Closing the Gender Pay Gap for Women in the C-Suite

McKinsey & Company9 and Leanln.org examined responses from 30,000 employees at 118 companies and found that women are underrepresented in top management and C-suite jobs. They examined data from 2012 to 2015 and forecast that if the trend over these three years continues, it will take:

  • • 25 years to achieve gender parity in senior vice presidents’jobs
  • • more than 100 years to achieve gender parity in the C-suite jobs!

Closing the Gender Pay Gap by State

If you are planning to move, think Florida and avoid Wyoming. Why? Read this section and you will know!

The Institute for Women’s Policy Research (IWPR) 201510 estimates how long it will take to close the gender pay gap in each state. Using linear projection and the median earnings for full-time, year-round (FTYR) workers, if the current rate in closing the gender pay gap since 1959 continues, the IWPR estimates that the U.S. will achieve gender pay equity in 2058. According to their estimation, Wyoming will take the longest time of 144 years to close the gender pay gap; whereas Florida will take the shortest time of 23 years.

Figure 6.1 shows the first and last five states to achieve gender pay equity according to the IWPR prediction. The figure shows that Wyoming, Louisiana, North Dakota, Utah, and West Virginia will achieve gender pay equity in the next century. So, women in these five states will have to wait until the next century to have pay equal to men. On the other hand, Florida, California, Maryland, Arizona, and Nevada will achieve gender pay equity in less than a quarter of a century.

Another striking point noted in Figure 6.1 is the huge discrepancy in the year to close the gender pay gap between Wyoming and the other four states. Louisiana, North Dakota, Utah, and West Virginia will achieve gender pay equity within a few years from each other with a maximum of five years between Louisiana and West Virginia. However, Wyoming will achieve gender pay equity more than 50 years after Louisiana.11

When will the other states achieve gender pay equity? Figure 6.2 shows the number of states that will achieve gender pay equity by decade. As the figure shows, 13 states will achieve gender pay equity in the 2050s and only nine states will achieve gender pay equity before 2050, 30 years from now. Another eight states will achieve gender pay equity in the 2060’s and eight more in the 2080s.

If you want to see the details about the exact year in which each state will achieve gender pay equity, Table 6.1 will help. Using the IWPR projection,

First and Last Five States to Close the Gender Pay Gap, IWPR Projection, 1959-2015

FIGURE 6.1 First and Last Five States to Close the Gender Pay Gap, IWPR Projection, 1959-2015.

Closing the Gender Pay Gap for Different States by Decade, IWPR Projection, 1959—2015

FIGURE 6.2 Closing the Gender Pay Gap for Different States by Decade, IWPR Projection, 1959—2015.

Table 6.1 shows the order in which each state will achieve gender pay equity compared to the rest of the states. The table shows that more than one-half of the states (28 states to be exact) will achieve gender pay equity by year 2066. That is 46 years from now, almost half a century!

TABLE 6.1 The IWPR Projection of the Year to Close the Gender Gap, 1959-2015

Rank

Slate

Year

1

Florida

2038

2

California

2042

2

Maryland

2042

4

Arizona

2044

4

Nevada

2044

6

Texas

2047

7

Vermont

2048

8

New York

2049

8

Rhode Island

2049

10

Delaware

2051

10

Hawaii

2051

12

Minnesota

2054

13

District of Columbia

2055

13

Georgia

2055

13

New Jersey

2055

13

Oregon

2055

17

Iowa

2056

17

New Mexico

2056

19

Colorado

2057

Rank

Stale

Year

19

Maine

2057

19

Tennessee

2057

22

Massachusetts

2058

23

Connecticut

2061

24

North Carolina

2064

25

Illinois

2065

26

Missouri

2066

26

Nebraska

2066

26

Ohio

2066

29

Oklahoma

2068

29

Wisconsin

2068

31

Washington

2071

32

Kansas

2072

32

Pennsylvania

2072

34

Kentucky

2073

34

Virginia

2073

36

Idaho

2074

37

Montana

2080

38

South Dakota

2081

39

Arkansas

2082

39

New Hampshire

2082

41

Indiana

2086

41

Michigan

2086

43

Mississippi

2087

44

Alabama

2088

45

Alaska

2092

46

South Carolina

2094

47

WestVirginia

2101

48

Utah

2102

49

North Dakota

2104

50

Louisiana

2106

51

Wyoming

2159

Closing the Gender Pay Gap by Race

The Institute for Women’s Policy Research (IWPR)12 used linear projection and median earnings for full-time year-round (FTYR) men and women workers to estimate the year to close the gender pay gap for all women and for women of different races. It used data from 1985 to 2018 for its projection. The projection for all women is relative to all men’s earnings, whereas the projections for women of different races are relevant to white men’s earnings. Figure 6.3 presents the results.

The IWPR predicts that women in general will reach gender pay equity in 2059. However, for some races it is even worse. White women will reach pay equity with white men in 2055, black women in 2130, and Hispanic women in 2224.

Closing the Gender Pay Gap by Race, IWPR Projection

FIGURE 6.3 Closing the Gender Pay Gap by Race, IWPR Projection.

So how long do women of different races have to wait to achieve gender pay equity? Starting in 2020, if the current rate continues, women have to wait an additional 39 years to achieve gender pay equity with men, white women have to wait an additional 35 years to achieve pay equity with white men, black women have to wait over a century (110 years), and Hispanic women have to wait over two centuries (an astounding 204 years) to achieve pay equity with white men. Is there anything that can be done to speed this up? Read Chapter 8 for some ideas!

 
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