Mortgage Women Magazine

INDUSTRY IMPACT

“Men always try to keep women out of business so they won't find out how much fun it really is.”

Vivien Kellems,

American industrialist, inventor, public speaker, and political candidate

Over the years, many reports have cited the disparity of women’s presence at various levels of the financial services industry and of the earnings disparity between men and women who hold similar positions. The challenge to level the playing field is on-going.

The U.S. Government Accountability Office
(GAO) released a report in October 2003, “Women's
Earnings: Work Patterns Partially Explain Difference
between Men's and Women's Earnings.” In the report,
the GAO confirmed the earnings disparity between
men and women in similar occupations, and the fac-
tors that have historically had a detrimental impact
on women’s earnings - work experience, work fewer
hours per year, are less likely to work a full-time
schedule, and leave the labor force for longer periods
of time than men.

“Despite … the progress that women have made
toward equal pay and career advancement opportuni-
ties over the past several decades, there is no con-
sensus about the magnitude of earnings differences
between men and women and why differences may
exist. According to data from the Department of La-
bor's Current Population Survey (CPS), women have
typically earned less than men. Specifically, in 2001, the
published CPS data showed that for full-time wage
and salary workers, women's weekly earnings were
about three-fourths of men's… Of the many factors
that account for differences in earnings between men
and women, our model indicated that work patterns
are key. Specifically, women have fewer years of work
experience, work fewer hours per year, are less likely
to work a full-time schedule, and leave the labor force
for longer periods of time than men. Other factors
that account for earnings differences include industry,
occupation, race, marital status, and job tenure. When
we account for differences between male and female
work patterns as well as other key factors, women
earned, on average, 80 percent of what men earned
in 2000. While the difference fluctuated in each year
we studied, there was a small but statistically signifi-
cant decline in the earnings difference over the time
period.”
In April 2006, the U.S. Equal Employment Opportu-
nity Commission (EEOC) released its report, “Diversity
in the Finance Industry,” which showed women, African-
Americans, Hispanics, Asians, and American Indians/
Alaskan Natives are still lagging behind as managers in a
large share of finance industry firms. Prior EEOC Chair
Cari Dominguez unveiled the report to the Financial
Women's Association, which was observing its 50th
anniversary that year. "This report shows that we still
have some ways to go," Chair Dominguez said. "The
report found that women of all races and backgrounds
advance more slowly as they climb up the career ladder.
By issuing this report, we hope to spur action to level
a key playing field. Because the finance industry offers
many well-paying jobs and is expected to see growth in
the coming years, we must continue to mentor profes-
sional women and people of color."