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PAGE 9 30TH STORY of Level 2 printed in FULL format. Copyright 1999 Palm Beach Newspaper, Inc. The Palm Beach Post January 24, 1999, Sunday, FINAL EDITION SECTION: OPINION, Pg. 2E LENGTH: 650 words HEADLINE: WORKING WOMEN STILL AWAIT PAYOFF BYLINE: Fran Hathaway BODY: One of the few surprising moments in Tuesday's State of the Union address came when President Clinton called for equal pay for women and men - and applause rang out from both sides of the chamber. Even Mr. Clinton seemed pleasantly startled. "Let's make sure women and men get equal pay for equal work by strengthening enforcement of equal-pay laws, he had said. Why, of all the elements in that goody-laden speech, should that plea rouse even Republicans determined to sit on their hands? The better question might be: Why, after all these years, did women in 1997 still earn on average just 74.1 percent of the wages earned by men? For black women, the figure was 63 percent, according to Labor Department figures. For Hispanic women, it was 54 percent. Poll after poll shows pay equity is a top concern of working women and, increasingly, the men in their lives. A woman's earnings are the linchpin to her family's standard of living, her children's access to higher education and her own retirement security. Women were 46 percent of the work force in 1997 and earned $ 1 trillion. Yet the average 25-year-old woman who works full-time year-round and retires at 65 will earn $ 523,000 less than the average working man. And women still live several years longer than men. How many men would stand for picking up just three of every four paychecks? Why aren't more women demanding fair treatment? Many don't know they aren't getting it, says Evelyn Knolle, program coordinator for the National Committee on Pay Equity, a Washington not-for-profit coalition of 180 organizations. President Kennedy signed the Equal Pay Act in 1963. By 1997, the wage gap had narrowed from 62 percent in 1982 to 74.1 percent. Last year, the Clinton administration introduced the Paycheck Fairness Act to strengthen enforcement. Among other things, it would protect workers who share salary information with co-workers from being punished. Some companies prohibit that. But how else are women to know whether they are being treated fairly? This month, in the largest case of its kind, Texaco agreed to pay $ 3.1 million to 186 female mid-level workers whom the Labor Department found were systematically underpaid compared with their male counterparts. The department audits the practices of companies that do business with the federal government. Looking at the numbers of girls flooding into colleges and graduate schools, one might assume that better-educated women are catching up faster. But a PAGE 10 The Palm Beach Post, January 24, 1999 study last year by Catalyst, a New York women's research group, found that even the nation's top executive women earn only 68 cents for every dollar earned by men in comparable positions. Of the 2,267 top earners in the Fortune 500, 83 are women whose median annual compensation is $ 518,596, compared with $ 765,000 for men. Among female physicians, too, average income trails those of male physicians by tens of thousands of dollars, and in some specialties more than $ 100,000 a year, according to the latest Physician Compensation survey. Want to learn how much, over a lifetime, the pay gap will cost you or your wife or daughter? Call up the Web site www.aflcio.org/women, tap in your personal data and prepare for a jolt. Equal Pay Day was begun several years ago by the NCPE to raise awareness. Last year, more than 600 professional associations, unions and women's groups sponsored activities in 50 states. This year, it comes on April 8. The problem with banishing bias is that it's often systemic. Attitudes ingrained over many generations are hard to root out in one or two. They also are absorbed early. Ms. Knolle recalls a pay equity study done by a fourth-grader who compared her classmates' allowances. Girls did more chores, but boys got bigger allowances. Fran Hathaway is an editorial writer for The Palm Beach Post. Her e-mail address is [email protected] TYPE: COLUMN LOAD-DATE: January 25, 1999 PAGE 2 70TH STORY of Level 2 printed in FULL format. Copyright 1998 Federal Document Clearing House, Inc. Congressional Press Releases April 3, 1998, Friday SECTION: PRESS RELEASE LENGTH: 394 words HEADLINE: STATEMENT OF SENATOR EDWARD M. KENNEDY ON EQUAL PAY DAY BYLINE: EDWARD M. KENNEDY / SENATOR / SENATE BODY: For Immediate Release: April 3, 1998 Contact: Kathleen McKiernan (202) 224-2633 STATEMENT OF SENATOR EDWARD M. KENNEDY ON EQUAL PAY DAY Working women must have a paycheck that works for them, Economic security cannot be achieved without paycheck security, and paychecks should reflect the fair value of the job performed. For women, this means equal pay for equal work. Without it, they are less able to provide an economic safety net for themselves and their families, less able to purchase a home, less able to go or send their children to college. Thirty-five years ago, when President Kennedy signed the Equal Pay Act into law, he called it the first step in addressing 'the unconscionable practice of paying female employees less wages than male employees for the same job." A generation later, even that first step is in doubt. Wage discrimination against women continues to be a real and pervasive problem in workplaces across the country. The average female secretary makes $ 2,400 less than her male co- worker performing exactly the same job. The same trend is evident in almost every sector of the job market. Over the course of a lifetime, the average American woman loses approximately $ 420,000 in wages and benefits because of employers' pay discrimination. Today, the average American woman will finally -- finally earn what her male colleague had already earned by December 31, 1997. Why does it takes a woman 15 months to earn what a man earns in 12 months? That is clear gender bias and paycheck discrimination, and we cannot afford to ignore it any longer. Ingrained economic prejudices die hard. By passing the Paycheck Fairness Act, Congress, can do more to end the disparity between the earning power of men and women who perform the same job. The Act will make it easier to investigate charges of wage discrimination and provide compensation when violations are found. The Act also provides funds to ensure that the Equal Employment Opportunity Commission and the Women's Bureau at the Department of Labor have the resources needed to enforce the law vigorously, and to assist employers who are genuinely attempting to eliminate pay disparities. Every woman in America has a stake in swift Congressional passage of this measure. The sooner we strengthen the law, the sooner this unfair anti-woman bias in the workplace will end. LANGUAGE: ENGLISH LOAD-DATE: April 3, 1998 PAGE 2 41ST STORY of Level 2 printed in FULL format. Copyright 1998 The Christian Science Publishing Society The Christian Science Monitor July 17, 1998, Friday SECTION: UNITED STATES; Pg. 7 LENGTH: 1956 words HEADLINE: Another Day, Another 75 Cents SERIES: Where Women Stand - 150 Years After The Women's Rights Movement Began BYLINE: Ann Scott Tyson, Special to The Christian Science Monitor DATELINE: WASHINGTON HIGHLIGHT: More than day care or harassment, America's 63 million working women say 'equal pay for equal work' is their No. 1 concern. BODY: Most nights, single mother Dolores Jones checks on her sleeping son, locks the door of her brick duplex, and drives down dark, pot-holed streets to a graveyard shift as a custodian on Capitol Hill. For the past 11-1/2 years, Ms. Jones has worked until dawn dusting paper-strewn desktops, emptying trash, and pushing her husky Hoover sweeper through abandoned congressional suites - alone but for a few dogged staffers or lawmakers asleep behind "Do Not Disturb" signs. But while she is resigned to the wearing job, Jones is no longer willing to tolerate what she sees as a blatant injustice: Men who perform essentially the same work as she does earn $ 1 more per hour. "We are tired of the unfair treatment," says Jones, one of 52 women custodians who last July brought a class-action pay-equity suit against their employer. Many US women today share Jones's exasperation. Indeed, decades after women began breaking into the labor force in record numbers, the No. 1 concern of America's 63 million working women is the stubborn male-female wage gap. "Equal pay for equal work" is the top workplace issue for the vast majority of employed women (94 percent), according to a nationwide survey of 50,000 working women by the AFL-CIO last year. It is cited more often than child care (33 percent), sexual harassment (78 percent), or downsizing (72 percent). The emphasis on fairness is justified by facts: * Today, as a result of discrimination and other factors, women still earn only about 75 cents for every $ 1 that men make, according to the US Labor Department's median weekly wage figures for 1997. * On average, women earn $ 24,000 a year, compared with $ 32,000 for men. PAGE 3 The Christian Science Monitor, July 17, 1998 * If current wage patterns continue, the average 25-year-old woman who works full time year-round for 40 years will earn $ 400,000 to $ 500,000 less than her male peer, according to the Institute for Women's Policy Research (IWPR) in Washington. Especially hard hit by the gap are the 2 of every 5 working women who, like Jones, are the sole breadwinners in their homes. The toll is also heavy on minority women, as well as the expanding number of older women, whose retirement security is hurt by lower lifetime earnings. (See related story, Page 8.) "It's been hard on me in terms of keeping up with the mortgage," says Jones, who is divorced and supports her eight-year-old son and retired mother on $ 23,000 a year. Most of her female co-workers are heads of household, she says. Moreover, even as women's participation in the labor force continues to grow - reaching nearly 60 percent last year - elimination of the wage gap is in no way assured, economists say. Although the gap has narrowed slowly since 1980, when women's earnings averaged just 60 percent of men's, most of the change can be attributed to a backsliding by men rather than progress by women, says Heidi Hartmann, director of the IWPR. Falling wages for men account for about three-fifths of the shrinking of the wage gap since 1980. But when men gain, as they did in the mid-1990s, the gap widens again. From 1993 to 1997, for example, men's wages rebounded as women's earnings stalled, leading to a wider gap. Only very recently, in the first quarter of 1998, did the earnings ratio inch back up to 76 cents per dollar. Economists are unsure the trend will hold, attributing it to short-term phenomena such as the strong economy and a boost in the minimum wage. (Women are two-thirds of minimum-wage workers, so they benefit disproportionately from the increase.) "There is a lot of reason for concern that we won't see the continued narrowing," says Ms. Hartmann. Experts point to three basic reasons why women still earn less, despite progress in each area: Experience and education. Women's relative shortfall in full-time work experience remains a leading source of wage inequality, accounting for one-third of the gender pay gap in the late 1980s, according to research published last year in the Journal of Labor Economics. Women make up 68 percent of part-time workers. They also more often take time off to care for children or elderly relatives. "Children are associated with lower wages for women but not for men," notes a report this month by the president's Council of Economic Advisers. Women do get penalized for time off. A 1994 study of nearly 200 women with MBA degrees showed that those who took leave after childbirth - averaging eight months - earned 17 percent less than did women who never took time off. Today, however, the trend is toward greater continuity in the work force by PAGE 4 The Christian Science Monitor, July 17, 1998 women, including mothers. Unlike in the 1970s, when women often left paid work during mid- career years to care for children, women's pattern of labor participation now much more closely resembles that of men. In 1996, for instance, 54.3 percent of women were back on the job by their baby's first birthday. Meanwhile, women are entering the work force with greater education and skills. Women now earn more bachelor's and master's degrees than men do. And last year, many more female high-school graduates (70.3 percent) went to college than did male (63.5 percent). Gender segregation of occupations. Another nearly 30 percent of the pay gap arises from the clustering of women in traditionally female job categories, which pay less than blue-collar trades that are still dominated by men. For example, most of the nation's 3 million secretaries and 3.6 million teachers are women, as are the majority of nurses and cashiers. "We still have a long way to go when you look at the occupational categories and the participation rates of women,' says Labor Secretary Alexis Herman. Much has changed since the 1960s, when newspapers ran "Help Wanted - Male" ads offering higher pay for men than for women doing the same work. Back then, women were discouraged from careers in medicine and law and were virtually barred from skilled trades. In the 1970s and '80s, the segregation of jobs by gender declined as women moved into traditionally male jobs. From 1983 to 1997, the proportion of employed women who worked in managerial and professional occupations increased from 23 percent to 32 percent. More than 25 percent of lawyers and physicians are now female. But even as women break into jobs that were formerly male bastions, they are still paid less. "There is a pay gap in every job category," says Karen Nussbaum, director of the working women's department at the AFL-CIO in Washington. Discrimination. "Discrimination is clearly still a factor in the labor market today, and that is why enforcement efforts are very important," says Ms. Herman. At least one-quarter of the wage gap is the result of differences in pay between men and women "working in similar jobs and establishments, according to a study published this year by economists of the National Bureau of Economic Research in Cambridge, Mass. For example, Jones and other female "custodians" who vacuum and dust inside congressional suites contend that their work is the same as that of the male "laborers" who wash the