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‘A tale of 2 recessions’: As rich Americans get richer, the bottom half struggles

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The path toward economic recovery in the U.S. has become sharply divided, with wealthier Americans earning and saving at record levels while the poorest struggle to pay their bills and put food on the table.

The result is a splintered economic picture characterized by high highs — the stock market has hit record levels — and incongruous low lows: Nearly 30 million Americans are receiving unemployment benefits, and the jobless rate stands at 8.4 percent. And that dichotomy, economists fear, could obscure the need for an additional economic stimulus that most say is sorely needed.

The trend is on track to exacerbate dramatic wealth and income gaps in the U.S., where divides are already wider than any other nation in the G-7, a group of major developed countries. Spiraling inequality can also contribute to political and financial instability, fuel social unrest and extend any economic recession.

The growing divide could also have damaging implications for President Donald Trump’s reelection bid. Economic downturns historically have been harmful if not fatal for incumbent presidents, and Trump’s base of working-class, blue-collar voters in the Midwest are among the demographics hurting the most. The White House has worked to highlight a rapid economic recovery as a primary reason to reelect the president, but his support on the issue is slipping: Nearly 3 in 5 people say the economy is on the wrong track, a recent Reuters/Ipsos poll found.

Democrats are now seizing on what they see as an opportunity to hit the president on what had been one of his strongest reelection arguments.

“The economic inequities that began before the downturn have only worsened under this failed presidency,” Democratic presidential nominee Joe Biden said Friday. “No one thought they’d lose their job for good or see small businesses shut down en masse. But that kind of recovery requires leadership — leadership we didn’t have, and still don’t have.”

Recent economic data and surveys have laid bare the growing divide. Americans saved a stunning $3.2 trillion in July, the same month that more than 1 in 7 households with children told the U.S. Census Bureau they sometimes or often didn’t have enough food. More than a quarter of adults surveyed have reported paying down debt faster than usual, according to a new AP-NORC poll, while the same proportion said they have been unable to make rent or mortgage payments or pay a bill.

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And while the employment rate for high-wage workers has almost entirely recovered — by mid-July it was down just 1 percent from January — it remains down 15.4 percent for low-wage workers, according to Harvard’s Opportunity Insights economic tracker.

“What that’s created is this tale of two recessions,” said Beth Akers, a labor economist with the Manhattan Institute who worked on the Council of Economic Advisers under President George W. Bush. “There are so obviously complete communities that have been almost entirely unscathed by Covid, while others are entirely devastated.”

Trump and his allies have seized on the strength of the stock market and positive growth in areas like manufacturing and retail sales as evidence of what they have been calling a “V-shaped recovery”: a sharp drop-off followed by rapid growth.

But economists say that argument fails to see the larger picture, one where roughly a million laid-off workers are filing for unemployment benefits each week, millions more have seen their pay and hours cut, and permanent job losses are rising. The economy gained 1.4 million jobs in August, the Labor Department reported Friday, but the pace of job growth has slowed at a time when less than half of the jobs lost earlier this year have been recovered.

Some economists have begun to refer to the recovery as “K-shaped,” because while some households and communities have mostly recovered, others are continuing to struggle — or even seeing their situation deteriorate further.

“If you just look at the top of the K, it’s a V — but you can’t just look at what’s above water,” said Claudia Sahm, director of macroeconomic policy at the Washington Center for Equitable Growth. “There could be a whole iceberg underneath it that you’re going to plow into.”

The burden is falling heavily on the poorest Americans, who are more likely to be out of work and less likely to have savings to lean on to weather the crisis. While recessions are always hardest on the poor, the coronavirus downturn has amplified those effects because shutdowns and widespread closures have wiped out low-wage jobs in industries like leisure and hospitality.

Highly touted gains in the stock market, meanwhile, help only the wealthiest 10 percent or so of households, as most others own little or no stock.

The disconnect between the stock market and the broader economy has been stark. On the same day in late August that MGM Resorts announced it would be laying off a quarter of its workforce, throwing some 18,000 workers into unemployment, its stock price jumped more than 6 percent, reaching its highest closing price since the start of March.

“The haves and the have-nots, there’s always been a distinction,” Sahm said. But now, she added, “we are widening this in a way I don’t think people have really wrapped their head around.”

