numerous efforts since then to close the gap, it persists and is a significant problem in many countries, including across the U.S., where wage disparities are more pronounced for women of color. Additionally, Utah has the dubious distinctionof ranking as the second worst gender wage gapin the U.S.

Explanations for the Gender Wage Gap

Occupational segregation, experience gaps associated with time off for family rearing, and education levels are some ofmost significant contributorsto the gender wage gap. With pressure to conform to gender roles, women are often steered into jobs that pay less and are disproportionately represented in education, office and administrative support, and healthcare occupations. Occupational gender segregation decreased across throughout 1970-1990s, but integration has slowed since the early 2000s. Women also face a motherhood penalty in which they are paid 71% as much as working fathers. Taking time off for childbirth and early childhood years can have staggering effects on earnings.Researchhas shown that less than a year off work can result in an 11% cut in pay, while three years can reduce pay by as much as 37%.  And, despite women now earning more college and postgraduate degrees than men, education does not eliminate the pay gap, although it can help. Still, women must earn an additional degree compared to their male counterparts to get closer to pay parity.

Studieshave also found that when given the opportunity to name their desired salary, women tended to ask for less than men. This was especially true for women who had previously earned lower salaries or who had less negotiating experience. The study also found that women were more likely to accept lower starting salaries than men, even when they were equally qualified. Women who have recently graduated college are especially likely not to negotiate salary, which lays the foundation for wage disparities that compound over time.

There are several reasons women mightset lower minimum salary requirements than men. Some suggest that women are socialized to be more collaborative and less competitive than men. This can lead them to be more willing to compromise and set lower salary expectations to avoid conflict. Another explanation is that women may be more likely to underestimate their value and worth. They may not fully realize their worth as employees or may underestimate their performance, which is more common amongwoman over the age 49.

Further, some argue a lack of confidence among women contributes to less frequent negotiation and lower salary requirements among women. However, morerecent literature cautions such views, as confidence is a gendered word that can be used to explain away the slower progression of women at work and pay disparities. When women fall short of career goals, it is often attributed to their lack of confidence. Yet, when they exert assertiveness and extroversion, that too is often attributed to a lack of confidence. A focus on self-confidence does not address organizational barriers to gender equality.

Finally, compared to men, women face more discrimination and bias in the workplace, which may make women hesitant to negotiate and present barriers to career advancement and reaching the highest-paid positions through promotions and raises. This can lead to a sense of resignation and a belief that they are not entitled to higher salaries.

 

What Can We Do About It?

It is important to address the gender wage gap and to ensure that women are paid equally to men for equal work. Multiple parties and strategies can help narrow the gap:

Individuals and Government

A great starting point for being prepared to combat gender inequalities is education.Utah Valley University’sWoodbury School of Businessoffers ahuman resource management degreeand aleadership certificate, which can help current and future leaders understand the complexities of gender at work and design fair practices. Additionally, while the onus for resolving the gender wage gap cannot fall solely on women, it is helpful to develop skills and strategies for navigating gendered career dynamics and negotiating effectively.Executive Education at UVUoffers aWomen’s Leadership Certificate Program, a holistic leadership development program, that delves into these issues, among others.

In addition to driving change through education, individuals can also take action by writing letters to legislators to advocate for legislative efforts that can increase pay equity. For example,many stateshave adopted laws that prohibit employers from enforcing pay secrecy and bans them from requesting salary history from applicants, as this perpetuates lower salaries for women and minorities. Moreover, some states have adopted laws that require employers to report gender wage gap data. Government has a role to play in addressing the wage gap and individual citizens can influence the process.

 

Employers

Employers also have a role to play in closing the wage gender gap. They can conduct salary audits to ensure that men and women are being paid fairly and can implement policies that encourage equal pay for equal work. Efforts toward pay transparency also help. For example, including pay ranges in job postings signals to applicants that negotiation is possible. This is an important step for employers to create a supportive and inclusive work environment that promotes gender equality and encourages women to negotiate higher salaries.

Further, discrimination and biases that contribute to the gender wage gap, and other inequities, can often be designed out of the system through effective HR processes. Organizations should evaluate all processes, from how they approach selection, compensation, performance evaluation, job assignment decisions, and flexible work arrangements to ensure they employ the most rigorous and evidence-based practices to mitigate inequities. Utah-based organizations that may be unsure where to start, or want an independent review, are encouraged toreach out to UVU’s Women in Business Impact Lab for assistance.

 

Parents and Early Educators

Because occupation segregation continues to be one of the largest contributors to the wage gap, parents and early educators also have a role to play in decreasing the gender wage gap.Researchhas shown that stereotypes about intellectual ability, for example, surface early and can influence children’s long-term interests. Therefore, it is important for them to be mindful of how messaging may reinforce gender-based stereotypes and steer females to lower-paying jobs.

Conclusion

In conclusion, the gender wage gap is a significant problem that persists despite efforts to close it. Overall, the gender wage gap is a complex issue with many contributing factors. It is essential for multiple parties, including employers, legislators, parents, and individual citizens, among others, to take action to address it. The Equal Pay Act was passed in 1963. We shouldn’t still be grappling with wage disparities in 2023, but we are, and it’s time to do something about it.