As we pause to commemorate Equal Pay Day – the day well into the year when the earnings of women working full time catch up with men’s earnings from the previous year – many people are asking why women earn so much less than men. The answer? Because women’s employers pay them so much less – including little or no time to do the caregiving for which women still have primary responsibility. That lack in compensation costs women hundreds of thousands of dollars over a lifetime.
Here’s the rub – in our nation that is supposed to value families and personal responsibility, being a good parent or following doctor’s orders affects your ability to stay employed, to advance, to build assets or even to pay your bills. Lose a job for staying home with a sick child and it may be harder to get the next one. Take a little time to care for your dying father and you may find yourself in bankruptcy court – and that can affect your credit rating and your ability to get hired at the next job. Take a few years to raise young children and your next starting pay – and all the lifetime of raises based on that pay – may take a hit from which you’ll never recover.
Conservatives argue that women would get equal pay with men if they didn’t take breaks. Having a baby may be a joy – but it’s not a break. Studies show that women who experience an interruption in employment do experience a decrease in wages – a reflection of the notion that they’ve taken a “break” and lowered their value by “not working.”
Many new moms who wind up out of a job would be delighted to go back to the one they had — but their employer prevents it. The Pregnancy Discrimination Act prohibits firing someone for being pregnant, but it does not require holding their job open until that person heals from childbirth. The Family and Medical Leave Act does include that job protection, but it leaves out 40 percent of the workforce. At the time when they need a steady income the most, too many moms risk losing their jobs when they have a child.
Now for the good news: there are tested policy solutions to correct these problems. The drop in income is less likely to happen when women have access to paid family leave. Researchers Houser and Vartanian found evidence that paid family leave boosts the chance that women will return to the workforce and receive pay increases once they do.
An analysis of the impact of California’s paid leave program on leave-taking and post-birth employment found that paid family leave increases a woman’s attachment to the firm that she works in, as well as increasing the number of hours that she works after returning to the job.
In short, common sense policies like a family leave insurance fund not only strengthen families and lower turnover, they would also help lessen the gender wage gap. Sen. Kirsten Gillebrand and Rep. Rosa DeLauro have introduced a federal bill, the FAMILY Act, to create such a fund. And President Obama has included money in the budget for a State Paid Leave Fund, grants to states to help them start similar programs on the state level.
Other public policies would help as well. Guaranteeing that workers can earn paid sick time would help stop income and job loss that impacts women’s earnings. So would proposed credits for caregiving in determining social security income.
These aren’t the only solutions. We need to restore the lost value of the minimum wage (where women are the majority of workers) and remove the barriers from workers choosing to belong to a union. We need parity for part-timers, who are also disproportionately female – no law currently requires that they get the same base rate, even when doing the same job for the same company. And we need an end to salary secrecy, as President Obama is ordering today for federal contractors.
But we’ll never solve the problem of women’s lower – and often really low – pay until we also ensure that women and men have access to affordable time for caregiving.
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We applaud the swift passage of this historic legislation and will continue to advocate for investments in the care economy