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LiveYourDream.org
1709 Spruce Street
Philadelphia, PA 19103-6103
info@liveyourdream.org
215-893-9000

What is the gender pay gap?

The gender pay gap describes how women are frequently paid less than men for the same job. This disparity remains a significant issue despite strides toward gender equality. It extends beyond differences in earnings, encompassing systemic challenges such as limited opportunities, workplace biases, and unequal recognition.

The Gender Pay Gap: Understanding Pay Inequality and How to Fix It

At LiveYourDream.org, we’re dedicated to uplifting women and girls by providing access to education and resources that unlock their potential. Empowerment, to us, means equipping them with the tools and confidence to advocate for themselves. Yet, the gender pay gap remains a significant barrier for many hardworking women striving to achieve their dreams.

A Fairer Future

Education is one of the most powerful tools for closing the gender pay gap, equipping women and girls with the skills, knowledge, and opportunities needed to achieve financial independence. By investing in education, advocating for equitable access to learning, and supporting programs that empower women, we can break the cycle of inequality and create lasting change. By supporting organizations like Soroptimist and LiveYourDream.org, it is possible to empower women and girls worldwide to overcome obstacles and reach their full potential.

Together, a more inclusive future can be built. Visit LiveYourDream.org to learn more and take action today!

Gender Pay Gap Examples

Gender Pay Gap in Sports

The gender pay gap in sports is one of the most glaring examples of income inequality, with male athletes consistently earning significantly more than their female counterparts, despite similar levels of skill, dedication, and performance. These disparities stem from revenue and sponsorship differences, limited media coverage, and historical bias favoring men’s sports.

Here are some key points and statistics:

• After years of advocacy, the U.S. Women’s National Soccer Team achieved equal pay in 2022 despite outperforming the men’s team.
• In basketball, WNBA players earn an average of $150,000, far below the NBA’s $10 million.
• Women’s sports receive only about 4% of sports media coverage, limiting their visibility and commercial opportunities.

Gender Pay Gap in Healthcare

The gender pay gap in healthcare is a persistent issue, with female healthcare professionals earning less than their male counterparts across various specialties. Studies show that women physicians earn significantly less than men physicians, even when accounting for factors such as experience, education, and hours worked.

• For every dollar a male physician earns, his female counterpart earns only 74 cents — a wider gap than in most other occupations.
• The earnings gap between men and women in primary care has substantially increased over the past five years, from a difference of $32,000 in annual salaries in 2017 to $57,000 in 2022.

The gender pay gap in healthcare is partly due to discrimination and unequal access to higher-paying specialties or leadership roles, where men are often overrepresented. Additionally, female healthcare workers tend to be clustered in lower-paying fields and face biases in hiring and promotion, contributing to wage disparities.

Gender Pay Gap in Entertainment

The gender pay gap is a pervasive issue across many industries, and the entertainment world is no exception. Whether on Broadway, in Hollywood, or the music industry, women continue to face significant wage disparities compared to their male counterparts. This inequality extends beyond just performers, affecting directors, producers, and other professionals behind the scenes.

• Women stars earn around a staggering $1.1 million less than male actors with similar experience, based on new research findings.
• Music streaming algorithms favor male artists, creating an imbalance in earning potential.

These issues stem from the contracting power and career barriers that women often face. In both film and music, women are less likely to secure high-paying contracts or negotiate favorable terms. This lack of bargaining power is partly due to historical inequality, where men have more influence and higher status in decision-making roles. These obstacles affect women's earnings and overall career trajectory, making it harder for them to break through to top-paying opportunities.

A Broken Rung

The "broken rung" refers to a critical barrier in the workplace where women are less likely than men to be promoted from entry-level to managerial roles. This issue creates a bottleneck in the talent pipeline, preventing women from progressing to higher levels of leadership. Without equal opportunities for early advancement, fewer women reach mid-level management, senior leadership, or C-suite positions, perpetuating gender inequality at every level and contributing to the gender pay gap.

• Broken rung statistics: For every 100 men promoted to manager, only 87 women are promoted, and only 73 women of color (source: McKinsey & Company, 2023).

This disparity isn’t just about promotions but the long-term ripple effect. With fewer women in managerial roles, organizations miss out on diverse perspectives in decision-making, and women miss out on higher salaries and career growth. Fixing the broken rung involves creating transparent promotion criteria, providing mentorship and sponsorship opportunities, and holding organizations accountable for equitable hiring and promotion practices.

Gender Pay Gap Statistics

• In the United States, the gender pay gap persists across industries and occupations, with women typically earning about 82 cents for every dollar men earn, according to the Pew Research Center.
• The gender pay gap is even more pronounced for women of color, with Black and Hispanic women earning 64 cents and 57 cents, respectively, for every dollar earned by white, non-Hispanic men.
• Women hold just 29% of executive/senior leadership positions.
• Only 28% of employed women worldwide enjoy paid maternity leave.
• Despite efforts to address inequality, progress has been slow, highlighting the need for continued advocacy and policy reforms to achieve gender pay equity.
  
• At current rates of progress, it will take 134 years to reach gender parity globally. 

