Few economic statistics are quoted as often, or misunderstood as widely, as the gender pay gap. You may have heard that women earn around 82 or 83 cents for every dollar men earn, but what does that number actually measure, where does it come from, and why does it persist decades after equal pay laws were passed?
This explainer breaks down the gender pay gap using official and independent sources, including the U.S. Bureau of Labor Statistics, the OECD, the International Labour Organization and Pew Research Center. We explain how the figures are calculated, what research says about the causes, and what governments and employers are doing about it, in a neutral, fact-based way.
The Gender Pay Gap at a Glance
- United States: Women working full time earn roughly 83 to 84 percent of men’s median weekly earnings, according to recent BLS data.
- Long-term trend: In 1979, the BLS ratio was about 62 percent, so the gap has narrowed considerably.
- OECD average: A little over 10 percent across member countries for full-time employees.
- Global estimate: The ILO has estimated women are paid roughly 20 percent less than men worldwide.
- Younger workers: The gap is smaller among workers in their twenties and early thirties.
9 Essential Facts About the Gender Pay Gap
1. It Compares Typical Earnings, Not Identical Jobs
The headline gender pay gap, sometimes called the raw or unadjusted gap, compares the median earnings of all women with the median earnings of all men in a group, such as full-time workers. It does not compare a man and a woman doing the exact same job. That is why it reflects many factors at once, including occupation, hours, experience and discrimination.
2. Different Sources Use Different Measures
The Bureau of Labor Statistics reports median weekly earnings for full-time wage and salary workers. The Census Bureau uses annual earnings for full-time, year-round workers. Pew Research Center analyzes median hourly earnings for both full- and part-time workers. Each method produces slightly different numbers, which is why you may see figures ranging from about 80 to 85 cents on the dollar.
3. The Gap Has Narrowed Over Time
According to the BLS, women’s earnings were about 62 percent of men’s in 1979. Rising education, more women in professional and managerial roles, and longer careers have all contributed to the gap narrowing since then, although progress has slowed in recent decades.
4. Age Makes a Big Difference
Pew Research Center has found that the gender pay gap is much smaller among younger workers. In its 2023 analysis, women ages 25 to 34 earned about 92 cents for every dollar earned by men in the same age group, while the overall figure was about 82 cents. The gap tends to widen as workers move into their late thirties and forties.
5. Parenthood Is a Major Factor
Economists often describe a motherhood penalty and a fatherhood bonus: on average, women’s earnings tend to fall after the birth of a child, while men’s earnings often stay steady or rise. Research by Harvard economist Claudia Goldin, who won the 2023 Nobel Prize in Economic Sciences, shows how jobs that reward long and inflexible hours contribute to this pattern.
6. Occupation and Industry Matter
Women and men are still concentrated in different occupations. Fields with more women, such as education, childcare and social work, often pay less than male-dominated fields such as engineering and finance. Even within the same occupation, gaps can appear at higher levels of seniority.
7. The Gap Varies by Race and Ethnicity
BLS data show that earnings differ substantially across racial and ethnic groups. On average, Black and Hispanic women earn less than white and Asian women, and the gap compared with white men is wider for these groups.
8. It Exists Around the World
The OECD publishes the gender wage gap for its member countries, with an average a little over 10 percent for full-time employees and wide variation between countries. The International Labour Organization has estimated a global gap of roughly 20 percent.
9. An Adjusted Gap Remains
When researchers adjust for factors such as occupation, hours, education and experience, the gender pay gap shrinks but generally does not disappear. Economists debate how much of the remaining difference reflects discrimination versus factors that are difficult to measure.
How We Researched This Explainer
We relied on official statistics and established research organizations, including the BLS, OECD, ILO, Pew Research Center and the Nobel Prize organization, and we present differing interpretations neutrally. Figures are updated regularly, so check the original sources for the latest data. Read more in our editorial policy.
What Causes the Gender Pay Gap
Hours and Flexibility
Women are more likely than men to work part time or to choose roles with predictable schedules, often because of caregiving responsibilities. Goldin’s research describes so-called greedy jobs that pay disproportionately more for long, unpredictable hours, which tends to widen the gender pay gap within couples.
