Surface-level data shows that in recent years, Philadelphia has made significant strides toward pay equity for women. Between 2015 and 2024, the city’s pay parity rate improved from 85.5 percent to 88.8 percent. On closer inspection, however, this snippet of data does not tell the full story.

Breaking the numbers down by industry, education level, and racial demographics reveals continued disparities. The Forum of Executive Women examined these gaps in our recent Pay Equity Report, drawing on Philadelphia-focused research from Saloni Tandon, Director of Research and Analytics and Impact Manager at the Economy League of Greater Philadelphia. One thing is clear: Pay parity has not improved for all women in Philadelphia.

Each industry has its own story

Notable pay parity improvements seem encouraging, with women’s earnings between 2010 and 2023 rising from roughly 70 to 76 cents on the dollar, but these numbers only create the effect of ticking a box. There is a greater narrative at play, one that requires care and attention to achieve real progress.

When you examine the data closely, pay equity moved backwards in multiple sectors, notably entertainment, utilities, information, and construction. We’ve seen meaningful progress in finance, professional services, retail, and real estate, but women still earn only 72 cents on the dollar in finance and professional services and just 58 cents in management.

These numbers show who is and isn’t doing the work. Often, bias plays a significant role in shaping pay outcomes. In workplaces where compensation depends on negotiation, bonuses, or informal networks, there is a far greater chance of pay disparity. Women have fewer opportunities to navigate the unofficial bounds of these informal social interactions and are, therefore, less likely to receive the same compensation as their male counterparts.

White women earn 94 cents on the dollar compared to white non-Hispanic men, Black women earn 64 cents, and Hispanic and Latina women earn 57 cents.

Education is not the great equalizer

Education often gets pinned as the easy fix: Get the degree, enter a high-paying field, and the pay gap takes care of itself. Our data suggests otherwise. In Philadelphia, pay disparities exist across every education level. In fact, pay gaps for the most highly educated women have increased since 2010. Occupation, seniority, industry access, caregiving penalties, and compensation structure continue to shape earnings regardless of credentials. This isn’t a pipeline problem; it’s a compensation structure problem, happening inside the most prestigious organizations in the city.

The racial pay gap

Philadelphia’s pay gap is not only a gendered one, but also a racial one. While white women earn 94 cents on the dollar compared to white non-Hispanic men, Black women earn 64 cents, and Hispanic and Latina women earn 57 cents. Over the span of a 30-year career, this means $885,000 lost for the average Black woman and $1.2 million lost for the average Hispanic or Latina woman. Once again, the aggregate data obscures the deeper disparities in pay equity, in this case harming women of color.

For women of color, these numbers hold greater weight when viewed with poverty rates in Philadelphia, similarly marked by racial divide. Compared to white non-Hispanic residents, who sit at 12.4 percent, Black residents experience a poverty rate of 25.4 percent and Hispanic and Latino residents 29 percent. Gender and racial pay gaps alongside disparities in poverty, wealth, and mobility compound across household stability, retirement security, and intergenerational opportunity. This means exponential difficulty accruing wealth over time for women of color.

The issue of combined racial and gendered pay disparity is especially relevant to Philadelphia’s story. As a city strengthened by many identities and cultures, the success of the full workforce is integral to the success of Philadelphia.

We’ve seen meaningful progress in finance, professional services, retail, and real estate, but women still earn only 72 cents on the dollar in finance and professional services and just 58 cents in management.

A challenge to Philadelphia employers

The pay equity problem in Philadelphia requires us to thoughtfully consider the data. It has been too easy to accept the appearance of positive change, rather than working to fix the cracks beneath the surface. Our report clearly suggests that the overall progress metrics mask structural failure, with neither education nor industry able to fix it on their own.

It is imperative that Philadelphia employers understand the value of pay equity on both micro and macro levels and take meaningful steps towards it. Efforts that companies can make include:

• • Audit your own pay data. Even women-led organizations have found internal pay disparities.
  • Implement pay bands to correct inequities structurally, not just case by case. When a floor is set, those below should be brought up.
  • Make bonus and promotion decisions merit-based and explicitly documented. Subjective compensation is where gender bias most easily takes hold.
  • Codify soft skills and attach measurable value to them. High turnover from poor management has real financial costs.

It is the belief of The Forum of Executive Women that we can effectively address the pay equity disparity in Philadelphia, but we also know that it won’t happen without a specific, concerted effort from employers. It is in all our best interests to recognize that this is still an issue and to take action to correct it. Employers hold the power to influence systems that shape opportunity and wealth in this city. Let’s use that power for good.

Meghan Pierce is President/CEO of the Forum of Executive Women.

The Citizen welcomes guest commentary from community members who represent that it is their own work and their own opinion based on true facts that they know firsthand.

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