Age discrimination awards rose 600% last year, according to analysis.
The following contribution is from the People Management website and is written by Freddie Clemo, a team member.
An independent government report urges the UK to address the pervasive culture of ageism, while experts issue a stark warning to employers.
Awards in age discrimination cases have seen a sharp increase, rising 624% to an average of £103,000 in 2023-24, according to Fox & Partners analysis of Ministry of Justice data.
This is a substantial rise from £14,200 in 2022-23 and £18,600 in 2021-22. An independent report, «The Rights of Older People,» published by the Women and Equality Committee, found that ageism was «widespread and culturally embedded» in British society and was often perceived as less serious than other types of discrimination. The report described the culture in the country as «generally ageist.»
A third of people believe attitudes toward older workers have worsened, according to a survey.
Does your company discriminate based on age? A survey suggests ageism is common in the workplace.
A study reveals that most young people experience ageism at work.
Lyndsey Simpson, CEO and founder of 55/Redefined, explained that ageism had become «normalized» in the workplace, with serious repercussions for both workers and businesses.
«From recruitment processes that favor younger candidates to workplace cultures that undervalue experience, age bias is often systemic rather than intentional,» she said.
He noted that companies that prioritize age inclusion will thrive, and that age inclusion «is not just about fairness, but a business imperative.»
Increase in compensation
Recent high-profile legal cases illustrate the high compensation awards. Last year, a senior executive at Vesuvius received £3.2 million after being described as an «old fossil» who «didn’t know how to deal with millennials» following the firm’s decision not to hire anyone over 45.
Similarly, in 2020, a former Citibank employee received £2.7 million in compensation after being described as «old» before being dismissed.
Ivor Adair, a partner at Fox & Partners, warned that the increase in compensation values should serve as a «stern warning» to employers, noting that, with an aging population, high-value claims could become more frequent in the coming years.
He added that many companies still have a mandatory retirement age, which poses a «real risk» when it is not based on evidence or justification.
«Companies that develop an appropriate succession plan that addresses immediate, medium- and long-term changes, but also contingencies for sudden and unforeseen departures, are much better prepared to deal with the challenges of an aging workforce,» he explained.
Paul Seath, employment partner at Bates Wells, said that because age discrimination carried less stigma, it tended to occur more frequently, and that older employees also tended to struggle to find new jobs or were likely to be in the highest pay bracket.
He advised employers to guard against age discrimination and actively prevent it, warning that «those who do so will be rewarded, and those who don’t will risk large prizes.»
Widespread Ageism in UK Culture
The Women and Equality Committee report highlighted that, under the Equality Act 2010, age discrimination laws permitted direct discrimination if “objectively justified” as a “proportionate means of achieving a legitimate aim.”
The report suggested that the negative perception of older people, whether as frail and helpless or as “wealth-hoarding baby boomers,” increased social divisions and led to the normalization of discrimination.
The committee recommended that the government commission the Equality and Human Rights Commission to review the effectiveness of age discrimination protections, suggesting a greater duty on employers to take reasonable steps to prevent it.
Ageism is occurring more frequently in the workplace, according to research from the Centre for Better Aging.
The study revealed that 37% of respondents aged 50 to 60 who experienced ageism in the previous year said it occurred more frequently in the workplace.
The charity also revealed that more than half of adults over 50 in England had experienced ageism in the previous year.
Tatiana Rowson, associate professor of organizational behavior at Henley Business School,
said that ageism is deeply embedded in language, social norms, and media portrayals, meaning that ageist comments and jokes remain socially acceptable.
“This not only generalizes discrimination but also contributes to the internalization of ageism, where people make life decisions based on age-related stereotypes. In its most pervasive form, it leads people to self-exclusion, feeling they no longer belong or are no longer welcome,” she added.
Stuart Lewis, CEO of Rest Less, agreed that ageism remains one of the last socially acceptable forms of prejudice.
“Rather than actively encouraging older workers to re-enter society and the workforce, they are too often infantilized or generally discouraged from participating. This strikes me as a huge waste of talent and resources,” he said.
He added that this contributed to a “self-fulfilling prophecy for society, where older people choose to leave the workforce en masse, feeling unwanted and undervalued.”
The need to address ageism
The Women and Equalities Committee report highlighted that those with more positive perceptions of aging lived, on average, 7.5 years longer than those with more negative perceptions, revealing the impact of ageism on health.
Another report from Unmind found that half (51%) of older workers avoided using mental health resources due to stigma, compared to just 29% of Gen Z.
Michael Middleton, author and founder of 360 Rejuvenate, said the impact of ageism could include a loss of self-confidence, status, and self-esteem.
These emotions also coincide with fear of the future and aging, raising concerns about whether they’ll be able to enjoy the life they want in retirement or whether they’ll simply reach a point where they worry about whether they’ll still matter.
«Meaning and purpose are critical to our mental and physical health, regardless of age,» he added.
Simpson told People Management that «the idea that older workers are approaching retirement effortlessly is outdated and damaging» and that companies that embrace multigenerational workforces «outperform their competitors, benefiting from broader perspectives, better decision-making, and increased productivity.»
In an economy where longevity is redefining careers, those who don’t support older workers will simply be left behind.
The question isn’t whether we should support older workers, but whether companies can afford not to, she said.
Steps Employers Should Take
Adair said employers should review their employment policies to ensure they implement robust anti-discrimination measures, thereby contributing to a better work environment and reducing the risk of costly litigation for companies.
According to Age Without Limits, one in three people over 50 believe they have been rejected for a job because of their age, and one in five employers believe ageism exists in their organization.
Simpson explained to People Management that addressing ageism requires a shift in mindset. He added that the best organizations are moving beyond diversity exercises based on specific requirements and integrating age inclusion into their workforce strategies.
“Recruitment must evolve, with job descriptions free of ageist language, structured interviews that assess skills rather than assumptions, and hiring managers trained to spot and address bias,” he said.
Addison Barnett, principal consultant at Inclusive Employers, agreed that addressing ageism requires a strategic and cultural approach.
“Hiring processes must be audited to ensure bias is minimized, and, crucially, employees must be trained to address their own ageist assumptions and behaviors, as well as those of others.
As skills shortages affect many industries, retaining and attracting older workers must be a key aspect of any company’s talent strategy,” he added.
Emily Andrews, deputy director of work at the Centre for Ageing Better, said employers should focus less on fears of breaching age discrimination legislation and more on how to maximize the benefits of having multigenerational teams and how to remove the barriers their organization faces in recruiting, training, and retaining older workers.
