20 States With Biggest Gender Wage Gaps

Published on March 20, 2024 at 6:44 pm by Afifa Mushtaque in Lists, News

In this article, we will look at the 20 states with the biggest gender wage gaps. We have also discussed the struggles of women in the workforce in the US. If you want to skip our detailed analysis, head straight to the 5 States With Biggest Gender Wage Gaps.

What Industries have the Worst Gender Pay Gap?

The impact of the pandemic has been severe, with over a million women exiting the workforce. Persistent gender pay gaps are evident across various industries, where women earn significantly less: 77 cents in Finance, 83 in Agencies, 86 in Health care, 87 in Transportation, and 88 in Nonprofits for 1 dollar earned by men. Even in sectors like Health care, where women dominate, income disparities endure. Women holding MBAs earn only 76 cents compared to men, while those in Law fare slightly better at 89 cents. Structural biases and limited access to senior roles exacerbate the issue. Closing these gaps necessitates addressing systemic biases, offering flexible work arrangements, and promoting transparency. To read more about gender pay gaps, see the States With the Smallest Gender Pay Gap.

Is There a Gender Wage Gap in the US?

In 2022, the gender pay gap in the United States remained stubbornly persistent, with women earning an average of 82% of what men earned. This figure has barely budged over the past two decades, mirroring the 80% ratio recorded in 2002. However, there’s a glimmer of progress among younger workers, with women aged 25 to 34 earning 92 cents for every dollar earned by their male counterparts, showcasing a narrower 8-cent gap compared to the 18-cent disparity among all age groups.

Despite the stagnant overall trend, there’s a more positive long-term trajectory. Over four decades, the gender pay gap among all workers aged 16 and older has reduced significantly, dropping from 35 cents in 1982 to 18 cents in 2022. Similarly, among the 25 to 34 age group, the gap has narrowed from 26 cents to 8 cents over the same period. These improvements are attributed to gains in factors like educational attainment, occupational diversity, and increased work experience among women.

The persistent wage gap isn’t solely explained by measurable factors such as educational and occupational choices. Survey data reveals that perceptions of gender discrimination in the workplace remain prevalent, with half of US adults citing differential treatment by employers as a major reason for the pay gap. Additionally, societal expectations and family responsibilities exert different pressures on working women and men, contributing to variations in career aspirations and advancement opportunities between genders. Despite some progress, these findings highlight the ongoing challenges in achieving gender pay parity and the need for continued efforts to address underlying systemic issues.

It is also worth noting that India is one of the worst countries with the biggest wage gaps whereas Belgium is one of the countries with the most equal wages for men and women. To read more about gender equal countries, see the 25 Most Gender and Income Equal Countries in the World

Is the Workforce Improving for Women in the US?

In the past few decades, major positive shifts have alsooccurred in gender dynamics in the United States. The workforce has witnessed a remarkable increase in the participation of women. From comprising only 30% in 1950, women now constitute 47% of the civilian labor force as of 2023. Moreover, women have surpassed men in the college-educated workforce, representing 51% of those aged 25 and older.

Furthermore, there has been a notable rise in the representation of women in high-paying occupations. Census Bureau data from November 2023 indicates that about a third of workers in the country’s top ten highest-paying jobs are women, marking a substantial increase from 13% in 1980. Despite remaining a minority in most of these occupations, women have made major contributions in breaking into traditionally male-dominated fields such as medicine, law, and dentistry.

Additionally, there has been a visible shift in the dynamics of household income and gender roles within marriages. Analysis of Census Bureau data reveals a threefold increase in the share of opposite-sex marriages where women earn as much as or more than their husbands over the past 50 years. While challenges such as the gender pay gap and underrepresentation in top leadership positions persist, these positive trends reflect ongoing progress towards gender equality in various spheres of society.

Most Gender-Sensitive Companies in the US

L’Oréal SA (OTC:LRLCY) is globally known for gender equality, ranking number one in France and 11th worldwide among 3,500 companies, according to Equileap’s 2023 Gender Equality Ranking. With women comprising 50% of the board members, 32% of the executive committee, 57% of all key positions, and 61% of international brand directors, L’Oréal SA (OTC:LRLCY) showcases a commitment to diversity and inclusion.

