The Gender Wage Gap, Unveiled

Nationwide, women make on average only 77 cents for every dollar men earn. Women’s lower average earnings are not due to a higher probability of working part-time: only full-time year-round workers are included in these data. The Wage Project estimates that over the course of a lifetime women will earn about a million less as a result of the wage gap.

Some people attribute the differences in earnings to occupational segregation and the career choices women make; for example, putting family before work. However, several studies have been unable to explain the gap, even after controlling for key factors that affect earnings such as occupation, education, and work experience. The unexplained difference can be attributed to discrimination, perceptions about women’s capabilities and the value of women’s work.

Women’s career choices are not the only reason for the disparity in earnings. Women earn less than men in nearly all occupations, whether they work in occupations predominantly held by women – such as elementary and middle school teachers or secretaries and administrative assistants – or whether they work in occupations predominantly held by men such as electricians or general managers. What this means is that even in “women’s fields,” men are outearning women, and it is not the same the other way around.

The gap varies throughout women’s lives, being the largest during childrearing years, and by educational attainment. Women with professional degrees face larger pay gaps than women with lesser levels of education.  The wide gap in earnings also becomes starker when race and ethnic background are taken into account, with women of color being the most affected.

Equal-Pay-Chart-TEST2
The earnings gap in the Washington region is 15 percent, which is lower than the nation’s ratio (23 percent) primarily because of higher rates of educational attainment for both genders in the area.  Although women in the Washington area earn on average more than women in the United States overall, pay inequities are persistent features of the regional labor market and vary substantially by geography, except in Prince George’s County where women’s earnings ($51,616) are slightly higher than men’s earnings ($50,568). Among the jurisdictions included in the Washington region, Fairfax County had the largest wage gap (26 percent), where women earned considerably less ($61,470) than men ($83,192).  The second largest wage gap was for Arlington county (20 percent) followed by Montgomery County (18 percent). In addition to Prince George’s County, the city of Alexandria and the District of Columbia had the lowest disparity in earnings with a gap of eight and 10 percent, respectively.

Women’s earnings have become increasingly important for family incomes. Four in 10 American households with children under age 18 now include a mother who is the primary breadwinner for her family. Women’s lower earnings have important implications for all, including increased risk of economic insecurity and poverty for women and their families.

Some strategies to address the persistent disparity in earnings between men and women include expanding literacy education for women and girls to increase knowledge about the impact of career decisions on earnings and retirement security. It is also important to encourage women and girls –and men and boys, too- to openly discuss their earnings and develop skills in pay negotiation, and to actively seek skill-building experiences, training opportunities, feedback and promotions. Employers can also make sure they are giving women the same opportunity as men to advance up the ranks.

A Look at the 2013 Poverty Data For Our Region

Last month, the U.S. Census Bureau released new data that gives us a snapshot of what poverty was like in 2013 in the Washington region. The data shows that poverty rates have slightly increased from 2012 and that women continue to be more likely than men to experience economic insecurity. This means they can barely afford paying their basic necessities such as food, housing, health insurance, and transportation. Roughly 10 percent, or almost 210,000 women and girls, in our region lived in poverty, compared with 159,700 men and boys, or 8 percent. Things were worst for families headed by single mothers—almost a quarter were poor— and for women of color—about 14 percent of Latinas and 16 of percent of African-American women struggled with poverty compared with only 6 percent of White women.

Poverty Data chart

There are many reasons why families fall below the poverty threshold, including unemployment, the persistent gender wage gap, barriers to accessing education and discrimination. But one of the key factors is low-quality and low-income jobs. Many women in our region are working more than full-time at poverty-level wages with little to no benefits. That means, for example, supporting a family of four with less than $24,000  last year.  In a region like ours, where costs of housing, food and transportation are among the highest in the nation, $24,000 is not nearly enough to make a living. According to the Economic Security Index calculated by Wider Opportunities for Women, a family of four composed of two workers, an infant and a school child need an approximate annual income of $117,880 in the District of Columbia and $103,960 in Prince George’s County, for example, to meet their basic needs without receiving any public or private assistance.

The newly released data highlights the urgency of the work we are doing at The Women’s Foundation. In collaboration with our Grantee Partners we are helping women access basic education, enroll in workforce development programs, access financial education programs and find high-quality and affordable early care and education for their children. Such efforts help build their economic security and give them the opportunity to achieve their goals. Securing stable employment with living wages can alleviate the burden of living pay-check to pay-check and the constant worrying about how to make ends meet and care for their families, while allowing them to save and plan for a bright future.