Gender Pay Gap Legislation

Gender pay gap laws have made significant strides, but challenges remain. Key laws, such as the Equal Pay Act of 1963 in the U.S., mandate equal pay for equal work, and the Paycheck Fairness Act seeks to strengthen enforcement and close loopholes. In the UK, the Gender Pay Gap Reporting legislation requires companies with 250+ employees to publish gender pay data. Despite these efforts, studies show that the gender pay gap persists.

Solutions for gender pay gap

To close the gender pay gap, companies and governments should enforce pay transparency, requiring salary disclosures and audits to ensure fair wages. Strengthening equal pay laws and holding businesses accountable can prevent discrimination. Additionally, workplace policies like paid parental leave, flexible work arrangements, and unbiased promotions create equal opportunities for career growth.

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Conclusion

As we wrap up our exploration of Women's History, we're reminded of the profound meaning of this month-long celebration. Originating from a grassroots movement, Women's History Month stands as a global acknowledgment of the pivotal roles women have played throughout history, a celebration of the diverse narratives of women worldwide, and a call to action to continue fighting for a more inclusive and equitable future.

In the rich tapestry of Women's History, we find inspiring stories, unsung heroines, and groundbreaking accomplishments. As we honor the past, Women's History Month invites us to celebrate and support the women in our lives, fostering a culture of equality and empowerment. Whether through literature, film, or simple acts of acknowledgment, each of us has a role in contributing to the ongoing narrative of women's history. Let this month serve as a catalyst for continued conversations, reflections, and actions that shape a more gender-equal world for generations to come.

Helping women unlock their full potential.

With support from from people like you—generous volunteers, advocates, and donors—we're moving the needle on gender equality with our global programs that invest in the education dreams of women & girls.

Join the community and take action today!

The Glass Ceiling

The glass ceiling is an invisible yet prevalent barrier that prevents women from advancing into top leadership and decision-making roles, even with the qualifications, experience, and ambition to succeed. This lack of representation in high-paying executive and managerial positions widens the gender pay gap, as these roles often command the highest salaries and benefits in any organization. Different causes of the glass ceiling include a lack of mentorship, biases that women are less committed to their careers, and unequal access to leadership roles and projects.

Why is it called “Glass Ceiling”?

The term "glass ceiling" refers to an invisible barrier that prevents women and marginalized groups from advancing to higher positions in the workplace despite their qualifications and experience. It’s called a "glass" ceiling because it’s not always visible—there are no official policies blocking women, but unwritten biases and systemic obstacles still limit their progress. The term highlights how women can see top leadership roles but struggle to reach them due to discrimination, gender bias, and workplace cultures that favor men in leadership.

The Second Shift

The gender pay gap is closely linked to the "second shift," a term that describes the unpaid labor many women take on at home after their paid workday ends. This unpaid labor includes childcare, cooking, cleaning, and managing household responsibilities—work that often falls disproportionately on women, leaving them with less time and energy to focus on their careers.
This imbalance can significantly impact women’s earning potential. The demands of the second shift often push women toward part-time work or jobs with more flexibility but lower pay. It can also limit their ability to take on leadership roles, pursue additional training, or network professionally. Combined with biases and structural inequalities in the workplace, the second shift helps explain why the gender pay gap persists despite advancements in women’s participation in the workforce.

Why is there a gender pay gap?

The gender pay gap continues to persist due to systematic issues named the second shift, the glass ceiling, and the broken rung.

The Gender Pay Gap Worldwide

The gender wage gap isn't just an issue in the United States; it's a global challenge. Across the world, women face disparities that vary by region and country based on several factors.

Cultural and Social Norms: Traditional gender roles often limit women's participation in the workforce, pushing them toward unpaid or lower-paying jobs. In some cultures, women are restricted from working, which forces them into financial dependence and limits their economic freedom.

Educational Inequality: In some regions, women and girls have less access to education.  Barriers including cultural norms, early marriage, economic hardship, unsafe school conditions, conflict, legal restrictions, and lack of female role models limit their opportunities, reinforcing gender inequality.

Caregiving Responsibilities: Women disproportionately have responsibility for unpaid caregiving and domestic work, reducing their time for paid employment or advancement. The “sandwich generation”, adults caring for both aging parents and their own children, face emotional, financial, and physical stress as they juggle their responsibilities.

Legal and Policy Gaps: Many countries lack equal pay laws or policies that support women's workforce participation, such as parental leave or childcare services. More than 170 countries maintain legal barriers against women that prevent their full economic participation. In 86 countries, women face some form of job restriction, and 95 countries do not guarantee equal pay for equal work.

Intersectionality and the Gender Pay Gap

Intersectionality highlights how the gender pay gap is worsened by factors like race, religion, disability, and socioeconomic status, creating more profound inequalities for certain groups of women. Women of color, for instance, face both gender and racial wage disparities, with Black and Latina women in the U.S. earning significantly less than white men. Similarly, religious bias can limit career opportunities for women who wear hijabs or other religious symbols, affecting their earnings. Women who have immigrated may face hiring discrimination, and women who become pregnant (or are already mothers) may be passed over for advancement opportunities. Women from low-income backgrounds often struggle with access to education and high-paying jobs. Solutions must address these overlapping layers of discrimination to close the pay gap.