Why the Pay Gap Still Exists

The Jacksonville Business Journal has a great overview of Wells Fargo new gender pay gap report, The Girl with the Draggin’ W-2, highlighting some of the reasons progress toward closing the pay gap has stalled over the past several years:

  • The biggest reason for the pay gap is differences between professions in which men and women work. That accounts for about half the gap.
  • About 14 percent of the gap can be attributed to women having less experience in the workforce relative to men. Time spent out of the workforce for childcare and other considerations slows¬†accumulation of job-specific skills for which employers pay a premium.
  • About 38 percent of the pay gap remains unexplained, according to Wells Fargo, which suggested some reasons:

Discrimination, including unconscious biases.

Women are four times less likely to ask for a raise compared to men, and when they do ask, women typically request 30 percent less and are viewed more negatively than men for asking.

Wage penalties for needing to work more flexible hours.

    The study reinforces the idea that narrowing the gender pay gap would be good for businesses and the overall economy including boosting consumer spending and boosting the nation’s gross domestic product.¬†“When she does better, we’ll all do better,” states the report.

     
     

    Click here to read the entire story from The Jacksonville Business Journal