You've likely heard that woman earn only 77 cents compared to men in the workforce. But this number is extremely misleading. The 77-cents statistic is calculated by dividing the median earnings of all women by the median earnings of all men. If the average income of all men is, $100,000, and the average income of all women is, $77,000, that would mean that women earn 77 cents of what a man earns. But even a study by AAUW and the Labor Department shows that the actual wage gap is only 5 to 7 cents when you factor in the choices made by both men and women in the workforce.
A Georgetown University study found in the top 5 best-paying college majors, women out-represent men in only 1 of the top-paying 5 majors. But in the 5 worst paying college majors men only out represent women in 1 field. Usually men are entering the higher paying fields of mathematics, engineering, computer science, and technology. Women are more likely to enter education, social services, and human services which are lower paying.
Even within the same profession, men and women make different career choices that impact their pay. Male nurses earn 18% more than female nurses. Male nurses tend to search out the better paying specialties, they work longer hours, and find jobs in cities with the highest compensation. Because of this men make more money, because of the choices they make compared to the choices women make.
We see something similar with doctors. Female physicians tend to make less than their male counterparts. But women are far more likely than men to enter lower paying specialties like pediatrics or family medicine compared to men who become cardiologist or anesthesiologist which are higher paying. Women are also more likely to work part-time and women who work full-time put in about 7 percent fewer hours than men. Women doctors also take long leaves of absence. Many women in general choose to leave their careers to raise kids. So when they do come back to work, the men who continued to work are further in their career meaning they are now making more money.
Another reason women make less is they are more likely to take the first salary offer of a new job, while men are more likely to counter offer. Women are less likely than men to ask for raise. And women value benefits like more time off over a higher salary. If women were actually making 77 cents less than men, businesses would hire only women. The profits they would make would be too big to pass up.
The bigger issue that needs to be addressed to help women make more money is to encourage young girls to enter the STEM majors and careers at higher levels. Instead of complaining about some unfair treatment of women because of their gender.
