Why We Need to Fix the Gender Pay Disparity

This episode of The Financial Griot Podcast (TFG) brings back guest Ainjel McDonald (creator of Rare Bird Money) to talk about Racial and Gender Pay Disparities. These pay disparities in financial spaces and the lack of Black representation exacerbates wealth and social inequities which can have dire effects.

Do organizations or nations owe their Black citizens anything? Or do we owe ourselves to show up and become the solution-makers we seek?

Part 2 of the Pay me what You Owe Me! episode.

Table of Contents

The Uphill Battle to Close the Gender Pay Gap

The gender pay gap is the difference between earnings.

In the United States, based on available data for 2022, women typically earn 84 cents for every dollar earned by men. This is calculated using the median weekly paycheck of $1,001 for female workers compared to $1,185 for men, according to the US Department of Labor. Although there have been systemic changes in the US, the gender pay gap discrepancy remains.

The gender pay gap has several long-term consequences. These consequences can compound. For example, lower lifetime earnings can lead to less Social Security and pensions, which can be a significant cause of poverty in retirement.

The gender pay gap links to socioeconomic factors, such as gender discrimination, the motherhood penalty, parental leave, and gender norms. Some strategies for narrowing the gender pay gap include increasing pay transparency, unionizing workplaces, and expanding paid family and medical leave.

The Expanding Racial Pay Gap

While the gender pay gap adds its own challenge; it also varies by race and ethnicity.

Looking across racial and ethnic groups, a wide gulf separates the earnings of Black and Hispanic women from the earnings of White men. In 2022, Black women earned 70% as much as White men and Hispanic women earned only 65% as much.

Unfortunately, the median Black worker earned 24.4% less per hour than the median white worker. The discrepancy in median income for Black families ($41,000) in comparison to white families (more than $70,000) fuels the racial wealth gap.

Since 2019, the wage gap, though still enormous, has shrunk. “It’s a pretty meaningful reversal,” Elise Gould, a senior economist at the Economic Policy Institute. Why? A stronger economy has decreased the unemployment gap to the lowest level since the 1960s. Secondly, the “fight for minimum wage” has made significant income gains for the most underrepresented groups in the US. A broad jump from $7.25 per hour to $15 per hour.

The question is where do we go from here and what can we do to change it for the next generation? Especially in the shadow of the cancellation of Affirmative Action and Student loan forgiveness cancellation. All this to say, there is work to do.

About The Financial Griot Podcast:

The Financial Griot is a play on two words (Finance + Griot) that hold significance in closing the wealth gap while embracing our differences. We tell the stories that others don't. Stories about growth, opportunity, and embracing changes. Beyond that, we talk about Finances, the Pay gap, the importance of soft skills, the wealth gap, and more.

Specifically, our goal is to help you become Financially literate, incorporate actionable steps, and ultimately build generational wealth.

Can you imagine being a Millionaire in 20 years or less? Yeah, it's possible. 80% of millionaires are the first generation. That means they didn't come from wealth. The path is relatively simple; education, intention, and action. We are building a community of like-minded people. Like and Share the podcast, it's time for a fresh take on wealth.

Connect with Us on Instagram

Alainta Alcin - Blogger, Travel and Money Enthusiast @alainta_alcin
Ainjel McDonald - Creator of Rare Bird Money, rarebirdmoney@gmail.com | Rarebird Instagram
Lovely Merdelus - Entrepreneur and Small Business Growth Specialist @lovelymerdelus
Lawrence Delva-Gonzalez - Auditor and Travel Enthusiast @theneighborhoodfinanceguy