New Report Finds High Earnings for Women in DC, MD, & VA, but Wide Gender Wage Gaps for the Region's Women of Color

4/21/2004

From: Jean Sinzdak of the Institute for Women's Policy Research, 202-785-5100 or sinzdak@iwpr.org

WASHINGTON, April 21 -- Although the Washington metropolitan area ranks well on women's economic status, there are wide disparities among women of different racial and ethnic groups, according to a report released today by the Institute for Women's Policy Research (IWPR), a nonprofit think tank devoted to monitoring women's progress.

The report, Women's Economic Status: Wide Disparities by Race, Ethnicity, and Region, ranks the District of Columbia at the top of the nation when compared with the 50 states on several indicators: women's median annual earnings for full-time, year- round work in DC are $37,800; the ratio of all women's to all men's earnings is 92.4 percent; the proportion of women employed in managerial or professional positions is 49.3 percent; and the percent of all businesses in the District that are women-owned is 30.9 percent. In all these areas DC ranks first. However, the District is notably poor on one key indicator of women's economic status: almost 18 percent of women in the District live in poverty, ranking it 48th in the nation.

In addition, the new analysis by IWPR paints a surprising portrait of the status of women when examining racial and ethnic differences. The District of Columbia's ranking on the wage ratio drops dramatically, from first in the country at 92 cents to a man's dollar for full-time year round work to last in the country at only 59 cents, when comparing the earnings of women of different races and ethnicities to white men alone. The large number of men of color in the nation's capital brings the median male earnings down, since they, like women of color, typically have lower wages than white men.

"Women of color comprise large proportions of the city's population, and so their lower earnings decrease women's overall wages dramatically. As a result, when their earnings are measured not against those of men of color - who also have relatively low earnings - but against white men's, the disparities related to race and ethnicity become breathtakingly clear," according to the report. The ratio between African American women and white men ranks 42nd of 43 (at 50.0 percent); between Asian American women and white men, the District ranks 43rd of 45 (57.4 percent); and between Hispanic women and white men it ranks last of 48 (41.0 percent).

Maryland ranks high on the economic status of all women in the state: it is 2nd in the nation for women's median annual earnings ($37,200), the percent of women employed in managerial or professional occupations (41.3 percent), and women living above poverty (92.4 percent). Maryland ranks 3rd for the wage ratio, at 81.4 percent, and for the proportion of businesses owned by women (28.9 percent).

Despite Maryland's high rankings overall, racial and ethnic disparities exist. Hispanic women fare worst compared to other women in Maryland, with the lowest earnings ($27,600) and a wage ratio of 55.6 percent when their earnings are compared to white men's earnings. Hispanic women also have the lowest proportion of women employed in managerial or professional occupations, 30.1 percent. Hispanic women also are among the most likely of all racial and ethnic groups in Maryland to live in poverty in the state, with African American and Native American women only slightly more likely to do so.

Virginia's rankings generally place it in the top ten of all states or at least the top third. Its rank on the ratio of women's to men's earnings is 13th (77.9 percent), an enormous jump from the state's ranking on this indicator in 2002 (45th; 67.7 percent). However, this leap does not entirely signify progress - although women's earnings rose during this period, men's earnings fell. Virginia ranks 8th in the nation on the level of women's median earnings for full-time, year-round work ($32,400), 4th in the proportion of employed women in managerial or professional occupations (at 38.2 percent), and 6th on the proportion of businesses that are women-owned (at 27.5 percent). It ranks 13th on the percent of women living above poverty (90.4 percent).

As in all states, women of different racial and ethnic backgrounds in Virginia suffer disparities in their economic status. African American and Hispanic women in particular tend to fall behind: they have among the lowest earnings of women in the state ($26,500 and $25,300) and the lowest wage ratios (60.0 percent and 57.3 percent) and therefore largest wage gaps when their earnings are compared with those of white men. Less than one-third of African American and Hispanic women in the state are employed in managerial or professional occupations (29.7 percent for African American women and 27.2 percent for Hispanic women), and they are the most likely to live in poverty (19.1 percent of African American women and 13.8 percent of Hispanic women). Native American women in the state do not fare much better, with their earnings and wage ratio matching those of African American women, although they have a higher proportion of women employed in managerial or professional occupations (33.4 percent) and are less likely to live in poverty (11.3 percent) than Hispanic or African American women.

Among the report's recommended policy actions are tougher enforcement of equal opportunity laws; recruitment of women into traditionally male jobs and cracking down on harassment and discrimination in predominantly male jobs; cost of living increases to minimum wage laws; improved job training opportunities, particularly in predominantly male occupations; affirmative action to improve educational opportunities for all women; and greater availability of health insurance and paid parental leave.

IWPR is a nonprofit public policy research organization dedicated to informing and stimulating debate on public policy issues of critical importance to women and their families. IWPR focuses on issues that affect women's daily lives, including employment, earnings and economic change; democracy and society; poverty, welfare and income security; work and family policies; and health and violence.

In October, IWPR will publish the fifth round of its Status of Women in the States series with comparative data from all 50 states and the District of Columbia. Since 1996, these reports have served to inform researchers, advocates and policymakers about advances and gaps in women's economic, social, and political rights.