hallways and polish the brass banisters outside. "We do just as much work as the men, and they get paid more," Jones says. In addition to holding down women's pay, discrimination prevents women from being hired and promoted into better-paying jobs. Finally, gender biases long entrenched in wage structures continue to hamper efforts to increase wages for what was once unpaid "women's work,' such as PAGE 5 The Christian Science Monitor, July 17, 1998 child care, says Ellen Bravo, head of the 9 to 5 National Association of Working Women in Milwaukee. "Women's work has been devalued,' she says. Given the long-term trends in women's work experience, education, and inroads into male occupations, some experts anticipate that the wage gap will continue to shrink, albeit slowly and unevenly. "It is clearly a work in progress, but we've come a long way, says Herman. Still, advocates of equal pay stress that without stronger and better-enforced antidiscrimination laws, it will be difficult to close the gap. The Equal Pay Act of 1963, which now covers women in most jobs, prohibits pay disparities between men and women who are performing work under similar conditions that is "substantially equal" in skill, effort, and responsibility. The reach of the law is limited, however. Men and women must work in the same establishment; hiring discrimination is not covered; exceptions are made for seniority and merit systems; and the maximum compensation is double three years' back pay. As a result, plaintiffs in equal-pay lawsuits often also bring claims under Title VII of the Civil Rights Act, which more broadly prohibits sex discrimination and allows damages of as much as $ 300,000. Enforcement of the law is also lacking, partly because it is difficult for people to learn how much others earn. "The key is having the data," says Jocelyn Frye, director of legal and public policy for the National Partnership for Women and Families, an advocacy group in Washington. "A lot of times people don't have access to information that will allow them to know whether they are being paid unfairly." Over the past 12 years, the Equal Employment Opportunity Commission (EEOC), which holds enforcement authority for the Equal Pay Act, has filed only 164 cases, resolved 251 lawsuits, and recovered some $ 16 million. Hampered by understaffing and underfunding, the EEOC often takes more than a year to resolve a case. Federal and state legislative initiatives aim to strengthen laws against pay inequity in several ways. The Paycheck Fairness Act, which has been introduced in the Senate, would combat pay discrimination by bolstering EEOC resources, allowing higher penalties and compensation for violations of the Equal Pay Act and lifting gag rules imposed by employers who forbid employees to discuss wages with co-workers. Meanwhile, equal-wage advocates are seeking federal legislation that would make it illegal for employers to pay part-time workers - the majority of whom are women - at a lower hourly rate than they pay full-time employees doing the same job. And more than half the states have taken action or passed legislation since the 1980s to create a principle of "comparable worth," eliminating wage disparities between traditionally male and female occupations, such as janitor and clerical worker. A Fair Pay Act bill with similar aims has been introduced in both houses of Congress. PAGE 6 The Christian Science Monitor, July 17, 1998 For Jones and her female co-workers, winning the right to unionize in 1996 gave them a weapon for combatting alleged wage discrimination by the Architect of the Capitol (AOC), a federal body that oversees all House and Senate buildings. The AOC declined to comment on the case, which is expected to go to trial in 1999. "I've known about the wage gap for years, but we didn't have the backing or unity to do anything about it," says Jones, who this January was elected chief shop steward in her union. "It was like whispers in the night," she says. "Nobody heard." Women in the Workplace How women have fared in six professions: Judges in states' highest courts 1985: 23 / 1997: 78 (actual number) College professors 1975: 24.7% / 1995: 34.6% Police forces 1972: 2.0% / 1997: 13.3% Construction workers 1964: 4.9% / 1997: 11.1% Pilots/navigators 1983: 2.1% / 1996: 1.4% Bank CEOs 1986: 1.4% / 1997: 4.9% GRAPHIC: PHOTOS: 1) A CAPITOL OFFENSE? Dolores Jones, a custodian, says she earns $1 an hour less than men do who perform basically the same work. BY ANDY NELSON - STAFF 2) Women left to right: Ruth Abrams, justice, Massachusetts Supreme Judicial Court, Boston; Helen Lefkowitz Horowitz professor of American studies, Smith College, Northhampton, Mass.; Pamela Grace, police sergeant, Boston; Jennie Anderson, construction worker, Boston; Linda Tobin, pilot, Southwest Airlines, Oakland, Calif.; and Angela Hill, assistant vice president of Community Development Group, NationsBank, Washington. ILLUSTRATION: Showing Women in the Workplace. PHOTO ILLUSTRATION BY ARI DENISON -STAFF/FROM STAFF PHOTOS CHART: Showing US Wage Gap, 1960 - 1996 BY JEWEL BECKER SIMMONS - STAFF LANGUAGE: ENGLISH Working Women: Equal Pay--Facts About Working Women http://www.aflcio.org/women/wwfacts.htm AFL-CIO WORKING WOMEN EQUAL This net Site was mentioneD the na Jan 24, 1999 BlurB Fact Sheet wrateit, palm Beach - Fran Hathavay in Facts About Working Women More women are working than ever before. And they're looking for solutions to the problems of juggling work and family, making ends meet and finding respect and opportunity on the job. More and More Women Are Working Over the past century, women workers have grown steadily in number and as a proportion of the workforce. The number of working women has grown from 5.3 million in 1900 to 18.4 million in 1950 and to 63 million in 1997. Women made up 18.3 percent of the labor force in 1900, 29.6 percent in 1950 and 46.2 percent in 1997. 1,2,3 In the United States, 99 out of every 100 women will Women's Share of the Labor Force, 1870-1997 work for pay at some point in 50% their lives. 4 Regardless of their marital status, the 40 majority of women (except widows)--even those with 30 young children--work for pay. 20 62.1 percent of married 10 women with spouses present, 65.3 percent 0 of married women with absent spouses, 66.8 1880 1900 1920 1940 1960 1980 1997 1870 1890 1910 1930 1950 1970 1990 percent of never-married women Source: Bureau of Labor Statistics, Employment and Earnings, various years; Bureau of the Census, The Statistical History of the United and 74.5 percent of States-From Coloniul Times to the Present. 1976: Bureau of Labor divorced women were Statistics. Handbook of Labor Statistics-Builetin 2340, August 1989. in the labor force in March 1997. 5 1 of 8 2/18/99 10:08 AM Working Women: Equal Pay--Facts About Working Women http://www.aflcio.org/women/wwfacts.htm 71.9 percent of women with children younger than 18, 77.9 percent of women with 6- to 17-year-olds and 64.8 percent of women with children younger than 6 were in the labor force in 1997. 6 53.8 percent of women without children younger than 18 were in the labor force in 1997. 7,8 More Families Are Maintained by Women The number and proportion of families in which a woman is the householder and no spouse is present are growing, too. In 1997, 12.8 million families were maintained by women, representing 18.2 percent of all families, 9 compared with 5.6 million--10.8 percent of all families--in 1970. 10 62 percent of women who maintained families were employed in 1997. 11 Nonstandard Work Most "nonstandard" workers (workers who do not hold regular, full-time jobs) are women. 12 55 percent of workers paid by temporary help agencies are female. 13 70 percent of part-time workers are female. 14 Holding Multiple Jobs Women accounted for 85 percent of the total increase between 1989 and 1995 in the number of workers with more than one job. 15 47 percent of all multiple jobholders in 1995 were women, up from 20 percent in 1973. 16 Wages and Income 2 of 8 2/18/99 10:09 AM Working Women: Equal Pay--Facts About Working Women http://www.aflcio.org/women/wwfacts.htm In 1996, women who Distribution of Total Money Earnings, worked full time, by Gender year-round earned 74 40% 37% cents for every dollar 33% 33% Men earned by men. 17 30 28 Over a lifetime of Women 24% work, the average 20% 20 25-year-old woman 12% who works full time, 10 7% year-round until she 4% 2% retires at age 65 will 0 earn $523,000 less than the average working $10,000 to $24,999 $50,000 to $74,999 man. 18 Women who worked Less than $10,000 $25,000 to $49,000 $75,000 & full time, year-round Source: Bureau of the Cersus, Money Income in the United States: 1996, saw their P 60-197. inflation-adjusted median annual earnings increase by 2.4 percent from 1995 to 1996--but 1996 earnings remained lower than those in 1989. 19 Median family income (adjusted for inflation) increased only by 1.9 percent between 1979 and 1996--and fell by 2.3 percent between 1989 and 1996. 20 For the poorest two-fifths of families, average family income (adjusted for inflation) fell between 1979 and 1996. 21 In 1996, 70 percent of working women earned less than $25,000, compared with 48 percent of men. 22 58 percent of the workers who benefited from the last increase in the minimum wage were women. 23 Benefits 3 of 8 2/18/99 10:09 AM Working Women: Equal Pay--Facts About Working Women http://www.aflcio.org/women/wwfacts.htm In 1996, 41.4 million people younger than Percentage of Workers With Benefits 65--17.7 percent of By Union Status, 1995 nonelderly 100% 85% 87% Americans--were 80 78% without health 74% insurance. This is up from 31.8 million 60 people, or 14.8 percent of the 40 nonelderly population, in 20 1987 24 58 percent of 0 private-sector wage Medical Care Retirement and salary workers Union Workers Nonunion Workers were covered by employer-sponsored Source: Bureau of the Cersus, Money Income in the United States: 1996. P60-197. health insurance plans in 1993--down from 62 percent in 1988. That included 63 percent of male private-sector wage and salary workers but only 51 percent of women. 25 43 percent of private-sector wage and salary workers in 1993 were covered under an employment-based pension plan--up from 42 percent in 1988. Forty-six percent of male but only 39 percent of female private-sector wage and salary workers were covered. 26 In 1995, the median annual private pension income was $7,800 for men older than 65, but only $4,200 for women, 27 14 percent of working women do not have sick leave, including 31 percent of women earning less than $10,000 a year. 28 Unions Benefit Working Women Pay for women in unions is higher than for their nonunion counterparts. In 1997, women union members earned 40 percent more than nonunion women, according to union wage data based upon the median weekly earnings of full-time wage and salary workers. 29 African American women who belonged to unions earned 44 percent more than their nonunion counterparts. 30 Latina union members earned 42 percent more than nonunion Latina workers. 31 Unions work to increase equality in wages between women and men. Union women earned 84 percent of what union men earned in 1997, while nonunion women earned only 76 percent of what nonunion men earned. 32 Union workers are more likely than nonunion workers to have health and pension benefits. 4 of 8 2/18/99 10:09 AM Working Women: Equal Pay--Facts About Working Women http://www.aflcio.org/women/wwfacts.htm 85 percent of full-time union workers in medium-sized and large private establishments had health benefits in 1995, compared with 74 percent of full-time nonunion workers. 33 87 percent of full-time union workers in medium-sized and large private establishments had retirement benefits, compared with 78 percent of full-time nonunion workers. 34 Gender and Organizing Women make up a growing percentage of union membership. In 1962, women accounted for 19 percent of union membership. 35 By 1997, 39 percent of all union members were women. 36 When they have the opportunity, women consistently are more likely than men to vote for unions. 37 Public opinion polls show that women favor collective action. When asked if women should join together in groups to solve their workplace problems, 79 percent of nonunion women workers said yes. 38 Among nonunion workers, 49 percent of women in 1997 said they would vote for a union, while only 40 percent of men said they would vote for one. Nonunion women consistently have been more supportive of unionizing the workplace than nonunion men. 39 Organizing Women The AFL-CIO, with 5.5 million women members, is a powerful voice for working women. To make your voice heard, join in the Working Women Working Together Network! Call toll free 1-888-971-9797 for more information. Endnotes: 1. U.S. Bureau of the Census, The Statistical History of the United States--From Colonial Times to the Present, 1976. 2. Bureau of Labor Statistics, Handbook of Labor Statistics--Bulletin 2340, August 1989. 3. Bureau of Labor Statistics, Employment and Earnings, January 1998. 4. U.S. Department of Labor, Women's Bureau, Working Women Count! A Report to the Nation, 1994. 5. U.S. Department of Labor, 20 Facts on Women Workers, May 1998. 5 of 8 2/18/99 10:09 AM Working Women: Equal Pay--Facts About Working Women http://www.aflcio.org/women/wwfacts.htm 6. U.S. Department of Labor, Employment Characteristics of Families in 1997, 1998. 7. Women counted as having children are those women with birth children, step-children and adopted children. Women who are raising nieces, nephews, grandchildren, and other children are not counted in the BLS statistics. 8. U.S. Department of Labor, Employment Characteristics of Families in 1997, 1998. 9. Ken Bryson and Lynne M. Casper, Household and Family Characteristics: March 1997, P20-509, Bureau of the Census, April 1998; Bureau of the Census, "Table F-7. Type of Family--Families (All Races) by Median and Mean Income: 1947 to 1996," www.census.gov/hhes/income/histinc/f07.html. 10. Ken Bryson and Lynne M. Casper, Household and Family Characteristics: March 1997, P20-509, Bureau of the Census, April 1998; Bureau of the Census, "Table F-7. Type of Family--Families (All Races) by Median and Mean Income: 1947 to 1996," www.census.gov/hhes/income/histinc/f07.html. 11. U.S. Department of Labor, Employment Characteristics of Families in 1997, 1998. 12. AFL-CIO analysis of Current Population Survey, February 1997. 13. AFL-CIO analysis of CPS, February 1997. 14. AFL-CIO analysis of CPS, February 1997. 