Based on the stories we hear from our Grantee Partners and learn from our evaluation efforts we know we are impacting women’s lives. Maya was enrolled in one of YearUp’s workforce development programs. The odds were against her. She was living in a low-cost housing complex for mothers with many rules that made her participation in the program more challenging. She had to miss several days to take care of her sick child and money was always a concern for her, but she pushed through these obstacles and exceled at her classes and job internship. Upon graduation from the program she secured a full-time job with benefits and a salary that lifted her and her son out of poverty and changed the trajectory of their lives.

As we continue supporting the work of our Grantee Partners many more lives and families like Maya’s will be impacted. In the meantime, the updated poverty numbers are an important reminder that the work we do together is crucial to our community. We still have a long way to go before we realize a future where all women are economically secure.

 

Adult Education and Family Literacy in Our Region

Adult Education and Family Literacy Week is held each September with the purpose of raising awareness about the importance of basic literacy and numeracy skills for personal and social well-being, and economic security. Basic skills are key drivers of economic growth and societal advancement, and critical to the prosperity and development of children and families.

In the United States, 36 million adults have low levels of literacy and numeracy skills— meaning they aren’t able to read, write, and solve problems at levels necessary to perform their job or navigate common situations which require literacy; or they’re unable to use, interpret, and communicate mathematical information and ideas. Despite high levels of education nationwide, literacy and numeracy in the United States are still relatively weak compared to other industrialized countries, with little sign of improvement in recent decades according to a study released by the Organization for Economic Cooperation and Development (OECD) last fall.

Adult Literacy chart

The OECD study also revealed that socio-economic background has a very strong influence on adult basic skills. The incidence of low literacy and numeracy levels affects minorities, immigrants and communities of color at a disproportionate rate. According to the study, eight out of ten adults lacking basic skills are either Black (35 percent) or Hispanic (43 percent), compared with only one out of ten for Whites.

In our region, it is estimated that almost half a million people, or about 15 percent of the population 18 years and over, lack basic literacy skills. Prince George’s County has the largest concentration of low-skilled adults, roughly 22 percent of the population, followed by the District of Columbia (19 percent), Arlington (17 percent) and Alexandria (16 percent). Fairfax and Montgomery County adults fare a bit better, with only 11 percent of the population lacking basic literacy skills. These figures go hand-in-hand with educational attainment rates for adults 25 years and over. Prince George’s County has the largest share of adults (41 percent)  who have only a high school degree or less, almost 15 percent higher than the regional average (27 percent) and roughly twice as much compared with Arlington (17 percent), the city of Alexandria (20 percent), Fairfax County (22 percent) and Montgomery County (24 percent).

Literacy and numeracy are highly linked to employment outcomes and economic security. Basic reading, writing and math skills are often a requirement for jobs that pay living wages. It becomes even harder to move up the ladder or succeed in workforce development programs if the baseline to understand new concepts, learn and participate in program activities is missing. Lack of literacy and numeracy skills affects individuals beyond their capacity to earn a living; it is also deeply correlated with personal well-being. Adults with low literacy skills are more likely to report low levels of health, trust, political efficacy, and volunteering. Parents’ reading and math skills also have a lasting impact on their children’s development and future success in schooling. Studies show that children of parents who have not completed high school are more likely to drop out themselves. As parents increase their literacy, they are better equipped to become involved in their children’s education and provide financial stability for their families.

At The Women’s Foundation, we recognize the importance of building basic skills among adults and the power of education to break the cycle of poverty. Since 2012, we have supported Academy of Hope’s efforts to provide women with the basic skills needed to be on a path toward obtaining better jobs and improving their overall well-being. In fact, last year for Adult and Family Literacy Week, we brought you the story of an Academy of Hope graduate, Dorothy, who taught us, at age 74, that it is never too late to go back to school.  This year, the Foundation has continued its support for Academy of Hope, investing in the transition of Academy of Hope to an adult public charter school. In addition, through the Early Care and Education Funders Collaborative, the Foundation invests in school-readiness programs for children aged 0-5 that provide the foundation for a lifetime of learning.

Basic education for all lays the groundwork to live and work together, communicate, develop and share knowledge, and earn a living that pays family sustaining wages. Investing in adult and early childhood education is helping families to build a better economic future and increase social and personal well-being. Through our grants, we’re working towards a high literacy future for our region, taking a page out of Dorothy’s book and sticking to her motto, “If you dream it, you can achieve it.”

Women’s Political Participation and Representation in the Washington Region

This month, on August 26th, we will celebrate Women’s Equality Day, designated as such by Congress in 1971 to commemorate the 1920 passage of the 19th Amendment to the Constitution, granting women the right to vote.  As we approach the day to celebrate this milestone in women’s history, we see there is both much to celebrate, and much work to be done around women and civic and political engagement.