She urged companies to recognize that the attrition of older workers due to family responsibilities and health issues could often be avoided with the right support from skilled and confident line managers who can explore flexible working options.
Middleton concluded: “Talent diversity is crucial for any business. Teams with shared goals, but diverse experiences and skills, almost always triumph over teams with very similar capabilities, perspectives, and experience.”
Confronting Ageism and the Gender Wage Gap in 2024
The following contribution is from Indeed and is written by Ashley Zlatopolsky, an editor and writer covering health, wellness, lifestyle, and cultural topics.
As we reflect on how a better world for women can function better during Women’s History Month and beyond, it is important to draw attention to the persistent ageism and gender pay gap that continues to plague society and leave older people and women at a disadvantage.
During the turbulent years of the COVID-19 pandemic, the transition to remote work, layoffs, burnout, and the Great Resignation have highlighted numerous workplace issues.
These issues include ageism or age discrimination in the workplace.
A 2022 AARP study revealed that nearly one in six working or job-seeking adults reported not being hired for a position they applied for because of their age.
Fifty-three percent of recent job seekers also indicated that an employer asked for their date of birth, while 47% were asked for their graduation date.
This same study also revealed alarming data:
– 62% of working adults age 50 and older believe that older workers face discrimination
– and an overwhelming 93% believe that age discrimination against older workers is prevalent in today’s workforce.
While age discrimination can undoubtedly seriously harm older workers of any gender, research shows that women between the ages of 55 and 64 are most affected by wage gaps in the workplace.
Women Remain at a Disadvantage
Although laws like the Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964 were passed to protect women and equalize their pay in the workforce, much remains to be done. The Center for American Progress published a comprehensive fact sheet in 2023 showing that women remain at a wage disadvantage compared to men, despite recent progress.
This research revealed that younger female workers, ages 16 to 24, earn 8% less than men each week.
It also found that women ages 25 to 54 earn a staggering 16% less than men.
Even larger is the 22% wage gap between men and women ages 55 to 64 (another issue related to age discrimination).
Furthermore, there is concern that women’s incomes are stagnating. Data show that working women do not experience a pay increase after age 55, and their wages remain virtually the same as they received between ages 25 and 54.
On the other hand, men’s income continues to rise into middle age and declines only slightly after age 65, while women’s income declines by nearly 20% for adults 65 and older.
While the gender pay gap and ageism are not equitable, the problems go beyond injustice and create obstacles for those affected.
Increased income can allow people to save for retirement, pay off debt, start a family, continue their education, and enjoy a better quality of life.
The wage gap primarily affects women—especially those who are widowed, divorced, or single—and leads to higher rates of poverty in old age.
These issues are just a few of the many arguments that support eliminating the gender wage gap and ageism in the workforce.
Furthermore, recent data from the Federal Reserve Bank of San Francisco show that older women job seekers have lower return rates, especially in the retail sector (almost 30% for women between the ages of 29 and 31, compared to approximately 18% for women between the ages of 64 and 66).
Addressing Ageism and the Gender Wage Gap
With men earning 83 cents for every dollar, according to 2022 data from the Department of Labor, it’s clear there’s still work to be done.
So, what steps can we take to address ageism and the gender wage gap? Here are some suggestions that might help alleviate these problems.
Get Informed
First and foremost, staying informed about workplace issues affecting older adults and women is the most important step you can take in the fight for equality, and that’s because change starts with you.
Read articles from reliable sources and reputable publications, listen to podcasts, watch documentaries, and consult books to stay up-to-date on workplace or corporate culture. You can also stay abreast of state or federal legislation that may affect pay equity, or set up Google Alerts to notify you when new legislation is introduced.
Raise Awareness
Next, it’s important not to keep this information to yourself. Informing your closest circle, such as friends, family, and colleagues, is a great way to bring awareness to ageism and the gender pay gap.
It’s easy to forget that these issues exist, especially if they don’t affect you personally.
A gentle reminder can go a long way in reminding others (and making them aware) that many women and older adults remain disadvantaged in the labor market.
You can also share content on social media to spread the message beyond your immediate circle.
Use your voice
Your voice can reach beyond your immediate surroundings. If you’re passionate about solving ageism and the gender pay gap for good, consider using your voice on a broader level, such as joining a demonstration, writing to legislators, or visually alerting people to the problem by placing a sign in your yard or leaving a visible sticker (e.g., on your car, front door, or next to your desk at work). Create new policies
Employers and business owners have the advantage of creating new workplace policies that can help reduce the gender pay gap and age discrimination.
Interviewers can be instructed to avoid requesting interviewees’ birth or graduation dates, and online job postings can include a salary or salary range to promote salary awareness.
This way, job seekers are not unaware of the salary of a potential job, and a fixed salary or salary range significantly reduces the scope for salary discrepancies. Increasing the minimum wage can also be effective.
Conducting a Salary Equity Analysis
Sometimes, pay inequality and hiring practices go unnoticed, intentionally or unintentionally.
If you are a business owner or a senior manager, conducting a salary equity analysis (or asking your superiors to conduct one) can be an excellent way to identify known or unknown pay gaps.
Based on the information obtained, you can make an informed decision about how best to address any issues affecting women or older adults. Practicing Diversity and Inclusion
Change from the Top Down
Promoting equal pay from the top down is one of the most effective ways to positively change company culture.
Focusing on diversity and inclusion can be instrumental in educating employees about workplace discrepancies and can also help those who have been affected speak up or feel heard.
This can be achieved by fostering open dialogue between employees and managers, offering regular diversity and inclusion (D&I) training, allowing equal career development opportunities for people of all ages and genders, and recognizing employees’ efforts.
Negotiating Better Compensation
If you are an employee and feel your pay is too low because of your gender or age, it’s time to speak up.
Consider meeting with your manager to discuss your career path, your current position, and your salary, and constructively and positively explain why you believe you deserve a higher salary.
If there is a known salary discrepancy between you and another worker with similar seniority and duties, you can point it out.
Make sure you attend these meetings with a positive attitude, as unprofessional demands for a higher salary may not get you the results you want.
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In summary
Closing the gender pay gap and mitigating age discrimination begins with education and awareness about these prevalent issues.
Arguably, workplace inequalities have become more pronounced since the start of the COVID-19 pandemic, and this is the best time to take action.
To help promote equal pay and hiring practices, understanding the pay issues workers face today can shed light on current problems and help you identify areas where you can personally help.
This can be done through self-advocacy, creating new policies, or writing to lawmakers, but no action is too small.
Every step taken toward equal pay is a step in the right direction that can create lasting change.
