American American Association of Association of

University WomenUniversity WomenBehind the Pay GapBehind the Pay Gap

October 20, 2007October 20, 2007Presented by: Nancy Ellis, J.D., M.B.A., M.A.Presented by: Nancy Ellis, J.D., M.B.A., M.A.

Attorney at LawAttorney at Law

Portions of this report were excerpted directly from the AAUW report: Behind Portions of this report were excerpted directly from the AAUW report: Behind the Pay Gapthe Pay Gap

Behind the Pay GapBehind the Pay Gap

• This was a comprehensive study This was a comprehensive study completed by the AAUW (Judith completed by the AAUW (Judith Goldberg Dey and Catherine Hill)Goldberg Dey and Catherine Hill)

• Provides a multifaceted perspective Provides a multifaceted perspective and addresses the realities of pay and addresses the realities of pay disparity between men and women.disparity between men and women.

Behind the Pay Gap Behind the Pay Gap Builds on other AAUW reports Builds on other AAUW reports

including:including:

• Women at Work (2003)Women at Work (2003): Focuses on : Focuses on Gender Segregation in the workplace.Gender Segregation in the workplace.

• Public Perceptions of the Pay Gap Public Perceptions of the Pay Gap (2005)(2005)

• Mom’s Retirement Security Mom’s Retirement Security (2006):(2006): Women are twice as likely to spend retirement in poverty.

Executive SummaryExecutive Summary

• Achievements Achievements in education in education have only have only resulted in resulted in modest modest improvements improvements in pay equity in pay equity for women.for women.

Pay Disparity can be Pay Disparity can be attributed to many factors:attributed to many factors:

• Professional Choices: Professional Choices: – Attending CollegeAttending College– Choice of MajorChoice of Major

• Traditionally male dominated Traditionally male dominated majormajor

• Traditionally female dominated Traditionally female dominated majormajor

– Choice of CareerChoice of Career• Traditionally male dominated Traditionally male dominated

professionprofession• Traditionally female dominated Traditionally female dominated

professionprofession

Pay Disparity can be Pay Disparity can be attributed to many factors, attributed to many factors,

cont…:cont…:• Personal ChoicesPersonal Choices

– ParentingParenting•Motherhood and Motherhood and Fatherhood are treated Fatherhood are treated differently.differently.

•Motherhood = economic Motherhood = economic sacrificessacrifices

•Fatherhood = wage Fatherhood = wage

premiumpremium

Both men and women Both men and women should share both economic should share both economic

opportunities and also opportunities and also opportunities for child opportunities for child

rearing.rearing.

•

Why the Pay Gap Why the Pay Gap Matters…Matters…

• Pay equity is a matter of fairness.Pay equity is a matter of fairness.• Pay inequity is cumulative.Pay inequity is cumulative.• Pay inequity impacts quality of life for Pay inequity impacts quality of life for

women.women.

Pay Disparity – One Year Pay Disparity – One Year after College Graduationafter College Graduation

• Pay Disparity exists Pay Disparity exists from the outset:from the outset:– One year post One year post

graduationgraduation

women earn only 80% as women earn only 80% as muchmuch

as their male as their male counterparts. counterparts.

This despite the fact This despite the fact that…that…

• Women and men Women and men attended similar kinds attended similar kinds of colleges. of colleges.

• Women outperformed Women outperformed men academically.men academically.

• Some clear patterns Some clear patterns emerge:emerge:– Jobs in female Jobs in female

dominated majors paid dominated majors paid less than jobs in male less than jobs in male dominated majors.dominated majors.

• Yet a year out of Yet a year out of college, women earned college, women earned less than men in less than men in virtually every virtually every category including jobs category including jobs in female dominated in female dominated majors. majors.

One year – Pay Disparity – One year – Pay Disparity – All CareersAll Careers

Pay Disparity Ten Years Pay Disparity Ten Years After GraduationAfter Graduation

• The pay gap widens.The pay gap widens.• Men and Women are Men and Women are

equally likely to be equally likely to be married.married.

