December 22, 2006 2:47
Questioning the Wage Gap
In response to my posting about the wage gap between men and women, my friend Gerry writes:
I've always been suspicious of the stat that women earn 77 cents on the dollar for performing the same job as a male colleague. Why? Because if there's one thing we know about corporate America is that it loves to pay less and get more. Just like Wal-Mart shoppers.Any former customer service rep who watched his admittedly miserable job leave for foreign shores can attest that corporations will do anything to save money. If Dell could save a few rupees by moving its helpline to India, wouldn't it hire only women domestically to save 25% on salaries? If this stat were an accurate representation across the board then there would be a lot of unemployed men in this country. The Old Boy Club wouldn't survive that kind of benefit to the bottom line.
This is not to deny that sexism exists and that it manifests itself in the workplace. I'm certain it does because I've witnessed it. But an article on CNN Money reports that a flaw in the formulation determining the wage gap accounts for at least some of the misleading statistic.
Jeanne Sahadi writes that "all the wage-gap ratio reflects is a comparison of the median earnings of all working women and men who log at least 35 hours a week on the job, any job. That's it. It doesn't compare those with equal work, equal training, equal education or equal tenure. Nor does it take into account the hours of overtime worked."
I present my own situation as support. For years my wife and I held the same position at competing ad agencies: Director of Editorial Services. On paper we held the same job: we ran departments, managed workflow, hired and fired people, stamped out fires. But she earned about 20% more than I did.
Why? Because she had a three-year career head start on me and was hired at higher base salary based on her experience; her company grew faster than mine did (she managed 14 editors; I managed only 4); her job was more demanding; her company was part of a global advertising conglomerate and mine was not; her boss went to bat with senior management for her during her reviews and mine did not; and she was with her company for ten years while I was with mine for only 7. For those reasons she received better raises than I did, even though we held the same position.
My point is that on paper I made less for the same job but in reality we did not have the same job.
Or maybe I'm more effeminate than I realize.
Comments?
About Work In Progress
Lisa Takeuchi Cullen is a staff writer for TIME. She blogs about work. Why? Because TV was taken. Think of her as the grumpy colleague ranting by the water cooler.
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Reader Comments (5)
I would simply note that most men spell Gerry with a J. Dude, you just left $20k/year on the floor because you had to spell your name like one of the Spice Girls!
:)
Posted by Sam | December 23, 2006 4:23 PM
The issue isn't the wage gap, it is the wealth gap between men and women. The wage gap istelf doesn't really exist between men and childless women according to statistics. It emerges when women have kids because per child men's salaries rise while women's fall, thus creating a gap. In other words a more accurate representation of the issue would be the comparing of women versus working moms rather than between genders.
Even if a woman's pay begins higher than a man's, as she had kids she faces the gaps of gender bias, credit report, credibility, education, resume gaps, a leadership gap and retirement gap. The convergence of these gaps on women is why women are less wealthy than men and also why men are still the largest component of leadership in almost every industry with the exception of businesses by women that sell to other women or their kids.
Think wealth, not wage.
Posted by Rachel Bondi | December 28, 2006 2:29 AM
Gender equity is real in some fields, not in others. I happen to work in a profession which is dominated by women, but in which gender equity is conspicuously absent -- the top jobs are overwhelmingly held by men, and men earn more than women even when factors such as years of experience, consecutive years in one job, number of direct reports, etc are taken into account.
In fairness, I have to admit that I personally have never felt discriminated against because I'm a woman. But knowing the stats from the annual salary survey in my field, I have to wonder how much more I might be earning if my plumbing were arranged differently.
Posted by Jennifer | December 29, 2006 10:18 AM
Rachel Bondi confirmed my suspicions. "The wage gap itself," she writes, "doesn't really exist between men and childless women according to statistics."
Wow. That's an article pitch if I've ever heard one. Yet when I visited Bondi's site, EarningPower.org, I found not that statement but the same old stat she claims "doesn't really exist."
See it? On the home page under the headline "The Statistics Are Alarming":
"Wages for women have actually declined from 78 to 76 cents to each dollar men earn this year over last. Men earn 20-25% more annually."
But there is some hint of truth to women earning less, one that's actually believable. "The wage gap," Bondi writes, "emerges when women have kids because per child men's salaries rise while women's fall, thus creating a gap. In other words a more accurate representation of the issue"--which I assume means a truthful one--"would be the comparing of women [without children] versus working moms rather than between genders."
Why is that more nuanced explanation missing from her site--and from every other discussion of this issue? Why not say the truth: women with children are earning less money than women without children? And has Bondi's group or any other actually examined the salaries of women with and without children working in the same field at the same jobs?
There are many reasons why--stand by for a qualifier--in general a working mom's salary would not increase as much as a childless woman's. Again, I'll let my own story explain it, even though, despite the odd spelling of name, I am not a Spice Girl.
After my first daughter was born I availed myself of the Family and Medical Leave Act and hunkered down at home for 12 weeks. When I returned to work it was at a reduced schedule of 4 days a week. (My wife returned to her job at 3 days a week.) Once back I instituted a late-night rotation so I did not have to work as much overtime as I had pre-child. I also stopped coming in early and working as many weekends. It was obvious to everyone--including the company big wigs--that I was not the same worker I was before my little tax deduction came along. I decided to put my family first and my job second, and it showed. Sound familiar to any working moms?
Was I punished because of this attitude shift? Maybe, maybe not. I do know that my company's president asked his counsel if he definitely had to let me take "paternity leave" (he did). I do know that for the next 4 years all of my raises were below the cost of living increase when before they were all above it, and during my first year back I was not given a bonus even though every other department head got one.
But I didn't care then and still don't. I'm working 3 days a week now and am happy I have chosen to work less and be home more--even if it means I make less money. I still got the better end of the deal.
But if my company did purposefully give me lean raises because in its eyes I was not working as much as those around me, could you blame them? Before child I used to routinely work 50 hours a week; after child I routinely stopped at 35 or 40. Why would they keep throwing money at me?
I don't have a good answer to that one.
Posted by Gerry | December 30, 2006 8:55 PM
Gerry-
You're confusing two issues. The wage gap exists both between men and women (moms and non-moms combined), AND also exists between childless women and mothers. Both statistics are true.
It is all over my site www.earningpower.org and specifically articles exist on my blog and in the Orange County Register newspaper. It is also in my upcoming book The Wealth Gap: Bridging the Eight Gaps to Women's Wealth.
I'm sorry you misinterpreted. I never claim the old stat of a gap between men and women doesn't exist. That is a mistake of Warren Farrell followers.
The gap between men and women emerges because we average in both mothers and non-mothers. But my site is all about men who wish to empower women, moms or not, to close the leadership and wage gaps.
Posted by Rachel Bondi | January 22, 2007 8:06 PM