The information on this site is provided as a courtesy and for informational purposes only. Indeed is not a professional or legal advisor and does not guarantee interviews or job offers.
Age Discrimination and the Growing Gender Pay Gap for Women Over 45
The following contribution is from Richard Spencer, Director of Denied to Many, who is passionate about working with organizations to create inclusive environments that enhance communication and opportunity diversity for middle-aged Australians.Prior to founding Denied to Many, Richard held senior brand, marketing, and customer experience roles across Europe, Asia-Pacific, and Australasia, working for agencies, small businesses, and publicly listed entities. Richard is a regular media commentator and has spoken at over 50 conferences worldwide, addressing topics as diverse as diversity, branding, employer branding, and customer experience.
This year’s International Women’s Day theme is «Accelerate Action» to emphasize the importance of taking swift and decisive action to achieve gender equality. The alternative, according to the World Economic Forum, is to wait until 2158 to achieve true gender parity if change continues at its current pace.
While it’s undeniable that equality is a long way off, most developing-world democracies have made progress toward gender parity in the past twenty years, and it’s encouraging to see that most of them, and many organizations, celebrate International Women’s Day.
However, progress toward parity has only truly benefited young women, not all.
The combination of age and gender creates a double bias against women that, for many, creates new barriers later in life, making career longevity and advancement in leadership even more difficult.
This intersection of sexism and ageism, often referred to as «gender ageism,» has long been overlooked. From hiring and promotions to salary negotiations and workplace culture, older women face a unique form of discrimination that limits their career growth and has been shown to negatively impact their pay.
The gender pay gap is well documented, but what is less discussed is that it widens with age.
The gender pay gap in Australia, at 21.8%, as reported by WEGEA in 2024, is stark.
However, the pay gap widens to 29.5% for women aged 50-54, 32.6% for those aged 55-59, and 31.2% for those aged 60-64.
The pay gap is greatest for women in their 50s.
While some positive changes are observed in the WEGEA dataset, the correlation between age discrimination and the gender pay gap is not one of them.
Women over 45 experience higher levels of age discrimination in the workplace and greater wage disparity.
This gap is likely the result of the accumulation of biases, career disruptions, and systemic inequalities that disadvantage them throughout their careers.
Women over 45 report greater difficulty finding new jobs than younger women and men of the same age. Employers often assume that older women are less adaptable, less tech-savvy, or more expensive to hire, even when they have decades of experience.
So, on this International Women’s Day, how should we accelerate workplace action for women over 45?
It goes without saying that a truly inclusive workforce would value women at all ages and stages of their careers, but what is the best way to break the current cycle of inequality?
Ageism, like many other forms of prejudice, is based on inaccurate but persistent stereotypes.
However, what is unusual about ageism is that it is a prejudice against our future. Unlike other forms of prejudice, which may or may not affect us personally, we all hope to live long enough to experience it.
First and foremost, ageism in the workplace shouldn’t be considered a problem exclusive to older workers.
Young women also have a stake in combating age discrimination, because they too may one day face this problem.
By combating ageism today, young women can help build a future where experience is valued, career longevity is protected, and financial security is enhanced.
Mind the gap!
Career longevity should be a right, not a privilege.
Young women entering the workforce today don’t think about age discrimination, but ageism in the workplace starts earlier than most realize.
Women as young as 40 report experiencing age-related bias in hiring, promotions, and job security.
If companies continue to devalue older workers, women will continue to face:
– Fewer opportunities for career advancement as they age
– Greater difficulty finding new jobs later in life
– Greater financial insecurity in retirement
Combating ageism now ensures that future career options remain open, regardless of age.
Breaking the cycle of gender-based ageism benefits all women
Age discrimination disproportionately affects women, but by challenging this narrative, we can:
Redefine success to include women of all ages in leadership roles.
Promote intergenerational mentoring to strengthen workplace inclusion.
Promote policies that encourage career longevity, such as flexible working and fair promotion practices.
Age-inclusive work environments benefit everyone
By supporting age diversity, organizations can:
– Gain a broader range of perspectives and problem-solving skills.
– Create mentoring and knowledge-sharing opportunities.
– Foster a culture of equity and inclusion for all generations.
Close the pay gap for older women.
Organizations should disclose salary ranges to reduce hidden pay disparities.
Employers should track promotion rates by gender and age to ensure equitable advancement.
Offering part-time and return-to-work programs can help women stay in the workforce longer.
Employers should challenge stereotypes about the capabilities and potential of older women.
Financial education programs can help women negotiate better salaries and build long-term financial stability.
As we celebrate International Women’s Day, we must recognize that women’s equality is not limited to a certain age.
Striving for gender equality means ensuring that women of all generations have the same opportunities for success, leadership, and financial security.
EEOC Investigation Reveals Largest Gender Pay Gap Among Federal Employees Age 40 and Older
The following contribution is from the U.S. Equal Employment Opportunity Commission (EEOC), which is responsible for enforcing federal laws that make it unlawful to discriminate against an applicant for employment or employee because of an individual’s race, color, religion, sex (including pregnancy, childbirth, or related conditions, transgender status, and sexual orientation), national origin, age (40 years or older), disability, or genetic information.
This information is from a January 2025 Press Release.
WASHINGTON – The U.S. Equal Employment Opportunity Commission (EEOC) today released a report entitled «The Impact of Age on the Gender Pay Gap in the Federal Sector.»
The EEOC examined data from more than two million federal employees to assess whether the gender pay gap differs between people under 40 compared to those 40 and older (who are protected from age discrimination by federal law).
The analysis also examined how factors associated with the gender pay gap differ between these two age groups.
«Gender pay gaps are larger for older employees. Over a lifetime, this accumulates,» said Karen Brummond, a social science research analyst in the EEOC’s Office of Federal Operations and author of the report. «A small gender pay gap early in a career can multiply and become a larger gap over time.»
Key findings from this report include:
– Regardless of how it was measured, the gender pay gap was largest among employees 40 and older.
– In the youngest age group, federal work experience was the most influential attribute, increasing the gender wage gap by $2,105 annually, or 2.9 cents on the dollar, on average.
– Salary generally increases with experience, and the average man under 40 had approximately 1.1 more years of federal work experience than his female counterparts.
– Occupation was the second most influential attribute, at $1,153 annually, or 1.6 cents on the dollar.
In the oldest age group, occupation was the most influential attribute ($2,005 annually, or 2.1 cents on the dollar), followed by federal work experience ($743 annually, or 0.8 cents on the dollar).