• Gender segregation Gender segregation remains unchanged.remains unchanged.

• Men have more authority Men have more authority in the workplace than in the workplace than women. women. – Men are more likely to Men are more likely to

supervise than women. supervise than women.

• Women are more likely Women are more likely than men to have than men to have completed graduate completed graduate educationeducation

Pay Gap – All Pay Gap – All

Gender Based Pay Gender Based Pay DiscriminationDiscrimination

• Portion of Pay gap that Portion of Pay gap that remains unexplained (pay remains unexplained (pay disparity can not be attributed disparity can not be attributed to any specific cause):to any specific cause):– 5% one year after graduation5% one year after graduation– 12% ten years after graduation12% ten years after graduation

• These unexplained pay gaps These unexplained pay gaps are evidence of discrimination are evidence of discrimination in pay between men and in pay between men and women. women.

DiscriminationDiscrimination

• Discrimination is illegal and it is difficult to Discrimination is illegal and it is difficult to measure directly.measure directly.– “The regressions for earnings one year after college

indicate that when all variables are included, about one quarter of the pay gap is attributable to gender. That is, after controlling for all the factors known to affect earnings, college-educated women earn about 5 percent less than college-educated men earn. Thus, while discrimination cannot be measured directly, it is reasonable to assume that this pay gap is the product of gender discrimination.”

• The unexplained portion of the pay gap increases over time to 12% after ten years.

What can we do to address What can we do to address the realities of pay the realities of pay

disparity…disparity…• Public recognition of the problem.Public recognition of the problem.

• This includes both the current and long term implications of this This includes both the current and long term implications of this problem.problem.

• Equal Pay Day initiativesEqual Pay Day initiatives

• Reduce occupational gender segregation Reduce occupational gender segregation • Promote careers in science, technology, engineering, and math to Promote careers in science, technology, engineering, and math to

girls and women.girls and women.• Encourage girls to take and complete math sequences in high Encourage girls to take and complete math sequences in high

school.school.– This increases the likelihood of pursuing a major in math or science in This increases the likelihood of pursuing a major in math or science in

college. college. • Promote pay equity in women dominated professions and the value Promote pay equity in women dominated professions and the value

of these professions to our society. of these professions to our society.

• Encourage women to negotiate for better quality jobs Encourage women to negotiate for better quality jobs and increased pay.and increased pay.

• Women need to demand better jobs….Women need to demand better jobs….• And most importantly negotiate better pay. And most importantly negotiate better pay.

What can we do to address What can we do to address the realities of pay the realities of pay

disparity, cont…disparity, cont…• Support mothers (and fathers) in the Support mothers (and fathers) in the

workplace. workplace. – U.S. workforce is rigid concerning time off for U.S. workforce is rigid concerning time off for

childrearing.childrearing.– Support Childcare programs. Support Childcare programs. – Childcare work must be valued and compensated.Childcare work must be valued and compensated.– Encourage employers to offer other options Encourage employers to offer other options

including:including:• Part-time employmentPart-time employment• Rethink using hours as a basis for measuring productivity.Rethink using hours as a basis for measuring productivity.

• End Gender Discrimination: End Gender Discrimination: – Legislation on the federal, state and local levels:Legislation on the federal, state and local levels:

• Equal Pay ActEqual Pay Act• FMLAFMLA• State and Local Human Rights LawsState and Local Human Rights Laws

Action must take place on Action must take place on multiple levels:multiple levels:

• Employees, employers, government, Employees, employers, government, public.public.

• Women take action at work.Women take action at work.• Leadership.Leadership.• Public sector should become a model Public sector should become a model

for the private sector.for the private sector.

Awareness and Advocacy Awareness and Advocacy promote change…promote change…

Thank you, Nancy EllisThank you, Nancy Ellis