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Uncovering the Origins of the Gender Pay Gap: Why Women Still Earn Less

Written by Salary.com Staff

February 19, 2024

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Unequal pay is a common problem in different workplaces. It is a persistent issue that affects employees globally. But the pay gap hurts women the most. The gender pay gap has been around for a long time. Despite efforts to achieve equal pay, the gap remains.

Discover the origins, advancements, and difficulties around the gender pay gap—a complicated problem that affects society at large.

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Defining the Gender Pay Gap

The pay gap is a persistent issue in every workplace. It can be unequal pay between ethnicities, certain age groups, races, or other characteristics. The gender pay gap refers to the difference in average earnings between men and women. Several factors, like occupational segregation, discrimination, and bias, cause the gender pay gap.

The gender pay gap continues in many regions despite efforts to resolve it, highlighting workplace equality issues. Closing the gender pay gap will require consistent effort.

When Did the Gender Pay Gap Begin? Tracing the History of Unequal Pay

When did the pay gap between men and women first appear? Sadly, equal pay has not been a norm for centuries.

1400’s

Social structures and practices established during that time created inequality based on gender. As early as the 1400s, guilds banned women from high-paying professions. Guilds were powerful associations of skilled workers. These guilds have access to various trades and crafts. They use their exclusionary practices to limit opportunities for women to engage in high-paying jobs.

1960’s

The 1960s marked the beginning of legal efforts to address gender pay inequality. Things improved slightly during this period. The Equal Pay Act of 1963 in the United States was a significant milestone. This law aims to abolish the gender pay gap. The law said women must get the same pay as men for jobs requiring the same skill and effort. But, even with the law, the pay gap didn't disappear right away.

1970’s onwards

In the 1970s and 1980s, the gender pay gap persisted, but there were gradual improvements. During this time, awareness of gender inequality issues increased. More women also started entering the workforce.

2000’s

  • Lilly Ledbetter Fair Pay Act (2009)

No major laws were enacted during the first few years of the 2000s. But in 2009, the Lilly Ledbetter Fair Pay Act was passed. This law changed the rules for filing pay discrimination complaints. It gave women more time to sue employers for unfair treatment. This made it simpler for other women to take legal action against companies they believed discriminated against them in terms of pay.

  • Paycheck Fairness Act (2021)

Legislators introduced the Paycheck Fairness Act in 2009. After multiple attempts to pass the law, the Paycheck Fairness Act was finally passed in 2021. It strengthens the Equal Pay Act of 1963 by closing loopholes and promoting pay transparency. The law prohibits punishing employees who talk about their salaries. This legislation also provides better solutions for those who experience pay discrimination.

In the end, unequal pay comes down to unfair practices and policies that value women’s work less. The only way to achieve equal pay is for companies to adopt fair policies, evaluate job roles objectively, and eliminate discrimination. Equal pay for equal work—it’s long overdue.

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Factors That Contribute to the Continued Gender Pay Gap

Many entities and individuals continued the fight to close the gap. But the gender pay gap continued to persist throughout the years due to several factors.

Lack of Opportunity

Women face more barriers to high-paying jobs. Traditionally, male-dominated fields like engineering and tech are still challenging for women, limiting access to higher wages. There was also a limited opportunity for women to take on leadership roles that often come with higher pay.

The Motherhood Penalty

Childbearing often interrupts women’s careers. This makes it more challenging to advance in the workplace. This “time out” can reduce lifetime earnings potential and future opportunities. Even when women return to work, they face discrimination and bias. This happens due to societal norms that assume women will be less committed to their careers after having children.

Negotiation Gap

Women negotiate salaries less aggressively than men. Women often start with lower pay, leading to fewer raises and promotions throughout their careers. The negotiation gap is a complex issue.  But empowering women to advocate for their worth during the hiring process and beyond can help close the gender pay gap.

Unconscious Bias

Subtle biases against women persist in the workplace, even if unintentional. Things like assuming women will prioritize family over work, that caregiving roles make them less ambitious, or that men make better leaders. Addressing unconscious bias and promoting inclusion is key to giving women equal opportunities and the pay they deserve.

Though progress has been made, these factors fuel the continued pay gap between women and men. By understanding the root causes, individuals and organizations can take steps towards building a fairer and more just system. A workplace where everyone receives equal pay and opportunity regardless of gender.

Progress and Setbacks: How the Gender Pay Gap Has Changed Over Time

Progress in closing the gap is still ongoing. But there are still a few setbacks.

Progress

  • Legislation: Countries have enacted pay equity laws since the 1960s to prohibit gender-based wage discrimination.
  • Increased Awareness: Advocacy, research, and media have increased public awareness and sparked discussions about the gender pay gap.
  • Workplace Initiatives: Some companies are addressing pay disparities within their organizations. Initiatives include conducting pay audits, promoting salary transparency, and implementing policies to ensure fair compensation.
  • Education and Advocacy: Organizations and individuals actively advocate for equal pay. They push for policy changes, challenge discriminatory practices, and promote a culture of fairness in the workplace.

Setbacks

  • Persistent Gap: Despite progress, the gender pay gap persists. Women, on average, continue to earn less than men across various industries and occupations.
  • Slow Progression: Closing the gender pay gap has been slow. Structural and cultural barriers contribute to the persistence of wage disparities.
  • Implicit Bias: Unconscious biases and stereotypes about women's capabilities. Outdated policies and implicit biases still negatively impact women's pay.
  • Global Disparities: In some regions, particularly developing countries, gender pay gaps are more pronounced. It reflects broader systemic issues related to gender inequality.

Closing the gap still needs a lot of work and effort. But the progress is already giving hope that one day women will earn the same as men.

Closing the Gap: Solutions and Initiatives

Closing the gender pay gap will require initiatives and action from multiple groups. As an individual, you can advocate for pay transparency at your company to help address unfair pay practices. You can also support political candidates promoting equal pay legislation.

What Companies Can Do

Companies must conduct salary audits to identify unfair pay discrepancies and make appropriate adjustments. They must establish clear criteria for determining pay to minimize potential bias. Providing mentoring and leadership opportunities for women can also help to close the gap by enabling their career progression.

Public Policy Changes

Passing laws like the Paycheck Fairness Act helps address pay disparities.  Legislations like this can help protect workers discussing their pay, require employers to prove pay gaps exist for legitimate reasons, and strengthen penalties for equal pay violations. Expanding family leave policies gives women and men more flexibility in their careers.

Individuals, organizations, and policymakers are making progress through collaborative efforts. Keeping the conversation going and maintaining momentum for change will be keys to overcoming this persistent social and economic issue. Collective action and a shared commitment to equal opportunity can help shape a future of fair and equitable pay.

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Conclusion

The gender pay gap is not just about women choosing lower-paying jobs or not asking for raises. It's a complex issue caused by unconscious bias, stereotypes, and systemic barriers. However, understanding its root causes can help everyone make progress. By acknowledging these hidden forces at play and making a conscious effort to counteract them, companies and individuals can work together to close the pay gap over time. But real change will require a collective effort. Every small action matters in creating a fairer and more just system for women in the workplace.

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