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It's Equal Pay Day, but women earn 77.9 cents for every dollar earned by men

April 10, 2018

Today is Equal Pay Day, the day that symbolizes how far into the year women must work to earn what men earned in the previous year. The day was originated by the National Committee on Pay Equity, which encourages people to wear red to symbolize how far women and minorities are in the red with their pay.

Human cloud, ride-sharing firm Lyft recognized the day. When users open the app, they see unequal signs on the Lyft cars. The company also announced an annual audit to confirm there are no unexplained pay gaps based on gender or race, and the firm said it's teaming up with Lean In to support the #20PercentCounts campaign.

“To drive home the realities of this disparity, we’ll also ask our passengers to think about the impact of ending their rides early (with 20% of the way still to go),” according to the Lyft blog.

PayScale Inc., a Seattle-based provider of compensation data and software, reported women earn 77.9 cents for every dollar earned by men across the labor market, known as the “uncontrolled pay gap.” When compensable factors such as experience, industry and job level are taken into account, women earn 97.8 cents for every dollar earned by males (the controlled pay gap).

In addition, PayScale found the typical 20- to 29-year-old woman earns 81.8 cents on the dollar compared to males. However, the gap widens to 76.7 cents for women ages 30-44, and 69.1 cents for those 45 and older.

Women are also five times more likely than men to take breaks from work to raise children, and people who return to work after a period of unemployment make 4% less than someone who did not have a career disruption, according to PayScale. Someone who has not worked in a year experiences a 7.3% penalty in pay.

The gender pay gap is also discussed in a new Staffing Industry Review Online article on getting stay-at-home mothers back to work.

Scout Exchange, a Boston-based platform that connects recruiters to companies, reported that when looking at the $150,000 and above “executive” salary bans, the data found a 41% jump in the ratio of female to male hires made after October 2017, correlating with the start of the global #MeToo movement. It also found that while males make up 71% of the total Scout marketplace submissions, female candidates were twice as likely to get hired versus their male counterparts.

In addition, Scout Exchange found that female recruiters are 25% more likely to submit female candidates, and male recruiters are 16% more likely to submit male candidates.

A survey released by CareerBuilder found that female workers are nearly three times more likely than their male counterparts to perceive a pay disparity at work. Nearly a third of women surveyed, 32%, do not think they are making the same pay as men in their organization who have similar experience and qualifications, compared to 12% of men.

The overwhelming majority of employers surveyed, 94%, said there should be equality of pay in the US, but 15% of employers also said they do not believe female workers make the same wage as their male counterparts at their organization, according to the CareerBuilder survey. Half of HR managers think female workers at their organization do make the same wage as their male counterparts, and 35% said they would hope they do.

CareerBuilder’s online survey was conducted within the US. by The Harris Poll on behalf of CareerBuilder among 888 hiring and human resource managers and 809 employees between Nov. 28 and Dec. 20, 2017.