Saturday, 26 November 2022

72% of Six-Figure Earners Are Men, While 57% of Workers Earning Less Than $25,000 Are Women

28 Feb
8:09

Updated on Monday, February 28, 2022

It’s no secret that women earn less than men. According to the newest MagnifyMoney study on the gender pay gap, women are disproportionately represented in the lowest income tier and underrepresented in the highest.

In fact, 72% of workers who earn six-figure salaries or above are men, while 57% of workers who earn less than $25,000 a year are women. This is according to an analysis of the latest available U.S. Census Bureau data.

“Women are always playing catch-up,” says Ismat Mangla, executive editor at MagnifyMoney. “They bear the brunt of low-wage jobs, and those low wages translate to a lifetime of being behind when it comes to building financial security.”

TABLE OF CONTENTS

Key findings

  • 72% of workers who earn six figures or above are men. For every woman who makes at least $100,000, 2.5 men do. The percentage continues to rise as you move up the income ladder, with 78% of $200,000-plus earners being men.
  • The highest disparity among workers who earn at least six figures is in Utah. 85% of six-figure earners in the state are men, compared with 15% who are women. The lowest disparity is in the District of Columbia, where 57% of six-figure earners are men, compared with 43% who are women.
  • 57% of workers who make less than $25,000 are women. Even though the male workforce is 11% larger than the female workforce, there are millions more women than men in this lowest income tier. 40% of female workers make less than $25,000, compared with 27% of male workers.
  • The highest disparity among workers making less than $25,000 is in Louisiana. 60% of workers in the state below that income threshold are women, compared with 40% who are men. The lowest disparity is in Alaska, where 54% of workers under that income threshold are women, compared with 46% who are men.

72% of at least six figures are men

Traditional studies tend to focus on the average or median worker. These studies are usually framed with a statistic that indicates how many cents a woman earns, on average, compared to every dollar a man earns. While they illustrate the broad income disparities between men and women, they don’t show how the manifests at different income tiers.

The gender pay gap, according to the new MagnifyMoney study, is widest among high-income workers. Breaking it down:

  • 72% of those who earn at least $100,000 are men, while 28% are women
  • 73% of those who earn at least $150,000 but less than $200,000 are men, while 27% are women
  • 78% of those who earn at least $200,000 are men, while 22% are women

“The highest earners in our society are men, which means that they are able to build wealth for the long haul,” Mangla says. Men tend to have more money stashed away than women, in large part due to the gender pay gap.

Looking at the gap differently, 16% of male workers earn at least six figures, compared with 7% of female workers. And 4% of men land above the $200,000 income threshold, compared with 1% of women.

Some states have wider gender pay gaps than others, especially when looking at the high end of the income scale. The statistical distribution of the gender pay gap is much wider at the state level for at least six figures than it is for those earning $25,000 or less. Here are the states with the biggest gaps among workers who earn $100,000 or more:

