We frequently hear that women won’t achieve equal pay until 2068, according to local experts such as the Women’s Law Project, but why is that? The answer isn’t simple, and neither is the solution. Many interconnected factors drive the gender pay gap. There’s no one-size-fits-all approach to solving it. But that doesn’t mean that companies can’t act now to make progress.
Addressing the gender pay gap requires a multi-step approach: Companies must first commit to salary benchmarking. Employees and their allies must advocate for themselves and demand transparency. Lawmakers, mostly at the state level, must enact policy. And then there are the structural issues, which The Forum of Executive Women explored extensively in our recent Pay Equity Report. To understand pay equity, we must also address the systemic issues that affect women throughout their careers.
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The reality behind the numbers
Six decades after the passage of the Equal Pay Act, the gender pay gap remains a stark reality in our region. In Pennsylvania, white women earn about 78 cents for every dollar White men make. But the intersectionality of gender with race creates even starker disparities: Black women earn about 60 cents, and Hispanic women earn about 56 cents for every dollar, reports Forbes.
The gap widens dramatically with age: for younger workers aged 25 to 34, it’s around 5 percent, but after age 35, precisely when caregiving responsibilities typically intensify, it jumps to 17 to 20 percent. This isn’t a coincidence; it’s the predictable result of systems that penalize those who step back for family obligations.
Why this persists: structural reality
The pay gap reflects broader societal factors affecting women’s professional paths that must be addressed alongside direct pay adjustments to create sustainable equity. Without access to paid family leave, women often become primary caregivers, forcing difficult choices between career advancement and family obligations. Data shows women are typically the first to leave the workforce when family demands arise.
Gender-based career tracking also starts early, with societal messaging steering women toward traditionally lower-paying fields. Research in the U.S. shows that girls outperform boys in early STEM subjects, but cultural beliefs and early messaging steer them away from STEM tracks toward lower-paying fields like humanities or care work.
Structural barriers such as racism, sexism, ableism and patriarchy deeply influence the gender pay. Our allies at WOMEN’S WAY annually produce research through their Gender Wealth Framework that explores the structural drivers of wealth extraction and economic inequity, particularly impacting women — especially women of color and disabled women — by highlighting how systemic undervaluation locks them out of wealth accumulation. These systems all shape what jobs people can access and how their work is valued.
The choice before us is simple: We can accept a 43-year timeline for economic justice, or we can commit ourselves to understanding, accountability, and meaningful action that creates change for professional women, their families, and the communities they lead.
The business case: why pay equity makes economic sense
Here’s what business leaders need to understand: Pay equity and salary range transparency are not only the right things to do, but they also make you a more competitive employer and help with retention. If you’re truly committed to keeping talented people in the workplace, you must compensate them fairly, and there are real strategies proven to be able to accomplish that.
In today’s tight labor market, losing skilled employees due to compensation inequities is a costly mistake that often exceeds the investment in proactive pay adjustments.
What forward-thinking companies are already doing
To implement comprehensive pay transparency practices, organizations first need to discuss internally what they believe about pay as an organization. This means conducting market analysis to determine competitive pay ranges and communicating how compensation decisions are made so employees understand where they stand within pay ranges.
To conduct a thorough pay equity analysis, companies must do more than report raw pay gaps, as this tells an incomplete story. Proper pay analysis requires multiple regression that accounts for skills, job structure, and job families. This allows companies to identify true unexplained pay disparities and address problems before they become legal liabilities.
Furthermore, companies that invest in comprehensive wellness benefits, such as mental health support, flexible scheduling, and holistic well-being programs, consistently see higher employee retention and engagement. Research shows that employees who feel supported in their overall well-being are more loyal and less likely to leave, reducing costly turnover and strengthening workplace culture.
While some organizations are retreating from diversity, equity, and inclusion commitments due to recent executive orders, rather than backing away, it’s now more important than ever for business leaders to strengthen these initiatives. The recent challenges are an opportunity to pause, assess and strengthen all efforts towards an equitable workplace.
The role of paid family leave
PA is one of the few states in the U.S. that does not have a statewide paid family and medical leave program, leaving most workers without guaranteed paid time off to care for a new child or an ill family member.
Paid family leave helps narrow the gender pay gap by keeping women attached to the workforce and reducing career interruptions that often lead to long-term earnings penalties. Research from states with paid family leave programs shows that access to paid leave makes women 15 to 20 percent more likely to return to work within a year after childbirth and improves their earnings over time. By instituting a state-level paid family leave policy, like our neighbors in New Jersey and New York, PA could see the gender pay gap narrow over time.
Philadelphia’s opportunity
Philadelphia has always been a city of firsts. We have the opportunity to add pay equity to our list of achievements, not in 2068, but starting today. The data is clear, the tools exist, and successful models operate in our region today.
The choice before us is simple: We can accept a 43-year timeline for economic justice, or we can commit ourselves to understanding, accountability, and meaningful action that creates change for professional women, their families, and the communities they lead.
Meghan Pierce is the President and CEO of The Forum of Executive Women.
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