Category Archives: Income Inequality/Gap

Older industrial cities are key to addressing rising regional inequality

Source: Alan Berube and Cecile Murray, Brookings Institution, April 23, 2018

The United States is about to enter its 10th year of economic expansion, dating back to the end of the Great Recession in June 2009. Job growth is robust, the unemployment rate is low, and median household income is at an all-time high.

Yet there remains a strong sense, punctuated by the results of the 2016 presidential election, that many parts of the country have been left behind in the rising tide.

Regional inequality is on the rise
The evidence backs this up. Almost four in five urban areas nationwide had household incomes in 2016 at least 5 percent lower than their levels in 1999. Many of the hardest-hit communities were small to mid-sized areas throughout the Midwest, Northeast, and Southeast still feeling the effects of long-run industrial decline…..

Income Mobility Charts for Girls, Asian-Americans and Other Groups. Or Make Your Own.

Source: Emily Badger, Claire Cain Miller, Adam Pearce, Kevin Quealy, New York Times, March 27, 2018

Last week we wrote about a sweeping new study of income inequality, which followed 20 million children in the United States and showed how their adult incomes varied by race and gender. The research was based on data about virtually all Americans now in their late 30s. This first animated chart illustrates one of the study’s main findings: White boys who grow up rich are likely to remain that way, while black boys raised in similarly wealthy households are more likely to fall to the bottom than stay at the top in their own adult households.

The Worst States for Women’s Lifetime Wage Gap

Source: Jasmine Tucker, National Women’s Law Center, April 10, 2018

Families depend on women’s wages now more than ever. But a woman working full time, year round is typically paid just 80 cents for every dollar her male counterpart is paid. This gap, which persists by educational attainment and occupation, amounts to a loss of $10,086 per year for the typical woman working full time, year round, and today, April 10th, is the day her pay catches up to men’s in 2017 alone.

For a typical woman, this wage gap adds up to a staggering loss of $403,440 over a lifetime of work. And depending on a woman’s race or ethnicity and where she lives, the situation can be much, much worse.
Here are the worst states for women’s earnings losses over a lifetime…..

The Economic Status of Women in the States

Source: Julie Anderson, Jennifer Clark, Institute for Women’s Policy Research, Fact Sheet, IWPR# R532, March 2018

From the summary:
This Fact Sheet presents findings from analysis of the Employment & Earnings Index and Poverty & Opportunity Index of The Status of Women in the States series, a comprehensive project that presents and analyzes data for all 50 states and the District of Columbia. The state grades, rankings, and data provided on these two measures of women’s economic status provide critical information to identify areas of progress for women in states across the nation and pinpoint where additional improvements are still needed. The state-by-state grades are based on composite indices first developed by the Institute for Women’s Policy Research in 1996. For a complete discussion of data sources and methodology, and to find fact sheets on the economic status of women in each state, please visit the interactive Status of Women in the States website at statusofwomendata.org.

Related:
The Economic Status of Women in the U.S.: What Has Changed in the Last 20 – 40 Years
Source: Heidi Hartmann, Institute for Women’s Policy Research, Presentation, March 28, 2018

Wage Gap Will Cost Millennial Women $1 Million Over their Careers

Source: Jeff Hayes, Heidi Hartmann, Institute for Women’s Policy Research, Quick Figures, IWPR# Q069, April 2018

From the summary:
Millennial women are the most educated generation of women in the United States and are now more likely than men to have a college degree. At the same time, progress on closing the gender wage gap has stalled for nearly two decades, indicating that unequal pay continues to be a challenge to new generations of women workers.

Equal Pay Day 2018: How to Negotiate at Your First Job

Source: Marissa Miller, Teen Vogue, April 10, 2018

Not negotiating is not an option. …

….Women continue to make an average of 80 cents for every man’s dollar, but research shows everyone wins with gender-based pay parity. The McKinsey Global Institute found that moving towards a more egalitarian workforce could add up to $4.3 trillion in annual GDP by 2025. But at the rate we’re going, the Institute for Women’s Policy Research finds women will only see pay checks equal to those of their male counterparts in 232 years. (And if that sounds bad, remember that women of color, on average, face much larger pay gaps than white women. While Asian women have the smallest gap between their wages and those of white men, the AAUW reports that Hispanic women average 54 percent and black women 63 percent of what white men make.)

Thankfully, trailblazers like Libby Leffler, VP of membership at SoFi, are working at the local level to enact real change. With stops on her resume including Google and Facebook, the business executive has negotiated her salary at every position she’s held with the expectation that her employees will to do the same (and as Facebook COO Sheryl Sandberg’s former business lead, she’s fluent in the language of Leaning In). In honor of Equal Pay Day, April 10, Libby talks to Teen Vogue about everything from negotiating your worth to never taking your group texts for granted…..