First, the good news: women are making it out the polls in record numbers. Today, women are actively voting, running for office and creatively using their individual and collective power to bring about social and community change. The Census Bureau reports that since 1996, the number of citizens who have reported voting has increased in every presidential election. As in the country as a whole, in our region women are the majority of voters, and both register and vote at a slightly higher number and proportion than men, particularly in the District of Columbia.

 Chart Voting by sex in Nov 2012

Source: The Women’s Foundation compilation of data from the Bureau of the Census, 2012

In the November 2012 election, slightly under three-quarters of DC women voted (71 percent) in comparison with 64 percent of men. This was more than ten percentage points higher than the national voting rates for women (59 percent) and  about ten percentage points higher for men (54 percent) in that election. Voting in Maryland and Virginia had lower rates than DC, closer to the national average; still, women’s civic participation was higher than men’s.

The same pattern holds for voter registration: Seventy-seven percent of DC women were registered to vote in 2012, in comparison with 72 percent of men, which was also higher than the national rates of 67 percent of women and 63 percent of men. In Virginia, 71 percent of women registered to vote compared to 66 percent in Maryland.

Now for the challenging news: While women may make up the majority of voters, there is a significant under-representation of women in political office. Today, women’s representation at the state and national levels falls short of the 51 percent needed to reflect their proportion in the population. For example, women only make up 18.5 percent of the US Congress: they hold just 99 of 535 full-voting Congressional seats, which is up from 90 in 2010.

The District of Columbia has one non-voting Congressional seat, which has been held by Representative Eleanor Holmes Norton for twelve terms. In Maryland, women hold two of the 10 Congressional seats: Senator Barbara Mikulski and Representative Donna Edwards. Thirty percent of the state legislature is made up of women and Maryland ranks 9th among states for the proportion of women in the state legislature.

Virginia holds 13 Congressional seats, none of which are currently filled by women.

The proportion of women in Virginia’s  state legislature decreased from 19 percent in 2010 to 17 percent in 2014. Virginia ranks 40th among states for the proportion of women in the state legislature. The governors of both Maryland and Virginia are men, and neither state has ever elected a woman governor.

Equal political representation for women at the national, state and local levels is critical as it increases the likelihood that laws and policies will reflect the needs and interests of women and their families. Last year, we hosted a brown bag lunch with Rebecca Sive, author of Every Day is Election Day: A Woman’s Guide to Winning Any Office, from the PTA to the White House, to discuss this important topic. We encourage you to read highlights from the conversation and tweet your thoughts using #UseThe19th.

In the 43 years since Women’s Equality Day was designated, we have made impressive strides in the number of women who turn up at the polls to make their voices heard; however, women still are not sufficiently represented in political office – a place where, more than just having a voice, they have a platform and the power to make critical change for women, their families and the communities in which they live.  We may be celebrating Women’s Equality Day this month, but equality in political office still remains far too aspirational. What can you do to raise your voice and be heard?

 

Transportation: Vital for Women’s Economic Security

Safe, efficient and affordable transportation is vital for women’s economic security. It ensures self-sufficiency by enabling timely access to employment and essential services –like grocery stores, child care centers and medical care –and allowing women to complete training and education programs.

Finding affordable housing for a working family, particularly in our region, increasingly requires long commutes and high transportation costs. With the dispersion of jobs, services and other opportunities, it is not surprising that workers are spending more and more time commuting than ever before. Low-income housing, in underserved urban neighborhoods as well as in suburban areas, is located far from employment centers or disconnected from public transportation routes, preventing workers from getting to their destinations conveniently, efficiently and on time. In addition, urban revitalization projects in the capital region have brought an influx of affluent newcomers, usually displacing low-income residents to poorer neighborhoods that are further away and that lack public transportation infrastructure; not only making commutes longer, but also requiring more transfers and circuitous routing.

Many of the women participating in programs run by our Grantee Partners have reported that lack of reliable transportation is one of the most pervasive barriers to remaining employed or completing job training. A number of research studies underscore this experience. Findings suggest that the longer the commute, the less likely someone is to be employed, and they agree that lack of access to transportation is a major obstacle for workforce development.