A store going out of business
A customer leaves a retail store, which is going out of business, during the coronavirus pandemic. | Lynne Sladky/AP Photo

Without further stimulus, the situation appears poised to get worse. Economic growth until now had been led by increasing levels of consumer spending, buoyed by stimulus checks and enhanced unemployment benefits that gave many people, including jobless workers, more money to spend.

Low-income consumers have led the way, and they spent slightly more in August than they did in January, according to the Opportunity Insights tracker — even as middle- and high-income consumers are still spending less.

But those low-income consumers were also the most dependent on the extra $600 per week in boosted unemployment benefits, which expired in July. Since that lapsed — and since Congress appears unlikely to extend it any time soon, if at all — “we’re likely to see other macroeconomic numbers really fall off a cliff in the coming weeks,” Akers said.

The expected drop in spending, paired with the expiration of economic relief initiatives like the Paycheck Protection Program, could also spell trouble for businesses in the coming months. Many economists expect a wave of bankruptcies and business closures in the fall, contributing to further layoffs.

In that sector, too, owners are feeling disparate impacts. More than 1 in 5 small business owners reported that sales are still 50 percent or less than where they were before the pandemic, according to a recent survey from the National Federation of Independent Business, and the same proportion say they will need to close their doors if current economic conditions do not improve within six months.

At the same time, however, half said they are nearly back to where they were before, and approximately 1 in 7 owners say they are doing better now than they were before the pandemic, the survey showed.

Those diverging narratives could be understating the need for further stimulus by smoothing over some of the deeper weaknesses in the labor market and the economy, experts say.

“This is a case where the averages tell a different story than the underlying data itself,” said Peter Atwater, an adjunct economics professor at William & Mary.

While Republicans appear to be embracing the idea of further “targeted” aid, they are also touting what Trump has called a “rocket-ship” economic recovery and emphasizing record-breaking growth while downplaying the record-breaking losses that preceded it.

“There’s no question the recovery has beat expectations,” said Rep. Kevin Brady (R-Texas), the top Republican on the House Ways and Means Committee, this week on a press call with reporters.

Talks between the White House and Democratic leaders, meanwhile, have been stalled for weeks. The Senate is set to return from its summer recess next week with no clear path forward on a relief package.

“People are in these bubbles,” Atwater said. “And if people aren’t leaving their homes, are not really getting out, it’s unlikely that they’re seeing the magnitude of the downside of this K-shaped recovery.”

This article originally appeared at Politico on September 7, 2020. Reprinted with permission.

About the Author: Megan Cassella is a trade reporter for POLITICO Pro. Before joining the trade team in June 2016, Megan worked for Reuters based out of Washington, covering the economy, domestic politics and the 2016 presidential campaign. It was in that role that she first began covering trade, including Donald Trump’s rise as the populist candidate vowing to renegotiate NAFTA and Hillary Clinton’s careful sidestep of the Trans-Pacific Partnership.

A D.C.-area native, Megan headed south for a few years to earn her bachelor’s degree in business journalism and international politics at the University of North Carolina at Chapel Hill. Now settled back inside the Beltway, Megan’s on the hunt for the city’s best Carolina BBQ — and still rooting for the Heels.


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187 Republicans vote against bill to close the gender wage gap

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The House on Wednesday voted 242-187 for a bill that would strengthen protections for female workers and help close the gender wage gap. The vote comes as Republicans are trumpeting themselves as the champions of women’s economic mobility — though only seven of them voted for the bill.

Iterations of this legislation have been debated by lawmakers for decades but have never actually been able to pass. The bill, sponsored by Rep. Rosa DeLauro (D-CT), seeks to boost women’s pay by prohibiting employers from seeking job applicants’ salary histories and preventing them from retaliating against workers for disclosing their wages. It also would require the Equal Employment Opportunity Commission (EEOC) to collect wage data based on sex, race, and national origin to better determine whether employers are responsible for discriminatory practices. The House passed the bill on Wednesday despite Republicans’ opposition, but it now faces an uncertain future in the GOP-controlled Senate.

The House Education and Labor Committee voted to advance the legislation earlier this week. Every single Republican opposed moving the bill out of committee, with many saying the focus should instead be on providing more job opportunities for women.

