What is a wage gap?

Definition of a wage gap

So, what is a wage gap? A wage gap is a pay disparity between the median earnings of two groups of people. Within a specific workplace, there is a wage gap if workers who have the same titles and are completing similar tasks receive different pay. If these employees receive different pay because of factors like gender, race, sex, age, or other federally protected categories, the discrimination is overt and illegal in the workplace.

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Title VII of the Civil Rights Act, the Equal Pay Act, and the Americans with Disabilities Act prohibit employers from paying different wages to workers based on disability, age, race, sex, or national origin. Prior to the Civil Rights Act of 1964, employers could legally reject applicants or refuse to promote them based on their identity. Despite these changes, disparities still exist. Wage gaps can exist among individuals exhibiting one marginalized identity, for example, White women. However, when accounting for intersectionality in identity, for marginalized and diverse identities, such as Black women, the wage gap widens.

Racial wage gap

The racial wage gap accounts for differences in wages amongst different racial demographics. For example, Latinx and Black workers are paid lower wages than their White counterparts. According to the U.S Department, every dollar a White worker earns a Black worker earns $0.76, on average. Their Latinx counterpart earns even less, only earning $0.73. Asian Americans earn $1.03 more for every dollar their white counterpart earns. However, when accounting for different ethnic groups within the Asian American Pacific Islander (AAPi) community there are large disparities. For different racial and ethnic groups, access to higher education plays a factor. According to Pew Research, White workers are more likely to hold a bachelor’s degree than Black or Hispanic workers.¹

Gender pay gap

The gender pay gap is the difference between the earnings of men and women. Working women are paid less than men. According to the Pew Research Center, American women earned $0.82 for every dollar earned by men. This gap is driven by workplace discrimination, harassment, lack of caregiving support in the workplace, occupational segregation, and education. And as there is a racial wage gap, Black, Latinx, and different AAPI ethnic groups earn even less.

Disability pay gap

Disabilities make certain activities more difficult and can affect how those with disabilities interact with the world. Disabilities can affect a person’s vision, hearing, social relationships, communication, movement, thinking, memory, mental health, and other aspects of their personhood. Disabilities affect how people are treated in the workplace; those with disabilities are paid less and their employment is concentrated in certain jobs and industries. According to the United States Census, people with disabilities earn $0.87 for every $1.00 earned by those without a disability.² People with disabilities are also heavily concentrated as janitors and building cleaners, making up 11% of workers employed in this occupation.

Age pay gap

Age also plays a factor in pay disparity. Wages, on average, increase with age. For example, the median income for a 25-year-old male worker is $35,000. The median income for their 65-year-old counterpart is $65,000. However, the wage between men and women widens with age. According to data from the Pew Research Center, women aged 25-34 earned 92% of what men their age typically made; this percentage decreases to 84% when they reach ages 37-46.³

The wage gap affects many demographics in the workplace. Moreover, in individuals whose identities are intersectional, the wage gap widens further. Individuals facing discrimination and pay disparities can be demotivated from further pursuing their career. Navigating wage discrimination and pay inequities can also debilitate how you perceive yourself in the workplace, affect plans for your future, and can even make you reconsider your career path. If you’re facing a pay disparity based on your race, look for ways to address it. Try talking to your co-workers to see if this a shared concern, address potential discrimination with HR, and if that fails, consider looking elsewhere for a new position.

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