Differences in gender distribution by agency contributed 1 cent on the dollar ($742 annually) to the wage gap for women under 40 and 0.5 cents on the dollar ($461 annually) to the wage gap for women over 40. Different federal agencies use different pay scales to compensate their employees. If there are more men in agencies with higher pay scales, this could widen the gender pay gap.
Among the youngest age group, educational attainment was the attribute most associated with the decline in the gender pay gap, reducing it by $1,665 annually, or -2.3 cents on the dollar.
Veteran status also contributed to the decline in the gender pay gap by $1,157 annually (-1.6 cents on the dollar) for the youngest age group and $1,314 annually (-1.4 cents on the dollar) for the oldest age group.
In both age groups, men and women received rewards (in this case, pay) in different ways, even with the same attributes. Within age groups, men’s wages increased with age more than women’s, widening the gender wage gap by $2,420 annually (3.4 cents on the dollar) for those under 40 and by $10,534 annually (11.2 cents on the dollar) for those over 40.
In the older age group, rewards from occupation ($1,572 annually or 1.7 cents on the dollar) and education ($466 annually or 0.5 cents on the dollar) were also significantly associated with a larger gender wage gap.
Based on the above findings, the EEOC recommends the following:
– Federal agencies should strive to identify and address barriers that create gender gaps in employment, which are greatest among workers age 40 and older.
– Government initiatives to eliminate gender pay disparities should focus on agencies with the largest gender pay gaps.
– Additional research should be conducted to identify personnel practices and occupations most associated with gender pay gaps across age groups in the federal sector.
The EEOC prevents and remedies unlawful employment discrimination and promotes equal opportunity for all.
Is it wrong to reward seniority or experience with higher pay?
The following contribution is from the Equality Commission for Northern Ireland website. The Equality Commission for Northern Ireland is a non-departmental public body established by the Northern Ireland Act 1998. Our powers and obligations derive from various laws enacted in recent decades, which provide protection against discrimination on the grounds of age, disability, race, religion, political opinion, sex, and sexual orientation. We also have responsibilities arising from the Northern Ireland Act 1998 in relation to the statutory duties of equality and good relations that apply to public authorities.
Authored by Paul Oakes, Manager of the Advisory Services Team, this article analyzes the issue of equal pay in the workplace in relation to age.
Pay discrimination goes beyond the «gender pay gap.»
Employers should also be alert to the risk of pay discrimination complaints based on other equality grounds, such as religious belief, race, sexual orientation, or disability.
Age is perhaps the most likely aspect, apart from gender, to pose the greatest risk of pay discrimination.
Basing salary or benefits, or specific elements such as vacation time, on criteria such as seniority or work experience introduces this risk.
Gaining experience and seniority takes time, and it stands to reason that older employees are more likely to benefit from these criteria than younger employees.
This does not mean that these practices are necessarily unlawful, but it does expose employers to the risk of receiving age discrimination complaints from affected employees, in accordance with the Employment Equality (Age) (Northern Ireland) Regulations 2006.
Each year, around 8% of discrimination complaints filed with the Equality Commission relate to age discrimination.
We recently supported the case of a 27-year-old woman who worked in her company’s customer service team. After 18 months in the position, she discovered she had been paid less than older employees in the exact same role who had been hired at roughly the same time.
These older employees had started on a higher salary than her, so after proportional pay increases, when she was promoted to a managerial position as a Team Leader, she was earning less than the older staff she managed.
The woman stated that the company had never advertised that the position’s salary was dependent on experience.
She stated that the company informed her that it operated on two pay scales and that, to be promoted to the higher one, an employee must have 10 years of relevant experience.
She was later told that this was not the case and that the starting salary did relate to experience, although it was considerably less than 10 years. The exact timeframe was never specified.
Her employer settled this case, without admitting liability, for £14,000.
So, what should employers do?
The general principles of equality that apply to equal pay between men and women also apply to the remuneration of people of different ages and, indeed, to people of all equality groups, such as race, disability, sexual orientation, etc.
Therefore, in general, all employers should promote equal opportunity, which means they must make a genuine effort to comply with the spirit and letter of anti-discrimination laws.
The key point to remember regarding remuneration, wages, and benefits is that employers must assume that their employees will receive equal pay for equal work (i.e., work that is equal or of equal value) under a reasoned, structured, and transparent remuneration system, not a secretive, arbitrary, and ad hoc one.
Demonstrate your commitment to this principle through an equal pay policy.
Employers should conduct regular equal pay reviews, examining whether there are pay disparities between employees performing the same work.
Specifically, look for patterns that might reveal whether these disparities tend to favor or disadvantage men and women, younger and older workers, or between people with different characteristics, such as community origin, race, sexual orientation, or disability. Guidance for conducting these reviews is available in the Equality Commission’s Equal Pay Review Kit (pdf).
Identify the source of any disparity by examining all aspects of pay packages, such as starting salary, pay progression scales, overtime rates, or bonuses.
Consider whether disparities are legally justified and immediately eliminate those that are not, and periodically review all others.
Paying higher wages, or certain elements of remuneration or benefits, for example, more vacation time, to employees with greater experience or seniority, is not necessarily unlawful, but it is potentially discriminatory on the grounds of sex and age, in particular, and should not be done without legal justification.
Employers should reflect on this carefully and seek legal advice if necessary.
In some cases, such justification could come from a specific legal exception, for example, by paying staff according to the relevant age brackets of the National Minimum Wage.
In these situations, employers should first ensure that the conditions for a legal exception are properly met.
In other cases, the justification might stem from a specific business objective the employer wishes to achieve, such as rewarding the loyalty of more senior staff, or when there is a need to pay higher starting salaries to attract qualified staff at a time of labor shortage (the so-called market forces justification).
In these latter situations, employers should proceed with caution: the objective must be genuine, and the means to achieve it must not exceed what is reasonably necessary.
It is also best not to allow pay disparities to continue indefinitely, even those that may have initially been legally justified.
Employers should design their remuneration plans so that lower-paid staff can be matched with higher-paid staff performing the same work as their experience and seniority increases.
As a general rule, an equalization period of up to five years is likely to be easier to justify than a longer one.
Age Discrimination in Pay or Compensation
The following contribution is from the Swartz Swidler website, which defines itself as follows: it was founded in August 2010 by partners Richard Swartz and Justin Swidler, and with a single administrative professional at that time. In just under five years, the firm has grown to eight attorneys and seven administrative professionals. While the firm is headquartered in Cherry Hill, New Jersey, and many of our cases originate from the Philadelphia and Southern New Jersey areas, it is recognized as one of the leading employment law firms in New Jersey, Pennsylvania, and elsewhere, having represented employees nationwide, including in Arkansas, Delaware, Michigan, Nebraska, New Jersey, New York, Pennsylvania, Tennessee, Texas, Utah, and Virginia.