Republicans often like to point to data showing that women gained 58 percent of new, private-sector jobs in 2018. Trump touted the figure in his State of the Union address in February, and Republicans in the Education and Labor Committee again brought it up when discussing the Paycheck and Fairness Act.

But many of the jobs gained by women are part time, and nearly 80 percent of them fell into just four categories: education and health services, professional and business services, leisure and hospitality, and manufacturing. In three of those industries, women make less than 80 cents for every dollar a man earns, or worse than the average national wage gap, according to a 2018 analysis by the Center for American Progress analysis. (Editor’s Note: ThinkProgress is an editorially independent newsroom housed at the Center for American Progress Action Fund.)

Jocelyn Frye, a senior fellow at the Center for American Progress who focuses on work-family balance, pay equity, and women’s leadership, said, “It’s not to discount that women have received jobs and obviously want jobs but there is a disconnect. It’s not responsive to the question [of pay inequality]. The fact that you gave the jobs doesn’t change the fact that the jobs are underpaying women.”

Republicans, meanwhile, have been looking for ways to appeal to greater numbers of women voters, particularly since their support among women plummeted in the 2018 midterm elections.

In November, 59 percent of women voted for Democrats in the congressional elections, according to exit poll data. Only 40 percent of women voted for Republicans. There was no measurement for how nonbinary people voted across race or educational attainment. Black and Latina women overwhelmingly voted for Democratic candidates.

Although there was a roughly even split for how white women voted, 59 percent of college-educated white women and 56 percent of white voters ages 18 to 29 voted for Democrats. Experts say these shifts likely represent a long-term trend.

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Kelly Dittmar of the Center for American Women and Politics, part of the Eagleton Institute of Politics at Rutgers University, said the shift likely isn’t about Trump alone, but about the broader Republican Party.

“My hypothesis at this moment is that it is actually a trend because there were signs of this trend before Donald Trump, it’s just that you saw it through an acceleration I think — the departure of these women,” Dittmar said. “I think you’ll continue to see it because these women who are particularly upset with how the party has dealt with Donald Trump, it certainly leaves a taste in their mouth about the party overall.”

She added, “If you put these women on a scale when it comes to immigration or guns or the environment, their positions on these issues are just not aligned with the current agenda and leadership in the Republican Party.”

Democratic pollster Celinda Lake said that when looking at women who vote in the general election, college-educated and suburban women are identifying as more independent and Democratic. She said three major waves encapsulate that movement.

The Republican Party’s position on social issues — including birth control, Title IX, and sexual harassment and violence — led to some women moving away from the Republican Party in 2016. The second wave emerged as voters reacted to Trump’s racist and sexist behavior, as well as how he governs.

“The third wave, which is more recent, is a sense that the country is going in the wrong direction, that the priorities are wrong, that we are not dealing with everything from health care to climate change,” Lake said.

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Lake said that for female voters, including Republican women, equal pay is high on the list of concerns, along with domestic violence programs. The reauthorization and expansion of the Violence Against Women Act is on the House agenda this session. But Rep. Brian Fitzpatrick (R-PA) is the only Republican in the House who is cosponsoring the bill and the only Republican who has shown support for the bill by attending its introduction.

“There’s a very high correlation between concerns about sexual harassment and concerns about domestic violence and concerns about equal pay.” Lake said. “And equal pay is still the most salient of the three with women overall. And it’s particularly salient with Republican women who are very adamant about equal pay and that it remains a problem.”

Dittmar said that across gender, voters are concerned about economic stability and the well-being of their families. But they are divided over who is responsible. She explained that college-educated women who identify as Democrats tend to say the government plays a role but Republicans tend to say it’s up to businesses to address equal pay.

Broadly I think there is pretty high popularity for wanting to address equal pay but it’s in the how where you see the disparity both among legislators as well as the public,” she said.

Ariane Hegewisch, program director of employment and earnings for the Institute for Women’s Policy Research, said these measures are necessary to ensure workplace fairness.