Equileap’s report signals progress, with L’Oréal SA (OTC:LRLCY) consistent recognition reflecting a broader trend of improvement in global gender equality scores. This momentum is further fueled by an increasing acknowledgment that better gender equality correlates with enhanced performance. L’Oréal SA (OTC:LRLCY)’s multifaceted approach not only focuses on gender equity but also extends to fostering inclusive environments for the LGBTQIA+ community worldwide. Through these concerted efforts and a firm stance against all forms of harassment and violence, L’Oréal SA (OTC:LRLCY) remains steadfast in its pursuit of a workplace where everyone, regardless of gender or identity, can thrive and contribute to the company’s success.

On the other hand, SAP SE (NYSE:SAP) has been actively pursuing gender equality and balance within its workforce, recognizing the imperative of diversity in driving business success. Over the past five years, SAP SE (NYSE:SAP) has demonstrated significant progress, achieving its goal of having 35% women in its workforce and increasing the representation of women in management from 25.5% in 2017 to 29.4% by the end of 2022.

SAP SE (NYSE:SAP) has implemented various initiatives aimed at supporting women in tech, acknowledging the unique challenges they face. Programs such as the Business Women’s Network, internal development programs, and the SAP SE (NYSE:SAP) Returnship Program in North America have been instrumental in helping women grow and thrive in their careers. Furthermore, SAP SE (NYSE:SAP) has partnered with organizations like AnitaB.org to promote the participation of women and non-binary individuals in technology, reflecting its dedication to driving industry-wide change.

Despite the progress made, SAP SE (NYSE:SAP) acknowledges that there is still more work to be done to achieve full gender parity. With a goal of reaching 50/50 parity, the company remains committed to advancing diversity and inclusion both internally and externally. By leveraging technologies like AI to combat unconscious bias and continuously pushing for change, SAP SE (NYSE:SAP) aims to lead the way in creating a more equitable and balanced workforce, not just within its own organization but across the tech industry as a whole.

Photo by Remy Gieling on Unsplash

Our Methodology

To list the states with the biggest gender wage gaps, we utilized data from the Bureau of Labor Statistics. We extracted male median annual earnings and female median annual earnings for each state and calculated the difference. In all cases, men earned more than women, and hence, all the states have been ranked in the order of increasing wage gaps for women in the US.

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Here is a list of the states with the biggest gender wage gaps:

20. Pennsylvania

Difference in Earnings: -$11,824

According to BLS, in 2022, Pennsylvania women earned a median weekly wage of $981, 82.1% of their male counterparts’ $1,195. This was an improvement from 2021’s $925. Nationwide, women earned $958 weekly, 83.0% of men’s $1,154. Since 1997, Pennsylvania’s women-to-men earnings ratio ranged from 71.8% to 82.1%.

19. North Dakota

Difference in Earnings: -$11,939

The U.S. Bureau of Labor Statistics reported that in 2022, North Dakota women working full-time earned a median weekly wage of $900, equivalent to 78.9% of the $1,140 median earned by their male counterparts. Regional Commissioner Jason Palmer highlighted that the women’s-to-men’s earnings ratio was 78.9% in 2022, slightly lower than 79.5% in 2021.

18. Indiana

Difference in Earnings: -$11,976

In 2022, full-time wage and salary working women in Indiana earned a median weekly wage of $861, representing 77.6% of the $1,109 median earned by men in similar positions. Hence, it is also one of the states with the biggest gender wage gaps in 2024.

17. Hawaii

Difference in Earnings: -$11,996

In Hawaii, women’s earnings improved to 89.4 cents per male dollar in 2019, reflecting increased educational attainment and shifting workforce demographics. However, the pandemic exacerbated disparities, with women experiencing significant setbacks in employment and earnings. Occupational segregation, cultural expectations, and caregiving responsibilities contribute to this inequity.

16. Minnesota

Difference in Earnings: -$12,076

While the gender pay gap in the state is pretty high, the achievement of an all-female city council in St. Paul, Minnesota, has marked an important milestone in gender representation in politics. With diverse backgrounds and experiences, these council members reflect the city’s multicultural community. Their priorities, ranging from housing policy to public safety, demonstrate a commitment to addressing critical issues affecting residents.

