How Philadelphia women are still working to close the gender pay gap – WHYY

 

Advancing Pay Equity: A Report on Efforts to Address the Gender Pay Gap in Alignment with Sustainable Development Goals

Introduction: The Persistent Challenge to SDG 5 and SDG 8

Despite the passage of the Equal Pay Act over six decades ago, significant wage disparities between men and women persist, posing a direct challenge to the achievement of Sustainable Development Goal 5 (Gender Equality) and SDG 8 (Decent Work and Economic Growth). In response, the Forum of Executive Women in Philadelphia has issued its annual pay equity report, serving as a strategic guide for organizations committed to closing this gap. The report provides actionable solutions to address pay equity, an issue critical not only for individual members but for the broader regional economy. Achieving equal pay for work of equal value is a core target (8.5) of SDG 8, making these efforts fundamental to sustainable economic progress.

Strategic Frameworks for Corporate and Institutional Change

Top-Down Commitment to Compensation Philosophy

A foundational recommendation for achieving pay equity involves establishing a clear and committed organizational stance on compensation, a strategy that directly supports SDG 5. This approach must be driven from the highest levels of leadership to be effective.

• Board-Level Agreement: Strategic goals concerning salaries and pay equity must be established and agreed upon at the board level.
• Executive Buy-In: A board-approved compensation philosophy facilitates the necessary executive team buy-in, ensuring that principles of equity are integrated into operational management.
• Employee Advocacy: This top-down commitment empowers employees to advocate for transparency and equitable policies within their workplace.

The Role of Transparency and Policy in Reducing Inequality (SDG 10)

Increased transparency in compensation practices is a critical mechanism for reducing the inequalities targeted by SDG 10. Recent political and legislative actions highlight a growing momentum for such measures.

1. Salary Range Disclosure: Mandating the inclusion of salary ranges in job postings, as implemented in states like Colorado and New York, is a key step toward upfront transparency.
2. Prohibition of Salary History Inquiries: Local ordinances in Philadelphia and Lehigh County prohibit employers from asking applicants about their salary history, a practice designed to break cycles of pay discrimination and ensure equal opportunity, aligning with Target 10.3 of the SDGs.

Legislative and Societal Barriers to Gender Equality

Legislative Stalemate and the Impact on Caregivers

Progress on statewide policies that support gender equality has been inconsistent. In Pennsylvania, proposed legislation for paid family leave has stalled, highlighting a significant barrier to economic equality for women. The societal undervaluation of caregiving, a role disproportionately held by women, perpetuates the gender pay gap. As noted by State Rep. Jennifer O’Mara, women are often compelled to make career decisions based on caregiving responsibilities for children, parents, or sick family members. This societal structure undermines women’s economic advancement and is a primary obstacle to achieving SDG 5.

Data Analysis: Quantifying the Gender Pay Gap

The Widening Gap: A Lifecycle Perspective

Analysis of U.S. Census data reveals that the gender pay gap widens significantly over the course of a woman’s career, demonstrating a cumulative disadvantage that impedes progress toward SDG 5.

• Ages 25-34: Women’s pay is approximately 5% lower than that of their male counterparts.
• Age 35 and older: The gap expands dramatically to between 17% and 20%.

This trend indicates that while women may start on a relatively even playing field, the gap widens as they advance in their careers, often coinciding with decisions related to family and caregiving responsibilities.

Intersectional Analysis: Pay Disparities by Race and Ethnicity (SDG 10)

An intersectional analysis of 2023 full-time earnings data underscores the deep-seated inequalities addressed by SDG 10. When compared to every dollar earned by non-Hispanic white men, the disparities are stark across local, state, and national levels.

• In Philadelphia:
  • Non-Hispanic White Women: 94 cents
  • Asian Women: 80 cents
  • Black Women: 64 cents
  • Hispanic or Latina Women: 57 cents
• Across Pennsylvania:
  • Non-Hispanic White Women: 74 cents
  • Asian Women: 84 cents
  • Black Women: 63 cents
  • Hispanic or Latina Women: 55 cents
• Nationwide:
  • The national data reflects similar trends of compounded wage disparity for women of color.

The Political and Business Imperative for Pay Equity

Navigating Political Headwinds and DEI Challenges

In the current political climate, pressure to eliminate Diversity, Equity, and Inclusion (DEI) programs has intensified. In response, some organizations are reframing pay equity not merely as a social justice issue but as a market-driven business imperative. This strategic pivot ensures that progress toward SDG 5 and SDG 10 can be sustained by demonstrating its value to organizational success.

The Business Case for Aligning with SDG 8

There is a significant competitive advantage for businesses that embrace pay transparency and equity, directly contributing to the “decent work for all” component of SDG 8. The benefits are clear and measurable.

• Improved Retention: Equitable pay practices foster loyalty and reduce employee turnover.
• Enhanced Productivity: A perception of fairness and value can boost employee performance.
• Increased Trust and Morale: Transparency in compensation builds a positive and trusting workplace culture.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on pay equity and the gender pay gap in the Philadelphia region addresses several interconnected Sustainable Development Goals (SDGs). The primary goals identified are:

• SDG 5: Gender Equality

  This is the most prominent SDG in the article. The entire discussion revolves around achieving equality between genders in the economic sphere. It specifically focuses on the gender pay gap, the societal pressures forcing women into caregiving roles, and the need for policies like paid family leave to support women’s careers. The article states, “women get paid less because they’re nurses and caregivers,” and “women tend to be forced into caregiving roles in our society,” directly linking societal gender roles to economic inequality.