“What the Equal Pay Act recognizes and what the Paycheck Fairness Act is trying to update 50 years on to more current circumstances is that there is discrimination in the labor market and if you just rely on what people are paid now, you are going to pick up discrimination and import it into your organization,” she said. “You have to pay people the same if they do the same job and have similar education, experience and performance. You can qualify their personal performance but it has to be fact based.”

According to the Institute for Women’s Policy Research, it will take until 2059 for women to reach pay parity if change continues at the current pace. Black women would have to wait until 2119 for equal pay, and Latina women until 2224.

“After what I would call a wave election in 2018 where women were elected to historic numbers in Congress, people have very high expectations of what they are going to get from lawmakers and it is not acceptable simply to say I support equal pay but I have nothing to show for it,” said Frye.

This article was originally published at ThinkProgress on March 27, 2019. Reprinted with permission. 

About the Author: Casey Quinlan is a policy reporter at ThinkProgress covering gender and sexuality. Their work has also been published in The Establishment, Bustle, Glamour, The Guardian, and In These Times.


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Equal Pay for All

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Today is Latina Equal Pay Day, the day in the year when Latina pay catches up to that of white, non-Hispanic men. That means Latinas work nearly 23 months to make what white, non-Hispanic men earn in one year.

More than 50 years after the passage of the Equal Pay Act, women still get paid less for the same work. But women of color—Latinas especially—experience the widest wage gap for the same jobs.

While it’s shameful that women are still fighting for equal pay, there are steps we can take to close the gap. The best way is to join a union. Through union contracts, women have closed the wage gap and received higher pay and better benefits. In fact, union women earn $231 more a week than women who don’t have a union voice.

When women are represented by unions and negotiate together, they have the power to create a better life.

Check out some facts below about Latina Equal Pay Day, and learn more from AFL-CIO Secretary-Treasurer Liz Shuler here.

  • Latinas get paid only 53 cents to every dollar a white, non-Hispanic man makes—the largest gap in the nation.
  • Latinas must work 23 months to earn what a white man does in 12 months.
  • The average weekly earnings for Latinas is $621, compared to the $815 that white, non-Hispanic women bring home every week.
  • Latinas in unions earn 48% more.

This blog was originally published by the AFL-CIO on November 1, 2018. Reprinted with permission. 


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Trump blocks Obama effort to combat pay discrimination

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Former President Obama intended to fight pay discrimination with a rule requiring businesses to track how much they pay different groups of workers. You know the next part, right? Of course you do. Donald Trump is blocking the rule from going into effect as scheduled next spring because it’s just too hard for businesses to report how much they pay their workers.

“It’s enormously burdensome,” said Neomi Rao, administrator of the Office of Information and Regulatory Affairs, which analyzes the cost of federal rules and regulations. “We don’t believe it would actually help us gather information about wage and employment discrimination.”

Which part of that do you think is more important—that it’s burdensome or that they don’t believe it would help gather information? Or the unstated third reason that Donald Trump and his underlings don’t want to hold businesses accountable for discrimination anyway. This burden, by the way, amounts to putting extra information on a form that businesses already fill out. That information about how much women vs. men are paid, or workers of color vs. white workers seems like it would be helpful to uncovering discrimination. The Obama administration certainly thought so:

“We’d learn about a pay-discrimination problem because someone saw a piece of paper left on a copy machine or someone was complaining about their salary to co-workers,” leading others to realize they were being underpaid, said Jenny Yang, who was chairwoman of the EEOC when the rules were drafted, at NYU School of Law’s Annual Conference on Labor in June.

“Having pay data in summary form will also help us identify patterns that may warrant further investigation,” Ms. Yang said.

Self-proclaimed equal pay champion Ivanka Trump is right on board with the messaging against this effort to promote equal pay, by the way.

This blog was originally published at DailyKos Labor on August 30, 2017. Reprinted with permission.

About the Author: Laura Clawson is labor editor at Daily Kos.


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Together We Can Make Pay Equity a Reality for All Working Women

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June 10th is the 54th anniversary of the passage of the Equal Pay Act, the 1963 law that prohibits employers from paying men and women different wages for the same work solely based on sex. The Equal Pay Act’s passage is an important example of the labor movement’s long history of partnering with progressive women’s organizations to advocate for equal pay for women. Indeed, Esther Peterson—one of the labor movement’s greatest sheroes—was instrumental in the enactment of this landmark legislation.

