Income Gap Closing: Women On Pace To Outearn Men

The majority of working wives will out-earn their husbands in the next generation, according to a recent cover story in Time Magazine.

Forget equality for women, the fairer sex is on pace to outrun men when it comes to making money.

In remarkable shift from even a decade ago, the majority of working wives will out-earn their husbands in the next generation, according to Time magazine's cover story this week.

it's not just married women who are breadwinning. In the majority of U.S. metro areas, single women with no children in their 20s outearned their male peers, according to Time's story. In Dallas, for example, a 20-something woman makes $1.18 to a man's $1.

The Time story follows on a run of coverage looking at the rise of women in the workplace. Earlier this year, BusinessWeek ran a cover story about the increase in stay-at-home fathers. Reporter Carol Hymowitz pointed out that some 23 percent of wives now out-earn their husbands. "Women 30 and under make more money, on average, than their male counterparts in all but three of the largest cities in the U.S.," she writes.

In a widely read piece in The Atlantic last year, entitled "The End of Men," Hanna Rosin also noted that women now comprise a majority of the workforce and more than half of all managers.

Women dominate today’s colleges and professional schools--for every two men who will receive a B.A. this year, three women will do the same. Of the 15 job categories projected to grow the most in the next decade in the U.S., all but two are occupied primarily by women.

Still, feminists are not calling it quits just yet. Women may be outearning men at the beginning of their careers--but that story flips higher up the professional food chain. Some research has shown that there is an 40 percent pay gap between women and men with business school degrees, 10 years out from graduate school. In the end, on average, women still only make 81 cents to the dollar.

The rise in female earning power brings with it a rise in sites aiming to teach women what to do with their cash and a concomitant increase in experts who hasten to point out that women think differently about money.

DailyWorth.com, one of the new female-oriented personal finance sites, reported that 90 percent of its readers said they were their families' chief financial officer--but two-thirds of them lamented that their planning and investing skills were below average. "Research has shown that women, even professional women with good jobs and successful careers, tend to be less financially literate than men,” one economics professor at Darthmouth college told The New York Times in 2010.

Women tend to take fewer risks (a good thing for long-view investing), wait until a life-altering event to start saving (like having kids or going through a divorce), and have a greater preference to learn about money in person or in a group than a book, according to experts and studies cited in The New York Times. Others point out that women have unique challenges when it comes to financial planning: They have longer life spans, they earn less overall, and they tend to step out of the workforce to care for children and aging parents.

Of course, many dispute that women need "special" money advice. In blog post on Huffington Post Money, Ms. Magazine's money editor Martha Burke argued that women need only follow the same financial rules as men. It's not the gender that matters, but the circumstances she said. So just as women en masse today are learning about investing, there could be a whole new generation of stay-at-home dads in the future who will be scratching their heads when trying to understand the differences between a 401(k), Roth IRA and Keogh Plan.

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Comments

[Leah Chap]

03:22 PM on 10/06/2012

I am an actor, writer, illustrator, singer. Even with my husbands three family inheritances, I still out rank him in finances 100% over and over to the highest degree.

[The Angels]

05:57 AM on 03/10/2013

What do you mean you "out rank him in finances"?

Unless you are "famous" in the realm of acting, singing, and writing, chances are you aren't making that much.

I'm not sure how you can have more money than a husband with "three family inheritances."

[matty14]

02:36 PM on 06/11/2012

So I suppose we men can start kicking and whining about a "wage gap"? Can we say the Democratic Party is now waging a "War on Men"?

[AwesomeInfo]

02:31 PM on 06/11/2012

"So just as women en masse today are learning about investing, there could be a whole new generation of stay-at-home dads in the future who will be scratching their heads when trying to understand the differences between a 401(k), Roth IRA and Keogh Plan."

I would really hope it is not seen as such a zero-sum situation. Why can't increased knowledge for one come without a perceived decrease for another? It is so strange how we try to constantly assign teams to understanding based on gender. Stop it! Why can't we have an educated society. Is it out goal to prevent men from getting an education? Is that how we make women "appear" smarter?

I think it is more important that we make all people smarter REGARDLESS of their genders. It is not men against women. It is men and women making this country better! Not staying where we are and just "shifting" the knowledge. Equality is not about bringing someone else down... it is lifting everyone up to the same level. If it is our goal to feign superiority in the future, then equality is merely a word that is used to gain a foot up, pressing others down. It just doesn't work that way.

[AwesomeInfo]

01:03 PM on 06/11/2012

"In the majority of U.S. metro areas, single women with no children in their 20s outearned their male peers, according to Time's story. In Dallas, for example, a 20-something woman makes $1.18 to a man's $1. "

And yet women are still the victims only earning 81 cents on the dollar? Really? I thought it was 77 cents. And isn't that the RAW gap? When you compare women and men, working the same jobs, with the same experience, same education, same performance reviews and working the same hours, guess what? They make the same amount.