The Gender Wage Gap by Occupation 2017 and by Race and Ethnicity

Source: Ariane Hegewisch, M.Phil., Emma Williams-Baron, Institute for Women’s Policy Research, Fact Sheet, IWPR# C467, April 2018

From the summary:
Women’s median earnings are lower than men’s in nearly all occupations, whether they work in occupations predominantly done by women, occupations predominantly done by men, or occupations with a more even mix of men and women. Data for both women’s and men’s median weekly earnings for full-time work are available for 121 occupations. The occupation with the largest gender wage gap is ‘personal financial advisor;’ in 2017, the median weekly earnings of women ‘personal financial advisors’ were only 58.9 percent of those of men’s, corresponding to a gender wage gap of 41.1 percent….

The Gender Wage Gap: 2017 Earnings Differences by Race and Ethnicity

Source: Ariane Hegewisch, Emma Williams-Baron, Institute for Women’s Policy Research, IWPR #C464, March 2018

From the abstract:
The gender wage gap in weekly earnings for full-time workers in the United States did not improve between 2016 and 2017. In 2017, the ratio of women’s to men’s median weekly full-time earnings was 81.8 percent, a decrease of 0.1 percentage points since 2016, when the ratio was 81.9 percent, leaving a wage gap of 18.2 percentage points, nearly the same as the 18.1 percentage points in 2016. Women’s median weekly earnings for full-time work were $770 in 2017 compared with $941 for men. Adjusting for inflation, women’s and men’s earnings increased by the same amount, 0.7 percent, since 2016.

Another measure of the wage gap, the ratio of women’s and men’s median annual earnings for full-time, year-round workers, was 80.5 percent in 2016 (data for 2017 are not yet available). An earnings ratio of 80.5 percent means that the gender wage gap for full-time, year-round workers is 19.5 percent.  

The gender earnings ratio for full-time, year-round workers, which includes self-employed workers, tends to be slightly lower than the ratio for weekly earnings (which excludes the self-employed and earnings from annual bonuses, and includes full-time workers who work only part of the year). Both earnings ratios are for full-time workers only; if part-time workers were included, the ratios of women’s to men’s earnings would be even lower, as women are more likely than men to work reduced schedules, often in order to manage childrearing and other caregiving work.

State of the Union

Source: Stanford Center on Poverty and Inequality, Pathways, Special Issue, 2018

From the summary:
The Stanford Center on Poverty and Inequality is pleased to present its fifth annual report examining the state of the union. In this year’s report, we provide a comprehensive assessment of gender inequality in eleven domains ranging from education to health, employment, earnings, poverty, sexual harassment, networks, and more. The report concludes with a discussion of the most promising sciencebased policies for reducing gender inequality at home and in the labor market.

Articles include:
Gender Identification
Aliya Saperstein
The traditional gender binary just doesn’t work. When respondents of a national survey were asked about their femininity and masculinity, 7 percent considered themselves equally feminine and masculine, and another 4 percent responded in ways that did not “match” their sex at birth (i.e., females who saw themselves as more masculine than feminine, or males who saw themselves as more feminine than masculine).

Education
Erin M. Fahle and Sean F. Reardon
Despite common beliefs to the contrary, male students do not consistently outperform female students in mathematics. It’s only in high school that the male advantage in mathematics surfaces. What’s going on?

Health
Mark Duggan and Valerie Scimeca
For women and men alike, life expectancy has stagnated for the last several years, primarily due to increases in drug poisoning deaths and in the suicide rate. The male-female life expectancy gap, which favors females, fell from 7.6 years in 1970 to 4.8 years in 2010, a reduction of more than one-third.

Employment
Melissa S. Kearney and Katharine G. Abraham
After rising steadily for many decades, the overall female employment rate has been falling since 2000. Why has it fallen? Are there straightforward policy fixes that could increase women’s employment?

Earnings
Emmanuel Saez
When gender differences in labor force participation, fringe benefits, and self-employment income are taken into account, women earn only 57 cents for each dollar earned by men.

Poverty
H. Luke Shaefer, Marybeth Mattingly, and Kathryn Edin
Are women more likely than men to be in deep poverty, official poverty, and near poverty? Yes, yes, and yes.

Safety Net
Linda M. Burton, Marybeth Mattingly, Juan Pedroza, and Whitney Welsh
Why do women use safety net programs more than men? A hint: It’s not just because they’re more likely to be eligible for them.

Occupational Segregation
Kim A. Weeden, Mary Newhart, and Dafna Gelbgiser
Nearly half of the women in the labor force would have to move to a different occupation to eliminate all occupational segregation by gender. This is a classic case of stalled change: If recent rates of change are extrapolated, it would take 330 years to reach full integration.

Discrimination
David S. Pedulla
A new science of gender discrimination is being built with audit studies and other experiments. A key result: Gender discrimination is more likely to emerge when the applicant’s commitment to work can be called into question or when an applicant is behaving in a gender-nonconforming way.

Workplace Sexual Harassment
Amy Blackstone, Heather McLaughlin, and Christopher Uggen
The workplace is rife with sexual harassment. By age 25 to 26, one in three women and one in seven men experience behavior at work that they define as sexual harassment.

Social Networks
Adina D. Sterling
Although men used to have more social ties than men, now the gender gap has reversed and women have the larger networks. But women still have fewer coworker ties than men … and coworker ties matter a lot.

Policy
Marianne Cooper and Shelley J. Correll
What are the most promising science-based policies for reducing gender inequality at home and in the labor market?