General

Wage Gap

The difference in average earnings between different demographic groups, often based on gender or race.

Definition

The wage gap refers to the disparity in average earnings between different groups of workers, most commonly observed between men and women (gender wage gap) or between different racial and ethnic groups. It is typically expressed as a percentage (e.g., women earn X cents for every dollar earned by men) or as a dollar amount. The wage gap is influenced by a complex interplay of factors, including direct pay discrimination, occupational segregation, differences in work hours, career interruptions for caregiving, and lack of pay transparency. Legislative efforts like Pennsylvania's proposed HB 560 aim to reduce these gaps by promoting transparency and addressing discriminatory practices.