  • Utah: 85% men, 15% women
  • Wyoming: 83% men, 17% women
  • North Dakota: 82% men, 18% women
  • Idaho: 81% men, 19% women
  • Louisiana: 80% men, 20% women
States with the biggest gender disparities among six-figure earners
Rank State Number of men earning at least $100,000 Number of women earning at least $100,000 Percentage who are men
U.S. 12,560,917 4,991,130 71.6%
1 Utah 119,099 21,082 85.0%
2 Wyoming 19,078 4,012 82.6%
3 North Dakota 31,253 6,666 82.4%
4 Idaho 44,130 10,264 81.1%
5 Louisiana 144,842 35,405 80.4%
6 Oklahoma 104,701 28,135 78.8%
7 Montana 26,722 7,307 78.5%
8 South Dakota 22,082 6,105 78.3%
9 Alabama 128,934 36,382 78.0%
10 Mississippi 55,942 15,972 77.8%
11 Kansas 92,631 26,637 77.7%
12 Nebraska 56,037 16,475 77.3%
12 Indiana 188,069 55,367 77.3%
14 Iowa 93,270 27,777 77.1%
15 West Virginia 38,812 11,700 76.8%
16 Michigan 333,115 106,017 75.9%
17 Alaska 31,772 10,148 75.8%
17 Texas 1,106,823 353,600 75.8%
19 New Hampshire 68,674 22,283 75.5%
20 South Carolina 128,486 42,180 75.3%
21 Arkansas 63,825 21,005 75.2%
22 Ohio 344,437 117,778 74.5%
23 Tennessee 182,965 62,903 74.4%
24 Wisconsin 169,716 58,605 74.3%
25 New Mexico 48,287 17,047 73.9%
25 Kentucky 100,598 35,576 73.9%
27 Missouri 174,815 61,904 73.8%
28 Washington 391,971 142,773 73.3%
29 Arizona 216,792 79,721 73.1%
30 Florida 583,024 217,776 72.8%
30 Colorado 265,584 99,372 72.8%
32 Pennsylvania 462,800 173,778 72.7%
33 North Carolina 309,018 117,114 72.5%
34 Georgia 354,352 136,329 72.2%
34 Nevada 82,835 31,895 72.2%
36 Illinois 555,563 218,346 71.8%
37 Oregon 144,349 57,347 71.6%
38 Rhode Island 38,919 15,539 71.5%
39 Minnesota 234,327 94,120 71.3%
40 Maine 32,353 13,527 70.5%
41 New Jersey 568,607 238,659 70.4%
42 Connecticut 203,861 87,531 70.0%
43 Delaware 34,050 14,869 69.6%
44 Virginia 440,803 196,014 69.2%
45 Massachusetts 419,098 195,088 68.2%
46 California 1,927,090 909,130 67.9%
47 Hawaii 43,838 20,891 67.7%
48 Vermont 16,466 7,917 67.5%
49 New York 918,406 478,183 65.8%
50 Maryland 340,570 183,174 65.0%
51 District of Columbia 57,126 43,705 56.7%
Source: MagnifyMoney analysis of 2019 American Community Survey microdata.

As the chart shows, even in states with the smallest gender pay gaps at the highest end of the income scale, there still isn’t parity. In every state (and D.C.), more workers who earn $100,000 or more are men. Here are the states with the smallest gender pay gaps among high-income workers:

  • District of Columbia: 57% men, 43% women
  • Maryland: 65% men, 35% women
  • New York: 66% men, 34% women
  • Vermont: 68% men, 32% women
  • Hawaii: 68% men, 32% women

57% of workers earning less than $25,000 are women

Even though there are 11% more men than women in the workforce, more women (28.6 million) earn less than $25,000 a year than men (21.5 million). In every state and D.C., there are more women earning less than $25,000 than there are men.

In the next income tier — workers who make at least $25,000 but less than $50,000 — the gap is narrower: 51% of those workers are men, while 49% are women.

The gender distribution among workers earning less than $25,000 isn’t as stark — but it’s still prominent, nonetheless. In six states, the biggest gap among workers who earn $25,000 or less is 20 percentage points (60% women, versus 40% men). This makes it exponentially harder for women to put more money in their savings accounts.

