Income and Wages

Choice And Education Explains Gender Wage Gap (SUMMARY)

The gap in average earnings between men and women has come under public scrutiny since the women's movement first gained momentum in the 1960s. Many have assumed the observed wage gap is due to workplace discrimination.

In 1980, the wage gap between men and women was 41 cents to the dollar. Since then, that gap has been narrowed to 26 cents -- thus, women's median annual earnings were 73.8 percent of men's in 1996.

Contrary to popular notion, research indicates that the gender wage gap is due mainly to hours of work, work experience and education. By accounting for these different factors, the gender wage gap narrows even further. For instance:

  • Full-time women worked an average of 41.3 hours a week in 1997, compared with 45 hours for full time men.

  • The Census Bureau reports men spend only 1.6 percent of all potential work years out of the workforce, while women spend 14.7 percent of potential work years away from work.

  • And while 13 percent of the bachelor's degrees earned by men are in the relatively high-paying field of engineering, just 2 percent of women earning college degrees were in engineering.

  • Conversely, 12 percent of bachelor's degrees earned by women are in the relatively low-paying field of education, compared to 5 percent of men.

But the median annual earnings of men and women age 25 to 34 with bachelor's degrees in the same field are roughly equal.

Source: Anita U. Hattiangadi, "'Where's My 26 Cents?' Choice Explains Gender Wage Gap," Fact and Fallacy, June 1998, Employment Policy Foundation, 1015 15th Street, N.W., Suite 1200, Washington, D.C. 20005, (202) 789-8685.

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