It's not as sensational, but I find it comical a story shows women outearning men $1.18 to $1.00, and yet tries to perpetuate that women are still victims. Really? Is this going to be the new way to present data? Show the data and then say, "But women are still victims?" When there is equality in society, there is an equal responsibility to do the job, work the same hours, negotiate for your wage, and deal with the results.

[AwesomeInfo]

01:03 PM on 06/11/2012

The men in major metro areas making 85 cents on the dollar a woman makes (1/1.18) are "victims" of a pay gap. You're not reporting on the discrimination that is going on. Why is that? Because it is NOT discrimination. It is a RAW gap showing choices people are making. Stop with the "I'm a victim. I make less because I'm female. I need a law to get me more money." and just take on the responsibility of being equal that these men who only make 85 cents on a dollar that women make are expected to.

Who takes facts and twists them to "victim?" Oh wait... it sells, I forgot. Great job "watch dogs" on really looking into it.

[RealistBC]

06:00 PM on 05/22/2012

In another article, we hear that women can't make their way by themselves. Here, we are hearing that women are doing better than men. so which is it? If women are doing better economically than men right now, I'm looking for someone who is generous.

[AwesomeInfo]

01:10 PM on 06/11/2012

It is "Women are doing better than men, but they are still victims." It sells politically and some women want desperately to believe there is an outside source of discrimination that is holding them down. Even when they make more... Can't we for once just admit that if you choose to be a doctor, you're going to make more than if you choose to be a nurse? Dividing it by gender does not show discrimination...it shows that more men are currently doctors and more women are currently nurses.

After all the government programs, scholarships and grants going specifically to women to help them pay for college, it anyone mystified as to why there are more female graduates? Is anyone mystified why young women are outearning the men? And if some women still choose to stay at home, or take more flexible jobs to have more time at home, will it bring down the stats enough to show women on average make the same as men? Probably not. But when you look at the same job, same education, same experience, same hours, men and women are CURRENTLY paid the same with a 5-7% unexplained gap which could include, but not limited to, performance, negotiation, and of course discrimination.

[rixback]

05:03 PM on 04/07/2012

"Still, feminists are not calling it quits just yet. Women may be outearning men at the beginning of their careers--but that story flips higher up the professional food chain. Some research has shown that there is an 40 percent pay gap between women and men with business school degrees, 10 years out from graduate school. In the end, on average, women still only make 81 cents to the dollar."

This will change as the Boomers and GenXers age out of the work force. I fully expect it to flip within 20 years.

[haleyg93]

09:58 PM on 03/27/2012

Why should it matter if women make more money than men? Different jobs pay various amounts of money. We earn our money based on the education that was required for the job, usually. Can people just be satisfied with what they make? The Bible says that the man should be in charge of his family so why are women trying to " out do" men?

[mlarag]

05:05 PM on 03/28/2012

making more money wont mean that the man will not be in charge of his family. And if i ever make a large amount money it would be as a reward for my job and abilities, i will never do it to "out do" someone else, man or woman, neither should anyone.

[haleyg93]

05:46 PM on 03/28/2012

I totally agree with you. Money should not determine who is in charge of the family. Once one gets married their money should be combined anyway so I do not see why it's such a big deal whether a women makes more money than a man.

[NellWebbish]

09:08 PM on 04/08/2012

1) I'm not trying to "outdo men" I work hard, I'm excellent at what I do and I deserve the income I make.

2) I'm not remotely interested in what your bible says. Do try to remember that not everyone is a Christian and if they are Christian, they may not buy into that part of the religion. You Christians seems to have lots of different little sects that think differently about parts of your bible. You might have noticed.

[haleyg93]

11:49 AM on 04/09/2012

I have nothing against the fact that you make the money that you work hard for. I did not say that you personally were trying to outdo men. Some women, such as feminists, push women's rights too far and try to be better than men. I feel as if everyone should be treated equally and fairly. So you have made the assumption that I'm a Christian? Why is that? Many religions refer to the bible. If a person reads the bible does that make them a Christian? Perhaps I have read the bible and simply agree with its positions. One should not be quick to judge. It seems to me, however, that you have something against Christianity. Do you mind sharing with me your reasons for disliking Christians?

[AwesomeInfo]

01:23 PM on 06/11/2012

"I work hard...and I deserve the income I make."

I'm sure you do. What if all media outlets decided the only reason you made your money was because you were female? And the only reason others didn't make as much as you was because they were male. After 30 years, you'd have enough.

I agree with you. Each person is responsible for their own life, their own choices and their own income. If you want more, go ask for it. If you deserve it, you will get it because you EARN it!

