A new study shows that we’ve greatly underestimated the magnitude of the gender wage gap in the US. The Institute for Women’s Policy Research found that from 2001 to 2015, women earned 51 percent less than what their male colleagues earned. The difference in pay takes into account family or medical leave. The study found that if more companies offered paid parental and medical leave policies, more women would stay in the workforce and subsequently earn more.
The Institute President Heidi Hartmann said, “Much ink has been spilled debating whether the commonly cited measure of the wage gap—that women earn 80 cents for every dollar earned by a man—is an exaggeration due to occupational differences or so-called ‘women’s choices.’ But our analysis finds that we have actually been underestimating the extent of pay inequality in the labor market.” Want to know what you’d be earning in a more equal economy? Check out this gender pay gap calculator.