Authorship is by the team.
Workers age 40 and older are protected from pay discrimination under the federal Age Discrimination in Employment Act.
In New Jersey, workers are protected by the New Jersey Law Against Discrimination, regardless of their age.
The Pennsylvania Human Relations Law strictly adheres to federal law and protects workers 40 years of age and older.
If you learn that you have experienced wage discrimination because of your age, you may have grounds to file a lawsuit against your employer. The attorneys at Swartz Swidler can advise you on your potential rights.
What is age-based wage discrimination?
The ADEA covers employers with at least 20 workers. Under the law, employers cannot discriminate against older workers in their wages.
All types of pay are covered by the law, including salary, bonuses, overtime pay, profit-sharing, vacation and holiday pay, gas allowances, travel reimbursements, and benefits.
Older workers cannot be paid less than younger workers whose jobs involve substantially similar tasks. When age pay discrimination is suspected, it is important for people to understand that it is the job requirements, not their position, that determines whether they are paid less than younger workers.
Factors Used to Determine Age Pay Discrimination
There are several factors that courts consider when determining whether unlawful pay discrimination has occurred. These include the following:
– Skills required for the position
– Physical and mental exertion required for the job
– Responsibilities required by the job
– Working conditions
– Establishment
The skill requirement involves considering the training and education required for the position.
Position establishment means that only other similar positions in the same establishment will be considered, which may mean within a specific department within the company, rather than within the entire plant.
Age Pay Discrimination Involving Benefits
One area where age pay discrimination is observed relates to employee benefits.
Generally, employers cannot discriminate based on age in the benefits they offer their employees.
However, they can offer reduced benefits to older workers if the cost of the reduction is equal to the cost of offering more benefits to younger workers.
If you believe your employer has discriminated against you based on age in your pay, you may need legal assistance to file a claim. Contact the experienced employment attorneys at Swartz Swidler to schedule your consultation.
Older Workers’ Wages Are Rising, But Not Fast Enough
The following contribution is from the Schwartz Center for Economic Policy Analysis (SCEPA) and is authored by Owen Davis, Siavash Radpour, Eva Conway, Teresa Ghilarducci, and Christopher D. Cook.
With inflation a top concern for the American public, workers face a race between rising wages and rising prices.
Older workers, despite receiving better raises than in many years, are losing that race.
Like the rest of the workforce, older workers have benefited from significant increases in their hourly wages: over the past six months, median year-over-year wage growth averaged 3.9% for workers age 55 and older, up from 2.4% pre-pandemic wage growth.
However, while older workers’ wages are growing relatively rapidly, their wage growth still lags behind that of middle-aged workers (ages 35 to 54).
Moreover, nominal wage growth, unadjusted for inflation, has been outpaced by sharply rising prices over the past year, leading to a deterioration in older workers’ living standards.
Despite these setbacks, inequality is declining slightly for older workers, as those in the lowest-wage jobs are experiencing the strongest wage growth.
Meanwhile, retirees have begun to rejoin the workforce, although it is still too early to know whether they will do so in numbers that would reverse the surge in retirements during the COVID-19 pandemic.
Older Workers’ Lagging
The surge in wage growth for older workers, which began in late 2021, was overshadowed by rapidly rising prices across the economy.
Persistent inflation erodes any gains older workers see in their take-home pay, leading to a deterioration in living standards.
Adjusting wage growth figures for inflation paints a bleaker picture of the economic prospects for older workers than unadjusted nominal wage data suggest.
Wage growth for older workers typically lags behind that of middle-aged workers, a trend that has continued throughout the pandemic.
While real wage growth for most older workers is minimal, even in a time of low inflation, it has turned negative for much of the pandemic.
Only among the youngest age group (16-34 years old) has the average worker seen average real wage growth above inflation in the first half of 2022.
Lower-wage workers benefit, while middle-income workers are hurt.
If there is one silver lining in recent wage trends for older workers, it is the narrowing of wage inequality. Older workers in the lowest-wage positions are experiencing the most growth of all wage groups.
Meanwhile, older middle-income workers have experienced roughly the same average wage growth in the past six months as just before the pandemic, while the highest-wage group has experienced slightly higher wage growth.
Analyzing wage growth trends for older workers by demographic categories (gender, race, education) reveals only small differences between groups.
While older workers in the lowest-paying jobs are enjoying the largest wage increases, many were forced out of the workforce due to the pandemic. Their plight isn’t reflected in wage figures. Of the many older workers who disappeared from the workforce during the pandemic, the majority belonged to this lower-wage group, representing approximately one million fewer workers than we would normally expect without the COVID-19 crisis.
Non-retirement is increasing, but it is not (yet) enough to reverse the retirement boom caused by COVID-19.
In recent months, the phenomenon of «non-retirement» (re-entry into the workforce of those who previously declared themselves retired) has attracted considerable media attention.
Some non-retirement is expected due to the confluence of rising nominal wages, high inflation, and falling asset prices. The question is whether current non-retirement trends have reached a scale comparable to the retirement surge caused by the pandemic.
In May, after a steady increase throughout 2022, the non-retirement rate reached its highest level in more than a decade.
However, the number of surplus retirees in the U.S.—that is, the increase in the retired population above pre-pandemic trends—has remained unchanged throughout 2022, at approximately 1.4 million.
If the non-retirement rate continues to rise and more retirees return to work, this situation could change.
However, it is too early to know whether non-retirement will return the U.S. retired population to the level that would be expected given pre-pandemic trends.
Policy Recommendations
Create a Federal Office for Older Workers
Given that older workers constitute a growing portion of the U.S. labor market (those over 65 constitute the fastest-growing age group in today’s labor market), it is time to create an Office for Older Workers (OWB).
The OWB would listen to older workers and their employers, research their needs, coordinate the U.S. government’s extensive resources, and modernize age discrimination laws and training for older workers.
An effective OWB would serve three functions: identify and analyze issues of concern to older workers; design innovative policies to address these issues; and engage in outreach and education.
Enforce Anti-Discrimination Laws
Without strong anti-discrimination laws and their enforcement, older workers cannot compete for jobs or obtain the wage increases they deserve.
Several studies document the effectiveness of state and federal anti-discrimination laws in combating age discrimination and increasing the employment of older workers.
