Money Rehab with Nicole Lapin - WTF is the Wage Gap?
Episode Date: October 7, 2021We know that “the wage gap” has something to do with women making less money than men, the US women’s soccer team and cents on the dollar. In this episode, Nicole unpacks the origins of the wage... gap and explains why all of us, regardless of gender, can and should make a difference. Learn more about your ad-choices at https://www.iheartpodcastnetwork.comSee omnystudio.com/listener for privacy information.
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Money rehabbers, you get it. When you're trying to have it all, you end up doing a lot of juggling.
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bfa.com slash newprosmedia. Hey guys, are you ready for some money rehab?
Wall Street has been completely upended by an unlikely player, GameStop.
And should I have a 401k? You don't do it?
No, I never do it.
You think the whole world revolves around you and your money.
Well, it doesn't.
Charge for wasting our time.
I will take a check.
Like an old school check.
You recognize her from anchoring on CNN, CNBC, and Bloomberg.
The only financial expert you don't need a dictionary to understand.
Nicole Lappin.
The financial world can be a very cutthroat place.
That is not breaking news.
Savvy business people are referred to as sharks.
And on Wall Street, you hear phrases like, it's a dog-eat-dog world.
I'm sure you've heard someone say, it's just business
after doing something totally savage, almost as if doing something fucked up in the name of making
money is A-OK in the crazy financial animal kingdom. That is one way of looking at the
financial world. It's a zero-sum game, and for every winner, there needs to be a loser. However,
that's not necessarily how the
economy works. In a healthy economy, people have money to spend. In other words, people are making
enough money so that they can support businesses and therefore employees and business owners.
And there is a healthy financial ecosystem with cash flow. So issues of fair pay,
like raising the federal minimum wage, which we covered
on episode 62, are issues we should all care about because we do better when we all do better.
You know, I don't like cliches, but I do like metaphors. And for the national economy,
I love the metaphor rising tides lift all boats. Another fair pay issue we should all care about
is the difference in pay
between men and women who work the same jobs. That's what we're going to be talking about today,
and I'm going to be telling you why this issue is important and how we can all help. And men who
think they can just totally check out of this episode, nah boys, this one is for you too. Plus,
men who are feminists are so sexy. That's not just science.
That is my expert opinion. So do all of you money rehabbing boys pay very close attention?
Throughout the entire history of this country, I am talking every chapter in the textbook,
men have always earned more than women for doing the exact same work. The difference in pay,
earned more than women for doing the exact same work. The difference in pay, known as the wage gap, has been shrinking in modern times, but it still exists. Trust me. And for working women
today, no matter how much better off we are than women that came before us, any difference in pay
is too wide of a gap. According to a study by the Pew Research Center in 2020, women made 16 percent less than men working the same position.
When talking about the wage gap, people sometimes use language like women make 84 cents on the dollar when compared to men.
This phrasing is vivid and powerful, but I think it sometimes confuses people because it sounds like there's some sort of salary deflation that's specific to women.
And that's not how it works.
The way to think about the wage gap is if you look at a man and a woman that have the same qualifications, the same degrees, the same number of years of experience, and the same job title, the woman on average makes only 84% of what the man earns. The Pew Research Center points out that this gap means a woman
would need to work 42 more days than a man to make what he makes in a year. This gap is wider
for women of color. I do want to note here that the movement for fair pay is not about having
men earn less. Don't worry, fellas, not trying to take your money here. This movement is all
about women earning the same wage as their
male counterparts, basically just getting what they deserve. That's not so controversial, right?
The solution on a company-wide level would involve assigning salary based on unbiased factors like
performance and experience. If you work hard, no matter your sex or gender, this evaluation system would work for you.
The wage gap is part of a greater problem of women being viewed as, and I quote here, the weaker sex.
There is a long history of women only securing opportunities where there's a vacancy left by a man.
And this has happened in many different scenarios across many different industries.
For example, when American men left
the country to fight in World War II, there was a huge void in the labor industry. So women stepped
in and stepped up. Before the war, women only made up 1% of the aircraft industry. During the war,
women made up 65% of the aircraft industry. This growth happened across many different sectors as women filled
the labor force. And in a very different, more recent example, New York swore in its first
woman governor after Governor Cuomo resigned over sexual harassment allegations. But back to World
War II, women who were keeping the trains running on time, literally, were making roughly half the
salary of their male co-workers.