Time spent commuting deserves attention from policymakers and grantmakers. Given the reasonable bandwidth of most people, long and complicated commutes are particularly expensive for those who have them, and can affect a program’s intake rates. Long commutes take away personal time that can’t be spent working, on education, running errands, or simply enjoying time with family or taking care of children. In 2012, women’s average commute time in the Washington Region was 32 minutes. In the same year, more than a quarter of female workers (27 percent) had commutes of 40 minutes each way and about 3 out of  100 female workers had “extreme commutes” of at least 90 minutes per trip, according to the American Community Survey.

Transportation July e-news(10)

Commuting costs

In addition to consuming time, commuting is also expensive in terms of dollars and cents. Transportation costs rose faster than income during the 2000s, increasing the burden these costs placed on already stretched budgets. For the working poor – those earning less than twice the federal poverty measure–these costs consume a larger portion of their earnings.  In the Washington metropolitan area the cost-burden of commuting for this population is among the highest in the country, greater than the national median, and working poor households spend nearly three times more than other households, in relative terms. According to national data, transportation is the second largest expense for households: jointly with housing it accounts for more than one-half of all household spending.

What we are doing

Long and costly commutes discourage employment, leave workers with little to no time to spend with their families or to master the very skills needed for employment, and also leave them with fewer resources to accumulate savings and assets. Considering access to transportation is fundamental when The Women’s Foundation invests in programs working to improve the economic security of low-income women. We support efforts to link workforce development programs with transportation stipends, to ensure commuting to classes and meetings does not place an additional burden on or become a disincentive to women that would benefit from participating in our Grantee Partners’ programs. SOME, Year Up, and Goodwill are some of the many Grantee Partners providing some sort of transportation assistance as part of their education and training programs. This kind of assistance has proven to be a valuable approach in bridging the gap to meet low-income women’s needs, however, much more needs to be done to ensure transportation is not only accessible and affordable, but also safe and efficient. Considering transportation is crucial when developing policy recommendations and designing programs to lift women out of poverty so women can truly draw on and benefit from those initiatives.

Asian-Pacific American Heritage Month: A Snapshot of Our Region

During the month of May, festivities across the nation highlighted the contributions, richness and diversity of Asian and Pacific Islanders. Asian-Pacific American Heritage Month first started as a week-long celebration established in 1978 to commemorate the arrival of the first Japanese immigrants in May 1843, and the contributions of Chinese workers to the building of the transcontinental railroad, completed in May 1869.

Nationwide, Asian and Pacific Islander Americans have emerged as the nation’s fastest growing racial group, increasing by 51 percent between 2000 and 2012, growing from 10.7 million in 2000 to 16.1 million in 2012. The Washington region is no exception; Asian and Pacific Islanders numbered about 437,000 in 2012, up from 297,000 in 2000, and comprise 11 percent of the total population.

The groups with a larger presence in the Washington region are Indian, Chinese, Korean, Filipino and Vietnamese. But these groups do not even begin to uncover the enormous diversity of people of Asian and Pacific Islander descent that are our friends and neighbors, with ties to more than 20 ethnic groups, languages, religions, customs and origins.

This vast diversity influences the economic security and opportunities of Asian and Pacific Islander women in our region and beyond. While Asian and Pacific Islander women on average are only second to White women when analyzing economic indicators, it is not because everyone is doing well. Looking at the population of Asian and Pacific women without any nuance, glosses over the economic and educational inequities of the many groups that are part of this population.

Asian Americans are often considered to be high-achieving, high-earning and highly educated, but data from the 2010-2012 American Community Survey reveals, for example, that in the Washington region, roughly four out of ten Pakistani women (38 percent) are living at or below 200 percent of the poverty threshold, compared to slightly more than one out of ten Indian women (13 percent). Median annual earnings for full-time, year-round workers unearth stark disparities among women in this group as well; while Chinese women earn approximately $70,000 per year, Vietnamese women earn about $27,000 less.

A single-bloc analysis of the status of Asian and Pacific Islander women could leave the group out of important policy discussions. Immigration reform, for instance, is more likely to be associated as an issue of interest to the Latino community, and racial dialogues often times primarily focus on White and Black relations. The “model minority” stereotype, the idea that Asian Americans are landmarks of economic and academic success relative to other minorities, is an undermining factor that affects the most disadvantaged members of the Asian and Pacific community. This dangerous misconception can cause many who share significant challenges of achieving economic security to be overlooked.

To celebrate Asian-Pacific American Heritage Month, let’s remember the vibrant diversity of Asian and Pacific Islander Americans and the importance of understanding the nuanced backgrounds of women and men, and girls and boys that make this such a vibrant community and allows us to better serve the diverse needs of every woman and girl in our region.

The source of data in this blog post is The Women’s Foundation analysis of the 2010-2012 and 2012 IPUMS American Community Survey, and 2000 Census.