Gender Pay Gap. Why?

Nowadays, having the right answer seems more important than asking the right question. Thus, we are more focus on delivering the perfect answers that construct in some way our vision of the world. However, in our mission to find the right answer, we stop asking questions — any question. Since we are young, we seem to annoy older people just because we can't stop asking questions. In our search for meaning at a young age, curiosity seems to drive us way more than logic. But, as we grow older, logic steps in. And curiosity appears to take a second role in the play of our lives.

There are millions of questions that have been asked and have made their place in history. They have been revolutionary, they have made an impact on history. Today, there are millions of questions being asked. Some are changing our present; others could change our future. Nonetheless, even if they are revolutionary or not, even if they can change our future or not, we should always be curious enough to ask any kind of questions.

Gender. Pay. Gap. 

Why?

Why do we have a gender gap in payment? How long do we have to fight to have equal pay? 


The gender pay gap is the difference between what men and women are paid. It refers to the median annual pay of all women who work full time and year-round, compared to the pay of a similar cohort of men. However, the gender pay gap relies also upon different factors such as:
  • The relative industry and the opportunity they create
  • Demographics: ethnicity, age, and education level
  • Attitudes and beliefs about work and gender
  • Laws and policies about pay discrimination

In the U.S., the gender pay gap was an average of 20% in 2017 based on AAUW. However, each state has a variation of these percentages. For example, California is situated the 1st in the national rank with 11% of gender pay ratio. Utah is the 50th on the list, with a 29% gender ratio and weak equal pay laws.
Due to these factors, many women in the U.S. experience very different gaps in pay. For example, in 2017 a Hispanic or Latina woman would earn 47% less than a White man. A black or African American woman would earn 39% less, a White (non-Hispanic) woman 23% less, an Asian woman 15% less, an American Indian or Alaska Native woman 42% less, and a Native Hawaiian or Other Pacific Islander 38% less. These variations also depend on the type of occupation. Financial managers (35%), lawyers (24%), chief executives (25%), accountants (22%) are amongst the ten occupations where women collectively lose the most money.
Now, just for the sake of these numbers, how much less a Finance Manager Native American woman living in Utah would make compared to a man? The pay gap would be more than 90%, which means that for every dollar a man earns, she would only earn ten cents or less.

In Europe, the situation is not any different. As Eurostat - EU Statistics Source- updated their research on the gender pay gap, they situated the EU's average at 16.2% in 2016. Countries such as France or the UK have an average of 15.2% and 21.0% respectively.

In Fran Hauser's book, "The Myth of the Nice Girl," some alarming statistics are appointed. Hauser explains that with the rate of change between 1960 and 2001, women would reach pay equity in 2059. But, at the stalled rate since 2001, women won't reach equity until 2152. The author also points out that the wage gap widens as women get older regardless of race or education levels.


But, what do all these numbers mean?
Well, for starters it means that with a 20% gap, women earn on average eighty cents for every man's dollar.  However, as the numbers state before, that percentage can increase or decrease depending on where you live, what ethnicity you belong, how old you are and what you do for a living. And as for the rate of change concerns, 2059 makes witnessing equal pay a lifetime achievement. However, if the ratio doesn't change, we will need at least 133 years to reach equity. The odds are that most likely the next future generation won't witness equal pay either.

Should we lose hope then?
Absolutely not. There have been great improvements made regarding this topic, and the greatest example is the presence of women in orchestras. In the 60s, there were less than 5% of female representatives. Today, there are more than 30%. How did that happen? Well, the Boston Symphony noticed the gender gap in their orchestra and decided to start blind auditions in 1968. The number of women significantly increased. Meanwhile, all the great orchestras followed suit.
Another great example of progress is found in Iceland. The European country ranks first for gender equality in the World Economic Forum's Global Gender Gap Index for the ninth year in a row. After years of fighting, equal rights will be supported by law. Iceland has decided to create a new legislation called the Equal Pay Standard, which aims to eliminate the gender pay gap. So basically, this new law will make illegal the discrimination of individuals or groups on the basis of their sex, sexual orientation or identity. It is believed that such legislation will be key in eliminating the gender pay gap.


So, with all these statistics, the question is: What can we do to change this situation?
  • First, sit down and talk. We all, men and women, in the business world should be more transparent when talking about our wages. Employer practices such as using prior salary history in setting current pay and prohibiting employees from discussing the wages compound the problem. If we, as employees, are open to discussing our wages, compared them to the average in the industry and being able to demand more for ourselves and our fellow business partners a change will be noticed. 
  • Second, buy consciously. You can buy from businesses that demand and support equal pay wage. For example, businesses with the Certified B Corporation Certification are a clear example of businesses that support equal pay amongst other rightful practices.
  • Third, invest. Investing in activities that promote gender rights will easily impact the wage ratio in the long-run. For example, there is a new app called Newday - Impact Investing that lets you choose in what causes you would like to invest - Climate Action, Global Impact, Gender Equality amongst others-, how much money, and how many times - once a week, once a month, a one-time investment, etc.-

But why? Why do we have a gender gap in payment?
Well, there is no valid answer to this question. And there will never be. The Boston Symphony is a clear example of bias towards gender in our society. This situation is mirrored all the time in our communities, schools, workplaces, etc. Women are discriminated on the basis of gender. But, the most insane thing is that gender is something that no one gets to choose.
Gap means inequality. Unfair inequality. An inequality you cannot fight against. You are not given a fair chance because of a condition you were born into; where you didn't have a say on it. For years, being born as a peasant was a curse. For years, being born with a certain color of skin was a curse. For a certain period of time, just because your parents were Jews, your fate would most likely involve a gas chamber. These comparisons may sound too harsh, but do we realize a woman is being paid less just because she is a woman, and there is nothing she can do about it?

Do we know that?

Thank you.

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