Pay equity and transparency are bread and butter issues for working women; when they come together to negotiate collectively for fair wages and important benefits, like access to health insurance and paid leave, they can better support their families. (Indeed, women in unions experience a smaller wage gap than women without a union voice).

 Since the passage of the EPA, the gender wage gap has narrowed, but it persists. Women overall typically are paid 80 cents for every dollar paid to their male counterparts, and that number has barely changed in the past 10 years. And the gap is even larger when you compare the earnings of women of color to white men.

 Clearly, we still have much to do to ensure pay equity, and there’s been some progress, thanks to tireless working women and their allies across the country. For instance, in the past two years, more than half the states have introduced or passed their own remedies to increase pay transparency, strengthen employer accountability and empower working people to take action against pay discrimination. But stronger protection from pay discrimination shouldn’t depend on where you happen to live or where you work. Working women deserve a national solution.

 That’s why the AFL-CIO, the National Women’s Law Center and countless other organizations support the Paycheck Fairness Act, part of a comprehensive women’s economic agenda. The PFA would strengthen the EPA by: protecting employees from retaliation for discussing pay; limiting the ability of employers to claim pay differences are based on “factors other than sex”; prohibiting employers from relying on a prospective employee’s wage history in determining compensation; strengthening individual and collective remedies against employers who discriminate; and increasing the data collection and enforcement capacity of key federal agencies.

 Let’s not forget that raising the federal minimum wage also would boost women’s earnings in a big way. A driving factor in the gender wage gap is women’s overwhelming majority representation (two-thirds of workers) in minimum wage jobs, including those who pay the lower-tipped minimum wage. Legislation like the Raise the Wage Act would give women the well-deserved raise they’ve earned.

 We need strong policy solutions like the Paycheck Fairness Act and the Raise the Wage Act to help close the gender wage gap. Working women and the families who depend on them can’t afford to wait another 54 years.

This blog was originally published at AFLCIO.org on June 10, 2017. Reprinted with permission.

About the Authors: Fatima Goss Graves is the senior vice president for program and president-elect at the National Women’s Law Center. In her current role, she leads the center’s broad agenda to eliminate barriers in employment, education, health care and reproductive rights and lift women and families out of poverty. Prior to joining the center,, she worked in private practice and clerked for the Honorable Diane P. Wood on the 7th U.S. Circuit Court of Appeals. Liz Shuler is secretary-treasurer of the AFL-CIO. The second-highest position in the labor movement, Shuler serves as the chief financial officer of the federation and oversees operations. Shuler is the first woman elected as the federation’s secretary-treasurer, holding office since 2009.


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An Economy That Works For Everyone Starts With Women

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Terrance HeathAccording to a new report from the Economic Policy Institute, creating an economy that works for everyone starts with creating an economy that works for women.

There’s good news and bad news. The good news is that the gap between women’s earnings and men’s earnings has closed a little. The bad news is the narrowing of the gender wage gap is not due to women’s gains in the workplace, but to declining wages for men and growing inequality overall.

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According to a recent report from the Economic Policy Institute (EPI), eliminating the gap between men’s and women’s wages would amount to a 70% raise for women.

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Consider economic impact of eliminating the gender pay gap. Women are the primary breadwinners in at least 40 percent of American households. Consider what eliminating the gender pay gap would mean for these women.

  • Nearly 60 percent of women would earn more if working women were paid the same as men the same age doing similar work.
  • The poverty rate for working women would be cut in half; the poverty rate for working single mothers would fall by nearly half.
  • The US Economy would produce an extra $447.6 billion, if women received equal pay.

Like a “rising tide,” lifting these women lifts the households that depend upon their earnings, and boosts the economy. An economy that works for women, then, works for American families, too, bringing us closer to an economy that works for all. To that end EPI has introduced the “Women’s Economic Agenda,” a 12-point policy agenda that will “give low- and moderate-wage workers more economic leverage, change the rules so that a growing economy benefits hardworking Americans, and maximize women’s economic security.”


