Financial Success of Women

IntroductionTraditionally, the focus on those who achieve the American Dream has been on men. But the Dream is available for women as well, and they have come a long way from where they first began. From changing gender roles to acquisition of important rights such as suffrage, have women also been able to achieve financial success, an integral component of the American Dream, equal to that of men?

WorkforceAs of today, women make up almost half the workforce in America, when in 1989, they only comprised of ⅓ of the workforce. Women seized the chance to work when, during World War II, seven million men left their jobs to serve in the war, jobs that were then assumed by women. From that point on, women have increasingly been willing to and able to work outside the home. Improvements in technology also push women toward the workforce because they reduce the time needed for “traditional female work of cleaning and cooking”. Moreover, the expansion of higher education has provided more career opportunities for women, providing the shift for many from housewives to professional women. One of the most important inventions is the contraceptive pill, which has allowed women to get married later and “[increase] their incentives to invest time and effort in acquiring skills,” all of which encourage women to join the workforce and pursue careers.

Pay GapEver since women’s entrance into the American workforce, there has been controversy over the unequal pay among men and women. In 1979, women earned 62 percent of what men made, and presently they earn 81.2 percent of what men make. However in 1963, Congress passed the Equal Pay Act that required equal pay for women and men. If there is a congressional law that prohibits unequal pay based on gender then why do women statistically earn less money than men? Because “the wage gap statistic...doesn’t compare two similarly situated co-workers of different sexes, working in the same industry, performing the same work, for the same number of hours a day. It merely reflects the median earnings of all men and women classified as full-time workers.” There are several factors that may explain the gap including occupation, major, number of hours spent working, and parenthood.

Women tend to pursue careers in different areas than men. Not only that, but they seek jobs that have more regular hours, little travel, and comfortable conditions. They are more willing to trade a higher paying job for a job that appeals to them. On the other hand, men are more likely to work unappealing jobs for higher pay. These types of jobs offer higher pay because very few people want to do them.

Children also pay a significant role in work-related decisions for men and women. Working women with children are more likely to forego a higher paying job in lieu of one that allows them to be present in their children’s lives. Men with children, in contrast, are more willing to work longer hours and less appealing jobs because their focus is to earn more money in order to financially support their children. According to the Department of Labor’s Time Use Survey, the average full-time male worker work for 8.14 hours a day, while the average full-time female worker only works for 7.75 hours, which accounts for one-quarter of the pay gap. Unfortunately, “many women are forced to choose between motherhood and careers. Childless women in corporate America earn almost as much as men.” Working mothers choose careers such as teaching because “wages do not rise much with experience and hours are relatively light. But at successful firms wages rise steeply and schedules are demanding.”

The different majors men and women pursue may also explain the pay gap between the genders. Men are more likely to major in subjects that lead to high paying jobs such as computer science, and other science, technology, engineering and math (STEM) fields. While women hold 60 percent of all bachelors degrees, less than 20 percent have degrees in STEM majors ]. Although it is out of choice that women choose not to pursue more lucrative careers, there could be external factors influencing their choices. Heather Huhman, writer for Forbes magazine, says, “Young girls are rarely encouraged to pursue math and science, which is problematic considering studies show a lack of belief in intellectual growth can actually inhibit it. In addition, there exists an unconscious bias that science and math are typically “male” fields while humanities and arts are primarily “female” fields, and these stereotypes further inhibit girls’ likelihood of cultivating an interest in math and science”.

Women in High PositionsWhile many women are able to become financially independent, rarely will they be able to hold positions of high authority in their place of work, and when they are, it is not as rewarding as one might imagine. According to a study done by the University of Texas at Austin, depression symptoms among women increase as they advance in position, whereas in men, they generally decrease. Women of high work status face gender discrimination, harassment, are “evaluated more strictly than men in similar positions,” and must deal with “negative social interactions, negative stereotypes and prejudice, and resistance from subordinates, colleagues, and superiors.” It is also difficult for women to have high aspirations because high positions are normally dominated by men. According to The Economist, “Only 2% of the bosses of Fortune 500 companies and five of those in the FTSE 100 stockmarket index are women. Women make up less than 13% of board members in America.” While it seems as if some women are able to achieve financial success equal to that of men, they often encounter disrespect, distrust, and discrimination from their male colleagues, which has the overall effect of diminishing those women’s success.

ConclusionAlthough women are more prevalent in the workforce today, and have much more economic opportunity than ever before, they still do not have financial success equal to that of men. Looking at the statistics, there is a pay gap of approximately 22 percent for men and women . Although the pay gap can be explained away by certain factors, some of the factors are not entirely in the women’s control. When it comes to pursuing higher-paying majors, women are often discouraged from entering those fields because they are typically male-dominated. Concerning motherhood, it is a difficult and not entirely fair decision for women to make: have children or have a career. And while some women are able to achieve great financial success and high status, their success is marred gender discrimination. Some of these factors―under representation in STEM fields and gender discrimination―can likely be changed with time, but other factors―motherhood―are not as easily resolved. With that in mind, it is difficult to determine whether women will ever be able to achieve financial success equal to that of men.