Keep the Change until Women Have Real Change

Introduction

 According to new data from the Bureau of Labor Statistics, in 2007 the ratio of women‘s and men‘s median annual earnings reached almost 78 cents on the dollar for full-time year-round workers, up from just under 77 cents in 2006. This is the narrowest the wage gap has ever been, but it‘s only an additional one cent on the dollar. One cent is chump change. It isn‘t real change. While women have been hard at work to earn their extra penny, Congress has failed to pass legislation that would give women effective equal pay protections. In light of this development, AAUW will tell Congress: ―Keep the Change until Women Have Real Change.‖ The AAUW Pay Equity Resource Kit is a resource for education and advocacy on pay equity. It provides background information on pay equity to use to educate your branch and your community. It also provides suggestions for programming and advocacy, including tools from our new ―Keep the Change‖ campaign, so you and your branch and allies can make a difference for pay equity.

More women in the United States are obtaining college degrees and increasing their participation in the labor force. Family-friendly legislation – including the Equal Pay Act, Family and Medical Leave Act, Pregnancy Discrimination Act, and policies such as flex time and telecommuting – have increased options to create a win-win situation for women and their employers. Yet the wage gap between men and women persists. In 2007, women earned only 78 cents on the dollar to their male counterparts.1 Over a working lifetime, estimates of what this wage disparity costs the average American woman and her family range from $440,0002 to $2 million.3 In 2004, a typical college-educated woman working full-time earned $31,223 a year, compared to $40,798 for a college-educated man—a stark difference of $9,575.4

Since its founding in 1881, the American Association of University Women has been committed to promoting equity for all women. As part of this effort AAUW advocates for policies and programs that allow women to achieve economic security. AAUW‘s 2007-09 Public Policy Program states that AAUW advocates “pay equity and fairness in compensation, equitable access and advancement in employment,‖ and ―vigorous enforcement of employment antidiscrimination statutes.‖5 AAUW believes that pay equity is a simple matter of justice and continues to support initiatives that seek to close the persistent and sizable wage gaps between men and women. AAUW‘s organization-wide programmatic theme, ―Education as the Gateway to Women‘s Economic Security,‖ adopted in June 2005, reflects AAUW‘s recognition of women‘s educational gains as well as the understanding that women‘s progress has not yet translated into economic security.

Americans are well aware that there is a wage gap between male and female full-time workers. According to AAUW poll research, when asked if a pay gap exists 75 percent say they agree.6 We know that working together, AAUW members and branches can make meaningful and powerful changes in their communities. This AAUW Pay Equity Resource Kit will help members learn more about the issue of pay equity and provide a variety of resources to help you take action. In this resource kit you will find a timeline of notable achievements and disappointments around the fight for pay equity; facts, figures and frequently asked questions; and information on current federal and state legislation dealing with pay equity. In addition you will find information about Equal Pay Day. Each April, advocates across the country recognize Equal Pay Day to bring attention to the struggle for pay equity.

Equal Pay Day

To match men's earnings for 2008, women will have to work from January 2008 into April 2009—almost an extra four months. Equal Pay Day takes place on a Tuesday in April and symbolizes the point in the next year to which a woman must work to achieve pay equity for the previous year. In 2009 Equal Pay Day will be celebrated on Tuesday, April 28. But Equal Pay Day is not just about disseminating information, it is also about mobilizing around the issue to educate your community and continue the process of change. This resource kit contains a variety of useful resources to help you take action on Equal Pay Day and beyond. We‘ve included information about state and federal legislation to address this issue, ideas for action, and developed step-by-step suggestions for how your branch might pursue four different pay equity projects.

Facts and Figures about Pay Equity

Equal pay is a priority issue for all women.

