Gender Wage Gap

The Size of the Gender Wage Gap

According to the 2005 U.S. Bureau of Labor Statistics, female workers earn an average of 80 percent of men's earnings. This wage gap has declined from the 1950s when women only earned about $.60 per male dollar. Many factors have contributed to the declining wage gap. Part of the decrease can be attributed to the increase in women's wage's that occurred as women increased their human capital and job-related skills. In addition, more women now have careers that are uninterrupted by long absences for childrearing, which tend to reduce wages.

Another explanation for the decrease in the wage gap is that although women's wages have been increasing, many men found their wages falling in the 1970s and 1980s. This decline in male wages (especially for white men) is a result of the economic restructuring that began in the 1970s because of dein-dustrialization (a decrease in manufacturing) and the corresponding shift toward a service-based economy. The loss of manufacturing jobs that occurred with deindustrialization appears to have depressed the wages of male workers more than that of female workers, partly because more male workers were employed in manufacturing jobs.

Although wages have been increasing for some women and decreasing for some men, not all men and women have been affected similarly. Both men's and women's wages have become increasingly polarized in recent years, where the difference between the wages of those at the top and those at the bottom is becoming greater. This divide occurs largely along educational lines for both men and women, as workers with a college education have continued to experience rising wages. In addition, what specific job a worker holds may be important because the gender wage gap appears to vary in size by employment sector, occupation, and job title.

The size and shape of the gender wage gap is also influenced by race and ethnicity. According to the U.S. Bureau of Labor Statistics, white and Asian women earn 80 percent of what white and Asian men earn. This differs from Hispanic women who currently earn 87 percent of Hispanic males' earnings and black women who earn 89 percent of black males' earnings. The smaller wage gap between men and women who are Hispanic or black can be largely attributed to the fact that Hispanic and black men tend to earn less money than do white or Asian men.

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