The benefits for women are clear. As I wrote in, “We Must Fight Poverty With Justice,” it’s no coincidence that women’s risk of poverty jumps drastically between the ages of  25 and 34, when their poverty rate is 6.9 times higher than men’s, or that their poverty risk doesn’t begin to come down until age 40. Women are at a higher risk of poverty during their peak reproductive years, when they begin juggling the responsibilities of work and family, and lose out on pay that’s already less than what men earn.

However, the benefits of the agenda aren’t exclusive to women. In fact, none of its 12 points are applied exclusively to women. Men, women, and children would benefit from increased wages, guaranteed family leave and paid sick leave, accessible child care, and all of the other agenda items. When the economy works for women on these 12 issues, it’s more likely to work for us all.

This blog was originally posted on Our Future on November 18, 2015. Reprinted with permission.

About the Author: Terrance Heath is the Online Producer at Campaign for America’s Future. He has consulted on blogging and social media consultant for a number of organizations and agencies. He is a prominent activist on LGBT and HIV/AIDS issues.


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Female Executives Aren’t Just Paid Less, They Also Suffer More For Bad Performance

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Bryce CovertThere isn’t just a gender wage gap among the highest-paid employees in the country. Pay for female executives also drops further when companies perform poorly compared to men but rises less during good times.

In a new note about their research, Federal Reserve Bank of New York economists Stefania Albanesi, Claudia Olivetti, and Maria Prados find that if a company’s value drops by 1 percent, female executives’ pay will drop by 63 percent, while male executives only see a 33 percent decline. On the other hand, if value goes up by 1 percent men will get a 44 percent boost but women will only get a 13 percent increase.

This leads to cumulative losses for women but gains for men. The economists looked at pay for the top five executives in public companies — CEO, vice chair, president, CFO, and chief operating officer — in the Standard and Poor’s ExecutComp database between 1992 and 2005. Over that time, women’s pay dropped 16 percent while men’s rose 15 percent. If a company’s value increases by $1 million, male executives will net $17,150 more in compensation but women will only get $1,670. “So, overall,” they write, “changes in firm performance penalize female executives while they favor male executives.”

There is still a tiny number of female executives to begin with. They made up just 3.2 percent of the people in the roles examined by the New York Fed economists, while they account for 4.6 percent of CEOs at S&P 500 companies and a quarter of executive and senior officers. But even so, they are still paid less than their male peers. The New York Fed research found that female executives’ total compensation was just 82 percent of men’s. The highest-paid female executives at S&P 500 companies made 18 percent less than male ones in 2013, and female CEOs made less than 80 percent of what male ones made.

Several prominent female executives have recently demonstrated the severity of the pay gap at the top. Yahoo CEO Marissa Mayer was paid less in her few years than the man who had the job before her and ended up fired. Mary Barra, the first female CEO of General Motors, got a pay package for her first year that was less than half of what the man who had the job before her made, although her long-term compensation package will be higher. The value of that package, of course, will depend on the company’s value over time.

But part of the disparity is the way that female executives get paid in the first place. In their research, the New York Fed economists found that women’s compensation is made up of less incentive pay than men’s, which accounts for 93 percent of the overall gender pay gap among them. The biggest gap is in bonuses: female executives get bonuses that amount to just 71 percent of male executives’. But they also get less in stock options and grants, getting just 84 percent and 87 percent, respectively, of what men get. The gap in stock options alone explains 41 percent in the overall gender gap.

While there’s a gender wage gap at the very top of the economy, it’s part of a problem that follows women in virtually every job. They get lower salaries right out of college and will make less than men at every education level. While many factors go into the gender wage gap, women’s career interruptions to care for children can only explain about 10 percent of it and the most ambitious women will still make less.

This blog originally appeared at ThinkProgress.org on August 26, 2015. Reprinted with permission.

About the Author: Bryce Covert is the Economic Policy Editor for ThinkProgress. She was previously editor of the Roosevelt Institute’s Next New Deal blog and a senior communications officer. She is also a contributor for The Nation and was previously a contributor for ForbesWoman. Her writing has appeared on The New York Times, The New York Daily News, The Nation, The Atlantic, The American Prospect, and others. She is also a board member of WAM!NYC, the New York Chapter of Women, Action & the Media.