 Among issues identified as priorities for women, 90 percent say that equal pay for equal work is a priority.7 Pay disparities affect women of all ages, races, and education levels – regardless of their family decisions. According to the U.S. Census Bureau, women, on average, earned 22 percent less than men did in 2007.8

Women of color are impacted even more. Women of color saw an even greater difference as African American women earned 30 percent less and Latinas earned 42 percent less than did men as a whole.9

Women are still largely pigeonholed in “pink-collar” jobs. According to the AAUW Educational Foundation‘s 2003 report, Women at Work, women are still concentrated in traditionally female-dominated professions, especially the education and health industries. Today the highest proportion of women with a college education includes elementary school teachers (8.7 percent) and registered nurses (6.9 percent).10

Education and career training is crucial for women. Behind the Pay Gap, AAUW Educational Foundation‘s 2007 report, found that women and men who majored in ―male-dominated‖ subjects earn more than those who major in ―female-dominated‖ or ―mixed-gender‖ fields. One year after graduation, the average female education major working full time only earns 60 percent as much as the average female engineering major working full time earns.11

The wage gap has long term effects on women’s economic security. Women are more likely than men to enter poverty in old age for several reasons:

o A lifetime of lower wages means women have less income they can save for retirement, and less income that counts in a Social Security or pension benefit formula.

o Women‘s current life expectancy is approaching 86 years old, which means they outlive men by an average of 3 years.12 As a result, they will have to stretch their retirement savings – which are less to begin with – over a longer period of time.

o The median income of older women is almost half what it is for older men.13

Pay equity is a family issue.

o Nationwide, working families lose $200 billion in income annually due to the wage gap between men and women.14

o If married women were paid comparably to men, they would see an almost 6 percent rise in their family‘s income and their families' poverty rates would fall from 2.1 percent to 0.8 percent.15

o Single working women would see the greatest increase in family income. If they earned as much as comparable men, their families would have 17 percent16 more income per year, and their poverty rate would be cut in half.17

Pay discrimination also impacts men of color. Men of color also experience wage discrimination. African American men earn 76 cents and Latinos earn only 66 cents for every dollar paid to their white male counterparts.18

Pay equity is closely linked to poverty eradication. One study found that if married women were paid the same as men doing comparable work, their families‘ poverty rates would fall from 2.1 percent to 0.8 percent. If single working mothers earned as much as men doing comparable work, their poverty rates would be cut in half, from 24.3 percent to 12.6 percent.19

Pay equity is essential to having a highly motivated workforce. Employers who pay women wages that match their value can create a positive work environment. This can help to increase productivity, reduce absenteeism and sick leave, and create a positive image with their customers. One survey found that business leaders consider the elimination of wage discrimination between different jobs to be ―good business,‖ and say that equal pay is necessary to remain competitive.20

Examples of Pay Inequity. According to the 2005 National Association for Female Executives (NAFE) Salary Survey, the wage gap in 20 different industries showed men being compensated at higher rates than their female colleagues. For example, in 2004:

o Women securities, commodities, and financial services sales agents earned $33,852, compared to $60,736 for men.

o Women marketing and sales managers earned $46,696, compared with $74,932 for men.  

o Women physicians and surgeons earned $50,856, compared with $97,448 for men.

o Women government lobbyists employed by nonprofits earned $73,907 compared with $96,655 for men.

o Women editors-in-chief of magazines made about $79,000 compared with $104,000 for men.21

1 U.S. Census Bureau, U.S. Bureau of Labor Statistics. Annual Demographic Survey, August 2008. http://www.census.gov/prod/2008pubs/acs-09.pdf Accessed Nov. 25, 2008. AAUW favors using the Census data because they report median annual earnings rather than weekly earnings. Annual earnings of full-time wage and salary workers are a standard measure of pay differentials. Economists also calculate the wage gap using median ―usual weekly earnings‖ of full-time wage and salary workers. Weekly figures do not include bonuses and overtime pay. Because men are more likely than women to receive bonuses and work overtime, the gender wage gap in annual earnings is slightly wider than when measured using usual weekly earnings. Differences can also be measured on an hourly basis. Among workers paid on an hourly basis, women age 16 and older typically earn, on average, about 85 percent of men‘s earnings. Because only part of the work force is paid on an hourly basis, it is not usually considered a good representation of the full work force.

