Wage Gap Explained

The term wage gap is used to describe the discrepancy that exists between various extremes or portions of the working population, in regard to their salaries or wage rates. In short, one group within the working population may be making an extensive amount of money, while another group within a similar field may be earning notably less.

Historically, the term wage gap referred to the difference in wage rates earned by male and female employees. Throughout history, working women have earned less money than male employees, for performing identical work. Despite legislation that prohibits employers from taking part in this behavior, many companies continue to pay women less than men. This wage gap has caused serious complications throughout the United States. It is believed that, if the wage gap was eliminated, the poverty rate in the United States would decline significantly.

In addition to the wage gap that exists between women and men, there is also a wage gap between white employees and minorities. On average, minorities who are employed within the united States make significantly less money than white employees. This is true in both male and female population. White males earn more than black or Hispanic males, while white females earn higher wage rates than black or Hispanic females.

Discrimination in the workplace is illegal, whether an individual is being discriminated against based upon his/her race, ethnicity, or sex. Nevertheless, the wage gap persists. The wage gap in the United States continues to remain around 77 percent.