Salon.com > Pay gap

Report: Performance counts more than connections for women on Wall Street

Fri, 04 Jan 2013 21:37:00 +0000

The American Economic Association finds that it's more difficult for women to succeed on Wall Street than for men. What's more surprising is that they succeed in different ways: It's what you know that counts most for women and who you know for men (bold text mine):

Male and female analysts are equally connected on average. Connection is associated with more accurate earnings forecasts for men, but not for women. Controlling for accuracy, connection is important in explaining men’s, but not women’s, probability of being voted by institutional investors as “star” analysts, an important measure of career success. For women, education achievements and accurate forecasts are important factors that determine voting outcomes. This asymmetry in the effect of connections between the two genders does not exist in an alternative, computerized process of evaluating analysts, and is most pronounced among young analysts. Our results suggest that men reap higher returns from connections than women, and that investors are more willing to rely on soft information such as connections to evaluate men than women.

McDonald’s pay chasm: $8.25/hour to $8.75 million/year

Wed, 12 Dec 2012 19:17:00 +0000

Bloomberg has an article today highlighting the pay gap at McDonald's. The whole piece is worth a read but the beginning is particularly striking. It highlights Chicago man Tyree Johnson, who holds positions at two different McDonald's. Between shifts he has to give himself a quick scrubbing in one of the restaurant's bathrooms because he can't even show up for work at a McDonald's smelling like a McDonald's.

“I hate when my boss tells me she won’t give me a raise because she can smell me,” he said.

Johnson, 44, needs the two paychecks to pay rent for his apartment at a single-room occupancy hotel on the city’s north side. While he’s worked at McDonald’s stores for two decades, he still doesn’t get 40 hours a week and makes $8.25 an hour, minimum wage in Illinois.

This is life in one of America’s premier growth industries. Fast-food restaurants have added positions more than twice as fast as the U.S. average during the recovery that began in June 2009.

Gender pay gap begins one year out of college

Wed, 24 Oct 2012 20:48:00 +0000

A report from the American Association of University Women (AAUW) flagged by Raw Story found that a gender earning gap usually occurs just one year after graduates leave college, with men making an average of $42,918 one year after graduation while women make an average of $35,296. The report, "Graduating to a pay gap" notes:

"Graduating to a pay gap" finds that women working full time already earn less than their male counterparts do just one year after college graduation. Taking a closer look at the data, we find that women’s choices—college major, occupation, hours at work—do account for part of the pay gap. But about one-third of the gap remains unexplained, suggesting that bias and discrimination are still problems in the workplace.