Women Still Facing Difficulties Even With Narrowing Wage Gap

Women Still Facing Difficulties Even With Narrowing Wage Gap


The wage gap in the United States is coming closer to being closed. According to the U.S. Census Bureau’s new report on income, poverty, and insurance coverage, women earned $0.805 for every dollar earned by men in 2016. While a gap obviously remains, this was an increase from $0.796 in 2015.

Even more notably, this was the first time since 2007 that the female-to-male pay had a statistically significant annual increase.

This change happened during a period of increasing household incomes as well. Household incomes now exceed pre-recession levels, with a median household income of $59,039 in 2016 and the highest number of households ever recorded to earn more than $200,000.

Even though increased incomes have decreased poverty rates from 14.8% in 2014 to 12.7% in 2016, there are still more female-headed households in poverty.

Median earnings for women reached $41,600 while median earnings for men were $51,600. Seeing as how women earned about 70% of what men did in 1990, this shows a slow but steady effort in closing the wage gap. However, among the 40.6 million people living in poverty, women are still more likely to face larger income deficits. Women have a 2.7% higher rate of poverty than men among all ages.

Even among female CEOs at nonprofits, there is still a noticeable pay gap. Male CEOs make approximately 21% more than females at organizations with budgets over $50 million. On the other hand, more women appear to be taking leader roles in nonprofit organizations. The number of groups employing female leaders is 22% among those with budgets of $50 million or above and 57% among those with budgets of $500,000 or less.

Along with the gender wage-gap, there is also a pay gap when it comes to retirement. While the average age of retirement is 63, when it comes to retirement, women are often worse-off than men, sometimes meaning women have to work longer. The retirement pay gap is greatest in countries where workplace pensions are a large portion of retirement savings or where state benefits are linked to lifetime contributions. A shift from public to private pensions is becoming more noticable, which is vital if state pensions are to remain affordable over time.