A new study by a women’s advocacy organization shows that
college-educated women earn less than their male counterparts
soon
after
graduation—and 10 years later, too.
When the findings were presented at a House hearing on
Tuesday,
April 24, however, an expert disputed the results, arguing that many
different factors can affect salary levels.
The hearing date was no accident. April 24 has been dubbed
Equal Pay
Day, the date on which women’s earnings are said to catch up to the
amount men earned by December 31 of the previous year.
The House Education and Labor Committee met to discuss a bill
introduced by Rep. Rosa DeLauro, D-Connecticut, that would
strengthen
federal
equal pay laws.
But it was the study, "Behind the Pay Gap," released the day
before
the hearing by the American Association of University Women Educational
Foundation, that generated the most heat. AAUW found that one year
after college
graduation, women earn 80 percent of what
college-educated men earn. After 10
years, the proportion sinks to 69
percent.
Catherine Hill, AAUW research director, said that after
eliminating
factors known to affect earnings, such as occupation, industry,
hours
worked, educational attainment and experience, a 5
percent difference
between men’s and women’s salaries still existed,
and grew to 12
percent after
10 years.
“That suggests that something else is going on,” Hill said.
Discrimination, in her view, causes the pay discrepancy.
Diana Furchtgott-Roth, a senior fellow at the Hudson
Institute, said
that the results of the AAUW study are distorted because they
didn’t
account for accumulated hours of lifetime work and used
occupational
categories that were too broad.
“Generally, the more explanatory variables that are included
in the
econometric regression analysis, the more of the wage gap that can be
explained, and the less is the residual portion attributable
to
discrimination,”
Furchtgott-Roth said.
DeLauro asserts that bias against women is diminishing their
earnings. Her bill would allow women to sue for punitive
damages in
addition to
compensatory damages already provided
under the Equal Pay
Act. It also would
prohibit employers from
retaliating against
employees who disseminate salary
information to their colleagues.
“The issue of pay equity goes to the heart of what matters to
working women,” DeLauro said. “It is about ensuring that women
who work
hard and
productively and carry a full range of
family responsibilities
are paid at a
rate they are entitled.
Pay equity is not a women’s
issue. It is a family
issue.”
The highest-ranking Republican on the House labor committee
questioned the reliability of pay studies and urged that
Democrats
approach the
issue carefully and first “do no
harm.”
“As we consider significant and substantial changes to
federal law,
I hope we keep it in mind and recognize the very clear, very strong
anti-gender discrimination laws we already have on the books,”
said
Rep. Howard
“Buck” McKeon, R-California.
One way to move closer to pay parity is to enact legislation
that
would provide paid time off for employees to take care of family
matters,
according to Heather Boushey, senior economist at the Center
for
Economic and
Policy Research.
“To close the gap, policymakers must look to change the
workplace so
it is more hospitable to women and mothers,” she said.
A member of the House committee who is a former HR
professional said
another way to address pay differences is to ensure that
certain jobs
don’t pay less just because they are done
predominantly by women.
“It’s too easy to say these are women’s jobs and these are
men’s
jobs and they aren’t valued the same,” said Rep. Lynn Woolsey,
D-California.
All members of the committee seemed to agree that Dedra
Farmer’s
situation was one of pay discrimination. While working in the Tire Lube
Express division of Wal-Mart, she found that women in hourly positions
were
being paid less than men holding the same jobs with
shorter tenure
at the store.
Farmer testified before the
committee.
In 2002, after complaining about the pay disparity, she was
fired. Farmer joined the class action suit against Wal-Mart that is pending in
federal court in San
Francisco. The case involves about 1.6 million
workers.