15. Lawrence Mishel, Jared Bernstein, and John Schmitt, The State of Working America 1996-97, Economic Policy Institute, 1996. 16. (Lawrence Mishel, Jared Bernstein, and John Schmitt, The State of Working America 1996-97, Economic Policy Institute, 1996. 17. Bureau of the Census, "Table P31. Year-Round, Full-Time Workers--Persons (All Races) 15 Years Old and Over by Median Earnings and Sex: 1960 to 1996," www.census.gov/hhes/income/histinc/p31.html. 18. Institute for Women's Policy Research, The Male-Female Wage Gap: Lifetime Earnings Losses, 1998. 19. Bureau of the Census, "Table P31. Year-Round, Full-Time Workers--Persons (All Races) 15 Years Old and Over by Median Earnings and Sex: 1960 to 1996," www.census.gov/hhes/income/histinc/p31.html. 20. Bureau of the Census, "Table F-7. Type of Family--Families (All Races) by Median and Mean Income: 1947 to 1996," www.census.gov/hhes/income/histinc/f07.html. 6 of 8 2/18/99 10:09 AM Working Women: Equal Pay--Facts About Working Women http://www.aflcio.org/women/wwfacts.htm 21. Bureau of the Census, "Table F-7. Type of Family--Families (All Races) by Median and Mean Income: 1947 to 1996," www.census.gov/hhes/income/histinc/f07.html. 22. Bureau of the Census, Money Income in the United States: 1996, P60-197. 23. Jared Bernstein, America's Well-Targeted Raise--Data Shows Benefits of Minimum Wage Increase Going to Workers Who Need It Most, Economic Policy Institute, 1997. 24. Paul Fronstin, "Sources of Health Insurance and Characteristics of the Uninsured: Analysis of the March 1997 Current Population Survey," EBRI Issue Brief Number 192, December 1997. 25. U.S. Department of Labor, Social Security Administration, U.S. Small Business Administration, and the Pension Benefit Guaranty Corporation, Pension and Health Benefits of American Workers--New Findings from the April 1993 Current Population Survey, May 1994. 26. U.S. Department of Labor, Social Security Administration, U.S. Small Business Administration, and the Pension Benefit Guaranty Corporation, Pension and Health Benefits of American Workers--New Findings from the April 1993 Current Population Survey, May 1994. 27. Employee Benefit Research Institute, EBRI Databook on Employee Benefits, 1997. 28. U.S. Department of Labor, Women's Bureau, Working Women Count! A Report to the Nation, 1994. 29. Bureau of Labor Statistics, Employment and Earnings, January 1998. 30. Bureau of Labor Statistics, Employment and Earnings, January 1998. 31. Bureau of Labor Statistics, Employment and Earnings, January 1998. 32. Bureau of Labor Statistics, Employment and Earnings, January 1998. 33. U.S. Department of Labor Employee Benefits Survey, "Full-Time Workers in Medium and Large Private Establishments," stats.bls.gov/ebs2/ebb10013.pdf. "Health benefits" refers to medical coverage. 34. U.S. Department of Labor Employee Benefits Survey, "Full-Time Workers in Medium and Large Private Establishments," stats.bls.gov/ebs2/ebb10013.pdf. 35. Bureau of Labor Statistics, Handbook of Labor Statistics, Bulletin 2070, December 1980. 36. Bureau of Labor Statistics, Employment and Earnings, January 1998. 7 of 8 2/18/99 10:09 AM Working Women: Equal Pay--Facts About Working Women http://www.aflcio.org/women/wwfacts.htm 37. Kate Bronfenbrenner, Director of Labor Education Research at Cornell University's School of Industrial and Labor Relations. 38. Lake, Sosin, Snell, Perry & Associates, Inc., survey of working women conducted for the AFL-CIO, July 30-August 3, 1997. 39. Peter D. Hart Research Associates, Inc., Working Women's View of the Economy, Unions, and Public Policy, 1998. TOP APL-CIO © Copyright [ AFL-CIO Home I [ Working Women Working Together I [ How Much Will the Pay Gap Cost YOU? I [ Join the Working Women Working Together Network ] [ Ask a Working Woman Executive Summary ] I Facts About Working Women I [ Working Together for Kids ] I Other Issues That Matter I I Order Materials ] 8 of 8 2/18/99 10:09 AM Page 4 LEVEL 1 - 4 OF 29 STORIES Copyright 1998 Associated Press AP Online April 03, 1998; Friday 02:50 Eastern Time SECTION: Washington - general news LENGTH: 371 words HEADLINE: White House Backs Pay Equality DATELINE: WASHINGTON BODY: On this National Equal Pay Day, the Clinton administration is stepping up support for congressional action to narrow the gap between what women and men earn. Vice President Gore on Thursday urged passage of the Paycheck Fairness Act, which would toughen the Equal Pay Act by allowing compensatory and punitive damages and easing the way for cases to proceed as class actions. President Clinton released a proclamation urging employers to 'review their wage practices and to ensure that all their employees, including women, are paid equitably for their work. , Today's National Equal Pay Day is the day when a typical woman's earnings for the year, coupled with her 1997 earnings, equal what the average man made in 1997 alone. Women on average earn 74 cents for every dollar men earn, although that is up from 59 cents in 1970, according to the Census Bureau. The gap is closing at a rate of about a half a penny a year. The disparity is even bigger for minority women. Black women earn 65 cents and Hispanic women 57 cents for every dollar earned by white men. The legislation's author, Rep. Rosa DeLauro, D-Conn., stressed that pay inequality affects not only women but their families as well. Two out of five working women provide the sole economic support for their family. I This is fundamentally a day about paychecks and reality checks, Labor Secretary Alexis Herman said to a crowd wearing AFL-CIO stickers that read, Where's my 26 cents?' Gore outlined additional administration initiatives to provide better analysis of data on the wage gap and help federal agencies enforce pay discrimination and civil rights law. He also announced Clinton's nomination of attorney Ida L. Castro as commissioner of the Equal Employment Opportunity Commission. Castro is acting director of the Women's Bureau at the Labor Department and has been involved in TM TM TM LEXIS:NEXIS® LEXIS:NEXIS® LEXIS·NEXIS' A member of the Reed Elsevier pk group Q A member of the Reed Elsevier plc group A member of the Reed Elsevier plc group Page 5 AP Online, April 03, 1998 employment and labor issues throughout her career. , As a Hispanic woman, she has learned to face double discrimination by ethnicity and gender to develop the toughness that she needs to take care of herself and soon, as chair of EEOC, of so many others, 1 I Gore said. Castro's nomination will be sent to the Senate for confirmation. LANGUAGE: ENGLISH LOAD-DATE: April 03, 1998 TM TM TM LEXIS·NEXIS' LEXIS:NEXIS' LEXIS·NEXIS' A member of the Reed Elsevier plc group A member of the Reed Elsevier plc group A member of the Reed Elsevier ple group Page 2 LEVEL 1 - 1 OF 29 STORIES Copyright 1998 M2 Communications Ltd. M2 PRESSWIRE April 7, 1998 LENGTH: 487 words HEADLINE: THE WHITE HOUSE Vice President Gore announces support for legislation on equal pay BODY: Vice President Gore today announced the Administration's support for legislation, introduced by Senate Minority Leader Tom Daschle and Congresswomen DeLauro, to improve enforcement of wage discrimination against women and to strengthen the remedy provisions in the Equal Pay Act to allow for compensatory and punitive damages. In a White House ceremony, the Vice President also announced new initiatives that would enhance enforcement of wage discrimination both in the private sector and the federal government. The price of unequal pay is denying our children adequate health care, keeping our kids from going to college and stopping thousands of women across the country from paying their bills, Vice President Gore said. And that is why President Clinton and I are committed to closing the wage gap between women and men and giving women the pay they need and deserve. The Vice President's announcements came a day before Equal Pay Day, the date when women's earnings finally catch up to men's 1997 earnings. On average, women are paid 74 cents for every dollar men earn - forcing women to work for 15 months to earn what men earn in 12 months. To address this inequality, more than 650 Equal Pay Day activities will be held across the country. The Administration's new initiatives will provide increased analysis of data on the wage gap; help federal agencies enforce wage discrimination law; provide technical assistance by highlighting best practices and offering a voluntary self-audit on the Internet; and strengthen the federal role in hiring and retaining qualified women. Specifically, the Vice President announced two Memoranda of Understanding between the Equal Employment Opportunity Commission (EEOC) and the Department of Labor to cross-train their staffs to be sensitive to potential violations of the laws they enforce, including the Equal Pay Act, and to help the Department of Labor to collect damages under Title VII of the Civil Rights Act of 1964. Also, the Vice President announced a ten-step voluntary self-audit for both private businesses and the federal agencies in order to help them monitor their efforts on equal pay. Finally, the Vice President will announce the Guide to Recruitment and Retention of Women in the federal government, a manual designed to assist agency managers hire and retain talented women. The Vice President was joined by Labor Secretary Alexis Herman, AFL-CIO Vice TM TM TM LEXIS:NEXIS' LEXIS:NEXIS' LEXIS:NEXIS' A member of the Reed Elsevier plc group A member of the Reed Elsevier plc group A member of the Reed Elsevier plc group Page 3 M2 PRESSWIRE April 7, 1998 President Linda Chavez Thompson, National Committee Pay Equity Chair Susan Bianchi Sands, Senator John Breaux (D-LA), Senator Tom Daschle (D-SD), Senator Dianne Feinstein (D-CA), Senator Bob Kerrey (D-NE), Senator Ted Kennedy (D-MA), Senator Carol Moseley-Braun (D-IL), Senator Harry Reid (D-NV), Senator Chuck Robb (D-VA), Rep. Rosa DeLauro (D-CT), Rep. Eleanor Holmes Norton (D-DC), Rep. Jim Maloney (D-CT), Rep. David Obey (D-WI), Rep. Robert Underwood (D-GUAM). LANGUAGE: English LOAD-DATE: April 8, 1998 TM TM TM LEXIS·NEXIS' LEXIS:NEXIS LEXIS:NEXIS' A member of the Reed Elsevier plc group A member of the Reed Elsevier plc group A member of the Reed Elsevier plc group Page 6 LEVEL 1 - 17 OF 29 STORIES Copyright 1998 Bergen Record Corp. The Record (Bergen County, NJ) April 3, 1998; FRIDAY; ALL EDITIONS SECTION: NEWS; Pg. A18 LENGTH: 287 words HEADLINE: GORE LOBBIES FOR BILL TO SPEED PAY EQUALITY SOURCE: Wire services BYLINE: SARAH WYATT, The Associated Press DATELINE: WASHINGTON BODY: The Clinton administration supports legislation that aims to close the gap between what women and men earn, Vice President Al Gore said Thursday. Today is National Equal Pay Day, when a typical woman's pay for the year, coupled with her 1997 earnings, equal what the average man made in 1997 alone. Women on average are paid 74 cents for every dollar men receive, up from 59 cents in 1970, according to the Census Bureau. The gap is closing at a rate of about a half a penny a year. The disparity is even bigger for minority women. Black women get 65 cents and Hispanic women 57 cents for every dollar received by white men. In recognition of National Equal Pay Day, President Clinton released a proclamation urging employers to "review their wage practices and to ensure that all their employees, including women, are paid equitably for their work. " Gore said Thursday that there is no simple reason for this discrepancy and that women's work no longer can go undervalued. "We insist that women receive full and fair reward for their work and that the nature of that work reflect a full and fair recognition of women's accomplishments, "Gore said. "For me, it's a simple matter of wanting my daughters to have the same opportunities in life that my son will have. II Gore urged passage of the Paycheck Fairness Act, which would toughen the Equal Pay Act by allowing compensatory and punitive damages and easing the way for cases to proceed as class actions. TM TM TM LEXIS:NEXIS' LEXIS:NEXIS' LEXIS:NEXIS' A member of the Reed Elsevier plc group A member of the Reed Elsevier plc group A member of the Reed Elsevier plc group Page 7 The Record (Bergen County, NJ), April 3, 1998 The bill's author, Rep. Rosa DeLauro, D-Conn., stressed that pay inequality affects not only women but also their families. Two out of five working women provide the sole economic support in the home. GRAPHIC: GRAPHIC - AP - GENDER WAGE GAP (text not available) LANGUAGE: English LOAD-DATE: April 3, 1998 TM TM TM LEXIS:NEXIS® LEXIS:NEXIS® LEXIS:NEXIS' A member of the Reed Elsevier plc group A member of the Reed Elsevier plc group A member of the Reed Elsevier plc group Clinton Presidential Records Digital Records Marker This is not a presidential record. This is used as an administrative marker by the William J. Clinton Presidential Library Staff. This marker identifies the place of a publication. Publications have not been scanned in their entirety for the purpose of digitization. To see the full publication please search online or visit the Clinton Presidential Library's Research Room. EQUAL PAY WORKING FAMILIES NATIONAL AND STATE DATA ON THE PAY GAP AND ITS COSTS A Joint Research Project of the AFL-CIO and the Institute for Women's Policy Research file equal pay Rebuttal to George Will's article in Newsweek, March 29, 1999 p. 84. While it would be going too far to say that the entire gender pay gap is due to employer discrimination, George Will surely goes too far in the other direction when he dismisses discrimination as a "negligible cause" of the income disparities between men and women, which he says are "largely the result of rational personal choices by women." According to Will," Earnings differentials often reflect different professional paths that are cheerfully chosen because of different preferences, motivations, and expectations." Will is correct that women's wages and educational attainment have been rising in recent years, but there is still a sizeable gender wage gap that cannot be explained by observable characteristics. Among all full-time wage and salary workers age 16 or older in 1998, the median woman earned $456 per week, 76.3% as much as the median man. In 1979 she had earned only 62.5% as much as he had. The best analysis we have of the gender gap in pay (based on 1988 data, unfortunately) controls for differences in actual years of work experience as well as in education, occupation, industry, and unionization. These variables already incorporate many of a woman's "preferences, motivations, and expectations"; yet they accounted for only 61% of the gender pay gap in 