States with the biggest gender disparities among lower-earning workers
Rank State Number of women earning less than $25,000 Number of men earning less than $25,000 Percentage who are women
United States 28,570,269 21,470,810 57.1%
1 Louisiana 449,457 295,282 60.4%
2 Indiana 646,349 427,923 60.2%
3 Wyoming 55,870 37,269 60.0%
4 Maine 129,745 86,938 59.9%
5 Massachusetts 567,839 385,036 59.6%
5 Iowa 308,276 209,336 59.6%
7 Wisconsin 562,804 386,522 59.3%
8 Ohio 1,100,541 761,039 59.1%
8 Pennsylvania 1,131,098 782,520 59.1%
10 Alabama 451,373 313,334 59.0%
10 Mississippi 278,884 193,632 59.0%
10 New Hampshire 118,837 82,588 59.0%
13 Kansas 285,168 199,390 58.9%
14 North Dakota 68,003 47,602 58.8%
15 Connecticut 288,343 202,821 58.7%
15 Idaho 179,402 126,204 58.7%
15 Michigan 948,741 667,076 58.7%
18 South Dakota 83,849 59,214 58.6%
19 Illinois 1,131,473 803,264 58.5%
19 Nebraska 189,930 134,992 58.5%
21 Virginia 714,987 508,840 58.4%
22 Utah 317,111 226,576 58.3%
22 Minnesota 494,453 354,071 58.3%
24 Washington 574,649 412,270 58.2%
24 South Carolina 474,459 341,337 58.2%
26 West Virginia 157,038 113,280 58.1%
27 Missouri 576,825 417,751 58.0%
27 Vermont 61,073 44,261 58.0%
29 New Jersey 697,070 508,579 57.8%
30 Rhode Island 89,671 65,904 57.6%
30 Oklahoma 368,701 271,600 57.6%
30 Delaware 77,649 57,265 57.6%
33 Kentucky 405,123 299,364 57.5%
34 Georgia 932,388 691,615 57.4%
35 Maryland 452,957 336,899 57.3%
36 District of Columbia 40,852 30,703 57.1%
37 Arkansas 278,417 210,034 57.0%
38 North Carolina 941,309 712,566 56.9%
38 Oregon 375,237 284,309 56.9%
38 Tennessee 620,255 469,723 56.9%
38 Colorado 484,514 367,753 56.9%
42 New York 1,551,151 1,198,774 56.4%
43 Montana 108,197 84,595 56.1%
44 New Mexico 198,818 156,676 55.9%
45 Texas 2,521,521 2,006,606 55.7%
46 Hawaii 108,006 86,789 55.4%
47 Florida 1,891,190 1,555,648 54.9%
48 Nevada 243,056 205,336 54.2%
48 Arizona 577,914 489,241 54.2%
50 California 3,207,930 2,716,317 54.1%
51 Alaska 51,766 44,146 54.0%
Source: MagnifyMoney analysis of 2019 American Community Survey microdata.

Here’s a breakdown of the states with the smallest gender pay gaps among these lower earners:

  • Alaska: 54% women, 46% men
  • California: 54% women, 46% men
  • Arizona: 54% women, 46% men
  • Nevada: 54% women, 46% men
  • Florida: 55% women, 45% men

Gender pay disparities in each income bracket

Aside from the lowest income bracket (less than $25,000), there are more men than women in every other income bracket. The gap widens at each tier, as the percentage of men is successively higher for those making at least $25,000 but less than $50,000, at least $50,000 but less than $75,000 and so on.

At the highest income bracket included in this MagnifyMoney study — workers who earn $200,000 or more — 78% of workers are men, meaning that there are 3.6 men for every woman who makes at least that amount.

Fighting the gender pay gap

There are several structural reasons why men tend to earn more than women, especially sexism in the workplace. Even when men and women have the same level of experience and same job responsibilities, pay equity is never guaranteed.

The onus for closing the gender pay gap falls on employers and policymakers who can create structural change.

“Raising the minimum wage and instituting pay transparency could go a long way toward leveling the playing field,” Mangla says.

So what steps can women take?

“The problems are structural, but it always makes sense for women to do their research on compensation in their field so they can be armed with information when it comes to negotiating,” Mangla says.

However, Mangla says negotiating for a fairer wage can sometimes backfire.

“Women are often penalized for trying to secure higher wages, so they should be aware of this before negotiating,” she says.

Methodology

Analysts used microdata from the U.S. Census Bureau 2019 American Community Survey (five-year estimate) to count the number of actively employed men and women in each state who reported individual, annualized earnings within the following bands:

  • Less than $25,000
  • $25,000 to $49,999
  • $50,000 to $74,999
  • $75,000 to $99,999
  • $100,000 to $149,999
  • $150,000 to $199,999
  • $200,000 and higher

The final three bands were summed to count men and women who earned more than $100,000. Analysts also calculated the percentage of male and female active workers who fell within each band.

Source: https://www.magnifymoney.com/blog/news/gender-pay-gap-study/

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