Equal Pay Day

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Equal Pay Day flag flying on March 21, 2014 in Alsbach, Germany Flago pri la Tago de Samrajta Pago en Alsbach (DE).JPG
Equal Pay Day flag flying on March 21, 2014 in Alsbach, Germany

Equal Pay Day is the symbolic day dedicated to raising awareness of the gender pay gap. In the United States, this date symbolizes how far into the year the average median woman must work (in addition to their earnings last year) in order to have earned what the average median man had earned the entire previous year. The exact day differs year by year. In 2022, it was March 15. [1] On average, women earn $0.82 for every dollar men earned in 2019. [2]

Contents

In the United States, the average wage gap for women also varies by demographic and therefore also has different dates to recognize how far into the year an average women of color needs to work to earn what the average man earned in the previous year without accounting for job type, education, etc. [3] In 2019, compared to each $1 earned by a white, non-Hispanic man, on average:

On average, in 2018 mothers earned $0.69 for each $1 earned by fathers, so in 2019 their equal pay day was June 10. [3]

Background

The symbolic day was first observed in 1996 [1] by the National Committee on Pay Equity, a coalition of women's and civil rights organizations, labor unions, professional associations and individuals working to eliminate sex and race based wage discrimination and to achieve pay equity. [4]

The goals of Equal Pay day are: [5]

Equal Pay Act

The Equal Pay Act requires that men and women be given equal pay for equal work in the same establishment. The jobs need not be identical, but they must be substantially equal. It is job content, not job titles, that determines whether jobs are substantially equal. Specifically, the EPA provides that employers may not pay unequal wages to men and women who perform jobs that require substantially equal skill, effort and responsibility, and that are performed under similar working conditions within the same establishment. Each of these factors is summarized below:

Pay differentials are permitted when they are based on seniority, merit, quantity or quality of production, or a factor other than sex. These are known as "affirmative defenses" and it is the employer's burden to prove that they apply.

In correcting a pay differential, no employee's pay may be reduced. Instead, the pay of the lower paid employee(s) must be increased. [6]

Representative Terri Sewell speaks about Equal Pay Day in 2018.

The gender pay gap, although the gap is shrinking greatly as evidenced by EEOC data is defined as the average difference between men's and women's aggregate hourly earnings. The wage gap is due to a variety of causes, such as differences in education choices, differences in preferred job and industry, differences in the types of positions held by men and women, differences in the type of jobs men typically go into as opposed to women (especially highly paid high risk jobs), differences in amount of work experience, difference in length of the work week, and breaks in employment. These factors resolve 60% to 75% of the pay gap, depending on the source. Various explanations for the remaining 25% to 40% have been suggested, including women's lower willingness and ability to negotiate salaries and discrimination. [7] [8]

United States legislation

The debate for equal pay in the United States has been going on for centuries. Several laws have been passed in order to further support the idea of equal pay no matter the gender.

In 1963, John F. Kennedy signed the Equal Pay Act into effect, calling it a "significant step forward" for women in the workforce. The Civil Rights Act of 1964 prohibited discrimination on the basis of race, origin, color, religion, or sex. The Pregnancy Discrimination Act of 1978 protected pregnant employees, and the Family and Medical Leave Act of 1993 allowed parents regardless of gender to take time off. President Barack Obama signed the Lilly Ledbetter Fair Pay Act, which restores some protections against discrimination that had been stripped in a 2007 Supreme Court case, gave incentives to employers to make their payrolls fairer. [9]

Observance in other countries

According to the European Commission direct discrimination either does not cause any gender wage differences or only explains a small part of it. [10]

Great Britain

In Great Britain, Equal Pay Day marks the day in the year when women effectively stop earning until the following year. In 2018, that was November 10 and the gap follows similar demographic trends to the United States, in that, Black, Asian and Minority Ethnic (BAME) women are paid less on average than white women. [11]

Germany

Equal Pay Day is more widely observed in Germany than it is in the United States, or elsewhere for that matter; for example, the online presence is far greater, such as the Equal Pay Day Wiki, the Equal Pay Day Wikipedia page in German, and this Equal Pay Day informational site (all links are in German). An interesting thing to note about Equal Pay Day in Germany is that it falls on different days than it does in the United States, because the wage gap in Germany is different and also because the formula used to calculate the Equal Pay Day date is different. Whereas in 2016 Equal Pay Date in the United States was observed on April 12, in Germany it was observed on March 19. [12] In Germany, Equal Pay Day also helped inspire the creation of Equal Care Day, a symbolic event dedicated to creating awareness of the lack of appreciation and unfair distribution of care work in society.