On behalf of our girl, Rosie the Riveter, who I was for Halloween one year, fun fact,
we should all be pissed. And there was a general pissed-offness in the social consciousness at the
time. So much so that later in 1963, the Equal Pay Act was passed, signing into law commanding
that there should be no disparity in pay based on gender or sex. However, you can't just put social change into law. You need to
change systems or nothing will change. And that's pretty much exactly what we've been seeing with
the Equal Pay Act. Hold on to your wallets, boys and girls. Money Rehab will be right back.
On to your wallets, boys and girls. Money Rehab will be right back.
Now for some more Money Rehab. In 1970, years after the legislation passed,
women still made 40% less than what men were earning. The wage gap, of course,
became a national conversation when the U.S. women's soccer team filed a gender discrimination lawsuit against the U.S. Soccer Federation in 2016. According to the suit,
players on the women's team earn 11% less than the players on the men's team, and men make almost
double in bonuses for World Cup appearances. That lawsuit was dismissed, but there is an appeal
in progress, and the fight is ongoing. To quote the women's soccer team mantra, LFG, let's fucking go.
The wage gap isn't entirely caused by women getting relatively low starting salary offers.
Another issue that feeds into the wage gap is that women don't raise their hands for pay increases or bonuses as often as men do.
And that's perfectly understandable, right?
Women have had to fight for that seat at the table.
And instead
of celebrating our place, we worry that it's going to be taken away. That leaves women with
a lot of mental gymnastics to navigate in the workplace. Women have to worry about being likable,
not threatening their co-workers' egos, not being too aggressive. I mean, I get it. Obviously,
I've been there. But this is how we as women can spark change
from the inside out. I have some homework for all of you money rehabbers out there,
the men and the women. Rather than finding a way for women to add 42 more days in a calendar year
in order to earn the same salary as men, let's explore some simpler options. Ladies, take a look
at the average salary for your position on a site like payscale.com or
salary.com and make sure you're earning at the high end of the salary range for your position
in your geographic area. If you're earning the average salary for your position, that's not good
enough. Why? Well, the average salary for your position will probably be the calculated midpoint
between the salary ceiling, typically earned by the men,
and the salary floor, typically earned by the women. We deserve what the men get, nothing less.
So shoot for the ceiling of your salary range and bust the glass ceiling along the way. If you're
making less than you deserve, listen to episode 56 of Money Rehab on negotiating a raise. Boys,
episode 56 of Money Rehab on negotiating a raise. Boys, here is your homework. Tell your female co-workers what you're making. Yep, share your salary. Say it out loud. I know it can feel
uncomfortable. I know you may feel guilty or nervous about being the bad guy. But no, this
makes you an ally, a good guy. And in this story, the good guy wins. Or for some comic relief,
here's another idea from writer and overall badass media extraordinaire Alexis Oni-Essilay.
So I've done a lot of thinking and I really truly believe that the only way to solve the wage gap
is for those of us who identify as women to charge those of us who identify as men for wasting
our time. It happens every day. Every woman you know is having her time wasted. If it's like
talking to a guy, if it's laughing at a joke that you think isn't funny, but like a pity laugh,
time wasted. I just really think that we could like itemize
our time in the same way that you would for a job. And when your time is wasted, Venmo, Zelle,
Cash App, I will take a check, like an old school check. I just really think that's the best way to
close the wage gap and I will not be taking any counters. If those were the rules, I would be a much richer
bitch. That's for sure. For today's tip, you can take straight to the bank. Ladies, men, everyone,
start talking openly about how much money you're making. I know it can feel icky and weird and you
may feel jealous of someone making more than you and guilty over someone making less than you,
but you can't solve a
problem if it's been made invisible. You'll be surprised how much your co-workers appreciate you
going first on bringing this issue to light.
Money Rehab is a production of iHeartRadio. I'm your host, Nicole Lappin. Our producers are
Morgan Lavoie and Mike Coscarelli. Executive producers are
Nikki Etor and Will Pearson. Our mascots are Penny and Mimsy. Huge thanks to OG Money Rehab
team Michelle Lanz for her development work, Catherine Law for her production and writing
magic, and Brandon Dickert for his editing, engineering, and sound design. And as always,
thanks to you for finally investing in yourself
so that you can get it together and get it all.