Skip to main content

It will take 100 years for women to earn the same as men at this rate

  • The wage gap between men and women is 20%, meaning women get paid 80 cents to every $1 men earn, according to a recent study.
  • The pay gap narrowed about 2% in the last ten years. If things don't improve, it will take a century for women to reach equal pay, according to Goldman Sachs.
  • The firm said at least part of the unexplained gap could be due to the lack of women in highly-paid senior roles, despite being on average more educated than men.

It could take a century for women to be paid as much as men, if things stay as they are now.

The wage gap between men and women is 20%, meaning women get paid 80 cents for every $1 men earn. In the last ten years, the pay gap only narrowed about 2%, and if performance stays consist with the past decade's, it would take 100 years to reach equal pay, according to Goldman Sachs.

"The latest data show there's more work to do," said Amanda Hindlian, global COO of global investment research at Goldman Sachs in a note titled "Closing the Gender Gaps 2.0."

Goldman used data from the Bureau of Labor Statistics from 2015 to 2019 to figure the gender wage gap among prime-age U.S. workers remains 20% today. That figure is unchanged from last year's work, which used data from 2013 to 2017. The situation is not improving. It was only June, when the last company in the S&P 500 with an all-male board added its first female member.

The only aspect that has changed since last year was the number of "unexplained" percentage points in the gap, which has risen to 18.1% from 17.5%. Educational background, work experiences and nature of the jobs can explain less than 2% of why this gap exists. That leaves more than 18% of the gap likely explained by gender.

What could close the gap?

The firm said at least part of the unexplained gap could be due to the lack of women in highly-paid senior roles. While women make up 40% of all employees of the U.S.-based S&P 1500 companies, women are only 5% of CEOs and 21% of directors, said Goldman. If more women held decision making roles, it could bolster the entire female workforce.

"Because men continue to be over-represented in corporate leadership positions and on corporate boards, as the data show, they hold the bulk of the decision-making authority today," said Hindlian. Goldman also noted that women on average are more educated than men.

Banning employers from asking job candidates about their salary history could also help close the pay gap, Goldman's analysis shows, a policy some states are starting to implement.

Mandating companies to pay and promote women fairly is another way to close the pay gap. California senator and Presidential hopeful Kamala Harris released an ambitious plan in May that outlines how she, if elected president, would hold corporations responsible for the inequality that exists today.

Although no statistical progress was made in the last year, its important to emphasize Goldman's projection is based on idea that everything, government and company policies and societal norms, will also stagnate for decades to come, which is possible without a bigger commitment.

"The gender gaps are unlikely to close without broad commitment and active participation by men and women alike," said Hindlian. "To be effective, the "tone from the top" needs to be accompanied by both action and accountability."

รข€”with reporting from CNBC's Michael Bloom.

Source: Read Full Article

Comments

Popular posts from this blog

Fears coronavirus will spark divorce surge as couples self-isolate for months

Coronavirus is "very likely" to lead to an increase in marriage break-ups because of people being confined together for long periods in self-isolation, a leading divorce lawyer has said.Baroness Shackleton of Belgravia, whose previous clients have included Sir Paul McCartney, the Prince of Wales, Madonna and Liam Gallagher, revealed the view of the profession as a growing number of households go into voluntary lockdown in a bid to curb the spread of infection.Official health advice states that if one person in a property has a persistent cough or fever, everyone living there should stay at home for 14 days.Nicknamed the "Steel Magnolia" for her skills and charm, Lady Shackleton told peers at Westminster: "The prediction amongst divorce lawyers is that following self-imposed confinement it is very likely that the divorce rate will rise."Our peak times are after long exposure during the summer holidays and over Christmas."One only has to imagine what i…

At Least 23 People Dead in Australia Bushfires As Blazes Continue Raging

SYDNEY (AP) — A father and son who were battling flames for two days are the latest victims of the worst wildfire season in Australian history, and the path of destruction widened in at least three states Saturday due to strong winds and high temperatures.The death toll in the wildfire crisis is now up to 23 people, Prime Minister Scott Morrison said after calling up about 3,000 reservists to battle the escalating fires, which are expected to be particularly fierce throughout the weekend.“We are facing another extremely difficult next 24 hours,” Morrison said at a televised news conference. “In recent times, particularly over the course of the balance of this week, we have seen this disaster escalate to an entirely new level.”Dick Lang, a 78-year-old acclaimed bush pilot and outback safari operator, and his 43-year-old son, Clayton, were identified by Australian authorities after their bodies were found Saturday on a highway on Kangaroo Island. Their family said their losses left them…

Data-obsessed Brits spend an entire WEEK per year 'analysing their lives with gadgets', survey suggests

DATA driven Brits spend the equivalent of a WHOLE WEEK of each year tracking and analysing their behaviour, according to research.A survey of 2,000 adults revealed we typically use analytical apps and devices to monitor six parts of our lives.More than half (51 per cent) monitor their steps and movement, with 39 per cent tracking their fitness and 34 per cent regularly monitoring their heart rate.And one quarter of adults use apps to see how much sleep they get each night.But according to a new survey, commissioned to encourage the use of smart meters in UK homes during Big Energy Saving Week and beyond, three quarters (76 per cent) of Brits admit they haven’t the foggiest how much energy they use at home.In total, adults spend 30 minutes every day checking their health, behaviour and finances on apps and devices – the equivalent of 183 hours or seven-and-a-half days per year.A quarter like to track areas of their life because it inspires them to improve, while 22 per cent say it make…