Equality of Pay in Recessionary Times
Two interesting articles were published this month that highlight current pay disparities between men and women.
In the New York Times article entitled "Why Is Her Paycheck Smaller?" (March 1, 2009), author Hannah Fairfield asks why women still continue to earn less than men do in the same job. She then provides some answers--such as men typically have more experience and log in more hours than women. Also, women tend to work in the lower-wage service sector, while men pick higher wage jobs in management and business. The article also features an interactive chart where you can learn how much more or less women earn than men at specific jobs.
Meanwhile, The Bureau of National Affairs' Daily Labor Report (DLR) states that the share of nonfarm payroll jobs held by women actually increased during the first year of the recession (see "Economic Outlook: Women Boost Share of Jobs in First Year Of Recession, Near Historic Parity With Men," March 2, 2009). Even though women lost 617,000 jobs in 2008, men lost 2.4 million jobs during the same period and account for almost 80% of all job losses. By the end of 2008, the men's share of the U.S. workforce fell to 51.7%. If this drop continues, women may soon make up the majority of the workforce. However, even if women and men reach numerical equality in the workforce, the article notes that women are still far from achieving equality in pay.
Equal pay is a hot-button issue these days because more and more families depend solely upon women's earnings to meet their financial obligations. Obviously, these families want the "mommy breadwinner" to earn as much as men, so that there's more money to spend.
Both articles mention some of the steps that the U.S. government has taken to equalize pay among men and women. For example, the recently enacted Lilly Ledbetter Fair Pay Act of 2009 expands a worker's right to sue his/her employer for inequality of wages. Also, as Representative Carolyn B. Maloney (D-N.Y.) noted in the DLR article, President Obama's $787 billion economic stimulus program "contains significant efforts to save or create jobs in education and the service sector, where women dominate."
What opportunities are presented for women in the wake of an "economic tsumami"? How can we position ourselves in the new economy to take advantage of the changing professional environment?
