by Rachel Greszler, James Sherk
The Heritage Foundation
May 22, 2014
The White House and many in Congress argue that employers pay women less than men for the same work. They point to figures showing that women earn 77 cents for each dollar men earn. Such statistics ignore other factors that influence pay. Education, choice of industry and occupation, hours worked, experience, and career interruptions all affect the productivity—and compensation—of workers, whether male or female. Accounting for such factors reduces the difference between average male and female wages to just 5 cents on the dollar. Other factors, such as the cost of fringe benefits, may account for much or all of the remaining gap.