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Women's Watch: House passes Paycheck Fairness Act

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The U.S. House, with bipartisan support and a vote of 217-210 passed the Paycheck Fairness Act, a stunning victory in the fight for fair pay. Now it is in the hands of the Senate. Equal pay has long been an issue in the United States.

Each year, we note Equal Pay Day, which denotes how far into the new year women must work to be paid what men were paid during the previous year.

Equal Pay Day for all women in 2021 was March 24.

Very simply, the pay gap is the difference in men’s and women’s median earnings. In 2019, women working full time and year-round in the United States typically were paid just 82% of what men were paid. Women are the sole or co-breadwinners in approximately two-thirds of American families. So, when women bring home less than they have rightfully earned, it hurts women, their families and the economy as a whole.

Occupational segregation is when one sex is overrepresented in a particular sector or field and accounts for as much as 51% of the gap between women’s and men’s wages. Workers in female-dominated fields are paid lower salaries than workers in male-dominated fields, even when the jobs require the same level of skill, education and training.

Women are more likely to work in lower-paying jobs. In fact, they make up about two-thirds of the nation’s low-wage workforce. The jobs pay poorly, are generally less stable and less likely to offer employee benefits, such as sick leave, health insurance and paid time off.

Since caregiving responsibilities still fall disproportionately to mothers and daughters, women still take time out of the workforce, scale back their hours or postpone advancement opportunities.

The pandemic had a near-immediate effect on women’s employment. Since the start of the pandemic, more women than men have lost jobs, largely because so many women work in industries that shrunk in 2020, such as the restaurant, retail, hospitality and travel sectors.

The challenges of caregiving, exacerbated by virtual schooling, closed day care centers and isolated seniors have taken a significant toll on the work life of many women. With women still shouldering the bulk of domestic responsibilities, many have no option other than to reduce their work hours, put off advancement opportunities or quit their jobs.

And it is not just annual earnings: the pay gap also contributes to the gender wealth gap. It makes it difficult for women to amass savings, build wealth and achieve economic security. Overall, the average American woman has a net worth of $5,541, less than half of the $12,188 average net worth of a man. In terms of overall wealth, a single woman has only 32 cents for each dollar a single man has.

And the wealth gap is even wider for women of color, who have just pennies for every dollar a white male has.

The consequences of this gap affect women throughout their lives.

While women outpace men in earning bachelor’s, master’s and advanced degrees, their pay doesn’t reflect that. To be competitive, they often take on greater debt to pay for their education. Women hold nearly two-thirds of the outstanding student debt in the United States.

The gender pay gap means that women students have less money to repay any college loans and earn less during their lifetime. This problem compounds as time goes on so women are contributing less to social security or pension funds which ultimately affects them with fewer resources in retirement.

The pay gap follows women into retirement: As a result of lower lifetime earnings, they receive less in Social Security and pensions. Women collect only 80% of what men collect in Social Security benefits, and just 76% in pensions. In terms of overall retirement income, women have only 70% of what men do.

Pay inequity is a structural problem that demands structural solutions. Policymakers and employers must take the lead in closing the wage gap. Money is power and women will never be equal to men until they achieve full parity in earnings and wealth.
An important first step is getting the Paycheck Fairness Act passed in the Senate.

Women’s Watch is a cooperative writing effort of the local chapters of the American Association of University Women, the League of Women Voters and the National Organization for Women. This piece was submitted by Bonnie Boyce-Wilson.