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Few nurses are men, but they’re still paid more than women

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Laura ClawsonNursing is an occupation massively dominated by women. But the small fraction of nurses who are men earn substantially more than the women, according to an analysis of two large data sets:

Every year, each of the data sets found men earned more than women; the unadjusted pay gap ranged from $10,243 to $11,306 in one survey and from $9,163 to $9,961 in the other.There was a gap for hospital nurses, $3,783, and an even bigger one, $7,678, for nurses in outpatient settings.

Men out-earned women in every specialty except orthopedics, with the gap ranging from $3,792 in chronic care to $17,290 for nurse anesthetists.

Some of the usual possible explanations for how it’s totally not sexism apply, except that those explanations themselves typically involve some form of sexism, if not direct wage discrimination. So, yes, maybe women are more likely to work part-time (because they’re doing the work of caring for families that men don’t bother with).But given pay differentials this pervasive within one occupation (so we know it’s not that women make less because men are on Wall Street and women are secretaries) and across specialties within that occupation, a few of the “it’s not sexism because it’s really about women’s choices, which I am pretending are not constrained by sexism” excuses for the gender pay gap are eliminated. Which makes it just one more big glaring data point on the mile-long list of data points showing that women are systematically underpaid (or men are systematically overpaid) throughout the American economy.

This blog originally appeared on dailykos.com on March 24, 2015. Reprinted with permission.

About the Author: Laura Clawson is Daily Kos contributing editor since December 2006. Labor editor since 2011. Laura at Daily Kos

 


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Unless Something Changes, it Will Take Women 45 Years to Earn as Much as Men

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Jackie TortoraWomen will not receive the same median annual pay as men until 2058, if current earnings patterns continue without change, announced the Institute for Women’s Policy Research (IWPR) this week.

“Progress in closing the gender wage gap has stalled during the most recent decade. The wage gap is still at the same level as it was in 2002,” said Heidi Hartmann, president of IWPR. “If the five-decade trend is projected forward, it will take almost another five decades—until 2058—for women to reach pay equity. The majority of today’s working women will be well past the ends of their working lives.”

IWPR released a new fact sheet that tracks the pay gap from 1960 to today and analyzes changes during the past year by gender, race and ethnicity.

“While there is no silver bullet for closing the gender wage gap,” said Ariane Hegewisch, a study director at IWPR and author of the fact sheet, “strengthened enforcement of our EEO laws, a higher minimum wage and work–family benefits would go a significant way toward ensuring that working women are able to support their families.”

This article was originally printed on AFL-CIO on September 20, 2013.  Reprinted with permission.

About the Author: Jackie Tortora is the blog editor and social media manager at the AFL-CIO.

 


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Too Much Money Can Make the Boss Mean

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Image: James ParksHere’s another reason to do away with runaway CEO pay.  A study shows bloated CEO pay can make the boss mean.

The study examined the corporate behavior of 261 companies and found a close correlation between pay inequality and poor treatment of workers. In companies where CEOs made much more than their average workers, the companies were more likely to underfund pensions or cut corners on health and safety. Often, according to the study, the bosses engaged in a cost-benefit analysis, calculating that a fine would be a cost of doing business, compared with the profits they could make.

“You end up basically thinking of those at the bottom as numbers,’’ Sreedhari Desai, a Harvard research fellow who co-authored the study, told The Boston Globe columnist Joanna Weiss. “You feel somehow that they aren’t even worthy of the normal people that you’d meet. They’re disposable.’’

Writing about the study last summer for the Campaign for America’s Future, Sam Pizzigati sums it up this way:

The…data and the lab games, in the end, would both generate findings that point to the same conclusion. Wide pay gaps between executives and workers…enhance the sense of power executives feel and cause them to “objectify lower level employees.”

Or, to put the matter more plainly, “executives with higher income treat employees more meanly.”

Click here to read the study, “When Executives Rake in Millions: Meanness in Organizations.”

This article was originally published on AFL-CIO Now Blog.

About the Author: James Parks had his first encounter with unions at Gannett’s newspaper in Cincinnati when his colleagues in the newsroom tried to organize a unit of The Newspaper Guild. He is a journalist by trade, and worked for newspapers in five different states before joining the AFL-CIO staff in 1990. His proudest career moment, though, was when he served, along with other union members and staff, as an official observer for South Africa’s first multiracial elections.


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