 2 Institute for Women‘s Policy Research. . Memo to John Roberts: The Gender Wage Gap is Real. 2005. http://www.iwpr.org/pdf/C362.pdf Accessed Dec. 20,2006.

3 Murphy, Evelyn. Getting Even: Why Women Don’t Get Paid Like Men—And What to Do About It. 2005

4 U.S. Census Bureau. Income, Poverty, and Health Insurance Coverage in the United State, 2005, August 2006. http://www.census.gov/prod/2006pubs/p60-231.pdf . Accessed Dec. 20, 2006.

5 2007 – 09 AAUW Public Policy Program (approved July 2007).

6 AAUW Educational Foundation. Public Perceptions of the Pay Gap. http://www.aauw.org/research/perceptions_paygap.cfm Accessed Dec. 20, 2006.  

7 Center for the Advancement of Women. Progress and Perils: New Agenda for Women, 2003. http://www.advancewomen.org/recent-womens-research/progress-and-perils Accessed Dec. 20, 2006. This was a two-year study of over 3,300 women. Pay equity ranked second among the list of priorities for women, with domestic and sexual violence ranking first. Priorities third through fifth were childcare, health care, and reproductive choice.

8 U.S. Census Bureau, U.S Bureau of Labor Statistics. Annual Demographic Survey. August 2008. http://www.census.gov/prod/2008pubs/acs-09.pdf Accessed Nov. 25, 2008.

9 U.S. Department of Labor, U.S. Bureau of Labor Statistics. Annual Demographics Survey. August 2008. http://www.census.gov/prod/2008pubs/acs-09.pdf Accessed Nov. 25, 2008.

10 AAUW Educational Foundation. Women at Work Action Guide, 2003. http://www.aauw.org/research/womenatwork.cfm Accessed Feb. 22, 2007.

11 AAUW Educational Foundation. Behind the Pay Gap¸ 2007. http://www.aauw.org/research/behindPayGap.cfm Accessed June 11, 2007.

12 U.S. Department of Health and Human Services. Administration on Aging. A Statistical Profile of Older Americans Aged 65+, 2006. http://www.aoa.gov/press/fact/pdf/Attachment_1304.pdf Accesses Dec. 20, 2006.

13 Older Women‘s League. Mother’s Day 2006: Women and Long Term Care: Where Will I Live and Who Will Take Care of Me? http://www.owl-national.org/owlreports/MothersDay2006.pdf Dec. 20, 2006. Report shows that median income for older women is $15,615, and for older men is $29,171.

14 AFL-CIO. Working Women Fast Facts. 2006. http://www.aflcio.org/issues/factsstats/upload/women.pdf Accessed Dec. 28, 2006.

15 AFL-CIO. Working Women Fast Facts. 2006. http://www.aflcio.org/issues/factsstats/upload/women.pdf Accessed Dec. 28, 2006.

16 AFL-CIO. Working Women Fast Facts. 2006. http://www.aflcio.org/issues/factsstats/upload/women.pdf Accessed Dec. 28, 2006.

17 National Committee on Pay Equity. Race and Pay Equity Brief. 2002. Figart, Deborah M. http://www.pay-equity.org/info-racebrief.html Accessed Feb. 17, 2006.

18 U.S. Department of Labor, U.S. Bureau of Labor Statistics. ―Highlights of Women‘s Earnings in 2007, Report 1008.‖ http://www.bls.gov/cps/cpswom2007.pdf Accessed Nov. 25, 2008.

19 AFL-CIO & Institute for Women‘s Policy Research. Equal Pay for Working Families: National and State Data on the Pay Gap and its Costs. 1999.

20 National Committee on Pay Equity. Questions and Answers on Pay Equity. 2000. http://www.pay-equity.org/info-Q&A.html Accessed Feb. 22 2007.

21 National Association for Female Executives. 2005 Salary Survey. hppt://www.nafe.com/pr_2005survey.php Accessed Dec. 21, 2006.