Career Interruptions
Time out of the workforce for caregiving can slow promotions and wage growth, and the effects can last for years after returning to work.
Occupational Segregation
The concentration of women and men in different fields remains one of the largest contributors to the measured gap.
Discrimination and Bias
Studies using matched resumes and audit methods have found evidence of bias in hiring and pay decisions. Laws prohibit pay discrimination, but enforcement depends on workers knowing what colleagues earn.
Negotiation and Transparency
When pay ranges are hidden, individual negotiation plays a larger role. Researchers have studied whether pay transparency narrows the gender pay gap, and several governments have introduced disclosure rules as a result.
Laws and Policies Addressing the Gender Pay Gap
- United States: The Equal Pay Act of 1963 requires equal pay for substantially equal work, and Title VII of the Civil Rights Act of 1964 prohibits pay discrimination. The Lilly Ledbetter Fair Pay Act of 2009 extended the time limit for filing claims. The EEOC enforces these laws. A growing number of states require salary ranges in job postings.
- United Kingdom: The Equal Pay Act 1970, now part of the Equality Act 2010, and mandatory gender pay gap reporting for employers with 250 or more employees since 2017.
- European Union: The Pay Transparency Directive, adopted in 2023, requires member states to introduce pay transparency and reporting rules, with a transposition deadline in June 2026.
- Iceland: Since 2018, larger employers must obtain certification showing they pay men and women equally for work of equal value.
Common Myths and Misreadings
Myth: The Statistic Means Women Are Paid Less for the Same Job
The headline figure compares overall earnings, not identical positions. Pay discrimination for the same work does occur and is illegal, but the broad statistic captures many other differences too, so it should not be read as a direct measure of discrimination alone.
Myth: The Difference Is Entirely Explained by Choices
Some differences do relate to hours, fields and career paths. However, researchers note that these patterns are themselves shaped by social expectations, caregiving norms and workplace structures, and that an unexplained portion remains after adjusting for measurable factors.
Myth: The Number Never Changes
The ratio moves over time and differs by age, education, region and occupation. Looking only at one national figure hides a great deal of variation, including much smaller differences among younger workers.
How to Read New Headlines
When you see a new figure in the news, check four things: which organization produced it, whether it uses weekly, annual or hourly earnings, whether it includes part-time workers, and which year the data cover. Those details usually explain why two reports can quote different numbers while both being accurate.
Practical Steps for Workers
- Research pay ranges. Use BLS occupational data, salary surveys and posted salary ranges to understand market rates.
- Know your rights. In many places, employers cannot prohibit you from discussing your pay.
- Document your achievements. Keep a record of results to support raise and promotion conversations.
- Ask about policies. Look for employers with transparent pay bands, flexible work and parental leave for all parents.
- Check information carefully. Statistics are often shared out of context online; our guide on how to spot fake news can help.
Recommended Reading
For a deeper look at the history behind the numbers, Claudia Goldin’s book traces a century of college-educated women balancing careers and family in the United States.
Career and Family: Women's Century-Long Journey toward Equity
- By Nobel laureate Claudia Goldin
- History of women, work and pay
- Accessible economic research
Frequently Asked Questions
What is the gender pay gap in the United States?
Recent BLS data show women working full time earn roughly 83 to 84 percent of men’s median weekly earnings. Other measures produce slightly different figures.
Is the gender pay gap the same as unequal pay for equal work?
No. Unequal pay for the same work is illegal in many countries. The gender pay gap is a broader measure comparing overall earnings, which includes differences in jobs and hours as well as possible discrimination.
Is the gender pay gap shrinking?
Over the long term, yes. It has narrowed significantly since the late 1970s, although progress has been slower in recent decades.
Which country has the smallest gender pay gap?
Rankings change each year and depend on the measure used. The OECD and ILO publish country comparisons with the latest data.
Final Thoughts
The gender pay gap is not a single number but a set of measurements that reflect education, occupations, working hours, caregiving and discrimination. Understanding how it is calculated helps make sense of the headlines and the policy debates around it. To learn more about women who shaped economics, science and society, read our features on women Nobel Prize winners and the history of International Women’s Day.