1988. Applied to 1998 data, that leaves a gap of 9.3% still unexplained. We do not know how much of this remaining gender gap is due to unobserved characteristics that are legitimately related to pay, such as specialty within an occupational category (e.g., social work vs engineering within the professions), and how much is due to discrimination. But even within narrow occupations, women of the same experience and education earn less than men. Will argues that women happily choose to take low-paid jobs because they prefer to devote themselves to child rearing. If this is the general case, why are women acquiring "almost 40% of the MBAs, [and] more than 40% of law and medical degrees"? Will ignores an alternative explanation that is more consistent with these facts that after getting their degrees and starting their careers, women experience gender-based barriers to acquiring the training, mentoring, connections, and other resources that they need to rise in their chosen occupations. They may also encounter discrimination (often the result of unconscious bias) in promotions. In the face of these barriers, they find the expected return on an investment in "60-hour weeks on the fast track" too low and uncertain to be worthwhile. For married couples, it may then make sense for the husband to remain on the "fast track" and the wife to shift to the "mommy track." But this is not their original preference; rather, it is the result of "rational choice" in the face of gender discrimination. Moreover, the impacts of family and children on women's careers and earnings are not unalterable consequences of biology, as Will seems to believe. Rather, they are due to current social arrangements and workplace practices that make it difficult to combine career and family, but that could be changed and indeed, are changing. Fathers spending more time in household and child-rearing tasks, employers providing family leave, and government efforts to increase the availability of affordable, convenient, and flexible child care are steps in the right direction. MIT has just issued "A Study on the Status of Women Faculty in Science at MIT" that reveals some ways gender bias can operate in the professional workplace. The report documents a pattern in the MIT School of Science of "sometimes subtle -- but substantive and demoralizing -- [gender] discrimination in areas from hiring, awards, promotions and inclusion on important committees to allocation of valuable resources like laboratory space and research money." The report defines discrimination as consisting of "a pattern of powerful but unrecognized assumptions and attitudes that work systematically against women faculty even in the light of obvious good will." According to the dean of the School of Science, "I believe that in no case was this discrimination conscious or deliberate. Indeed, it was usually totally unconscious and unknowing. Nevertheless, the effects were real." Particularly revealing is the MIT report's finding that "junior female faculty tended to feel well taken care of and untouched by discrimination; it was only as they became senior faculty that they felt themselves increasingly marginalized and overlooked by male-dominated networks." Such subtleties are overlooked by Will when he uses the near-equality of earnings of men and childless women at ages 27 to 33 as evidence that gender discrimination is not a problem in the labor market. THE WHITE HOUSE WASHINGTON Nicole, Here is the report & told you about Highlights 1) america's families lose $ 200 bellion per year because of the wage gap 2) Each family loses $4000 arondially Many EQUAL PAY WORKING FAMILIES NATIONAL AND STATE DATA ON THE PAY GAP AND ITS COSTS A Joint Research Project of the AFL-CIO and the Institute for Women's Policy Research EQUAL PAY FOR WORKING FAMILIES NATIONAL AND STATE DATA ON THE PAY GAP AND ITS COSTS A Joint Research Project of the AFL-CIO and the Institute for Women's Policy Research HEIDI HARTMANN, Ph.D., President and Director INSTITUTE FOR WOMEN'S POLICY RESEARCH KATHERINE ALLEN, Study Director INSTITUTE FOR WOMEN'S POLICY RESEARCH AFL-CIO CHRISTINE OWENS, Assistant Director of Public Policy Copyright © 1999 AFL-CIO and IWPR. All Rights Reserved. AFL-CIO Institute for Women's Policy Research Working Women's Department 1400 20th St., N.W. 815 16th St., N.W. Suite 104 Washington, D.C. 20006 Washington, D.C. 20036 202-637-5064 202-785-5100 www.aflcio.org/women www.iwpr.org For additional copies, contact AFL-CIO Support Services at 202-637-5042. Table of Contents page Executive Summary 1 Working Families Pay a Steep Price for Unequal Pay 1 The Size of the Pay Gap Varies by State 2 Unequal Pay Hurts Men, Too 2 Unions Mean Big Pay Gains, Smaller Pay Gaps 3 Introduction 5 What Do Wage Gaps Tell Us? 6 Section I. Large Wage Gaps Persist for Women and Minority Workers 9 Section II. Unequal Pay for Women Lowers Family Incomes and Increases Poverty 13 Section III. Men and Women in Female-Dominated Jobs Suffer Wage Penalties 15 Section IV. Union Membership Means Big Pay Gains, Smaller Pay Gaps 17 Conclusion 21 National Summary Table 22 Technical Appendix 26 Tables and Figures Table 1. The Gender Wage Gap 9 Table 2. The Minority Wage Gap 9 Table 3. Mean Annual Earnings, Mean Family Income and Poverty Rates if Working Women Earned the Same as Men 13 Table 4. Mean Annual Earnings of Women and Men Aged 18 and Older in Female-Dominated Occupations 15 Table 5. The Union Wage Advantage 17 Table 6. The Gender Gap for Union and Nonunion Workers 18 Table 7. The Minority Wage Gap for Union and Nonunion Workers 19 National Summary Table 22 Figure 1. Median Weekly Earnings for Full-Time Workers, 1997 12 Executive Summar qual pay is a bread-and-butter issue techniques to explore the dimensions, and E for working families. More than the full cost, of unequal pay. two-thirds of all mothers in the United States work for pay. Two-earner Working Families Pay a Steep Price for families are today's norm among married Unequal Pay couples, and a growing number of single women provide most or all of their families' America's working families lose a stagger- support. Altogether, almost two-thirds of ing $200 billion of income annually to the all working women and slightly more than wage gap-an average loss of more than half of married women responding to the $4,000 each for working women's families AFL-CIO's 1997 Ask A Working Woman every year because of unequal pay, even survey said they provide half or more of after accounting for differences in educa- their families' incomes. tion, age, location and the number of hours Little wonder, then, that 94 percent worked. of working women in the Ask A Working Woman survey-almost every one- If married women were paid the same as described equal pay as "very important;" comparable men, their family incomes that two of every five cited pay as the would rise by nearly 6 percent, and their "biggest" problem women face at work; families' poverty rates would fall from and that one-third of all women and half of 2.1 percent to 0.8 percent. African American women said that, despite If single working mothers earned as its importance, they do not have equal pay much as comparable men, their family in their jobs. incomes would increase by nearly 17 To better understand the wage gap for percent, and their poverty rates would be women and people of color in the United cut in half, from 25.3 percent to 12.6 States and to better measure the price that percent wage inequality exacts from families and If single women earned as much as com- individual workers, the AFL-CIO and the parable men, their incomes would rise Institute for Women's Policy Research by 13.4 percent, and their poverty rates (IWPR) jointly undertook a national study, would be reduced from 6.3 percent to 1 including state-by-state breakouts, to ana- percent. lyze recent data from the Census Bureau and the Bureau of Labor Statistics. Working families in Ohio, Michigan, The study confirms many recent analy- Vermont, Indiana, Illinois, Montana, ses, finding that women who work full- Wisconsin and Alabama pay the heaviest time are paid only 74 cents for every dollar price for unequal pay to working men earn-or $148 less each week. women, losing an average of roughly Women of color who work full-time are $5,000 in family income each year. paid only 64 cents for every dollar men overall earn-or $210 less each week. Family income losses due to unequal pay Going further, the study uses more refined for women range from $326 million in Alaska to $21.8 billion in California. EQUAL PAY FOR WORKING FAMILIES 1 The Size of the Pay Gap Varies by State For women of color, the gender pay gap is smallest in the District of Columbia, While the wage gap is much smaller than Hawaii, Florida, New York and the national average in some states, the Tennessee, where they earn more than 70 numbers do not automatically signal percent of what men overall in those improved economic status for women. The states earn. primary reason for women's relatively improved status in many states is that the Unequal Pay Hurts Men, Too wages of minority men are so low. This is particularly true for the District of As the percentage of women in an occupa- Columbia, Arizona, California, New York, tion rises, wages tend to fall. Workers who North Carolina, Texas and Virginia. do what traditionally has been viewed as "women's work"-clerical workers, Women who work full-time are paid the cashiers, librarians, child care workers and least, compared with men, in Indiana, others in jobs in which 70 percent or more Louisiana, Michigan, Montana, North of the workers are women-typically earn Dakota, Wisconsin and Wyoming, less than workers in jobs that are predomi- where women earn less than 70 percent nately male or are integrated by gender. of men's weekly earnings. Both women and men pay a steep price Women of color fare especially poorly in for unequal pay when they do "women's Louisiana, Montana, Nebraska, Oregon, work": The 25.6 million women who Rhode Island, Utah, Wisconsin and work in these jobs lose an average of Wyoming, earning less than 60 percent $3,446 each per year; the 4 million men of what men earn. who work in predominately female occu- pations lose an average of $6,259 each Even where women fare best compared per year-for a whopping $114 billion with men-in Arizona, California, loss for men and women in predomi- Florida, Hawaii, Massachusetts, New nately female jobs. York and Rhode Island-women earn little more than 80 percent as much as At the state level, women who work in men. female-dominated jobs could increase their salaries from $2,112 per year in Women earn the most in comparison to Missouri to a high of $4,707 in Delaware men-97 percent-in Washington, D.C., if they had equal pay. Annual wage gains but the primary reason women appear to for women in these jobs would exceed fare so well is the very low wages of $3,000 on average in 36 states. In 34 minority men. states, wages would increase by at least $2,500 for women of color in female- dominated jobs. 2 EQUAL PAY FOR WORKING FAMILIES For men in female-dominated jobs, state Minority men who belong to unions average increases would range from bring home 44 percent more-$177- $3,533 annually in the District of each week than nonunion men of color. Columbia to $8,958 in Delaware if pay inequality was eliminated. Minority men Unions also help close the wage gaps would see increases ranging from $1,918 based on gender and minority status for in Colorado to $7,996 in Alaska. their members. Women represented by unions earn almost 84 percent as much Unions Mean Big Pay Gains, as union men, while unionized workers Smaller Pay Gaps of color make about 81 percent as much as unionized white workers. Union representation is a proven and pow- erful tool for raising workers' wages, partic- In the 35 years since the equal employment ularly for those most subject to labor mar- laws passed, women and people of color ket discrimination: women and minorities. have made significant strides into the mainstream of the American workplace. The typical female union member earns But lingering unequal pay robs women and 38 percent more per week-$157-than their families of economic security, dou- a woman who does not belong to a bling poverty rates for today's workers and union. threatening reduced retirement income and greater poverty tomorrow. Unionized women of color earn almost 39 percent more-$135-than nonunion There are three clear routes to ensuring women of color. In fact, minority union that women receive equal pay: vigorous women earn $45 a week more than enforcement of current equal pay laws, nonunion white women. passage of stronger and better equal pay laws and greater protections for workers' right to organize together into unions. EQUAL PAY FOR WORKING FAMILIES 3 Introduction n the 1960s, Congress passed two land- sional and executive positions less than I mark laws designed to remove discrim- their male counterparts. ination from employment relations. The first, the Equal Pay Act of 1963, out- In 1998, major corporations, including lawed the long-established and standard US Airways, the pharmaceutical division business practice of paying women less of Bayer Corp., publishing giant R.R. than men even when they were doing Donnelly, Pepsi-Cola, desktop computer exactly the same work. Its mandate was manufacturer Gateway 2000, insurer straightforward: equal pay for equal work. Highmark, Inc. (formerly Blue Cross/ The next year, Congress enacted the Civil Blue Shield of Western Pennsylvania), Rights Act of 1964, which included, among Allison Engine Company of Indianapolis other things, a comprehensive fair employ- and CoreStates Financial Institution, ment section (Title VII) that banned dis- agreed to payments totaling about $3.5 crimination against women and minorities million altogether to resolve Labor in all terms and conditions of employment Department findings of pay bias and (hiring, promotions, terminations and the other discrimination against women and like), including pay. Read together, the minorities. Equal Pay Act and Title VII establish the principle that employers may not pay In 1997, two major national chains— women and people of color less for the Home Depot and Publix Supermarkets- work they do because of their race, gender agreed to pay out more than $80 million or ethnicity. Simply put, employers may each to settle lawsuits charging them not deny women and minorities equal pay with sex discrimination, including dis- because of sex or race discrimination. crimination in pay, against thousands of In the 35 years since the equal employ- women workers. ment laws passed, women and people of color have made significant strides into the In recent months, Boeing, Pennzoil mainstream of the American workplace. Company and United Parcel Service Nevertheless, despite undeniable gains, pay have agreed to employment discrimina- bias and other discriminatory practices tion settlements totaling more than $30 continue to impede progress, all too often million altogether and potentially bene- placing glass ceilings in the way of workers fiting thousands of African American moving up and relegating too many others workers and former employees. to second-class workplace status on the sticky floor. Consider, for example: According to the 1998 Catalyst Census of Women Corporate Officers and Top Earners, In January 1999, the Department of less than 3 percent (or only 63 of 2,320 Labor announced that Texaco had individuals) of the top-earning corporate agreed to give 186 women more than $3 officers in Fortune 500 companies are million in back wages and pay adjust- women, and their earnings (salaries and ments to settle findings that the company bonuses) are only two-thirds those of consistently had paid women in profes- top-earning men. EQUAL PAY FOR WORKING FAMILIES 5 African American and Hispanic workers labor market discrimination or other are more than twice as likely as white considerations such as "human capital" workers to be "working poor"-that is, differences among workers (that is, differ- to be employed but, nevertheless, to live ences in education, training and experi- ¹Quan, Samantha. "A Profile of in poverty. Minority women workers, ence). Higher earnings for white men, for who confront the dual problems of gen- example, do not necessarily reflect discrim- the Working Poor, 1996." U.S. der and race bias, have especially high ination against women and minorities if Department of Labor: Bureau of poverty rates: One in seven African white men, on average, have more human Labor Statistics. Report No. 918. American and Hispanic women workers capital.