OPED write up

Kamala Harris, the California senator and former Democratic presidential candidate,

proposed a policy to address the gender wage gap by shifting responsibility from individuals to

prove the existence of the gap to corporations. The gender wage gap experienced by full-time

women employees in the United States results in an averaged total loss of more than $916 billion

every year (National Partnership for Women & Families). Similar policies have been proposed

by Democrats such as Bernie Sanders and Elizabeth Warren.

The gender pay gap has remained relatively stable since it narrowed in the 1980s, as

women earning rose from 60 percent of what their men made to about 75 percent (The Library of

Economics and Liberty). However, complacency questioning the significance of the wage gap is

misplaced. Women in the United States are paid 82 cents for every dollar paid to men, which

results in an annual gender wage gap of $10,194. The disparity is more prevalent in different

races, as Black women are paid 62 cents, Native American 57 cents and Latinas 54 cents for

every dollar of a white, non-Hispanic man. In the United States, women head 15 million family

households and of that, 26 percent have family incomes that fall below the poverty level.

Therefore, in these millions of cases eliminating the wage gap would provide substantive

economic relief to households reliant on the women’s wage (National Partnership for Women &

Families).

Economist Francine Blu and Lawerence Kahn have found that observable factors such as

education, job experience, and hours of work can explain around 33 percent of the wage gap,

previously determined to be 55 percent. Rather the residual, the remainder of the gap, can not be

explained by observable factors. This can be the result of women’s choice of work and gender

discrimination (The Library of Economics and Liberty). The pervasiveness of these factors is

difficult to be held legally accountable for. Workplace culture enables gender stereotypes and the

devaluation of women’s skill and time (The Washington Post). “The Impact of Equal Pay on

Poverty and the Economy” found that gender wage discrimination has led to the misallocation of

human capital leading to women working in less productive roles.

Senator Kamala Harris proposes to hold corporations accountable for permitting wage

inequality. The policy requires companies with 100 employees or more must obtain “Equal Pay

Certification” from the Equal Employment and Opportunity Commission (EEOC) within two

years of her presidency. Companies can be fined 1% of their average daily profits during the last

fiscal year for every 1% wage gap, in consideration to differences in position, experience and

performance. Eliminating the wage gap in corporations is vital as the American Association of

University Women found that women make 64 percent of primary, sole, or co-breadwinners of

their families. Long-term economic security for such families can be achieved through equal pay.

A 2010 report by the joint economic committee in the House found that addressing the gender

wage gap is necessary as the latter results in lower contributions to employer-sponsored

retirement plans and Social Security benefits. These benefits become a substantial source of

income, providing nearly $12,000 for older women. Majority of Social Security beneficiaries are

women, 55.5 percent represent age 62 and older and 65 percent age 85 and older (Social Security

Administration Factsheet).

The argument emerges whether companies are willing and able to disclose the necessary

information to receive certification. Critics find these data-sharing processes as too burdensome

for companies. A fact sheet from the National Women’s Law Center reports that in recent years

businesses have taken similar analyses in regards to equal pay audits or performance evaluations.

The significance of the gender pay gap is not exclusive. Necessary action is needed to

make sure everyone’s mother, daughter, sister, and grandmother efforts are accounted for.

Citations

● https://www.econlib.org/library/Enc/GenderGap.html#lfHendersonCEE2-070_figure_02

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● https://www.nationalpartnership.org/our-work/resources/economic-justice/fair-pay/ameri

cas-women-and-the-wage-gap.pdf

● https://iwpr.org/publications/impact-equal-pay-poverty-economy/

● https://www.jec.senate.gov/public/_cache/files/9118a9ef-0771-4777-9c1f-8232fe70a45c/

compendium---sans-appendix.pdf

● https://www.ssa.gov/news/press/factsheets/women-alt.pdf

● https://kamalaharris.org/policies/equal-pay/full-policy/