WOMEN IN THE WORKFORCE — A new analysis of federal data found the gender pay gap between women and men widened last year. | Pexels Images
By KEVIN HARDY | Stateline
The earnings gap between men and women slightly widened last year, according to a new analysis published Thursday.
The left-leaning Economic Policy Institute calculated women last year earned 18.6% less than men per hour on average. That’s up slightly from 2024, when the wage gap narrowed slightly to 18%.
The wage analysis, which examines several federal data sets and independent research papers, controls for race, ethnicity, education, age, marital status and geography.
The findings were published ahead of Equal Pay Day on March 26, a symbolic date marking how far into 2026 women would have to work on top of their 2025 hours to match what men earned in 2025.
The new analysis found the wage gap is smallest among lower-wage workers, in part because minimum wages create a uniform wage floor. But women are paid less than men across all education levels — women with a graduate degree on average earn less than men with only a college degree, it said.
The analysis found the widest wage gap among Black and Hispanic women: Black women are paid only 68.3% of white men’s median wages. That’s a gap of $9.87 per hour — translating to roughly $20,500 lower annual earnings for a full-time worker.
The institute says women earn less because of occupational differences, societal norms and the devaluation of women’s work.
The organization suggests states enact pay transparency laws, mandate employers provide paid family and medical leave, raise the minimum wage, fund universal child care and remove laws that make it harder to join labor unions. But conservative lawmakers and private employers argue that many of those policies would lead to reduced workforces or higher prices.
“Closing pay gaps by gender and by race and ethnicity will require policy solutions on multiple fronts,” the report said. “Although attacks on gender and racial equity continue at the federal level, state lawmakers can and must take steps to address the gender wage gap.”
Stateline reporter Kevin Hardy can be reached at khardy@stateline.org.
This story was originally produced by Stateline, which is part of States Newsroom, a nonprofit news network which includes Arkansas Advocate, and is supported by grants and a coalition of donors as a 501c(3) public charity.