³ Analyses attempting to tease out December 1997. lives below the poverty line compared the reasons for wage differences between 2Wage ratio and corresponding with one in 20 white working women women and men typically separate the gen- wage gap calculations compare and men.¹ der wage gap into a portion explained by average (mean) wages of one human capital differences and a portion group with those of another or Not surprisingly-considering these that remains unexplained even after taking wages of the typical worker (the examples-wage gaps persist between such differences into account. Recent stud- worker at the median) in each women and men and between minority ies indicate that between one-quarter and group. The median worker is the and nonminority workers as enduring one-half of the gender wage gap remains worker in the middle of the earn- reminders of gender and racial inequality unexplained, and some economists attrib- ings range; there are just as many in the workplace. ute some or all of this unexplained portion workers earning more than the to discrimination. median worker as are earning What Do Wage Gaps Tell Us? Economists also differ as to whether less. Median earnings (or earn- and how to consider additional factors in ings of the median worker) are "Wage gaps" are commonly cited measures explaining wage gaps. For example, pay often considered more accurate of earnings inequality between different differences associated with work in specific than mean earnings because the groups of workers. A "wage gap" is derived occupations and industries may simply mean (or average) is often from a "wage ratio," the figure expressing reflect legitimate consumer and worker skewed upward by a few very the percentage of one group's earnings (for preferences or supply and demand for high earners at the top of the example, women or minorities) compared goods and services; or they may suggest earnings range. Wage gaps or with another group's (men or nonminori- something far more sinister-discriminatory ratios are usually calculated for ties). As used in this study, "gender wage barriers locking workers in some jobs and full-time workers, all of whom by gaps" are percentage or actual dollar differ- out of others, or bias in setting wages for definition work 35 hours or more ences between the earnings of men and jobs with heavy concentrations of women each week. The gender wage gap women, and "minority wage gaps" are dif- and minority workers. Marriage and the is even greater when total earn- ferences between earnings of people of presence of children typically affect ings for women and men are color and white workers.² women's and men's wages differently: Is compared, because women aver- Since earnings are the main source of that because employers tend to discrimi- age fewer hours than men. income for most American families, wage nate against child-bearing women (and in gaps are important indicators of differences favor of fathers)? Because women prefer to ³Of course, even differences in in economic status among groups of work- spend more time caring for children, hence human capital may be affected by ing families. Economists disagree, however, accumulating less human capital? Or discrimination in the labor mar- about the extent to which wage gaps reflect because the nation lacks infrastructure, ket or elsewhere, as well as by conditions, such as poverty, that disproportionately affect women and people of color. Discrimina- tory exclusion of women and people of color from training 6 EQUAL PAY FOR WORKING FAMILIES such as universally accessible and afford- honed test that controls for multiple indi- programs, for example, will limit able child care, to make meeting both work vidual and job characteristics to measure their acquisition of human capital and family needs easier? the wage penalty workers-men as well as and affect their ability to earn Recognizing these differences among women-suffer when they work in higher wages. In general, the economists, this study employs three sepa- "female-dominated" jobs (those in which opportunities and obstacles that rate and increasingly refined approaches to at least 70 percent of the workers are individuals face (or believe they measure and report on wage gaps: Section I women). Section IV reviews the consider- face) and forces such as culture, describes results of the simplest and most able advantage unionized workers enjoy, tradition, discrimination and straightforward analysis, a comparison of both in the form of higher wages and small- poverty condition most choic- median weekly earnings of men and er wage gaps. es-how much schooling to get, women and of minorities and nonminori- This research project was undertaken what fields to study, whether and ties; Section II reports on an assessment jointly by the AFL-CIO and the Institute when to have children. As a con- that considers several factors, including for Women's Policy Research to better sequence, even though human workers' ages and education levels, to understand the wage gap in the United capital is often thought to result determine the effect that paying women as States, as well as each of the 50 states and from individuals' "choices" or much as comparable men would have on the District of Columbia, and to better "preferences," it is important to women's earnings and their families' measure the costs of wage inequality for remember that not every "choice" incomes and poverty rates; and Section III families and individuals. is freely made, nor every "prefer- presents findings from an even more finely ence" truly preferred. Altonji, Joseph G., and Rebecca M. Blank. "Race and Gender in the Labor Market." Prepublication manuscript. Institute for Policy Research and Department of Economics, Northwestern Univer- sity. June 1998; Blau, Francine D., and Lawrence M. Kahn. "Swimming Upstream: Trends in the Gender Wage Differential in the 1980s." Journal of Labor Economics. Vol. 15:1, part 1, pp. 1-42. 1997; MacPherson, David A., and Barry T. Hirsch. "Wages and Gender Composition: Why Do Women's Jobs Pay Less?" Journal of Labor Economics. Vol. 13:3, pp. 426-71. Economists also attribute at least some of the unexplained portion to unob- served differences in productivity or other factors that are, nonethe- less, legitimate considerations. EQUAL PAY FOR WORKING FAMILIES 7 SECTION I. Large Wage Gaps Persist for Women and Minority Workers his section evaluates the overall of any race, with racial minorities, which T wage gap and the wage ratio include African Americans, Asian Americans, between women and men of all Pacific Islanders, Native Americans, Aleut races and between minorities and whites, Eskimos and others. Tables 1 and 2 detail as reflected by differences in median weekly the relevant earnings for each group.6 As earnings of full-time workers in each group.5 shown in these tables, gender-based earn- The analysis groups Hispanics, who may be ings differences and corresponding gender TABLE 1. THE GENDER WAGE GAP Median Weekly Earnings by Gender and Minority Status for Full-Time Workers, 1997 WOMEN MEN GENDER FEMALE/MALE ⁵Wage gaps also can be expressed WAGE GAP WAGE RATIO as differences in hourly earnings, All Races $431 $579 $148 74.4% in which case part-time workers would also be included in com- Whites $462 $631 $169 73.2% (Non-Hispanic)b puting gender and minority dif- ferences. Federal data sources Minorities*b $369 $415 $ 46 88.9% generally do not provide hourly earnings data, though hourly fig- * Minority workers include those who are African American, Asian American, Pacific Islander, ures can be calculated either from Native American, Aleut Eskimo or other race and Hispanics who may be of any race. data on hours worked per week Source: "U.S. Department of Labor, Bureau of Labor Statistics, Employment and Earnings, January and weekly earnings or from 1998, Table 39; bInstitute for Women's Policy Research calculations based on the Current Population Survey, Outgoing Rotation Group File, 1997. hours worked per year and annu- al earnings. This report uses both weekly and annual earnings data. TABLE 2. THE MINORITY WAGE GAP ⁶These calculations use two Median Weekly Earnings by Minority Status for Full-Time Workers, 1997 sources. Where possible, they rely on 1997 year-end Current MINORITIES* WHITES MINORITY MINORITY/WHITE (NON-HISPANICS) WAGE GAP WAGE RATIO Population Survey data reported in the Department of Labor's Both Sexes $400 $554 $154 72.2% January 1998 edition of Women $369 $462 $93 79.9% Employment and Earnings. For figures not officially reported in Men $415 $631 $216 65.8% Employment and Earnings, IWPR calculations from the raw * Minority workers include those who are African American, Asian American, Pacific Islander, Native American, Aleut Eskimo or other race and Hispanics who may be of any race. Outgoing Rotation Group files of the 1997 Current Population Source: Institute for Women's Policy Research calculations based on the Current Population Survey, Survey (CPS) are used. Outgoing Rotation Group File, 1997. EQUAL PAY FOR WORKING FAMILIES 9 wage gaps are large for all women com- those of men. At the other end of the pared with all men and especially large for spectrum, women fare best in Arizona, minority women compared with all men. California, Florida, Hawaii, Massachu- setts, New York, Rhode Island and the Overall, women earn just $431 per week District of Columbia, where they earn at compared with men's $579 weekly earn- least 80 percent as much as men. ings, for a wage gap of $148. White women do better than women overall, More favorable gender wage gaps at the earning $462 per week-but since white state level, however, do not automatical- men's weekly earnings of $631 are also ly signal improved economic status for greater than those for men overall, the women. To the contrary, in the District of $169 wage gap between white women Columbia and six states where the gen- and white men is larger than for all der wage gap is less than the national women and all men. rate-Arizona, California, New York, North Carolina, Texas and Virginia-a Minority women have lower earnings- primary reason for women's relatively just $369 a week-but because minority improved status is that the wages of men's $415 weekly earnings are also minority men are so low. (See the lower than men's overall, the $46 dis- National Summary Table for state-by- tance between minority women and men state breakdowns.) is the smallest gender gap. The low wages of both minority women and men Wage gaps between men and women and their smaller gender gap reflect sys- have declined steadily in recent decades, tematic disadvantages that minorities though progress has slowed in the 1990s, face in and out of the workplace. When and gender-based wage differentials in the compared with all men rather than only United States remain large relative to those with minority men, the wage gap for in many other industrialized countries. minority women-$210-is almost five Today's 26 percent gender wage gap is 11 times greater. percentage points lower than it was in 1979, when women earned only 63 cents For all race groups, full-time women for every dollar men earned, and the gen- workers earn just 74.4 percent of what der wage gap was 37 percent.