Transparency is an effective tool in combating gap in pay for women. The gender pay gap tends to be narrower in job sectors were wages are transparent, according to a new analysis by the American Association of University Women (AAUW).
In the federal government, where salary ranges are published, there is a 13 percent pay gap between men and women. In state governments, which also often post salary ranges, the gap is 18 percent. In the private for-profit sector, where there is typically little salary transparency, the gap is 29 percent.
“This underscores the need for all employers to be more transparent about what jobs in their organizations pay. When salary information is out in the open, both employees—and employers—can identify gender-based pay disparity and take steps to correct it,†said Kim Churches, the Chief Executive Officer of AAUW
These findings are included in the 2019 update to AAUW’s annual report, The Simple Truth About the Gender Pay Gap. Based on data from the U.S. Census Bureau, the report shows that in 2018, women received just 82 cents for every dollar paid to a man. Women of color often face a wider gap: Compared to white men, Black women make 62 cents on the dollar, and Latinas make 54 cents on the dollar.
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