Income and Wages

Misleading Wage-Gap Figures

A recent New York Times article comparing wages of men and women was misinterpreted by some women's rights leaders, according to analysts. Figures show women working full time make 75 cents for every dollar earned by a man -- down from 77 cents in 1993. While correct, the assertion that this drop demonstrates women are falling behind ignores certain factors.

Many working women -- planning to interrupt their careers at some point in order to have children -- actually prefer safer and more flexible jobs, even though they are lower-paid.

  • A recent study by the Korn/Ferry consulting firm found that only 14 percent of corporate women aspired to a CEO position -- compared to 46 percent of their male counterparts.

  • Young working women ages 16 to 24 earned slightly more than 92 percent of what their male counterparts earned during the second quarter of this year -- up from just over 79 percent in 1980.

  • Among young people who have never had a child, women's earnings approach 98 percent of men's.

  • Census figures from 1993 reveal that never-married women who work at full-time jobs earn $1,005 for every $1,000 earned by comparable men.

Experts say that welfare mothers entering the workforce are exerting a downward pull on women's employment pay statistics.

Source: Ed Rubenstein, "Right Data," National Review, October 13, 1997.

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