The Gender Pay Gap

Women’s Wealth

And it’s not just annual earnings: The pay gap also contributes to the wealth gap. It makes it difficult for women to amass savings, build wealth and achieve economic security. Overall, the average American woman has a net worth of $5,541, less than half of the $12,188 average net worth of a man. In terms of overall wealth, a single woman has only 32 cents for each dollar a single man has. And the wealth gap is even wider for women of color, who have just pennies for every dollar a white male has.

Deeper in Debt

The consequences of this gap affect women throughout their lives. While women outpace men in earning bachelor’s, master’s and advanced degrees, they take on greater debt to pay for their education: Women hold nearly two-thirds of the outstanding student debt in the United States — almost $929 billion as of early-2019. Because of the gender pay gap, women have a harder time repaying loans, meaning women’s debt burden compounds as time goes on.

Learn more about debt

Saving Less

The pay gap follows women into retirement: As a result of lower lifetime earnings, they receive less in Social Security and pensions. Women collect only 80% of what men collect in Social Security benefits, and just 76% in pensions. In terms of overall retirement income, women have only 70% of what men do. White men over 65 have an average annual income of $44,200, while white women over 65 must get by on $23,100, Black women on $21,900, and Latinas on $14,800.

Learn more about retirement

Fighting for change

Unfortunately, there’s no magic bullet or quick fix. Though the status of women has dramatically improved in recent decades, the lingering inequity is the result of historical, societal and political legacies that persist today. Outdated norms about gender roles run deep in our culture: They affect the paths that girls and women pursue throughout their education; expectations about their roles as mothers and caregivers; laws, policies and legacies that favor men; and flat out discrimination, bias and misconduct that hinder women’s advancement. These all add up to an unacceptable reality that AAUW is fighting to change. 

AAUW believes achieving pay equity requires a multi-pronged approach:   

• We need strong state and federal laws focused on ensuring equal pay for all American women. See AAUW’s economic security policy agenda. 
• Employers need to commit to continuous improvement and to enacting policies and practices that will help put women on par with men. Read more about how equal pay is good for business. 
• Women individually need to advocate for themselves: They need to negotiate for the best possible pay and benefits and pursue higher-paying jobs, promotions and leadership opportunities. Learn more about AAUW’s program initiatives aimed at closing the wage, STEM and leadership gaps.