• SDG 8: Decent Work and Economic Growth

  This goal is addressed through the core theme of “equal pay for equal work,” a fundamental principle of decent work. The article references the “Equal Pay Act” and discusses how pay transparency and fair compensation philosophies contribute to a just workplace. The text mentions that achieving pay equity leads to “improved retention … improved productivity, and trust and morale,” which are all components of a decent and productive work environment that fosters economic growth.

• SDG 10: Reduced Inequalities

  The article goes beyond the simple male-female binary to address inequalities among different groups, which is the focus of SDG 10. It provides a detailed breakdown of the pay gap by race and ethnicity, showing that the disparity is more severe for women of color. For instance, it notes that in Philadelphia, “for every $1 earned by non-Hispanic or Latino white men… Black women earned 64 cents and Hispanic or Latina women earned 57 cents.” This highlights the intersectional nature of inequality and the need to promote the economic inclusion of all, irrespective of race or ethnicity.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the issues discussed, several specific SDG targets can be identified:

1. Target 5.4: Recognize and value unpaid care and domestic work through the provision of public services, infrastructure and social protection policies…

   The article directly connects the gender pay gap to the burden of caregiving placed on women. It highlights the push for “paid family leave” as a crucial policy solution, stating it’s a “huge part of the gender pay gap.” The text laments that “socially we just don’t value the act of caregiving,” which aligns perfectly with the goal of this target to formally recognize and support care work.

2. Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life.

   The article mentions the “Forum of Executive Women,” an organization of female leaders, and its role in advocating for change. It also emphasizes the importance of a “board member-level agreement” and “executive team buy-in” to implement pay equity, pointing to the need for women’s participation and influence at the highest levels of corporate decision-making.

3. Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for equal work.

   This target is at the heart of the article. The text begins by referencing the “Equal Pay Act” and frames the entire problem as a failure to achieve “equal wages for equal work.” The report from the Forum of Executive Women is presented as a guide to address “pay equity issues,” which is a direct call to action for this target.

4. Target 10.3: Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices…

   The article discusses various legislative and policy measures aimed at reducing discrimination and ensuring equal opportunity. This includes the “anti-discrimination ordinance” in Philadelphia and Lehigh County that prohibits employers from “asking potential applicants about their salary history.” It also covers the push for an “equal pay bill in the Pennsylvania House of Representatives” and laws in other states requiring pay transparency, all of which are actions designed to eliminate discriminatory practices and reduce inequalities of outcome.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article provides both quantitative and qualitative indicators that can be used to measure progress:

• Gender Pay Gap Ratio (Indicator for Target 8.5):

  The article provides explicit quantitative data that serves as a direct indicator of the gender pay gap. It measures women’s earnings as a percentage of men’s earnings. For example:

  • In Philadelphia, non-Hispanic white women earned “94 cents for every $1 earned by non-Hispanic or Latino white men.”
  • The gap is wider for women of color, with Black women earning “64 cents” and Hispanic women earning “57 cents” for every dollar earned by a white man.
  • The article also notes the gap widens with age: “For women between the ages of 25 and 34, pay is about 5% lower than for men… But by 35 years old, the gap widens to between 17% and 20%.”

  This data directly corresponds to SDG indicator 8.5.1 (Average hourly earnings of female and male employees).

• Existence of Supportive Legislation and Policies (Indicator for Targets 5.4 and 10.3):

  The article implies that the presence or absence of certain laws can be used as an indicator of progress. These include:

  • Pay Transparency Laws: The article mentions laws in Colorado and New York that “require listed compensation in job postings.” The adoption of similar laws in Pennsylvania would be a positive indicator.
  • Salary History Bans: The existence of ordinances in Philadelphia and Lehigh County that “prohibited from asking potential applicants about their salary history” is a measurable policy indicator.
  • Paid Family Leave Legislation: The article notes that paid family leave has “stalled in the Republican-controlled Senate” in Pennsylvania. The status of this legislation serves as a key indicator for valuing care work (Target 5.4).
• Adoption of Corporate Pay Equity Policies (Indicator for Targets 5.5 and 8.5):

  Progress can be measured by the adoption of specific practices within companies. The article suggests tracking whether a company has:

  • A formal “Compensation philosophy” with “board-level buy-in.”
  • A practice of posting salary ranges in job descriptions to ensure transparency.

4. Summary of SDGs, Targets, and Indicators

SDGs	Targets	Indicators Identified in the Article
SDG 5: Gender Equality	5.4: Recognize and value unpaid care and domestic work. 5.5: Ensure women’s full participation and equal opportunities for leadership.	– Status of paid family leave legislation (mentioned as “stalled” in the PA Senate). – Mention of women being “forced into caregiving roles” as a systemic issue. – Existence of board-level agreements and executive buy-in on pay equity goals within companies.
SDG 8: Decent Work and Economic Growth	8.5: Achieve full and productive employment and decent work for all… and equal pay for equal work.	– Gender pay gap data: “For women between the ages of 25 and 34, pay is about 5% lower than for men… by 35 years old, the gap widens to between 17% and 20%.” – Pay ratio data: In Philadelphia, white women earn “94 cents for every $1 earned by” white men.
SDG 10: Reduced Inequalities	10.3: Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices.	– Pay gap data disaggregated by race/ethnicity: “Black women earned 64 cents and Hispanic or Latina women earned 57 cents” for every dollar a white man earned. – Existence of anti-discrimination ordinances (e.g., salary history bans in Philadelphia). – Implementation of pay transparency laws (e.g., posting salary ranges, as in Colorado and New York).

Source: whyy.org