⁷ Several fac- men earn on a weekly basis. White tors contribute to the rise in women's women earn 73.2 percent of what white wages, including increased educational men earn, while minority women earn attainment (today, women's college gradua- 7 The wage gap is actually the dif- 88.9 percent of what minority men earn. tion rates are actually higher than men's, However, minority women earn just 63.7 although they lagged behind for several ference between 100 percent percent of what all men earn. decades), greater labor force attachment (what the wage ratio would be and work experience (more women are if there were equality between The ratio of women's wages to men's is women and men) and the wage working, and women are working more), lower, and hence the wage gap is greater fairer treatment in the labor market (in ratio. The current wage gap is than corresponding national rates, in large part because of laws such as Title VII) about 26 percent. half of the states. Overall gender gaps are and movement into traditional men's jobs worst in Indiana, Louisiana, Michigan, (for example, telecommunications special- Montana, North Dakota, Wisconsin and ists, mail carriers and professions such as Wyoming, where women's median lawyers and doctors). weekly wages are less than 70 percent 10 EQUAL PAY FOR WORKING FAMILIES Nevertheless, the narrowing of the gen- white men earn. At earnings of $415 per der wage gap since 1979 connotes less week, minority men also earn $47 less progress than might appear. Over the past than white women. two decades, most of the reduction in the gender wage gap was because men's real Minority women's median weekly earn- wages were falling-not because women's ings are greatest in relation to white were rising.8 An earlier IWPR study esti- women's in Alaska (95 percent), Tennessee mated that the growth in women's wages (94 percent), Indiana (93 percent), explained only about two-fifths of the Pennsylvania (89 percent) and South decrease in the wage gap between 1979 and Dakota (89 percent). Women of color 1997; three-fifths of the narrowing of the fare least well in relation to white women ⁸The concept of "real wages" gap resulted from the decline in men's real in Rhode Island (62 percent), the District reflects the actual value of wages wages.9 Falling men's wages accounted for of Columbia (65 percent), Texas (67 per- once inflation is taken into roughly half of the decline in the gender cent), California (69 percent) and New account. Between 1979 and 1997, wage gap between 1979 and 1989 and for a Mexico (70 percent). Minority men's men's "real" hourly wages fell stunning four-fifths of the decline between earnings are highest in relation to white from $14.39 to $12.19, while 1989 and 1997. Had men's real wages not men's in Kentucky (90 percent), women's rose slightly, from $9.03 fallen-in other words, had they remained Montana (86 percent), Hawaii (84 per- to $9.63. Mishel, Lawrence, Jared at their 1979 inflation-adjusted level— cent) and Missouri and Ohio (83 percent Bernstein and John Schmitt. The women's earnings today would be only for each); and lowest in relation to white State of Working America, 1998- about 66 percent of men's, representing a men's in the District of Columbia (51 99. Economic Policy Institute and remarkably small overall decline in the percent), California (52 percent), Rhode Cornell University Press, January gender wage gap. Island (57 percent) and Arizona, Idaho, 1999. Like gender-based wage differentials, Mississippi and Oregon (58 percent for minority-based wage gaps are substantial. each). 9Hartmann, Heidi, and Julie Minority men fare less well than minority Whittaker. "Stall in Women's Real women relative to their white counterparts, Unlike the gender wage gap, which has Wage Growth Slows Progress in though this result, in part, reflects white shown slight but steady improvement, the Closing the Wage Gap." Briefing women's low wages compared with those pattern of change in minority wage gaps paper. Institute for Women's of white men. has been uneven and generally negative. Policy Research, February 1998. The wage gap between African American See also Mishel, Bernstein and The minority wage gap for both sexes and white men narrowed until 1978 but Scmitt at 134. considered together is quite large ($154) then widened during the 1980s and has not and especially large for minority men moved in a clear direction in the 1990s. 10 Council of Economic Advisors compared with white men ($216). African American and white women for the President's Initiative on Indeed, the overall minority wage gap of achieved near-parity in wages by the mid- Race. Changing America: Indicators $154 is larger than the overall gender- 1970s, but since then the race-based wage of Social and Economic Well-Being based wage gap of $148. gap between them has widened. by Race and Hispanic Origin. Differences based on race in the earnings of September 1998. Taking women and men together, mino- college-educated workers have grown rities earn only 72.2 percent of what since 1978 for both women and men. 10 whites earn for full-time weekly work. Earnings data for Hispanic men and Minority women earn 79.9 percent of women also show growing earnings what white women earn, while minority inequality between non-Hispanic whites men earn only 65.8 percent of what and Hispanics for both genders. EQUAL PAY FOR WORKING FAMILIES 11 Figure 1 depicts in graphic form the dwindle or disappear if everyone had tru weekly wages of full-time workers for vari- equal opportunity from birth. Averag ous demographic groups. Earnings dispari- differences among groups in health, educa ties are large, with white men earning the tion and time spent on family care would most per week at $631, while minority not exist, since it is unlikely that prefer women earn the least at $369. These gross ences regarding these activities would wage differences, of course, in part reflect differ substantially among groups if eco differences among demographic groups in nomic, discriminatory and other barrier average qualifications and tendencies to fell and the forces of tradition dissolved work in certain occupations and industries. Workers from all demographic group But they also are meaningful indicators would have access to the same types of job. of inequality attributable, at least in part, to and, having few differences among then discrimination in the labor market or (on average), would tend to earn equa elsewhere, since wage gaps likely would wages. FIGURE 1. MEDIAN WEEKLY EARNINGS FOR FULL-TIME WORKERS, 1997 700 $631 600 $579 $554 500 $462 $431 $415 400 $400 $369 300 200 100 $0 All All White White Menᵃ Menᵇ Minority Men Women Minority All All Women Womenb Whites Minorities*b Minority workers include those who are African American, Asian American, Pacific Islander, Native American, Aleut Eskimo or other race and Hispanics who may be of any race. Source: U.S. Department of Labor, Bureau of Labor Statistics, Employment and Earnings, January 1998, Table 39; Institute for Women's Policy Research calculations based on the Current Population Survey, Outgoing Rotation Group File, 1997. 12 EQUAL PAY FOR WORKING FAMILIES SECTION II. Unequal Pay for Women Lowers Family Incomes and Increases Poverty ecause existing differences among Table 3 shows women's annual earnings, B groups of workers due to legitimate hours worked and annual family incomes factors such as education and family in three different types of families with status contribute to wage gaps, this study women workers: married working women, ¹¹WPR researchers used annual also makes use of two additional, more working single mothers and self-support- refined measures better able to isolate the ing single women. The table reflects gains earnings and employment infor- effects of labor market discrimination on to family incomes and reductions in pover- mation reported in the CPS for gender wage gaps. The first, described in ty levels that would result from boosting the years 1995-1997 to estimate this section, controls for certain human women's pay." Estimated added income for women's and men's earnings. capital differences between male and the average family of each type is calculat- Refer to the Data Description sec- female workers and for selected differences ed from the earnings gains working women tion of the Technical Appendix for more detailed information in labor markets. The objective is to esti- would enjoy if they earned as much as men mate how much women and their families who work the same number of hours, are about the data set. lose because women earn less than similar- the same age, have the same educational ly qualified men or, correspondingly, how attainment and urban/rural status and live much women's earnings and family incomes TABLE 3. MEAN ANNUAL EARNINGS, MEAN FAMILY INCOME would rise with equal pay. AND POVERTY RATES IF WORKING WOMEN EARNED THE Lower earnings for SAME AS MEN, 1994-1996 AVERAGE, IN 1997 DOLLARS women are of no small SINGLE MOTHERS OTHER SINGLE MARRIED WOMEN consequence to working AGED 18+ WOMEN AGED 25+ AGED 18+ families. More than two- thirds of all mothers in the Population Size 5,400,000 9,200,000 32,800,000 United States work for Women's Annual $19,573 $27,703 $23,144 pay. Of these, about three- Earnings fourths are married and Annual Hours Worked 1,775 1,975 1,761 have access to men's incomes, but their earn- Annual Family Income ings are nevertheless cru- Current $26,372 $30,849 $69,676 cial to family support. After Pay Adjustment $30,831 $35,000 $73,881 One-fourth are single and Increase per Family +$4,459 +$4,151 +$4,205 often the sole support of Percent Increase 16.9% 13.4% 6.0% their families. And many Total Family Income Gains $24.1 billion $38.2 billion $137.9 billion women without children, both single and married, Poverty Rate work to support them- Current 25.3% 6.3% 2.1% selves and other family After Pay Adjustment 12.6% 1.0% 0.8% members. Note: Refers to families with employed women. Source: Institute for Women's Policy Research calculations based on the Current Population Survey March Demographic Supplements, 1995-1997, for calendar years 1994-1996; all in 1997 dollars. EQUAL PAY FOR WORKING FAMILIES 13 in the same region of the country.12 As The 9.2 million working single women shown in the table, raising women's pay who live alone,¹³ including divorced, would have a dramatic impact on their widowed, separated and never-married families: women, would earn a total of $38.2 bil- lion more if they were paid the same as Paying the 32.8 million married women comparable men. These single working the same as comparable men would women each would earn an average of boost their earnings by about one-fifth $4,151 more per year. Single working and raise family incomes for married women also would experience a signifi- couples by 6 percent. This translates into cant drop in poverty-in fact, the steepest an average of $4,205 more income per drop-from 6.3 percent to 1.0 percent. year for each married-couple family, or ¹²For a more detailed discussion a total of $137.9 billion nationwide. Working women in every state would of the methodology used for this Poverty rates for married working receive wage hikes if they earned as analysis, please see the Technical women's families would fall by more much as comparable men in their states. Appendix. than half, from 2.1 percent to 0.8 percent. The potential wage hikes range from a low of $2,815, on average, in Alaska to a ¹³The analysis of earnings gains is If the 5.4 million working single mothers high of $5,160 in Ohio. Family income limited to single women older earned as much as comparable men, would grow, on average, by about $326 than 25 who live alone in order to their annual family incomes would million in Alaska up to roughly $21.8 include only those who are likely increase $4,459 on average, or nearly 17 billion in California. Family income in to be supporting themselves on percent. Total income gains for this half of the states would grow by more their own and whose family group of families would be $24.1 billion, than $2.5 billion. Poverty rates would income is relatively easy to iden- and the very high poverty rates for work- fall dramatically in all states, and pover- tify. Many younger single women ing single mothers would fall by half, ty rates for families headed by single and single women living in other from 25.3 percent to 12.6 percent. mothers would drop to less than 10 family configurations also are percent in 14 states. earning less because of discrimi- nation, but the impact on their family earnings would be more difficult to identify. See the Technical Appendix for addition- al details. SECTION III. Men and Women in Female-Dominated Jobs Suffer Wage Penalties O ne phenomenon contributing to reports on findings of an analysis designed ¹⁴Defining a female-dominated the gender wage gap is the tenden- to capture the "pay inequity" effect of occupation as one in which cy of wages to fall as the percentage working in female-dominated jobs-that women make up 70 percent or of women in an occupation rises. In partic- is, the wage penalty women and men incur more of the workers is standard ular, workers in "female-dominated" or for working in predominately female jobs. practice in this field. The 70 per- "predominately female" jobs-jobs such as To develop an estimate of the earnings cent figure represents women's clerical workers, cashiers, librarians and costs for workers in female-dominated share of the labor force plus 25 child care workers, for example, in which jobs, the analysis compares earnings of percent. A male-dominated occu- 70 percent or more of the workers are workers in these occupations with those of pation is generally held to be one women't-typically earn less than workers comparable workers who are not in pre- in which 80 percent or more of in jobs that are predominately male or that dominately female jobs.¹⁶ In other words, the workers are men, since 80 are integrated by gender.¹⁵ This section workers (women and men) in female- percent represents men's share of the labor force (55 percent) plus TABLE 4. MEAN ANNUAL EARNINGS OF WOMEN AND MEN 25 percent. AGED 18 AND OLDER IN FEMALE-DOMINATED OCCUPATIONS ¹⁵Treiman, Donald and Heidi I. If Pay Equity Prevailed, 1994-1996 Average, 1997 Dollars Hartmann (eds.). Women, Work WOMEN MEN and Wages: Equal Pay for Jobs of WHITE (NON- MINORITY *ALL RACES WHITE (NON- MINORITY* ALL RACES Equal Value. National Research HISPANIC) HISPANIC) Council: Committee on Occupa- Population 18,690,000 6,910,000 25,600,000 2,667,000 1,346,000 4,013,000 tional Classification and Analysis, Size Assembly of Behavioral and Social Sciences. Washington, D.C.: Mean Annual Earnings National Academy Press, 1981. Current $19,482 $18,363 $19,211 $26,926 $20,632 $25,028 ¹⁶Occupations that are not After Pay $22,938 $21,775 $22,657 $33,826 $25,410 $31,287 female-dominated are those in Adjustment Increase +$3,456 +$3,412 +$3,446 +$6,900 +$6,259 which fewer than 70 percent of +$4,778 per Worker the workers are women. These include integrated occupations in Average which female and male workers Annual Hours 1,670 1,730 1,685 1,845 1,834 1,841 are present in relatively equal Labor Force- $65 $24 $89 $18 $6 $25 proportions, as well as occupa- Wide Pay billion billion billion billion billion billion tions that are disproportionately Increase male. Female dominated occupations are those in which 70 percent or more of the incumbents are women. *Minority workers include those who are African American, Asian American, Pacific Islander, Native American, Aleut Eskimo or other race and Hispanics who may be of any race. Source: Institute for Women's Policy Research calculations based on the Current Population Survey March Demographic Supplements, 1995-1997, for calendar years 1994-1996; all in 1997 dollars. EQUAL PAY FOR WORKING FAMILIES 15 dominated jobs are compared with workers would receive 17.7 percent more in earn- in nonfemale-dominated jobs who are ings per year, or an average of $3,456 otherwise of the same gender, age, race, each, for total earnings gains of $65 educational level, marital and parental sta- billion per year. tus, urban/rural status, who live in the same region of the country and who work At the state level, increases for women of 17 Please see the Technical the same number of hours per year in a all races would range from a low of firm of the same size in the same industry.