The Netherlands

The first Equal Pay Day in The Netherlands took place on October 24, 2006. In 2022, the day was on November 14. In 2021, the average salary gap was 13%. [13]

Its time to reveal the gap. Logo of European Commission for Equal Pay Day Its time to reveal the gap - candy 0.gif
Its time to reveal the gap. Logo of European Commission for Equal Pay Day

European Union

The European Commission, the European Union's executive arm, observes Equal Pay Day based on the average gap across the bloc. Based on 2016 figures, that difference was 16%. [14] In 2022 Equal Pay Day was on 15 november, based on a gap of 13%. [15]

Australia

In 2018, Equal Pay Day fell on August 31. [16] The date was specifically chosen to represent the additional 62 days from the end of the previous financial year that women have to work to earn the same as men. [16]

Other countries

The date on which Equal Pay Day is observed is different in every country due to differing formulas for observing the day and also due to different wage gaps. For example Equal Pay Day in Czech Republic is observed each year as a major two-day event involving over 2,000 people with an extensive educational program. [17]

United Nations

The United Nations first celebrated Equal Pay Day September 18, 2020. They estimate that women earn 23 percent less than men globally. [18]

See also

Related Research Articles

<span class="mw-page-title-main">Equal Pay Act of 1963</span> United States labor law of the New Frontier program

The Equal Pay Act of 1963 is a United States labor law amending the Fair Labor Standards Act, aimed at abolishing wage disparity based on sex. It was signed into law on June 10, 1963, by John F. Kennedy as part of his New Frontier Program. In passing the bill, Congress stated that sex discrimination:

Equal pay for equal work is the concept of labour rights that individuals in the same workplace be given equal pay. It is most commonly used in the context of sexual discrimination, in relation to the gender pay gap. Equal pay relates to the full range of payments and benefits, including basic pay, non-salary payments, bonuses and allowances. Some countries have moved faster than others in addressing equal pay.

Employment discrimination is a form of illegal discrimination in the workplace based on legally protected characteristics. In the U.S., federal anti-discrimination law prohibits discrimination by employers against employees based on age, race, gender, sex, religion, national origin, and physical or mental disability. State and local laws often protect additional characteristics such as marital status, veteran status and caregiver/familial status. Earnings differentials or occupational differentiation—where differences in pay come from differences in qualifications or responsibilities—should not be confused with employment discrimination. Discrimination can be intended and involve disparate treatment of a group or be unintended, yet create disparate impact for a group.

The gender pay gap in the United States is a measure between the earnings of male and females in the workforce. When calculating the pay gap, non-adjusted versus adjusted pay gap is utilized. The adjusted pay gap takes into consideration the differences in hours worked, occupations chosen, education and job experience, whereas the non-adjusted pay gap is the overall difference of gross hourly earnings of males and females in the United States. The non-adjusted average female annual salary is around 80% of the average male salary, compared to 95% for the adjusted average salary.

Economic discrimination is discrimination based on economic factors. These factors can include job availability, wages, the prices and/or availability of goods and services, and the amount of capital investment funding available to minorities for business. This can include discrimination against workers, consumers, and minority-owned businesses.

Gender inequality is the social phenomenon in which people are not treated equally on the basis of gender. This inequality can be caused by gender discrimination or sexism. The treatment may arise from distinctions regarding biology, psychology, or cultural norms prevalent in the society. Some of these distinctions are empirically grounded, while others appear to be social constructs. While current policies around the world cause inequality among individuals, it is women who are most affected. Gender inequality weakens women in many areas such as health, education, and business life. Studies show the different experiences of genders across many domains including education, life expectancy, personality, interests, family life, careers, and political affiliation. Gender inequality is experienced differently across different cultures and also affects non-binary people.

