The Gender Wage Gap Widened Last Year

Widening Wage Gap

Americans got a much-needed pay bump in 2023. But unfortunately, the gains were not equally distributed.

In 2023, the inflation-adjusted median income of U.S. households increased to $80,610, up 4% from 2022, according to data from the Census Bureau. But men saw a much bigger pay bump than women, and that worsened the gender pay gap for the first time in two decades.

What’s Driving the Disparity?

In 2000, full-time working women earned around three-quarters of what comparable male workers made, according to an Axios report. In 2023, that figure rose to 83%, a great advance, but still less than the 84% recorded in 2022.

Finding one root cause is hard to do, but there are a few factors we can identify. This setback could be due to the shifting composition of women in the workforce. Last year, more young and Hispanic women joined the workforce, per Axios, and both of these groups are on average in lower-earning roles.

We also know that women in general are overrepresented in low-paying jobs, according to the National Women’s Law Center. With a child care affordability crisis raging across the nation, it’s not inconceivable that women with young children may sacrifice higher salaries for more flexible schedules.

While America has made progress toward closing the wage gap. But there’s still a long way to go.

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