That's what women in the U.S. are worth - economically speaking. On average, women earn 77 cents for every dollar a man earns. It's similar in other countries. In the United Kingdom, the pay gap decreased to 22 percent this year - that means women there earn 78 pence for every pound sterling earned by men. Interestingly, the only groups of employees wherein women earn more than men are part-timers. But in the financial services sector, a gender-balanced industry employing 4 percent of the workforce in the UK, the pay gap is enormous. According to a recent survey by the Equality and Human Rights Commission, women in the UK financial services sector earn an average of only 47 percent of men! If you look at "annual basic earnings" women earn 61 pence for every pound sterling earned by men, which is bad enough. But when you look at the bonus schedule, it's outrageous. In nearly all cases, women's performance-related pay was less than men's. On average, women earned 2,875 pounds against men's 14,554 pounds in bonus pay -- that's an 80 percent pay gap. Are women in this case worth only 20 percent of a man?!? How can such discrepancies continue to exist? I have some ideas:
- First of all, women start their working careers earning one-quarter to a third less than men. Many studies have demonstrated that women don't ask for higher pay in their first jobs. Linda Babcock, a Carnegie Mellon University economics professor, says that men are eight times more likely than women to negotiate their starting pay packages. This gets compounded as women progress through their careers, since they consistently don't ask for raises, promotions, better job assignments and recognition. But men do.
[1] "Bosses' Perceptions of Family-Work Conflict and Women's Promotability: Glass Ceiling Effects" by Jenny M. Hoobler, Sandy J. Wayne and Grace Lemmon. Academy of Management Journal, 2009, Vol. 52. No. 5, 939-957.