US Gender Pay Gap by State: Women in Utah Make Just 73% of Men's Earnings

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Oct 01, 2024, 06:58 ET

LONDON, Oct. 1, 2024 /PRNewswire/ -- Techopedia conducted an in-depth investigation into the U.S. gender pay gap to identify the factors contributing to pay inequality and potentially highlight areas where efforts are needed to close the gap.

Some of the highlights of Techopedia's investigation include:

In the U.S. women earn 84 cents for every dollar men make

For American women seeking equal pay, Utah stands out as the least favorable state, with women earning an average of just 73.1% of men's earnings.
In New York, women earn 87.5% of what their male counterparts earn.
Among ethnic groups, Hispanic women are particularly marginalized, earning an average of just 57.5% of men's earnings.
Women occupy just 31.7% of executive roles in e-commerce.
A Pew Research survey reveals that 50% of respondents attribute the disparity to differential treatment of women by employers.

In 2002, American women earned 80 cents for every dollar earned by men. Fast forward 21 years to last year's data, and the gender pay gap has only slightly narrowed: women now earn 84 cents for every dollar men make. Despite ongoing efforts to address wage inequality, the gap has closed by just 4% over two decades. This slow progress underscores the factors influencing pay differences between men and women, including location, ethnicity, education, and age. Techopedia offers a detailed analysis of these contributing factors.

Location and Industry: Two big factors affecting pay inequality

Utah ranks as the worst state for American women seeking equal pay, with women earning an average of just 73.1% of what men make – $47,907 compared to $65,512. Following Utah, Louisiana has a pay gap of 25.2%, while Alabama is close behind at 25%. On a more positive note, women in New York fare better, earning 87.5% of what their male counterparts make. However, no state in America currently provides women with at least 90% of what men earn on average.

Location plays a crucial role in these disparities, as local opportunities can significantly influence wages. Industry type is another important factor; male-dominated fields often exhibit a pay bias favoring men. For instance, in finance and insurance – industries predominantly staffed by men – women earn only 61.3% of what men do. Specifically, female sales agents in financial services, securities, and commodities earn just 55 cents for every dollar that men earn. Additionally, women hold only 31.7% of executive roles in e-commerce, and they remain underrepresented in key decision-making positions such as Chief Executive Officer (CEO), Chief Technology Officer (CTO), and Chief Marketing Officer (CMO).

Interestingly, the dynamics change in certain male-dominated industries like construction, where women earn nearly as much as men at 96.4%, and in mining and oil and gas extraction, where they earn 95.4%. Conversely, women excel in fields such as tutoring, pet care, and interior design, earning 35%, 14%, and 7.9% more than men.

Higher education, ethnicity and age

Another significant factor influencing the gender pay gap is education, but perhaps not in the way one might expect. Research shows that as women pursue higher education, the pay disparity can actually widen. For instance, the gap is only 17% for individuals without a high school diploma. However, as women obtain higher degrees – such as associate and bachelor's degrees – the pay gap increases to 19% and 21%, respectively. This suggests that men tend to enhance their earning potential at a faster rate than women as they advance their education.

Race and ethnicity also play crucial roles in widening the pay gap. Hispanic women are particularly marginalized, earning an average of just 57.5% of what men make. This disparity is likely linked to the ongoing lack of opportunities for Hispanic women in the U.S., often forcing them to accept lower-paying jobs. Following closely are Black women, who earn about 69.1% of what men earn, while white women earn 80%. On the other end of the spectrum, Asian women experience the smallest pay gap, with earnings just 1.4% lower than those of their male counterparts.

Another important factor is age, which impacts women across the board. Women typically experience their highest earning potential in their early 20s, with a pay gap of just 7.5% compared to men. However, this gap widens significantly as they age. By their mid-30s to early 40s, women earn only 83.3 cents for every dollar a man makes. This disparity continues to grow, with women in their mid-50s to early 60s earning just 77.2 cents on the dollar.

Conclusion

What's striking about the pay gap is that, despite numerous contributing factors, pinpointing the exact cause remains elusive. A Pew Research survey reveals that 50% of respondents attribute the disparity to differential treatment of women by employers. Meanwhile, 42% believe it stems from women's choices in balancing work and family responsibilities. Additionally, the survey indicates that 48% of employed American women feel pressured to prioritize home duties.

Regardless of the specific reasons, it's essential to recognize the factors influencing the pay gap. As highlighted by Techopedia's research, understanding these elements can illuminate areas where women face the most significant challenges and help identify solutions to reduce the disparity. While the pay gap persists, analyses like Techopedia's deep dive into the issue represent a meaningful step toward closing it.

Discover more insights in Techopedia's article by clicking this link: https://www.techopedia.com/us-gender-pay-gap-statistics

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