1. American Association of University Women Behind the Pay Gap October 20, 2007 Presented by: Nancy Ellis, J.D., M.B.A., M.A. Attorney at Law Portions of this report were excerpted directly from the AAUW report: Behind the Pay Gap

2. Behind the Pay Gap This was a comprehensive study completed by the AAUW (Judith Goldberg Dey and Catherine Hill)This was a comprehensive study completed by the AAUW (Judith Goldberg Dey and Catherine Hill) Provides a multifaceted perspective and addresses the realities of pay disparity between men and women.Provides a multifaceted perspective and addresses the realities of pay disparity between men and women.

3. Behind the Pay Gap Builds on other AAUW reports including: Women at Work (2003): Focuses on Gender Segregation in the workplace.Women at Work (2003): Focuses on Gender Segregation in the workplace. Public Perceptions of the Pay Gap (2005)Public Perceptions of the Pay Gap (2005) Mom’s Retirement Security (2006):Mom’s Retirement Security (2006): Women are twice as likely to spend retirement in poverty.

4. Executive Summary Achievements in education have only resulted in modest improvements in pay equity for women.Achievements in education have only resulted in modest improvements in pay equity for women.

5. Pay Disparity can be attributed to many factors: Professional Choices:Professional Choices: –Attending College –Choice of Major Traditionally male dominated majorTraditionally male dominated major Traditionally female dominated majorTraditionally female dominated major –Choice of Career Traditionally male dominated professionTraditionally male dominated profession Traditionally female dominated professionTraditionally female dominated profession

6. Pay Disparity can be attributed to many factors, cont…: Personal ChoicesPersonal Choices –Parenting Motherhood and Fatherhood are treated differently.Motherhood and Fatherhood are treated differently. Motherhood = economic sacrificesMotherhood = economic sacrifices Fatherhood = wageFatherhood = wage premium premium

7. Both men and women should share both economic opportunities and also opportunities for child rearing.

8. Why the Pay Gap Matters… Pay equity is a matter of fairness.Pay equity is a matter of fairness. Pay inequity is cumulative.Pay inequity is cumulative. Pay inequity impacts quality of life for women.Pay inequity impacts quality of life for women.

9. Pay Disparity – One Year after College Graduation Pay Disparity exists from the outset:Pay Disparity exists from the outset: –One year post graduation women earn only 80% as much as their male counterparts.

10. This despite the fact that… Women and men attended similar kinds of colleges.Women and men attended similar kinds of colleges. Women outperformed men academically.Women outperformed men academically. Some clear patterns emerge: –Jobs in female dominated majors paid less than jobs in male dominated majors. Yet a year out of college, women earned less than men in virtually every category including jobs in female dominated majors.

11. One year – Pay Disparity – All Careers

12. Pay Disparity Ten Years After Graduation The pay gap widens.The pay gap widens. Men and Women are equally likely to be married.Men and Women are equally likely to be married. Gender segregation remains unchanged.Gender segregation remains unchanged. Men have more authority in the workplace than women.Men have more authority in the workplace than women. –Men are more likely to supervise than women. Women are more likely than men to have completed graduate educationWomen are more likely than men to have completed graduate education

13. Pay Gap – All

14. Gender Based Pay Discrimination Portion of Pay gap that remains unexplained (pay disparity can not be attributed to any specific cause):Portion of Pay gap that remains unexplained (pay disparity can not be attributed to any specific cause): –5% one year after graduation –12% ten years after graduation These unexplained pay gaps are evidence of discrimination in pay between men and women.These unexplained pay gaps are evidence of discrimination in pay between men and women.

15. Discrimination Discrimination is illegal and it is difficult to measure directly.Discrimination is illegal and it is difficult to measure directly. – –“The regressions for earnings one year after college indicate that when all variables are included, about one quarter of the pay gap is attributable to gender. That is, after controlling for all the factors known to affect earnings, college-educated women earn about 5 percent less than college-educated men earn. Thus, while discrimination cannot be measured directly, it is reasonable to assume that this pay gap is the product of gender discrimination.” The unexplained portion of the pay gap increases over time to 12% after ten years.

16. What can we do to address the realities of pay disparity… Public recognition of the problem.Public recognition of the problem. This includes both the current and long term implications of this problem.This includes both the current and long term implications of this problem. Equal Pay Day initiativesEqual Pay Day initiatives Reduce occupational gender segregationReduce occupational gender segregation Promote careers in science, technology, engineering, and math to girls and women.Promote careers in science, technology, engineering, and math to girls and women. Encourage girls to take and complete math sequences in high school.Encourage girls to take and complete math sequences in high school. –This increases the likelihood of pursuing a major in math or science in college. Promote pay equity in women dominated professions and the value of these professions to our society.Promote pay equity in women dominated professions and the value of these professions to our society. Encourage women to negotiate for better quality jobs and increased pay.Encourage women to negotiate for better quality jobs and increased pay. Women need to demand better jobs….Women need to demand better jobs…. And most importantly negotiate better pay.And most importantly negotiate better pay.

17. What can we do to address the realities of pay disparity, cont… Support mothers (and fathers) in the workplace.Support mothers (and fathers) in the workplace. –U.S. workforce is rigid concerning time off for childrearing. –Support Childcare programs. –Childcare work must be valued and compensated. –Encourage employers to offer other options including: Part-time employmentPart-time employment Rethink using hours as a basis for measuring productivity.Rethink using hours as a basis for measuring productivity. End Gender Discrimination:End Gender Discrimination: –Legislation on the federal, state and local levels: Equal Pay ActEqual Pay Act FMLAFMLA State and Local Human Rights LawsState and Local Human Rights Laws

18. Action must take place on multiple levels: Employees, employers, government, public.Employees, employers, government, public. Women take action at work.Women take action at work. Leadership.Leadership. Public sector should become a model for the private sector.Public sector should become a model for the private sector.

19. Awareness and Advocacy promote change… Thank you, Nancy Ellis