However, the Age Discrimination in Employment Act (ADEA), which protects older workers from age discrimination, was weakened by a 2009 U.S. Supreme Court decision.
Congress should strengthen the ADEA and ensure that any discrimination based on age is unlawful.
Lower the Medicare eligibility age to 50 and make Medicare the primary payer.
Lowering the Medicare eligibility age to 50 would ensure that laid-off older workers receive the care they need.
In addition, making Medicare the primary payer (covering medical expenses before private insurance) would reduce businesses’ costs associated with providing health insurance to older workers.
Reducing health insurance costs associated with hiring older workers would help prevent involuntary retirements while increasing their health coverage.
Strengthening Workers’ Bargaining Power
One of the most effective ways to improve wages, working conditions, and retirement options for older workers is to expand unions.
In general, unionization substantially improves access to, coverage of, and use of health plans.
Greater access to higher-quality health care—a hallmark of unionized work—is especially important for older workers, for whom the prevention and treatment of chronic diseases is crucial.
Union values and influence significantly improve worker safety and health in the workplace.
Moreover, research shows that unionized employees earn significantly more than their non-unionized counterparts, on average, and provide important labor protections.
Improving Workplaces for Older Adults
Improving health and safety standards and offering paid sick leave and paid time off will improve the work environment for all workers, including older workers.8
HR Classroom: Age Discrimination in the Workplace Increases as Retirees Seek to Curb Rising Costs
The following contribution is from WorkersCompensation.com and is written by Chriss Swaney, a freelance journalist who has written for Antique Trader Magazine, Reuters, The New York Times, U.S. News & World Report, Burlington Free Press, UPI, The Tribune-Review, and the Daily Record.
Age discrimination in hiring is a long-standing problem. Tens of thousands of workers say that, even with the right qualifications for a position, they are repeatedly rejected for being over 50, or even 40, and considered too old.
Robert Strauss, a professor of economics and public policy at Carnegie Mellon University, said that workers over 50 (approximately 54 million) now face a much more precarious financial situation as a result of the recession. “They are trying to re-enter the workforce to cope with rising food, housing, and energy costs,” Strauss said.
In fact, according to a recent analysis by the Urban Institute and ProPublica, more than half of workers over 50 lose their longtime jobs before they are ready to retire.
Of those, nine in 10 never regain their previous earning capacity.
Some find only occasional or gig work. “If you lose your job, it’s very difficult to get a new one,” Strauss said.
The issue is receiving even more attention following revelations that hundreds of employers exclude middle-aged and older Americans from their hiring processes on Facebook, LinkedIn, and other platforms. These revelations are fueling a wave of litigation.
But as cases continue to make their way through the courts, the legal path to proving age discrimination has become more difficult.
“Recent decisions by the federal appeals courts in Chicago and Atlanta have narrowed the scope of anti-discrimination protections and made it even more difficult for job seekers to succeed,” said Michael Lieder of Mehri & Skalet.
“These cases are always very complex,” added Lieder, who specializes in complex discrimination and wage and hour litigation.
Approximately two-thirds of workers over 50 believe they experience pay discrimination in the workplace, according to the AARP (American Association of Retired Persons). Of that group, 90% believe age discrimination is common.
Joanna Lahey, a professor at Texas A&M University’s Bush School of Government and Public Policy, said age discrimination is one of the last socially accepted prejudices.
“People are living longer and want to stay on the job longer. However, older workers tend to avoid seeking retraining for their jobs,” Lahey concluded.
“Evidence shows that employers prefer younger job applicants to older ones,” Lahey stated.
These findings come at a time when the U.S. workforce is aging significantly. December data from the Pew Research Center showed that 19% of adults 65 and older are employed in the U.S., up from just 12% in 1990.
According to the Bureau of Labor Statistics, older workers are much more likely to deal with prolonged unemployment than younger ones.
On average, a 54-year-old job seeker will be unemployed for nearly a year.
Repeated inquiries can go unanswered, like space probes lost in a distant galaxy.
In one of the most comprehensive studies, more than 40,000 fictitious applicants of varying ages were sent resumes for thousands of low-skilled jobs, including custodians, administrative assistants, and shop assistants in 12 cities.
In general, the older the applicant, the fewer calls they received.
Paula Calabrese, a writer and consultant in Pittsburgh, said she has a friend who retired from nursing at 70. «But when she tried to go back to work a few months into retirement, she only found low-skill nursing jobs. It was an insult to all her years of high-skill work, according to Calabrese.»
Research shows that age discrimination in the workplace is worse for women than for men.
«I think it’s important for older workers to watch their behavior and dress,» Calabrese said.
«Don’t wear outdated clothes when your coworkers are wearing new, stylish designs,» she added.
«And be prepared to learn new skills and face new challenges at work,» Calabrese noted.
Strauss affirmed that work for older adults means more than a paycheck.
«It provides them with a sense of purpose, identity, and fulfillment,» she said.
And while young professionals may be open to different career paths, older workers often have a clearer idea of what they want to do.
According to a 2019 Bureau of Labor Statistics survey, baby boomers (born between 1952 and 1964) held approximately 12 jobs between the ages of 18 and 52; however, nearly half of these jobs were held before the age of 25.
This indicates that as workers age, they are more likely to stay with the same company.
«Older workers are more familiar with the company’s history and have more developed soft skills,» Strauss stated.
And despite widespread age bias in the workplace, the Bureau of Labor Statistics predicts that the number of older workers entering the workforce will increase over the next decade.
Adults age 65 and older are projected to represent 8.6% of the labor force (those working and seeking work) in 2032, up from 6.6% in 2022.
The Persistent Influence of the Gender Wage Gap
The following contribution is from the Pew Research Center website and is written by Rakesh Kochhar, a senior research fellow at the Pew Research Center. He is an expert on employment, income, and wealth trends. His research has focused on the US and global middle class, as well as the economic well-being of white, Black, Hispanic, Asian, and immigrant workers.
How the Gender Wage Gap Widens with Age
Mothers with children at home tend to be less involved in work, while fathers are more active.
Employed mothers earn roughly the same as women with a similar educational level without children at home; both groups earn less than fathers.
Progress in narrowing the gender wage gap has slowed despite gains in women’s education.
The gender wage gap differs widely by race and ethnicity
Broader economic forces can affect men’s and women’s earnings in different ways.
What does the future hold for the gender wage gap?
The gender wage gap—the difference between men’s and women’s earnings—has barely closed in the United States over the past two decades.
In 2022, American women typically earned 82 cents for every dollar earned by men.