Occupational inequality is the unequal treatment of people based on gender, sexuality, height, weight, accent, or race in the workplace. When researchers study trends in occupational inequality they usually focus on distribution or allocation pattern of groups across occupations, for example, the distribution of men compared to women in a certain occupation. Secondly, they focus on the link between occupation and income, for example, comparing the income of whites with blacks in the same occupation.

Occupational segregation is the distribution of workers across and within occupations, based upon demographic characteristics, most often gender. Other types of occupational segregation include racial and ethnicity segregation, and sexual orientation segregation. These demographic characteristics often intersect. While a job refers to an actual position in a firm or industry, an occupation represents a group of similar jobs that require similar skill requirements and duties. Many occupations are segregated within themselves because of the differing jobs, but this is difficult to detect in terms of occupational data. Occupational segregation compares different groups and their occupations within the context of the entire labor force. The value or prestige of the jobs are typically not factored into the measurements.

The Equality Act 2006 was complemented with specific duties later on. The general Equality Duty states that people should not be discriminated according to their age, race, gender, religion, disability and sexual orientation and required public bodies to take seriously threats of harassment or discrimination on the grounds of gender reassignment.

<span class="mw-page-title-main">Paycheck Fairness Act</span> Proposed law to address the gender pay gap

The Paycheck Fairness Act is a proposed United States labor law that would add procedural protections to the Equal Pay Act of 1963 and the Fair Labor Standards Act as part of an effort to address the gender pay gap in the United States. A Census Bureau report published in 2008 stated that women's median annual earnings were 77.5% of men's earnings. Recently this has narrowed, as by 2018, this was estimated to have decreased to women earning 80-85% of men's earnings. One study suggests that when the data is controlled for certain variables, the residual gap is around 5-7%; the same study concludes that the residual is because "hours of work in many occupations are worth more when given at particular moments and when the hours are more continuous. That is, in many occupations, earnings have a nonlinear relationship with respect to hours."

Gender pay gap in Australia looks at the persistence of a gender pay gap in Australia. In Australia, the principle of "equal pay for equal work" was introduced in 1969. Anti-discrimination on the basis of sex was legislated in 1984.

In the United States, despite the efforts of equality proponents, income inequality persists among races and ethnicities. Asian Americans have the highest median income, followed by White Americans, Hispanic Americans, African Americans, and Native Americans. A variety of explanations for these differences have been proposed—such as differing access to education, two parent home family structure, high school dropout rates and experience of discrimination and deep-seated and systemic anti-Black racism—and the topic is highly controversial.

In Russia the wage gap exists and statistical analysis shows that most of it cannot be explained by lower qualifications of women compared to men. On the other hand, occupational segregation by gender and labor market discrimination seem to account for a large share of it.

Gender inequality in the United States has been diminishing throughout its history and significant advancements towards equality have been made beginning mostly in the early 1900s. However, despite this progress, gender inequality in the United States continues to persist in many forms, including the disparity in women's political representation and participation, occupational segregation, and the unequal distribution of household labor. The alleviation of gender inequality has been the goal of several major pieces of legislation since 1920 and continues to the present day. As of 2021, the World Economic Forum ranks the United States 30th in terms of gender equality out of 149 countries.

<span class="mw-page-title-main">Gender pay gap</span> Average difference in remuneration amounts between men and women

The gender pay gap or gender wage gap is the average difference between the remuneration for men and women who are working. Women are generally found to be paid less than men. In the United States, for example, the average annual salary of a woman is 83% that of a man. However, this figure changes when controlled for confounding factors such as differences in hours worked, occupations chosen, education, job experience, and level of danger at work. Attempts to control for these factors arrive at adjusted figures from 95% to 99%.

The gender pay gap in New Zealand is the difference in the median hourly wages of men and women in New Zealand. In 2020 the gender pay gap is 9.5%. It is an economic indicator used to measure pay equality. The gender pay gap is an official statistic published annually by Stats NZ sourced from the Household Labour Force Survey.

Gender pay gap in India refers to the difference in earnings between women and men in the paid employment and the labor market. For the year 2013, the gender pay gap in India was estimated to be 24.81%. Further, while analyzing the level of female participation in the economy, this report slots India as one of the bottom 10 countries on its list. Thus, in addition to unequal pay, there is also unequal representation, because while women constitute almost half the Indian population, their representation in the work force amounts to only about one-fourth of the total.