¹⁷ $2,112 per year in Missouri to a high of Appendix for more detailed infor- This strategy, comparing women in female- $4,707 in Delaware. Annual wage gains mation about the methodology dominated jobs with women in all other used for the statistical model. for women in predominately female jobs occupations and men in female-dominated Since no data on the content of would exceed $3,000, on average, in 36 occupations with men in all other occupa- of the states. In 34 states, wages would jobs (the skill, effort and respon- tions, has the effect of isolating pay differ- increase by at least $2,500 for women of sibility required by workers who entials due to job class from all other gen- color in female-dominated jobs. hold them nor the working con- der-based discrimination. As a result, this ditions in which they work) are approach may actually understate the available in the CPS, "jobs of Men working in female-dominated extent to which pay equity would boost occupations also would earn more if they equal value" to the female-domi- wages for women workers in female-domi- did not suffer inequities based on job class. nated jobs being studied are nated jobs. 18 Yet even so, as reported in However, only 8.5 percent of men work in approximated by investigating Table 4, the analysis finds very large earn- what these same workers would female-dominated occupations compared ings losses due to the lower pay associated with more than 55 percent of women. Men earn in jobs that are not female- with working in female-dominated jobs: in female-dominated jobs earn about 20 dominated. percent more per hour than women in ¹⁸This strategy also has the effect Nearly 26 million women of all races these same jobs. Because they work more of reducing some of the weak- who work in female-dominated occupa- hours and have higher rates of pay than nesses in the data available. For tions would earn about 18 percent more women in both the female-dominated example, the gender differences per year if they earned as much as com- occupations and nonfemale-dominated in the value of age as a proxy for parable women in nonfemale-dominated jobs, pay equity adjustments for men in work experience matter less if jobs. For the number of hours these female-dominated jobs would actually pro- women are being compared to women worked, each would have earned duce even larger individual gains than for women and men are being com- an average of $3,446 more per year, women. Each of the 4 million men of all pared to men. Other models translating into $89 billion in income races working in predominately female were tested, but all resulted in the gains for women in predominately occupations would receive an average of same magnitude and relative female jobs throughout the United States. $6,259 more per year. This represents $25 findings among women and men. billion in additional income for male work- Among the nearly 7 million minority ers throughout the United States. The 1.3 19Minority men would especially women working in female-dominated million minority men who work in female- benefit from pay equity adjust- jobs, earnings would rise 18.6 percent, dominated occupations would receive an ments, since they are more likely for average individual increases of average of $4,778 more per year, bringing to work in female-dominated $3,412 per year. Altogether, pay equity their annual earnings up from $20,632 to occupations than white men are; adjustments based on job class would $25,410.19 For all men in female-dominat- minority men are 34 percent of yield a total of $24 billion in annual ed jobs, state-level increases would range the male workers in female-dom- earnings for minority women. from $3,533 annually in the District of inated jobs compared with 26 Columbia to $8,958 in Delaware; and for percent of male workers overall. Likewise, the 18.7 million white women minority men, from $1,918 in Colorado to working in female-dominated occupations $7,996 in Alaska. 16 EQUAL PAY FOR WORKING FAMILIES SECTION IV. Union Membership Means Big Pay Gains, Smaller Pay Gaps A S the preceding sections reflect, Unionization also tends to compress equal pay would boost workers' pay wage differentials between jobs at the top and working families' incomes. and the bottom of pay scales, further Union representation is another proven mitigating the effects of race- or sex- and powerful tool for raising workers' based bias. wages, particularly for those most subject to labor market discrimination: women Table 5 reports median weekly earn- and minorities. Unions spell higher pay ings for workers represented by unions²⁰ and more equitable wages for women and and nonunion workers by gender and workers of color for several reasons: minority status. For every group represent- ed, median weekly earnings are substan- ²⁰Union workers are defined as Unions routinely bargain for wage tially higher for union workers than for those who are members of a increases and related benefits for work- their nonunion counterparts: union or whose job is covered by ers they represent. a union or employee association Union women earn $157 more per week collective bargaining agreement. Unions have played a central role in than nonunion women ($568, compared fighting for equal opportunity and com- with $411). bating discrimination. A number of pub- lic- and private-sector unions have led the TABLE 5. THE UNION WAGE ADVANTAGE campaign to bring pay equity to the workplace, Median Weekly Earnings for Union and Nonunion Workers by Gender and combining organizing, Minority Status for Full-Time Workers, 1997 bargaining, lobbying and UNION NONUNION UNION WAGE UNION/NON- UNION lawsuits to win pay ADVANTAGE UNION WAGE PERCENT RATIO equity adjustments total- INCREASE ing hundreds of mil- Women $568 $411 $157 138.2% 38.2% lions of dollars. White (Non- $596 $440 $156 135.5% 35.5% Hispanic)b Unions bring wage set- Minority** $485 $350 $135 138.6% 38.6% ting into the open, mak- ing it more difficult for Men $679 $539 $140 126.0% 26.0% employers to discrimi- White (Non- $715 $600 $115 119.2% 19.2% nate and helping ensure Hispanic)b a stronger voice for all Minority** $577 $400 $177 144.3% 44.3% workers. * Minority workers include those who are African American, Asian American, Pacific Islander, Native American, Aleut Eskimo or other race and Hispanics who may be of any race. Source: U.S. Department of Labor, Bureau of Labor Statistics, Employment and Earnings, January 1998, Table 41; Institute for Women's Policy Research calculations based on the Current Population Survey, Outgoing Rotation Group File, 1997. EQUAL PAY FOR WORKING FAMILIES Likewise, minority women represented Minority women who are represented by by unions earn $135 more than minority unions earn 38.6 percent more than minor- women who are not in unions ($485 ity women who are not represented by compared with $350). Indeed, minority unions. Likewise, minority union men earn union women out-earn nonunion white 44.3 percent more than those who are not women ($485 compared with $440). in unions. White women also benefit sub- stantially from union representation, earn- The union wage advantage is largest for ing 35.5 percent more than those who are minority men, at $177, and smallest for not represented by a union. The gain for white men, at $115. white men, 19.2 percent, is less, but still a substantial increase. Table 5 also shows the percentage Union workers enjoy a wage advantage increase in the weekly wages for each over nonunion workers in every state. group, comparing union workers with Union women receive a wage premium of nonunion workers. These percentage 30 percent or more relative to nonunion increases are largest for minority workers, women in 34 states, and the union wage larger for women than for men overall and advantage for women is at least 20 percent smallest but still substantial for white men. in all but four states. Because of sample TABLE 6. THE GENDER GAP FOR UNION AND NONUNION WORKERS Median Weekly Earnings for Women and Men by Union Status for Full-Time Workers, 1997 WOMEN MEN GENDER FEMALE/MALE WAGE GAP WAGE RATIO All Races Nonunion $411 $539 $128 76.3% Union $568 $679 $111 83.7% Source: U.S. Department of Labor, Bureau of Labor Statistics, Employment and Earnings, January 1998, Table 41. 18 EQUAL PAY FOR WORKING FAMILIES constraints, union wage advantages can be female/male wage ratio of 83.7 percent computed for women of color in only 27 among union members compared with states (including the District of Columbia); 76.3 percent among nonunion workers). In the union wage advantage for minority other words, the gender-based wage gap is women is 25 percent or more in 19 of one-third smaller among union workers these. Minority men represented by unions than among nonunion workers. Table 7 enjoy a union wage advantage of 35 per- shows that the minority wage gap is also cent or more in 25 of the 31 states for smaller among union workers than their which computations are possible. Among nonunion counterparts and especially so men of all races, men represented by among men. The minority/white wage unions have a union wage advantage of 35 ratio for women is about 2 percentage percent or more in eight states. points larger among union workers than Wage gaps are also smaller among among nonunion workers. Among men, workers represented by unions than among the minority/white wage ratio is 14 per- their nonunion counterparts. As Table 6 centage points larger. In other words, the shows, among workers represented by minority/white wage gap for men is about unions, women's wages relative to men's two-fifths smaller among union workers are more than 7 percentage points higher relative to nonunion employees. than among nonunion women and men (a TABLE 7. THE MINORITY WAGE GAP FOR UNION/ NONUNION WORKERS Median Weekly Earnings for Minorities and Whites by Gender and Union Status for Full-Time Workers, 1997 MINORITIES* WHITES MINORITY MINORITY/WHITE WAGE GAP WAGE RATIO Women Nonunion $350 $440 $ 90 79.5% Union $485 $596 $111 81.4% Men Nonunion $400 $600 $200 66.7% Union $577 $715 $138 80.7% Minority workers include those who are African American, Asian American, Pacific Islander, Native American, Aleut Eskimo or other race and Hispanics who may be of any race, Source: Institute for Women's Policy Research calculations based on the Current Population Survey, Outgoing Rotation Group File, 1997. EQUAL PAY FOR WORKING FAMILIES 19 Conclusion ersistent wage gaps for working race- and gender-based wage discrimina- P women and people of color and the tion-women and minorities-as well as for earnings inequality these gaps con- men who work in female-dominated jobs. note translate into lower pay, less family Wages are higher for union-represented income and more poverty for working fam- workers, and the gender- and minority- ilies. The solution, long overdue, is equal based wage gaps are smaller. Hence, pay for women and minority workers. strengthening labor laws and boosting As the analyses reported above show, support for workers' rights to organize and paying working women the wages of com- bargain would raise wages for women and parable men would increase family people of color, helping to reduce inequality. incomes substantially and cut family Equally important, steps to ensure poverty rates markedly-at least by half for greater compliance with existing equal pay all family types in the study. Moreover, pay- and employment discrimination require- ing women and men in female-dominated ments, coupled with passage and enforce- jobs wages equal to those of comparable ment of new and tougher laws, also would workers in other jobs would significantly boost wages for women and minorities sig- boost these workers' incomes. nificantly. In short, tough enforcement of Unions are crucial weapons in the strong equal pay laws would go a long way equal pay fight. Unions play an especially toward erasing inequality and closing wage important role for workers most affected by gaps that imperil economic security for millions of working families. EQUAL PAY FOR WORKING FAMILIES National Summary Table MEDIAN WEEKLY SHARE OF WEEKLY EARNING AS MUCH AS COMPARABLE MEN WOULD EARNINGS EARNINGS OF ALL MEN STATE ALL ALL PERCENT PERCENT RAISE WOMEN'S REDUCE POVERTY IN RAISE TOTAL MEN WOMEN ALL WOMEN MINORITY ANNUAL SINGLE-MOTHER FAMILY EARNINGS WOMEN WAGES ON HOUSEHOLDS IN EACH STATE AVERAGE (IN MILLIONS) FROM TO U.S. $579 $431 74.4% 63.7% $4,229 25.3% 12.6% $200,592 Alabama 493 362 73.4% 60.9% $4,829 33.0 16.3 $3,718 Alaska 762 557 73.1% 69.8% $2,815 9.7 3.5 $326 Arizona 487 399 81.9% 65.7% $4,437 37.9 24.7 $3,256 Arkansas 439 329 74.9% 63.3% $3,602 35.8 17.5 $1,585 California 589 497 84.4% 67.9% $4,129 19.2 9.2 $21,829 Colorado 617 460 74.6% 64.8% $4,650 24.7 11.1 $3,480 Connecticut 692 513 74.1% 61.1% $3,316 22.2 11.8 $2,090 Delaware 598 443 74.1% 65.9% $4,415 19.7 8.4 $616 Dist. of Col. 584 567 97.1% 82.4% $3,933 25.8 14.2 $349 Florida 492 407 82.7% 70.3% $4,490 23.6 11.5 $11,201 Georgia 567 427 75.3% 65.3% $3,665 24.4 12.5 $5,121 Hawaii 562 463 82.4% 79.9% $4,692 21.1 4.1 $969 Idaho 509 382 75.0% 66.8% $4,313 34.4 15.7 $949 Illinois 639 460 72.0% 62.6% $4,913 25.4 9.9 $10,306 Indiana 590 389 65.9% 62.7% $5,011 21.0 12.7 $5,563 lowa 538 398 74.0% 64.3% $3,647 16.7 11.5 $2,127 Kansas 553 410 74.1% 60.8% $3,973 31.5 17.8 $1,982 Kentucky 539 386 71.6% 61.2% $3,565 31.8 16.8 $2,489 Louisiana 509 339 66.6% 55.0% $3,814 34.2 19.1 $2,626 Maine 521 397 76.2% N/A $4,616 23.3 16.0 $1,128 Maryland 676 503 74.4% 63.9% $4,398 22.4 6.1 $4,410 Mass. 640 512 80.0% 62.8% $4,097 20.3 8.6 $4,851 Michigan 654 457 69.9% 61.2% $5,130 31.1 12.9 $9,016 22 EQUAL PAY FOR WORKING FAMILIES PAY EQUITY FOR FEMALE-DOMINATED JOBS UNION WAGE ADVANTAGE WOULD RAISE ANNUAL WAGES, ON AVERAGE: ALL MINORITY ALL MEN MINORITY ALL WOMEN MINORITY ALL MEN MINORITY WOMEN WOMEN MEN WOMEN MEN $3,446 $3,412 $6,259 $4,778 138.2% 138.6% 126.0% 144.3% $3,177 $2,459 $5,323 $5,139 148.9% 149.0% 137.5% 137.0% $3,320 $1,872 $8,318 $7,996 136.8% 135.1% 135.9% 