New Md. Dept. of Labor report reveals wage disparities linked to gender, race

March 14, 2024

Han Cechini,

MARYLAND – A new report from the Maryland Department of Labor and the Lieutenant Governor’s Office is shedding a light on wage disparities related to gender and race.

Digging into Disparities

Researchers looked at data between 2018 and 2022, finding that women who work full-time in Maryland, year-round, are typically paid only 86 cents for every dollar that their male counterparts make.

However, broader disparities exist for women of color in Maryland:

Hispanic women or Latinas are paid 50 cents
American Indian and Alaska Native women are paid 56 cents
Black or African American women are paid 67 cents
White women are paid 79 cents
Asian women are paid 86 cents

Why the Gaps Exist

Maryland Labor Secretary Portia Wu tells 47 ABC WMDT that a number of factors play into the wage gaps. One, in particular, is occupational crowding.

“Women tend to be concentrated in certain types of occupations, that are often lower-paid, worse benefits,” said Sec. Wu. “Unfortunately, a lot of caregiving occupations have lower pay, less job stability, less opportunity for career progression.”

Access to jobs is another factor; Sec. Wu says women may have a harder time breaking into industries like IT, construction, or manufacturing.

“It’s a combination of maybe tradition, gender expectations, and also just people not knowing about the opportunities, or the chance to get the training that will help them qualify for those jobs,” Sec. Wu explained.

Md. Women Better Paid, Still at a Disadvantage

Women in Maryland tend to be paid better than women in other states. Median earnings for full-time women workers in the state are $65,507. By comparison, women in Arkansas, Idaho, Mississippi, and South Dakota – states with some of the lowest median incomes for women – make about $30,000 on average.

However, even by those metrics, wage disparities continue to be a problem in Maryland, says Sec. Wu.

“If the man makes $10,000, that’s only a difference of $1,400. But, if the man is making $100,000, then the gap is $14,000,” Sec. Wu said. “Even though the percentage gap may be a little smaller, because the median income is so much higher, it means that over time, and over a lifetime, it adds up to a bigger dollar difference in Maryland.”

The numbers help to paint that picture; compared to white, non-Hispanic men, in Maryland:

The lifetime wage gap for Hispanic women or Latinas is over $1.8 million
The lifetime wage gap for American Indian and Alaska Native women is over $1.5 million
The lifetime wage gap for Black or African American women is over $1.1 million
The lifetime wage gap for white women is over $750,000
The lifetime wage gap for Asian women is over $500,000

Equal Pay for Equal Work

Maryland’s Equal Pay for Equal Work Act does provide protections against pay discrimination. However, Sec. Wu says those disparities continue to exist because of the various factors that play into inequity. In addition to the previously mentioned factors, others include pay secrecy and lack of access to child care.

However, Sec. Wu says, the many factors influencing wage discrepancies can also impact other social groups. “We know [women of color are] not the only ones to experience wage gaps. I don’t want to dismiss that men of color, or individuals with disabilities, other groups, face these barriers,” Sec. Wu said.

During a press conference on the report, Md. Lieutenant Governor Aruna Miller said the state has already made significant strides in that area, including boosting minimum wage to $15, and expanding access to affordable child care.

“Women are the backbone of many of our families and in our communities across the state,” Lt. Gov. Miller said. “They are the breadwinners, caregivers, support systems, moms, grand moms, aunties, and guardians for so many of us. So our call for action is very simple: Let’s get equal pay for equal work.”

Sec. Wu says further closing wage gaps will have to come from combination of policy, and collaboration with those who write the paychecks, so to speak.

Transparency Legislation

The Secretary added that transparency, in terms of who’s getting paid what, will be key in that effort. Proposed legislation, like House Bill 649, for example, would require employers to disclose pay to applicants.

“One good thing about transparency is that it helps you see where the gaps are. And, that’s why we published the report,” Sec. Wu said. “You can’t really solve a problem, unless you have a better understanding of what it looks like. So, having information through our report and through transparency legislation, will help people say, ‘Okay, what’s a good solution here?'”

Lt. Gov. Miller is also supporting the proposed legislation.

“By improving transparency, we will be able to better understand why the gender pay gap persists in Maryland and how it continues to grow,” Lt. Gov. Miller said during that press conference. “Sunlight is the best disinfectant. And, we are about to pour sunlight on the gender pay gap. We need to get this legislation across the finish line.”

If signed into law, the legislation would take effect on October 1st, 2024.