Special interest, politicians and the media just love to sell the opposite. Enough already! Look at the data. When accounting for job, education, experience and hours, men and women make the same amount (with a 5-7% gap still unexplained but includes performance, negotiation and of course discrimination, which would be the least of factors, but the biggest media story). That is why the most recent bill included programs to help women negotiate. It is so incredibly stupid that any editor that allows 77 cents on the dollar FOR THE SAME JOB to be printed should be fired immediately. What happened to investigative reporting? Objectivity? Truth? It got bought out.

I am happy you take responsibility for your work and that you seem satisfied with your choices. It is refreshing to see some "truth" in a world of manufactured victims.

[ruccha]

11:58 PM on 03/24/2012

It always amazes me when people try to descry the gender pay-gap -- the figures on this aren't pulled out of nowhere -- US census statistics show that women in the United States make, on average, 77 cents for every $1 a man makes.

[AwesomeInfo]

01:29 PM on 06/11/2012

Yes, looking at all men and all women. Looking at doctors and comparing them to nurses. Even female doctors make more than male nurses. So when you divide by job, you see that doctors make more than nurses (ummm, duh!). Then when you realize there are more male doctors and more female nurses, all you need to do is take the same people, divide by gender and VOILA! The gender gap! Suddenly, using stats that say doctors make more than nurses is compelling evidence that discrimination is rampant!!

77 cents on the dollar is the RAW gap. Read the Consad Report on the Gender-Wage Gap. Only 5-7% of the gap is "unexplained" for reasons including performance reviews, negotiation of salary and of course potentially discrimination. But white women earn more than black men. Young women outearn young men. So can it be solely gender-based discrimination? The numbers don't add up. But this is why they say there are lies, damned lies, and statistics. Numbers aren't wrong, they are lies by analysis. What does 77 cents on the dollar mean? If you say for the same job...THAT is the lie.

[Eli Davidson]

09:35 PM on 03/24/2012

As a mentor to many women small business owners, I find many of my clients out earn their husbands. I am seeing a tidal wave of women in their 20's and 30's starting their own businesses and taking their destiny in their hands. More than 50% of these women out earn their partners. Many of these women are seeking a new paradigm. They want to both earn money...and still be women first.

[AwesomeInfo]

02:49 PM on 06/11/2012

"Many of these women are seeking a new paradigm."

It's not a new paradigm. It's one men have lived in for all of history. Women can and should work to support themselves. If there are children, both men AND women should work to support them. The paradigm that needs to change is the belief that women make less for doing the "same job." And I'm not talking about two educators...I'm talking about two educators with a master's degree, both working for the same college with the same experience, each putting in the same hours and performing at the same level. If all of these factors are accounted for, the pay between men and women is equal.

The new paradigm comes from accepting the responsibility that comes with being employed and not blaming a cloud of discrimination on the choices that are made. With young men making 85 cents on a dollar of young women and white women earning more than black men, the "women make less" theory is proven to be nothing more than a massaging of facts to try to gain a vote, for power, control and money. THAT paradigm is fading away as more people understand how they have been hoodwinked by special interest and politicians into believing something else. We can point to the early 70s as proof of discrimination...IN THE PAST. But it is being used to sell current discrimination. THAT paradigm is changing. Stupidity cannot be sold forever.

[T Pol]

04:49 PM on 03/24/2012

The biggest jump forward in women's economics has been the setbacks in men's economics -- the recession hit hardest the traditionally male occupations.

I'll be happy when I see MEN and WOMEN employed, and employed well, with women earning a dollar for every man's dollar.

In other words, it's a lot easier to be happy for someone's progress when it didn't have to come at the expense of someone else. Can we even call it progress to win a race because all the other runners got hurt and couldn't finish?

[albalatrv]

04:55 AM on 03/23/2012

When do we end "affirmative action"?

[grock13]

02:09 AM on 03/23/2012

It doesn't matter, they'll just find something else to complain about.

[NellWebbish]

09:09 PM on 04/08/2012

Complaining is part of the human condition. I've never noticed any gender, race or age having a particular monopoly on complaining.

[Ainsi sera groigne qui]

01:29 AM on 03/23/2012

On the one hand it is good that women are finally taking a page from the male handbook and concentrating their post college graduate years on career building. However there is a dark under-belly to all this; single high achieving women are finding themselves in their 30's not only facing the possibility of becoming spinsters, but barren as well.

After spending often decades on the Pill and or using other means to prevent pregnancy a growing number of women are finding out just stopping does not equal instant baby making. Many of these young women don't understand why their gynecologist keeps telling them they are "perfectly fine and healthy" but after months of trying, nothing.

Men of course do not have a biological clock ticking away so are in a sense free to devote as much energy as they like to developing their careers. A woman sooner or later has to make a choice regardless if she wants a husband does she want children.

[jf12]

08:20 AM on 03/23/2012

That was one of the main intents and purposes of the sexual revolution, the deliberate and precipitous decrease in the birth rate:

[bpd9227]

12:30 AM on 03/23/2012

Yes, but they still don't have penises. Well, most of them don't.