The gender wage gap just widened for the first time in 20 years
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Men and women both saw real gains in earnings last year, but the wage gap between them widened, per census income data out Tuesday.
Why it matters: This is the first significant widening of the gender gap since 2003.
State of play: Men's median earnings rose 3% last year, compared to 1.5% for women.
- Plus, the composition of the female workforce changed, census officials said Tuesday.
- There was an influx of Hispanic women into the labor force, as well as younger women and those new to the labor market — all of whom tend to earn less.
By the numbers: The median woman working full time in 2023 earned 83% of what the median man earned.
- That's down from 84% in 2022, but still a bit above pre-pandemic levels of 82%.
- Closing this gap has been slow going. In 2000, it was 74%.
The big picture: The wage gap doesn't mean women earn less than men for the same types of jobs — though that does happen.
- Instead, it is a useful indicator of broad inequality between men and women in the labor market.
Zoom in: Women make up the majority of low-wage workers in the U.S., partly because many are trying to figure out how to earn money while also caring for children. Jobs that can accommodate those schedules tend to pay less.
- The best-paying "greedy" jobs, as Nobel winner Claudia Goldin calls them, are dominated by men.
- Plus, jobs typically done by women often pay less than those done by a guy. For example, housekeepers typically don't make us much as janitors.
- Women are also far more likely to take time out from the workforce because of child care needs, leading to career setbacks that wind up costing money.
