Home About Archives RSS Feed

The Independent Investor: Income Inequality Among Women

By Bill Schmick
iBerkshires Columnist

Today women make up about half our workforce. But they still make 77 cents for every dollar a man earns. That is wrong, and in 2014, it's an embarrassment.

— President Barack Obama, State of the Union Address

This week the president met with women members of congress to discuss income inequality among the sexes. At the same time, the Democratic Party is making the passage of a minimum wage bill part of its campaign strategy for mid-tem elections this year. It appears that how much a woman makes in this country has suddenly become important.

It's about time. This has been a pet peeve of mine for years. Some longtime readers may recall my first four-part series on this subject back in 2009-2010. At least once a year since then, I have tried to keep the inequity between the salaries of men and women on your front burner.

There is a lot of misinformation bandied about by both sides on this issue although you would think that everyone would be on the side of women making at least an equal wage with men performing comparable tasks. President Obama didn't help when he used the often-quoted but confusing "77 cents statistic" during his State of the Union address.

Detractors immediately jumped on the number arguing that the 23-cent gender pay gap is simply the difference between the average earnings of all men and women working full time. It does not account for differences in occupation, positions, education and job tenure or hours worked. They like to add that the U.S. Bureau of Labor Statistics found that when measured hourly, not annually, the pay gap between men and women is only 14 percent not 23 percent.

Others argue that income disparity may be linked to the field of study that women pursue. A recent survey of 1,000 adult women in higher education by Western International University found that the income gap decreases significantly in cases where women held degrees in business, technology, science and math. The American Association of University Women concurred with those findings in their study of 15,000 graduates. They found that along with science, math and some technology areas, women received equal pay with men in engineering, health-care occupations (especially nurses), life science, social services and administrative assistants.

Although it is true that women are now the majority of students pursing academic degrees, few are pursuing careers in high-paying areas such as petroleum, aerospace, and chemical or electrical engineering. Instead, female students dominate in what are considered the 10 least profitable majors like early childhood education, communication disorders, human services, community organization and so on.

All of the above seems to point to one obvious conclusion. Your income is largely dependent on what degree and profession you pursue. Women, so the critics argue, earn less money because they choose to enter careers that have built-in income disparities.

They conveniently dismiss that, even with all of the above arguments, the statistics indicate that women still suffer from a disparity of income despite degree or profession. They also assume that choice, in American society today, is a woman's prerogative.  In my next column, I will explore those issues and why and how women now represent 60 percent of minimum wage workers and 75 percent of workers in the 10 lowest-paid occupations. Stay tuned.

Bill Schmick is registered as an investment adviser representative with Berkshire Money Management. Bill’s forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquires to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com.

News Headlines
Gardner Appointed to Williamstown Planning Board
Petition Voices Objection to Proposed Williams Art Museum Site
Northern Berkshire Santa Fund Kicks Off 2015 Campaign
North Adams Ready to Take Possession of Colegrove School
Pittsfield Bars Raising Security After Shooting Incidents
6th Annual Cop On Top Returns To Pittsfield Walmart This Weekend
Pittsfield Fires Police Union President For 'Misconduct'
Holiday Cards Support CATA Artists With Disabilities
Berkshire Tidbits: Time for Hanukkah, Christmas Foods
YMCA Hosts Free Youth Snowboarding Program

Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires. Bill’s forecasts and opinions are purely his own and do not necessarily represent the views of BMM. None of his commentary is or should be considered investment advice. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be and should not be construed as an endorsement of BMM or a solicitation to become a client of BMM. The reader should not assume that any strategies, or specific investments discussed are employed, bought, sold or held by BMM. Direct your inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com Visit www.afewdollarsmore.com for more of Bill’s insights.




@theMarket (187)
Independent Investor (255)
November 2015 (6)
October 2015 (9)
September 2015 (7)
August 2015 (7)
July 2015 (6)
June 2015 (8)
May 2015 (6)
April 2015 (8)
March 2015 (6)
February 2015 (7)
January 2015 (9)
December 2014 (7)
Metals Europe Currency Recession Rally Jobs Deficit Bailout Commodities Housing Economy Debt Ceiling Selloff Taxes Debt Energy Crisis Stimulus Federal Reserve Fed Election Oil Japan Stocks Congress Fiscal Cliff Retirement Interest Rates Europe Stock Market Euro Greece Pullback Banks Markets
Popular Entries:
The Independent Investor: Don't Fight the Fed
The Independent Investor: Understanding the Foreclosure Scandal
@theMarket: QE II Supports the Markets
The Independent Investor: Does Cash Mean Currencies?
@theMarket: Markets Are Going Higher
The Independent Investor: General Motors — Back to the Future
The Independent Investor: Will the Municipal Bond Massacre Continue?
@theMarket: Economy Sputters, Stocks Stutter
The Independent Investor: Why Are Interest Rates Rising?
The Independent Investor: How Will Wall Street II Play on Main Street?
Recent Entries:
@theMarket: Markets Climb Wall of Worry
The Independent Investor: Financial Media May Be Your Worst Enemy
The Independent Investor: How 'Black' Will This Black Friday Be?
@the Market: Buy the Dip
The Independent Investor: 'Bag Lady' Syndrome and You
The Independent Investor: Social Security & the Budget, Part II
@theMarket: How High Will We go?
The Independent Investor: Budget Deal Craters Social Security Strategies
@theMarket: Regaining the High Ground
The Independent Investor: Water Scarcity Not Only California's Problem