That was roughly the same as in 2002, when they earned 80 cents on the dollar.
The slowness with which the gender wage gap has narrowed this century stands in stark contrast to the progress of the previous two decades: in 1982, women earned just 65 cents for every dollar earned by men.
There is no single explanation for why progress toward narrowing the wage gap has virtually stalled in the 21st century.
Women generally begin their careers closer to wage parity with men, but lose ground as they age and progress through their working lives, a pattern that has remained consistent over time.
The wage gap persists even though women are more likely than men to have graduated from college today.
In fact, the wage gap between women and men with a college education is no smaller than that between women and men without a college degree.
This indicates the dominant role of other factors that still disadvantage women or favor men.
One of these factors is parenthood.
Mothers between the ages of 25 and 44 are less likely to be in the labor force than women of the same age who do not have children at home, and they tend to work fewer hours per week when employed. This may reduce the income of some mothers, although evidence suggests that the effect is generally modest or short-lived for many. On the other hand, fathers are more likely to be in the labor force and work more hours per week than men without children at home.
This is associated with an increase in fathers’ wages, a phenomenon known as the «fatherhood wage premium,» and tends to widen the gender wage gap.
Family needs can also influence the types of work women and men seek, contributing to gender segregation in occupations.
Differential treatment of women, including gender stereotypes and discrimination, can also play a role.
And the gender pay gap varies considerably by race and ethnicity.
How the Gender Pay Gap Widens with Age
Younger women (ages 25 to 34 and in the early stages of their working lives) have approached pay parity with men in recent years.
Since 2007, their earnings have consistently remained around 90 cents on the dollar or more, compared to men of the same age.
However, while pay parity may seem within reach for women early in their careers, the pay gap tends to widen with age.
Consider, for example, women between the ages of 25 and 34 in 2010.
That year, they earned 92% of what men their age earned, compared to 83% of women overall.
However, by 2022, this group of women, now aged 37 to 46, earned only 84% of what men of the same age earned.
This pattern was repeated for women aged 25 to 34 in previous years (e.g., 2005 or 2000) and could well be the future for women entering the workforce now.
Much of the increase in the gender pay gap occurs among women aged 35 to 44.
In 2022, women aged 25 to 34 earned approximately 92% of men of the same age, but women aged 35 to 44 and 45 to 54 earned 83%.
The share narrowed to 79% among those aged 55 to 64. This general pattern has not changed in at least four decades.
The widening of the pay gap coincides with the age at which women are most likely to have children under 18 at home.
In 2022, 40% of employed women aged 25 to 34 had at least one child at home.
The same was true for 66% of women aged 35 to 44, but the share was lower (39%) among women aged 45 to 54.
Only 6% of employed women between the ages of 55 and 64 had children at home in 2022.
Similarly, the proportion of employed men with children at home peaks between the ages of 35 and 44, reaching 58% in 2022. At this age, fathers tend to receive higher wages, although the wages of employed mothers in the same age group are not affected. Mothers with children at home tend to be less committed to work, while fathers are more active.
Parenthood leads some women to put their careers on hold, whether by choice or necessity, but has the opposite effect among men.
In 2022, 70% of mothers between the ages of 25 and 34 had a job or were looking for one, compared to 84% of women of the same age without children at home.
This resulted in the withdrawal of 1.4 million young mothers from the labor force.
Moreover, when they do work, young mothers tend to work a shorter workweek (two hours per week, on average) than other women their age.
Lower labor force participation among young mothers is also a long-standing phenomenon.
However, fathers are more likely to have a job or be looking for one than men without children at home, and this holds true throughout their prime working years, from ages 25 to 54.
Among those who do have a job, fathers also work slightly more each week, on average, than men without children at home.
As a result, the gender gap in labor force participation is greater among those with children at home than among those without.
For example, among people aged 35 to 44, 94% of fathers are actively working, compared to 75% of mothers, representing a difference of 19 percentage points.
However, among those without children at home in this age group, 84% of men and 78% of women are actively working, representing a difference of 6 percentage points.
The point split shows that mothers work fewer hours than women without children at home; fathers work more.
These patterns contribute to the overall labor force participation gap between men and women.
In 2022, 68% of men aged 16 and over, with or without children at home, were employed or looking for work.
This compares to 57% of women, a difference of 11 percentage points. This gap was as high as 24 points in 1982, but narrowed to 14 points in 2002.
Overall, men also worked approximately three hours more per week than women in 2022, on average, a smaller gap than the six hours per week in 1982.
Employed mothers earn roughly the same as women with a similar educational level without children at home; both groups earn less than fathers.
Parenthood affects the hourly earnings of employed women and men in unexpected ways.
While employed mothers, in general, appear to earn less than employed women without children at home, the gap is primarily due to differences in educational attainment between the two groups.
Among women with similar educational levels, the wage gap between mothers and non-mothers is minimal. However, fathers earn more than other workers, including other men without children at home, regardless of their educational attainment.
This phenomenon, known as the fatherhood wage premium, is one of the primary ways fatherhood affects the gender wage gap among employed workers.
Motherhood has significant effects on women’s potential earnings.
Women who experience career interruptions after becoming a mother sacrifice at least part of their income. Some mothers may never return to paid work after having children, passing on their income completely.
However, it is difficult to know what mothers’ earnings might have been, and consequently, it is difficult to know with certainty what the full effect of motherhood on women’s earnings is.
Estimates suggest that motherhood could explain much of the current shortfall in women’s earning potential overall.
Among employed men and women, the impact of parenting is felt most acutely in the 25-54 age group, when they are most likely to have children under 18 at home.
In 2022, mothers aged 25-34 earned 85% of what fathers of that age earned, but women without children at home earned 97% of what fathers earned.
In contrast, employed women aged 35-44, with or without children, earned approximately 80% of what fathers earned.
The situation is reversed for women aged 45 to 54, where mothers earned more than women without children at home.
Between ages 35 and 44 or 45 to 54, childless men earned only 84% of what fathers earned.
However, these patterns in the earnings of employed mothers and women without children at home are greatly influenced by differences in their educational levels.
Among employed women aged 25 to 34, approximately 61% of women without children at home had a bachelor’s degree or higher in 2022, compared to 37% of mothers.
This means that, among women aged 25 to 34, those without children at home (a more highly educated group, on average) earned more than women with at least one child at home. In contrast, employed mothers aged 45 to 54 were more likely than other women to have at least a bachelor’s degree: 58% versus 42%.
Therefore, mothers aged 45 to 54 earned more than women without children.
