By Thomas Ricotta on September 1st, 2023 in Gender Discrimination
Everyone knows that there is a gender pay gap in that women, in general, make significantly less than their male counterparts when all things are equal. There are many arguments as to why this is an actual fact, but the real culprit is systemic gender discrimination. The naysayers on the opposite side of this issue will argue that there are legitimate, non-discriminatory reasons that women earn less, such as decisions to be a stay-at-home mom or lesser education or experience. However, the gender wage gap has been present for decades and has slowly shrunk, but the gap has increased in more recent years. This raises the legitimate question of can the gender pay gap stop women from retiring? The experienced employment lawyers at Ricotta and Marks strive to inform their female clients and readers on this important issue.
What is the Gender Wage Gap?
The most recent data indicates that the gender wage gap has increased. Between 2019 and 2022, female workers were, on average, paid 20.3% less than men in 2019. By 2022, that gap widened to 22.2%. Similarly, the regression-adjusted wage gap, which has been stagnant for most of the last 20+ years, widened slightly from 22.6% to 22.9%. This data indicates that the pay gap between women and men is moving in the wrong direction. One reason for the negative move isn’t that women are being paid less, it’s that men’s wages are rising at a higher rate than women’s wages.
These numbers reflect the entire group of men and women workers, comparing wages between the sexes of lower-paid workers as well as average and higher-paid workers. It isn’t all bad news though. When comparing the male and female wages of average-paid workers, the pay gap is much less. In 2019, average or middle-paid female workers were paid on average 16.2% less than average-paid male workers. In 2022, that wage gap narrowed to 15.4%, reflecting a positive move in the right direction.
Can the Gender Pay Gap Stop Women from Retiring?
The simple answer to this question is that yes, the gender pay gap can stop women from retiring or retiring sooner rather than later. The bottom line is that if women make less, then they will have to work longer in order to have enough to live on when retire. Take, for example, a woman who works 40-hour weeks for decades. If she consistently earns $.20 less than her male co-employees, that lost income can add up pretty quickly. In each year, the female employee will earn $2,089 a year less than her male counterparts. Assuming a thirty-year career, that’s $62,670 less than their male counterparts. The fact that women earn less than men over their working lifetimes inherently makes it less likely women can save enough for retirement.
Other Financial Effects
There are other financial effects that are caused by the wage gap between men and women. Due to making less money, it is harder for women to save, not just for retirement, but for other necessary things like an emergency spending cushion or to save up for a downpayment on a house. It becomes more difficult, on average, for women as compared to men to save for their children’s education expenses.
If you have any questions about the gender pay gap or if you believe you are being paid unfairly as compared to your male co-workers, please do not hesitate to contact Ricotta and Marks so that all of your questions can be answered. Help is just a phone call away.