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For decades, women have faced an uphill battle in the workplace.
Even now, although women are achieving increasing levels of education and representation in senior leadership positions at work, there remains a stubborn pay gap and promotion gap.
Equal Pay Day — which this year falls on March 25 — is a reminder of the persistent income inequality between men and women. The date marks just how far into the new year full-time female workers have to keep working to make what their male counterparts typically made in just the previous year.
As it stands, women earn just 83 cents for every dollar earned by men, according to an analysis of U.S. Census Bureau data by the National Women’s Law Center.
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Over time, the inequality is magnified. Based on today’s wage gap, a woman just starting out will lose up to $1 million over a 40-year career, according to the Center’s research.
“When you look at it by race and gender, that disparity is even wider,” said Jasmine Tucker, the National Women’s Law Center’s vice president of research. “This means that women are never, ever going to catch up.”
In fact, it could take roughly five generations to close the pay gap worldwide, according to 2024 estimates by the World Economic Forum.
“Based on current data, it will take 134 years to reach full parity,” the latest global gender gap report said.
In Northern America, despite achieving equality in educational attainment, there are still wide disparities in earned income and women’s representation in senior leadership positions, the report found.
“Where diversity, equity, and inclusion [DEI] efforts are longer lasting, the returns follow,” the World Economic Forum report also said. In the U.S., at least, many of those efforts are now being pared back or scrapped entirely to reflect a new political reality and the priorities of the Trump administration.
Why the pay gap persists
There is no single explanation for why progress toward narrowing the pay gap has mostly stalled, according to a separate 2023 report by the Pew Research Center.
Women are still more likely than men to pursue careers in lower-paying industries, and to take time out of the labor force or reduce the number of hours worked because of caretaking responsibilities — often referred to as the “motherhood penalty.” Systemic bias has also played a role, Pew found.
Long-term consequences of inequity
“The most important part is not just that [women] make less, it’s what that turns into — the wealth gap,” said Cary Carbonaro, a certified financial planner and managing wealth advisor at Scottsdale, Arizona-based Ashton Thomas.
Not only do women earn less than men, but women also save less each month and feel less optimistic about their long-term financial standing.
Heading into 2025, women were contributing $1,825.18 a month, on average, to their various savings accounts, while men contributed $2,352.34, according to New York Life’s 2025 Wealth Watch survey.
Over the course of the year, women aim to save $9,463.98, on average, compared to the $17,963.13 that their male counterparts aim to put away, the report found.
They also tend to invest more conservatively, other research by Wells Fargo also shows.
Together, that contributes to a significant savings shortfall.
Although there is no immediate solution to achieving pay equity, there are some measures that can help women shore up their economic standing, Carbonaro said.
“Step one is a budget: what’s coming and what’s going out,” she said. “Spend less than you make. It’s so basic, but it’s the most important building block to securing your financial future.”