Unveiling Inequalities: Exploring the Gender and Race Wage Gap in the United States Through Sustainable Development Goal 5

Despite decades of progress, the gender wage gap continues to reflect systemic inequalities in the U.S. workforce. In the pursuit of Sustainable Development Goal 5 (SDG 5), it is crucial to address the challenges surrounding the gender and race wage gap. From Vermont's progressive policies to New Hampshire's struggles, wage disparities based on gender and race persist across the country, posing barriers to achieving true equality (Rotman & Mandel, 2022). The gender wage gap stems from multiple factors, pay discrimination, lack of transparency, and the marginalization faced by women of color. Women in the U.S. earned 82 cents for every dollar paid to men in 2021, with Black women earning 63 cents and Hispanic women 57 cents compared to white, non-Hispanic men (New Hampshire Women’s Foundation, 2023). Occupational segregation further fuels these disparities, as women are overrepresented in lower-paying industries (Weeks, 2023).

The gender wage gap is more than just a statistic—it’s a reality many women live every day. Stephanie, who worked as an assistant vice president for development, recalled being told that her male direct report earned more than her and that it wasn’t negotiable. A year later, her new boss secured her a $20,000 raise, but she still regrets not negotiating upfront (McGough, 2021). Similarly, Mandy discovered a spreadsheet outlining salaries of newer hires, revealing that a younger male colleague, with fewer responsibilities, was earning $20,000 more than her. This led her to advocate for a salary increase, which she successfully negotiated (McGough, 2021). These personal stories illustrate the pervasive nature of wage inequality.

The gender wage gap has severe consequences for women in the U.S. Economic inequality limits women’s opportunities for career advancement, financial security, and retirement savings. Women are more likely to experience poverty in retirement, with women aged 65 and older having a 10% poverty rate compared to 7% for men of the same age (New Hampshire Women's Foundation, 2023). This also diminishes fairness and morale in the workforce, which explains how this presents long-term disadvantages for women (Rotman & Mandel, 2022).

Vermont and New Hampshire provide a clear example of how differing state policies, like Vermont's Equal Pay Act versus New Hampshire's lack of similar initiatives, can lead to vastly different gender wage gap outcomes, despite their geographic proximity. Vermont has made significant strides in closing the wage gap, narrowing it to 9 cents—the lowest in the country (DeLeon, 2021). Policies such as the Equal Pay Act and salary history bans have contributed to this success by fostering transparency and equity. These initiatives encourage women’s participation in higher-paying fields and reduce wage discrimination (Lane, 2017).

In contrast, New Hampshire has one of the highest wage gaps, at 25 cents (Weeks, 2023). This disparity highlights the role that policy and cultural differences play in addressing systemic inequalities. Despite its economic success, New Hampshire ranks 45th in gender pay equity, with women earning only 75.5 cents for every dollar earned by men (America's Health Rankings, 2024).

Recommendations for Closing the Gap

Closing the gender wage gap requires a multifaceted approach. In states like California, where the gap is narrower, policies promoting pay transparency and family-friendly workplace practices have made a significant impact (Haines, 2024). Encouraging women to enter higher-paying fields, such as STEM, and providing support for their advancement can help reduce wage disparities (New Hampshire Women’s Foundation, 2023). Additionally, providing affordable childcare, paid family leave, and fostering a culture of diversity and inclusion are critical as most of the cultural norms of familial responsibility fall upon women. Companies that prioritize diversity tend to have more equitable pay practices and leadership structures (Rotman & Mandel, 2022).

Programs like those offered by The Wage Project, which hosts salary negotiation workshops, empower women to advocate for fair compensation (Foster's Daily Democrat, 2018). In New Hampshire, J.T. O’Donnell, CEO of Work It Daily, emphasizes the importance of salary comparison tools, such as Glassdoor, to help women understand their worth in the job market (Foster's Daily Democrat, 2018). Organizations like Granite State Progress and the New Hampshire Women’s Foundation are working to address this gap through salary negotiation workshops and advocacy, pushing for stronger policies (Foster's Daily Democrat, 2018). In states with wider wage gaps, such as Mississippi and Louisiana, cultural and political barriers often stymie progress. Without robust legislative support, women in these regions face greater challenges in achieving wage equity (Rotman & Mandel, 2022).

Achieving Sustainable Development Goal 5 requires closing the wage gap and addressing the systemic inequalities that fuel it. By pushing for and adopting progressive policies, encouraging pay transparency, and providing women with the resources they need to advocate for themselves, the U.S. can move toward a more equitable workforce. However, as leaders across both progressive and conservative states recognize, much more work remains to be done (Rotman & Mandel, 2022). Visit ACES World on social media to stay informed about ongoing efforts to achieve gender equality and to learn how you can contribute to closing the wage gap.

References:

DeLeon, A. (2021, July 7). Vermont's gender wage gap ranked lowest in the country. VTDigger. https://vtdigger.org/2021/07/07/vermonts-gender-wage-gap-ranked-lowest-in-the-country/

Foster's Daily Democrat. (2018, April 9). Equal Pay Day: How NH women can fight wage gap. Foster's Daily Democrat. https://www.fosters.com/story/news/2018/04/09/equal-pay-day-how-nh-women-can-fight-wage-gap/12791545007/

Haines, J. (2024, March 12). States with the biggest gender wage gaps. U.S. News & World Report. https://www.usnews.com/news/best-states/articles/states-with-biggest-gender-wage-gaps

McGough, A. (2021, March 24). Equal Pay Day: Readers share their stories of the wage gap. The 19th. https://19thnews.org/2021/03/equal-pay-day-reader-stories/

New Hampshire Women's Foundation. (2023). Status of women in New Hampshire. https://nhwomensfoundation.org/status-of-women-nh/

Rotman, A., & Mandel, H. (2022, November 21). Gender-specific wage structure and the gender wage gap in the U.S. labor market. Social Indicators Research, 165(2), 585–606. https://doi.org/10.1007/s11205-022-03030-4

Weeks, D. (2023, March 16). The persistent and pernicious gender pay gap. New Hampshire Bulletin. https://newhampshirebulletin.com/2023/03/16/the-persistent-and-pernicious-gender-pay-gap/