The commonly used figure to describe the gender wage ratio—that a woman earns 80 cents for every dollar earned by a man—understates the pay inequality problem by leaving many women workers out of the picture. This report argues that a multi-year analysis provides a more comprehensive picture of the gender wage gap and presents a more accurate measure of the income women actually bring home to support themselves and their families.
The report uses data from a 15-year longitudinal study (from the Panel Study of Income Dynamics) and shows that over that period women earned 62 percent less than men, or only 38 cents for every dollar men earned.
Although the wage gap, measured by conventional methods, has narrowed in the last several decades, with women who work full-time full-year now earning 77 percent of what men earn (compared with 59 cents on the male dollar 40 years ago), its sweeping effects are largely unacknowledged because its measurement is limited to a single year and restricted to only a portion of the workforce. When accumulated over many years for all men and women workers, the losses to women and their families due to the wage gap are large and can be devastating.
