For decades, women have faced an uphill struggle in the workplace.
Even now, even as women continue to improve both in terms of educational attainment and in the proportion of women holding senior leadership positions at work, pay and promotion gaps persist stubbornly.
This year’s Equal Pay Day is March 25, a day that serves as a reminder of the ongoing income inequality between men and women. The date marks how long full-time female employees have to continue working in the new year to earn what male employees typically earned in the previous year.
According to an analysis of U.S. Census Bureau data by the National Women's Law Center, women earn just 83 cents for every dollar a man earns.
Over time, this inequality amplifies. Based on today's pay gap, a woman starting out in the workforce could lose up to $1 million over a 40-year career, according to the center's research.
"When you look at it from a race and gender perspective, the gap is even wider," said Jasmine Tucker, vice president of research at the National Women's Law Center. "That means women will never, ever catch up (to men's earnings)."
In fact, according to 2024 estimates from the World Economic Forum, it could take around five generations to close the pay gap globally.
The latest Global Gender Gap Report says: “Based on current data, it will take 134 years to achieve full equality.”
The report found that in North America, despite equality in educational attainment, large gaps remain in labor earnings and the share of women in senior leadership positions.
The World Economic Forum report also states: “Where diversity, equity, and inclusion (DEI) efforts last longer, the rewards follow.” At least in the United States, many such efforts are now being curtailed or eliminated entirely to reflect new political realities and the priorities of the Trump administration.
Why the pay gap persists
According to an independent 2023 Pew Research Center report, there is no single explanation for why progress in closing the pay gap has mostly stalled.
Women are still more likely than men to choose to work in lower-paying industries and to be out of the labor force for some time or to work fewer hours due to family care responsibilities, often referred to as the "motherhood penalty." Pew Research Center found that systemic bias also plays a role.
The long-term consequences of inequality
"The biggest thing is not just that (women) make less, but what that leads to — the wealth gap," said Cary Cavanaro, a certified financial planner and wealth management advisor at Ashton Thomas in Scottsdale, Arizona.
Not only do women earn less than men, they also save less each month and are less optimistic about their long-term financial situation.
According to New York Life's 2025 Wealth Watch Survey, entering 2025, women will deposit an average of $1,825.18 per month into various savings accounts, while men will deposit $2,352.34.
The report found that during the year, women planned to save $9,463.98 on average, while men planned to save $17,963.13.
Other Wells Fargo research shows that women also tend to be more conservative in their investment tendencies.
Together, these factors have created a significant savings gap.
Cavanaro said that while there are no quick fixes to achieving pay equality, there are steps that can help women strengthen their economic position.
"The first step is to create a budget: how much is your income, how much is your expense. Live within your means. It's very basic, but it's the most important cornerstone of your financial future," she said.