Authored by State Senator Hannah-Beth Jackson, the California Fair Pay Act is an amendment to the existing California labor laws that protects employees who want to discuss about their co-workers' wages as well as eliminating loopholes that allowed employers to justify inequalities in pay distribution between opposite sexes. The bill is an extension of the California Equal Pay Act of 1949, which was originally intended to enforce equal pay.

The gender pay gap in the United States tech industry is the divergence in pay between men and women who work in areas such as software engineering. Despite applying for the same jobs at the same companies, women receive job offers that pay less than their male counterparts 63% of the time. In 2018, reports show that for every dollar the average man made, women only made 82 cents, and women from underrepresented communities earn even less. State legislatures have begun to take action to solve the gender pay gap with California leading the way, following Iceland's example. The gap does not affect women of all races equally, and discourages women, specifically those that are underrepresented minorities, from continuing to pursue opportunities in the technology industry. The wage gap in the tech industry is a result of a multitude of factors including lower initial offers and lack of negotiations. As the tech industry becomes more influential in the United States economy, it will be important that firms offer equal pay for equal for equal work and be intentional in constructing applicant pools that are more representative of the population at large. Companies such as Apple, Amazon, and Google have been proactive in attempting to rectify the pay gap and have begun committing financial resources to eliminate the gap. Reports in 2019 showed the pay gap narrowed to 3% after remaining at 4% for the previous two years.

<span class="mw-page-title-main">Gender pay gap in sports</span>

Gender pay gap in sports is the persistence of unequal pay in sports, particularly for female athletes who do not receive equal revenue compared to their counterparts, which differs depending on the sport. The gender pay gap has not evolved since 1983, even though the two genders both equally influence world records and best performances in our nations sports teams.According to the research conducted by BBC, "a total of 83% of sports now reward men and women equally". However, it does not mean that the wage gap in sports has narrowed or disappeared. In 2018, Forbes released the list of the top 100 highest-paid athletes, all of them being male athletes. A similar situation also occurred in 2017, where there was only one female athlete – tennis player Serena Williams — who joined the list and ranked No.56. Billie Jean King brought awareness to the issue of unequal pay in the early 1970s, when she was awarded $2,900 less than her male counterpart at the Italian Open. The timeline of the gender pay gap in sports displays the significant events that have occurred since the 1970s.

References

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  3. 1 2 "Overview 2019". Equal Pay Today!.
  4. "About the National Committee on Pay Equity". www.pay-equity.org. Retrieved 2016-04-26.
  5. "Equal Pay Wiki".
  6. "Facts About Equal Pay and Compensation Discrimination | U.S. Equal Employment Opportunity Commission". EEOC. 15 January 1997. Retrieved 11 December 2020.
  7. "On Equal Pay Day, key facts about the gender pay gap". Pew Research Center. Retrieved 2016-04-26.
  8. Blau, Francine D.; Kahn, Lawrence M. (2007-02-01). "The Gender Pay Gap Have Women Gone as Far as They Can?". Academy of Management Perspectives. 21 (1): 7–23. doi:10.5465/AMP.2007.24286161. ISSN   1558-9080. S2CID   152531847.
  9. "The Battle for Equal Pay Dates Back to the Civil War". 14 April 2015.
  10. "What are the causes? - European Commission". ec.europa.eu. Retrieved 2016-04-26.
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  12. "Startseite". www.equalpayday.de. Retrieved 2016-04-26.
  13. "Loonkloof in bedrijfsleven onverminderd groot". FD.nl (in Dutch). Retrieved 2022-11-14.
  14. Karasz, Palko (November 10, 2018). "Britain's Equal Pay Day Highlights Gender Gap". The New York Times . Retrieved November 14, 2019.
  15. "Equal Pay Day". European Commission - European Commission. Retrieved 2022-11-14.
  16. 1 2 "National gender pay gap lowest in 20 years | WGEA". www.wgea.gov.au. Retrieved 2019-05-03.
  17. "Equal Pay Day 2020" . Retrieved November 14, 2019.
  18. "International Equal Pay Day". United Nations. Retrieved 19 January 2021.