Most women don't think the wage gap applies to them.
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Most women believe the gender pay gap exists. A new study finds that far fewer believe it affects them, and that helps keep pay disparities in place.
The new study, which surveyed over 900 employees in advertising agencies, asked the workers about their own salaries, their perceptions of the gender pay gap, and their experiences discussing pay with management and coworkers. The paper is not yet peer reviewed, but has been posted on SSRN for early review.
Unlike the unadjusted pay gap provided by the census, these researchers controlled for all the variables that might impact the men’s and women’s pay, like prior pregnancy, region of the country, race/ethnicity, highest level of education, seniority, average hours worked per week, years of experience, type of advertising agency, company structure, company size, and department. Even after controlling for all these variables, they found a significant gender pay gap between women and men in advertising.
After adjusting for these factors, mothers earned an average of $10,873 less per year than men, an 8.36% gap. Women without children also faced a disparity, earning $6,682 less than men, or 5.06% less. Over a 25-year career, these differences add up significantly, translating to an estimated loss of $271,829 for mothers and $167,042 for women without children.
Both men and women in the study were aware of the gender pay gap, often even overestimating its size. But for women, that awareness didn’t translate into believing the gap applied to them. Although a whopping 96% of women said they believed that the gender pay gap exists, only a third believed it impacted their own pay.
In other words, women recognize the gender pay gap, yet assume they’re somehow exempt from it. But this finding isn’t new. Decades of research show that women and minorities often acknowledge discrimination for others while distancing themselves from it personally.
One potential explanation is that the women want to feel in control of their outcomes. If they admit that discrimination impacts their careers, they feel less in control of their careers and their futures. In addition to giving women a sense of control, attributing setbacks to discrimination can carry the risk of being labeled as a complainer or someone making excuses.
There’s also a simpler explanation. Most employees don’t know what their coworkers earn. In workplaces where employees don’t discuss salary, it’s hard to know if you’re impacted by a wage gap. In this study, just 34% of respondents shared pay information across genders, making it nearly impossible for most employees to become aware of gender-based pay disparities.
If women don’t believe the gap affects them, they’re less likely to challenge it. For example, believing you are paid fairly reduces the likelihood that you will ask for more money.
Research on negotiation consistently finds that women are less likely to initiate salary discussions when they perceive their pay is fair. The result is self-perpetuating. If women underestimate the likelihood that they are underpaid, they are less likely to negotiate for more money. Less negotiation results in less pay.
Beyond individual action, decades of research show that people are more likely to take collective action on problems they perceive as personally relevant. When discrimination is seen as something that only impacts others, employees feel less compelled to challenge how pay is determined at their company. Without pressure, organizations have little incentive to change compensation practices.
So, awareness that a pay gap exists is not enough. Nearly all women in this study already believe the pay gap exists. The challenge is helping these women see how it impacts their paychecks, and pay transparency is an easy solution to this problem. In organizations that offer pay transparency, everyone knows what everyone else earns. When women learn they are being paid less than equally qualified men, they are naturally motivated to negotiate for fair pay.
Since most organizations are unlikely to adopt full pay transparency anytime soon, women may need to take a more proactive approach. One practical step is to discuss compensation with coworkers, particularly male peers. Although discussing pay can feel taboo, secrecy about pay benefits employers far more than employees. Talking about it is the only way to determine if your pay is fair.
In the ad agency study, the researchers describe the agencies as having a “muzzling culture” when it came to discussing pay. Indeed, 68% of the participants said they had worked at a place where pay conversations were discouraged, and one in five incorrectly believed it was illegal to discuss pay. It’s not illegal, but your company has an incentive for coworkers to stay quiet about pay. If employees talk, then the managers are forced to rationalize any pay differences.
Finally, it’s important to know how pay is structured at your company. The study authors describe how little the employees they surveyed knew about how pay was determined in their organizations: “Interestingly, 42.4% of the total sample indicated they had no understanding of the pay structure at their agency, with a much higher percentage for women (47.4%) compared to men (30.1%). Likewise, 45.5% of the sample had no understanding of how salary decisions were made at their agency, with a much higher percentage for women (49.2%) compared to men (36.5%)."
If you don’t know how pay is determined, it’s hard to know if you’re being underpaid.
Everyone seems to acknowledge the pay gap exists, but one reason it persists is that too few believe it applies to them. Making pay more visible, whether through policy or conversation, and understanding how pay is determined may be the simplest way to start changing that.
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