When comparing mothers’ earnings with those of childless women with the same education level, the gaps narrow or disappear.
Among employed women ages 25 to 34 with at least a bachelor’s degree, both mothers and childless women earned 80% more than fathers in 2022.
Among women ages 25 to 34 with a high school diploma and no college, mothers earned 79% more than fathers, and childless women earned 84% more. The narrowing wage gap between mothers and childless women, after controlling for education level, also extends to other age groups.
Therefore, among employed women, the effect of parenthood on the gender wage gap does not appear to be driven by a decline in mothers’ earnings relative to childless women. Instead, the widening wage gap with fatherhood appears to be driven more by an increase in fathers’ income.
Fathers between the ages of 25 and 54 not only earn more than mothers of the same age, but also earn more than men without children at home. However, men without children at home continue to earn more than women with or without children at home.
While the wage gap between employed mothers and women without children at home with the same educational level is small, a gap in work engagement persists between the two groups.
Regardless of whether they have at least a bachelor’s degree or have graduated from high school, mothers between the ages of 25 and 34 are less likely to be employed or looking for one.
Similarly, younger mothers work, on average, fewer hours per week than women without children at home, regardless of their educational level. The opposite is true for fathers compared to men without children at home.
Progress in narrowing the gender pay gap has slowed despite gains in women’s education.
The proportion of women with at least a bachelor’s degree has increased steadily since 1982, and at a faster rate than that of men.
In 1982, 20% of employed women aged 25 and older had a bachelor’s degree or higher, compared to 26% of employed men.
By 2022, 48% of employed women had at least a bachelor’s degree, compared to 41% of men. Still, between 2002 and 2022, the gender pay gap did not approach the same magnitude as between 1982 and 2002.
In part, this may be related to the changing benefits of attending college in recent decades, for both women and men. The college wage premium—the increase in earnings earned by workers with a college degree—rose rapidly during the 1980s.
However, this increase slowed over time and stopped around 2010. This likely reduced the relative growth in women’s earnings.
While advances in education have raised women’s average earnings and narrowed the overall gender wage gap, college-educated women are no closer to wage parity with their male counterparts than other women.
In 2022, women with at least a bachelor’s degree earned 79% of what men with a college degree earned, and women with a high school degree earned 81% of what men with the same level of education earned. This highlights the challenges women of all education levels face in closing the wage gap.
Notably, the gender wage gap has narrowed more among female workers without a four-year college degree than among those with a bachelor’s degree or higher.
For example, the wage gap for women without a high school diploma narrowed from 62% in 1982 to 83% in 2022 compared to men with the same level of education. However, it only decreased from 69% to 79% among those with a bachelor’s degree during the same period. This is because only men with at least a bachelor’s degree experienced positive wage growth between 1982 and 2022; all other men saw their real wages decline. Meanwhile, women’s real income increased regardless of their educational level.
As women have improved their educational attainment in recent decades, they have also increased their participation in higher-paying occupations, such as management, business and finance, law, and computer science and engineering (STEM).
In 1982, women accounted for only 26% of employment in managerial occupations. By 2022, their share had increased to 40%.
Female participation also increased substantially in social, artistic, and media occupations. During the same period, female participation in several lower-paying fields, such as administrative support jobs and food preparation and serving, declined significantly.
Even so, women remain underrepresented in managerial and STEM occupations, along with construction, repair and production, and transportation occupations, compared to their share of overall employment.
And there has been virtually no change in the degree of female overrepresentation in education, healthcare, personal care, and service occupations; the latter have lower wages than the average for all occupations.
The distribution of women and men across occupations remains one of the factors driving the gender pay gap. However, it is not entirely clear to what extent this distribution is due to personal choices or gender stereotypes.
The gender wage gap differs widely by race and ethnicity
When looking at racial and ethnic groups, there is a large gap between the earnings of Black and Hispanic women and those of white men.
In 2022, Black women earned 70% of what white men earned, while Hispanic women earned only 65%.
The ratio for white women stood at 83%, roughly equal to the overall wage gap, while Asian women moved closer to parity with white men, earning 93%.
The wage gap narrowed for all groups of women between 1982 and 2022, but more for white women than for Black and Hispanic women.
The wage gap for Asian women narrowed by approximately 17 percentage points between 2002 and 2022, but data are not available for this group in 1982.
To some extent, the gender wage gap varies by race and ethnicity due to differences in education, experience, occupation, and other factors that drive the gender wage gap for women overall.
However, researchers have uncovered new evidence of hiring discrimination against various racial and ethnic groups, along with discrimination against other groups, such as the LGBTQ community and workers with disabilities.
Hiring discrimination can contribute to wage gaps by excluding workers from opportunities.
Influence of Economic Factors
Broader economic forces can affect the earnings of men and women in different ways.
Changes in the gender wage gap are also influenced by economic factors, which sometimes influence the earnings of men and women in different ways.
Because men and women tend to work in different types of jobs and industries, their incomes may respond differently to external pressures.
More specifically, men’s incomes remained virtually unchanged between 1982 and 2002.
Possible reasons include a more rapid decline in male union membership, the shift away from jobs requiring greater physical skill, and global competition that dramatically reduced manufacturing employment in the 1980s.
At the same time, women’s incomes increased substantially as they increased their educational attainment and shifted toward higher-paying occupations.
However, in some ways, the economic climate has proven less favorable to women this century.
For reasons that are not entirely clear, female employment took longer to recover from the Great Recession of 2007–2009.
More recently, the COVID-19 recession was dubbed the «she-cession» due to the pressure on jobs held disproportionately by women.
Amid a widespread slowdown in wage growth between 2000 and 2015, women’s earnings growth between 2002 and 2022 was not much greater than men’s, limiting the narrowing of the gender pay gap during that period.
¿Qué le depara el futuro a la brecha salarial de género?
What does the future hold for the gender wage gap?
Higher education, the transition to higher-paying occupations, and more work experience have helped women narrow the gender wage gap since 1982.
However, although women have continued to outperform men in educational attainment, the wage gap has stagnated since 2002, hovering between 80 and 85 cents on the dollar.
More sustained progress in narrowing the wage gap may depend on deeper changes in social and cultural norms, as well as workplace flexibility, which affect how men and women balance their careers and family life.
Even in countries that have led the way in implementing family-friendly policies, such as Denmark, parenthood continues to create a significant gap in the earnings of men and women.
New research suggests that family-friendly policies in the U.S. may be preventing the wage gap from closing. Gender stereotypes and discrimination, although difficult to quantify, also appear to be among the last-minute obstacles preventing further progress.