15. West Virginia

Difference in Earnings: -$12,084

In West Virginia, bridging the gender gap in workforce participation remains a pressing challenge. Despite strides, women consistently earn less than men, with Black and Latina women facing wider disparities. The average West Virginian woman earns $483,000 less than her male counterpart over a lifetime. This inequity, compounded by occupational segregation, denies women economic and retirement security. Female-dominated sectors like healthcare support and administrative roles perpetuate lower wages.

14. Nebraska

Difference in Earnings: -$12,084

The gender wage gap has narrowed, with women earning 75 cents to men’s dollar, and Hispanic women earning just 54 cents for every dollar earned by White men as of 2018. If current trends continue, equal pay may not be achieved until 2066. While 64.4% of women participate in the labor force, women’s poverty rates remain high, with a reduction possible if pay parity is achieved.

13. Connecticut

Difference in Earnings: -$-12,350

In Connecticut, women holding full-time, year-round jobs earn a median annual pay of $50,706, compared to men’s $60,385. This translates to women being paid 83 cents for every dollar earned by men. It was also one of the states with the biggest gender wage gaps in 2021.

12. Virginia

Difference in Earnings: -$12,600

In 2022, full-time wage and salary working women in Virginia earned a median usual weekly income of $1,054, equivalent to 79.6 percent of their male counterparts’ $1,324 median usual weekly earnings, as reported by the U.S. Bureau of Labor Statistics. It is one of the states with the highest pay gap between men and women.

11. Illinois

Difference in Earnings: -$12,688

The Equal Pay Chicago Coalition strives to narrow the wage gap, spotlighting disparities where women earn 80% of men’s wages, even less for women of color. Despite legislation promoting transparency, advocates stress the need for further action. Factors like overrepresentation in lower-paying sectors contribute to the gap, exacerbated by the pandemic’s impact on industries dominated by women. Efforts include pay audits and promoting family-friendly workplace policies.

10. Alabama

Difference in Earnings: -$12,839

Alabama’s gender pay gap is stark, with women earning 67 cents for every man’s dollar. Black and Hispanic women fare worse, earning 52 and 41 cents respectively. Structural issues like occupational segregation and discrimination perpetuate this gap. Alabama’s female labor force participation at 52% is the Southeast’s lowest, hindering the state’s hiring potential.

9. Michigan

Difference in Earnings: -$13,379

Michigan legislators target the state’s gender pay gap, with men earning $13,379 more annually than women. This discrepancy, the ninth-largest in the U.S., highlights disparities across professions, with women often in lower-paying roles like nursing and teaching, while men dominate truck driving and construction. Representative Laurie Pohutsky plans to reintroduce a bill package aimed at rectifying this issue, emphasizing its adverse effects on women of color and the economy.

8. New Jersey

Difference in Earnings: -$13,495

The U.S. Bureau of Labor Statistics revealed that in 2022, full-time wage and salary working women in New Jersey earned a median of $1,072 weekly, constituting 83.5% of their male counterparts’ median earnings of $1,284. This ratio fluctuated between 74.3% in 2004 and 84.8% in 2010 since data collection began in 1997. Despite improvements over the years, gender pay disparity persists, showcasing the ongoing need for measures to address wage equality and promote fairness in the workforce.

7. Montana

Difference in Earnings: -$13,771

The gender pay gap in Montana has shown some improvement but remains a concern. According to the Equal Pay for Equal Work Montana Task Force, established under Governor Steve Bullock, the gap narrowed from 68.4% to 73.2% over seven years. Efforts include summits, legislative proposals, pay equity audits, and empowering women in negotiations. Despite progress, disparities persist, urging continued action from individuals, employers, and policymakers.

6. Louisiana

Difference in Earnings: -$14,942

In Louisiana, women’s median usual weekly earnings in 2022 stood at $822, marking 77.3% of men’s median earnings at $1,064, according to the US Bureau of Labor Statistics. This ratio has fluctuated, hitting a low of 65.0% in 2009 and reaching a high of 78.1% in 2021. It is also one of the states with a high pay gap even in same jobs.

Click here to see the 5 States With Biggest Gender Wage Gaps.