163.5% $3,169 $3,309 $5,655 $4,033 123.0% N/A 132.6% 153.8% $2,830 $2,358 $7,426 N/A 143.4% N/A 115.4% N/A $4,280 $4,125 $6,519 $5,462 139.4% 160.3% 136.9% 159.7% $3,260 $2,915 $6,188 $1,918 128.2% 153.1% 125.7% 136.4% $2,839 $2,751 $5,349 $6,456 139.8% 150.0% 112.6% 145.9% $4,707 $6,796 $8,958 N/A 130.6% 120.0% 128.7% 166.7% $3,637 $3,299 $3,533 $3,329 112.2% 122.5% 112.3% 140.8% $4,135 $2,899 $5,815 $3,936 144.3% 141.5% 135.4% 150.0% $3,850 $3,891 $4,616 $4,171 145.4% 138.9% 116.4% 133.5% $3,888 $4,059 $5,748 $6,477 122.8% 128.0% 135.9% 144.2% $2,734 $1,771 $7,229 N/A 153.9% N/A 129.6% N/A $3,459 $3,472 $6,454 $4,841 117.6% 120.0% 114.6% 151.8% $3,116 $2,771 $6,705 N/A 147.3% N/A 120.2% 153.0% $2,318 N/A $5,940 N/A 129.5% N/A 118.3% N/A $3,242 $2,417 $5,731 $4,057 146.7% N/A 130.3% N/A $2,716 $2,673 $4,116 N/A 128.0% N/A 126.4% N/A $2,707 $2,820 $6,459 $4,103 125.1% 127.4% 121.2% 160.0% $2,957 N/A $7,695 N/A 140.8% N/A 141.3% N/A $3,743 $2,993 $7,790 $6,450 146.3% 160.5% * 120.0% $3,536 $4,132 $6,950 $3,521 121.6% 104.0% 106.0% 125.0% $3,113 $3,382 $6,420 $3,644 137.4% 146.6% 125.2% 146.7% *No significant difference. EQUAL PAY FOR WORKING FAMILIES 23 MEDIAN WEEKLY SHARE OF WEEKLY EARNING AS MUCH AS COMPARABLE MEN WOULD EARNINGS EARNINGS OF ALL MEN STATE ALL ALL PERCENT PERCENT RAISE WOMEN'S REDUCE POVERTY IN RAISE TOTAL MEN WOMEN ALL WOMEN MINORITY ANNUAL SINGLE-MOTHER FAMILY EARNINGS WOMEN WAGES ON HOUSEHOLDS IN EACH STATE AVERAGE (IN MILLIONS) FROM TO Minnesota 634 477 75.2% 65.9% $3,332 23.0 7.9 $3,203 Mississippi 464 343 73.9% 64.7% $4,690 37.9 15.6 $2,092 Missouri 568 419 73.8% 64.3% $2,977 21.8 10.9 $3,148 Montana 497 344 69.2% 57.9% $4,955 31.5 16.5 $834 Nebraska 533 386 72.4% 58.5% $4,436 30.1 19.1 $1,465 Nevada 555 410 73.9% 62.0% $3,726 9.9 5.4 $1,157 New Hamp. 603 459 76.1% 60.5% $4,803 12.5 6.4 $1,167 New Jersey 667 503 75.4% 60.0% $3,770 18.6 6.5 $5,277 New Mexico 508 391 77.0% 63.6% $4,760 28.0 16.1 $1,353 New York 603 485 80.4% 70.1% $4,080 21.2 10.5 $11,792 N. Carolina 507 394 77.7% 68.2% $3,618 35.3 22.3 $5,063 N. Dakota 509 347 68.2% N/A $4,217 27.5 16.1 $546 Ohio 595 427 71.8% 64.7% $5,160 23.1 11.0 $10,279 Oklahoma 493 362 73.4% 64.9% $4,481 28.9 17.3 $2,599 Oregon 553 416 75.2% 57.9% $3,886 30.0 16.3 $2,259 Penn. 609 437 71.8% 65.7% $4,623 19.4 9.1 $9,559 Rhode Island 575 465 80.9% 51.5% $3,917 19.7 10.4 $707 S. Carolina 499 379 76.0% 64.1% $3,998 35.2 16.4 $2,713 S. Dakota 479 358 74.7% 66.8% $3,849 30.3 14.6 $571 Tennessee 512 374 73.0% 70.3% $4,234 26.1 14.5 $4,169 Texas 512 402 78.5% 62.5% $3,789 31.3 18.4 $12,528 Utah 552 408 73.9% 58.0% $4,051 21.5 9.3 $1,456 Vermont 531 419 78.9% N/A $5,051 30.2 16.2 $642 Virginia 586 461 78.7% 64.8% $4,212 22.6 12.5 $5,218 Washington 643 491 76.4% 67.2% $3,821 25.7 6.7 $3,950 W. Virginia 516 370 71.7% N/A $4,033 34.1 16.3 $1,122 Wisconsin 613 420 68.5% 55.8% $4,938 24.2 11.2 $5,324 Wyoming 579 364 62.9% 51.8% $4,497 29.6 19.2 $408 24 EQUAL PAY FOR WORKING FAMILIES PAY EQUITY FOR FEMALE-DOMINATED JOBS UNION WAGE ADVANTAGE WOULD RAISE ANNUAL WAGES, ON AVERAGE: ALL MINORITY ALL MEN MINORITY ALL WOMEN MINORITY ALL MEN MINORITY WOMEN WOMEN MEN WOMEN MEN $2,161 $1,685 $4,050 N/A 126.1% N/A 115.3% N/A $3,625 $4,179 $6,671 $4,643 137.2% 142.9% 127.8% 150.0% $2,112 $3,351 $5,190 N/A 139.0% 0.0% 125.1% 150.0% $2,595 $3,380 $5,794 N/A 162.5% N/A 130.9% N/A $3,564 $3,528 $5,376 N/A 139.0% N/A 128.0% N/A $2,522 $2,565 $4,920 $4,133 120.3% N/A 124.5% 133.3% $4,252 N/A $5,397 N/A 130.7% N/A 121.3% N/A $2,754 $3,387 $5,539 $4,403 119.8% 105.0% 101.0% N/A $3,557 $3,368 $7,414 $6,281 135.7% 146.2% 122.0% 144.3% $3,506 $3,930 $6,457 $5,590 113.9% 118.5% 115.1% 137.5% $3,366 $3,384 $5,788 $3,205 122.8% 135.9% 123.4% 166.7% $3,157 $2,205 $4,360 N/A 151.5% N/A 134.3% N/A $3,169 $3,421 $7,408 $3,671 128.5% 137.1% 115.8% 139.1% $3,094 $3,210 $5,757 $5,401 152.3% 142.4% 127.5% 172.2% $3,844 $2,421 $6,764 N/A 136.2% N/A 134.6% 183.0% $4,284 $3,488 $6,988 $4,603 139.7% 118.7% 107.7% 101.9% $3,195 $1,535 $6,954 $4,683 132.6% N/A 115.4% N/A $3,827 $4,169 $6,178 N/A 126.4% N/A 136.0% N/A $2,892 $745 $3,608 N/A 166.8% N/A 115.3% N/A $2,415 $2,492 $6,063 $2,806 147.0% 115.6% 119.0% 107.1% $3,109 $2,741 $5,921 $4,016 146.1% 138.1% 123.0% 138.4% $3,376 $2,334 $5,921 N/A 137.5% N/A 133.3% N/A $4,468 N/A $7,518 N/A 153.8% N/A 124.5% N/A $3,530 $3,826 $8,207 $5,292 136.7% 137.0% 116.8% 136.4% $4,247 $2,669 $6,553 N/A 127.4% N/A 128.2% N/A $3,884 N/A $4,767 N/A 145.7% N/A 136.0% N/A $3,615 $2,814 $7,967 N/A 138.8% 130.7% 116.6% 176.5% $2,326 $3,459 $5,305 N/A 158.0% N/A 132.9% N/A EQUAL PAY FOR WORKING FAMILIES Technical Appendix Data Description 1995-1997 are combined to construct a sample size of approximately 175,000 The data used in the analysis are taken households, a sample large enough to pro- from the Current Population Survey (CPS), vide state-level estimates. This is the pri- a nationally representative data set that mary data set used in this study for the provides current estimates of the economic analysis of earnings losses due to lack of status and employment activities of the equal pay and earnings gains if equal pay population of the United States. The CPS is existed. All employment and earnings data a monthly survey of about 60,000 house- gathered in March refer to the previous cal- holds conducted by the Bureau of the endar year. The means reported are, there- Census for the Bureau of Labor Statistics. fore, estimates over the combined three- Respondents are interviewed for four con- year period and refer to the experience of secutive months in one year and reinter- respondents in years 1994-1996. All dollar viewed for another four months at the values of income and earnings variables are same time the following year. The CPS is converted to 1997 real dollars using the an ongoing survey that provides the most Consumer Price Index. The sample is extensive and reliable information about weighted by the March supplement weight the U.S. labor market. standardized for each year. To obtain popu- The Outgoing Rotation Group file con- lation weights to make the data set repre- sists of respondents who are in their last sentative of one annual national sample, we interview month in both interview years. take the inverse of the normalized weights The Outgoing Rotation Group respondents and divide by the average of the sample are asked more detailed earnings and sizes of the three survey years. employment questions than are asked in the monthly core survey. Since one-quarter The Wage Gap Analysis of the sample of approximately 60,000 households is rotated out each month, a The Outgoing Rotation Group file of the full 12 months of data are needed to pro- 1997 CPS is used to calculate the gender duce reliable state-level estimates. In 1997, wage gap, the minority wage gap and the this sample consisted of approximately union wage advantage. The wage gaps are 230,000 households. The Outgoing calculated using the median weekly wages Rotation Group file is chosen for the calcu- of full-time workers. Full-time workers are lation of the gender wage gap, minority defined as those who usually work 35 hours wage gap and union wage advantage since or more per week. Union status is defined detailed questions about the union status as those who are members of a union or of workers are asked only in these months. whose job is covered by a union or employ- The March Supplement of the Current ee association collective bargaining agree- Population Survey, also known as the ment. The wage gap, as reported, is a gross Annual Demographic File, provides addi- wage gap that is not corrected for differ- tional information about annual earnings ences between women's and men's educa- and income data that are not available from tional attainment, work experience or hours the monthly core survey. Three years of the of work (while all work more than 35 hours March CPS Supplements for the years per week, some work more than others). 26 EQUAL PAY FOR WORKING FAMILIES Family Earnings Gains to discrimination, the sample of men is restricted to those who earn at or below the The analysis of family earnings gains is 90th percentile of men's annual earnings, based on a model that predicts women's or $65,412 in 1997 dollars. This selection earnings as if they were not subject to wage assures that the predicted earnings for inequality. In this model, we control for those at middle and lower income levels many of the factors that contribute to wage are not upwardly biased by the few high differences and account for a portion of the earners in the sample. Poverty rates are cal- wage gap and then correct women's earn- culated using the preliminary poverty ings as if the unexplained portion of the thresholds for 1997 adjusted for family size wage gap in this analysis did not exist. provided by the U.S. Bureau of the Census. To! An ordinary least squares (OLS) model Women's earnings are predicted using is employed that controls for the differ- the coefficients from the men's earnings ences between men and women in age, equation (this method assumes that education, annual hours of work, metro- women retain their own human capital but politan residence and region of the country. are rewarded at the same rates men would The dependent variable is the natural log of be) and calculated only for the actual hours annual earnings. The variables for age and that women worked during the year. The age squared are included as proxies for average earnings estimates include only work experience, since specific informa- those predicted to have positive earnings tion about work experience is not available adjustments. Those with reduced predicted in the CPS. This is a more realistic assump- earnings are assigned their actual earnings tion for men than for women because at during the year. any given age men typically have spent The model is used to estimate women's more years in the workforce and fewer earnings in the absence of gender-based years out of the workforce. Use of this wage inequality. The control variables for experience variable (for lack of a better one marital status and the presence of children in this data set) tends to overstate women's younger than 18 are explicitly excluded experience and overstate their earnings since these characteristics are often linked losses relative to comparable men (they to gender-based discrimination. For may be less comparable than the data indi- instance, higher earnings are predicted for cate). On the other hand, including vari- men who are married, but the opposite is ables such as education and hours of work, true for women. Likewise, the presence of which may themselves be affected by labor children often predicts lower earnings for market discrimination against women women but does not have a significant (causing them to invest less in human cap- effect for men. ital and work less than they otherwise Married women and single mothers would), tends to understate their true earn- include all those aged 18 and older. Single ings losses relative to men. women (never married, divorced, separat- In this model, men's earnings are pre- ed and widowed) are limited to those 25 dicted based on a sample of men aged 18 or and older who live alone; these women are older with positive earnings and positive clearly dependent on their own earnings hours of work during the year. Since a key and for them it is easy to calculate house- component of the analysis is the contribu- hold income. Many other single women, tion of women's earnings to family income who live in a variety of household forma- and the resulting changes in family poverty tions, also suffer from wage discrimination, rates if women's earnings were not subject but it is more difficult to determine the EQUAL PAY FOR WORKING FAMILIES relevant household income for complex they were to earn the same as men who are households, whose members may or may not in female-dominated occupations. not pool income with each other. The dependent variable in the model is the natural log of annual earnings. The Discrimination Based on independent variables include educational Job Class attainment, race, marital status, the pres- ence of a child younger than 18, residence To isolate the effect of gender composition in a metropolitan area, region of the coun- of occupations on earnings, we estimate try, firm size, industry, yearly hours of work ordinary least squares (OLS) earnings and percentage of workers in the occupa- equations following the methodology of tion who are female. The variables for age ²¹Figart, Deborah M., and June Figart and Lapidus (1995). 21 In an effort to and age squared are included as proxies for Lapidus. "A Gender Analysis of isolate the effects of pay inequity only (pay work experience because a specific experi- U.S. Labor Market Policies for the differences due to the gender typing of ence variable is not available in the CPS. Working Poor." Feminist Economics. jobs), this model includes additional vari- In calculating the pay adjustments due Vol. 1:3, pp.60-81. Fall 1995. ables that capture other sources of wage to workers in female-dominated occupa- differences between women and men. The tions, it is assumed that no worker would samples for both women and men include incur a loss as a result of the implementa- all those 18 and older with positive earn- tion of equal pay for work of equal value. If ings and hours of work during the year. An the model predicts reduced earnings, the occupation is defined as female-dominated actual earnings of the person are assigned. if 70 percent or more of the workers in the This method provides a reliable estimate occupation are women. A total of 500 dif- for the average movement in earnings ferent occupations are included in the for the entire group of workers in female- analysis. Separate equations are estimated dominated occupations. for women and men to measure reliably the effect on earnings from working in a National Summary Table female-dominated occupation. Using esti- mates from the regression model, the earn- The state data reporting the raise in annual ings of women in female-dominated occu- wages that women would receive if they pations are predicted as if they were to earned the same as comparable men is a receive the same earnings as women who weighted average of what women in the are not in female-dominated occupations. three family. types we studied would gain. Likewise, the earnings of men in female- The family types are married working dominated occupations are predicted as if women, working single mothers and self- supporting single women. 28 EQUAL PAY FOR WORKING FAMILIES