The complex causes of the gender pay gap.

• Author: Wagner, Barbara

In the United States, women earn median wages that are 71 percent of the median earnings for men. In Montana, this figure is 68 percent. The gap between the median wages for men and women is referred to as the gender wage gap. The gap between men's and women's wages exists in nearly every occupation, in all industries, in every state, across countries, at all education levels, and in the private, government, and nonprofit sectors. While the gender pay gap is improving, the narrowing is happening at such a slow pace that it would take until 2058 to reach gender pay equity (Hayes, 2013).

When presented with statistics on the gender pay gap, many react with disbelief because they don't see discrimination in their workplaces. After all, it is illegal to make hiring decisions, promotion decisions, and pay decisions based on gender.

On the other side of the spectrum, there are many others who have witnessed or experienced gender discrimination in their workplaces and are ready to attribute the full gap to discrimination. Both of these viewpoints are incomplete.

Subtle Stereotypes at Work

Economic research on the gender pay gap has found many reasons for the differences in pay between men and women, including different career and education choices, differences in work experience, and, yes, discrimination. Pay discrimination is usually not overt but instead a reinforcing of subtle stereotypes that lead to unconscious gender bias. Both male and female managers are equally likely to demonstrate gender bias in hiring and pay, and the pervasiveness of the wage gap across all industries, occupations, education levels, and other demographics suggests that the pay gap is a result of historical and cultural beliefs that are common to us all.

The largest factor that explains the gender pay gap is differences in hours worked by men and women. Women are more likely to work in part-time jobs and less likely to work year-round. However, when comparing full-time, year-round workers in Montana, women's median earnings are only 75 percent of men's median earnings, meaning a sizable pay gap still exists after accounting for hours at work.

Over time, lower work hours by women result in women having lower experience levels than men, and less work experience translates to lower pay. Yet women face a pay gap immediately in their careers, before experience differences exist. Young women age 16-24 earn roughly 90 percent to 95 percent of men's earnings. College-aged...