Are you a woman in tech?
Chances are, you’re being underpaid.
On average, women earn roughly 80 to 84 cents for every dollar a man earns for the same work—and this disparity persists even at the highest levels of corporate leadership. But nowhere are gender pay gaps more prevalent than in the tech industry, where women earn 72 cents for every dollar a man makes for the same work. Thinking about negotiating for better pay to beat the odds? Consider this: Women who negotiate salaries are often penalized for doing so. A Harvard Business School study found that “both male and female study participants were less interested in working with women who attempted to negotiate a better salary than they were with men who tried to negotiate a higher salary.” But not asking is equally detrimental—so what then?
Education is No Panacea
Although the gender pay gap in the United States began to narrow for all women in the 1970s and 1980s as women graduated from colleges and universities at higher rates—pay equity has not kept pace for women. Education has not solved the problem. In fact, today, women are more likely to hold college degrees than men—and yet the pay gap persists. Layering race over gender discrimination in compensation discussions reveals even wider gaps and deeper disparities that disproportionately impact minority women. Black and Hispanic women are impacted the most by wage disparities—earning, on average, 55 to 65 cents per dollar compared to men.
Location, Location, Location
Where you live can greatly impact your compensation. According to surveys by Bankrate, the best states for women tech workers who are looking to minimize systemic pay gaps are Vermont (best), California, New York, Nevada, and Arizona. Although pay gaps persist in these states, women, on average, are earning 86 to 89 cents on the dollar. What are the worst states for pay parity? Utah (worst), Louisiana, Alabama, New Hampshire, and Idaho. Here, women earn roughly 73 to 75 cents on the dollar.
So what is going on here?
Here are just a few of the factors driving the gender wage gap.
- Occupational Segregation
The semiconductor industry is roughly 10-15% female, and they are largely missing from senior leadership roles. Economist, Dr. Nicole Smith, says that women are more likely to self-select into entry level, lower-paying jobs within an industry even when they have met or exceeded the qualifications that men have for more suitable roles.
- Tenure in Tech
Tenure in tech—and specifically, uninterrupted tenure in tech, positively correlates to higher salaries. Accenture reports that 50% of women in tech roles leave them by the age of 35. Tenure for women in the workforce is often impacted by factors like family obligations and workplace discrimination experiences.
- Family & Parental Leave
The lack of comprehensive family and paid medical leave policies disproportionately affects women, who are often primary caregivers. When faced with family responsibilities, women may be forced to take extended unpaid leave, work part-time, or leave the workforce entirely. This can lead to career interruptions, reduced work experience, and fewer opportunities for advancement, all of which contribute to lower wages over time.
The “return-to-work” programs at Infosys and Honeywell support women employees through pre-pregnancy/planning, pregnancy, and after-baby by ensuring there is an ordered process to return to work. Unfortunately, many women lose touch with the business and their projects and often regress career-wise when they opt to build or raise a family. Structured return-to-work programs like these are a mechanism to keep careers on track during this time.
- Gender Discrimination
Despite laws prohibiting gender-based discrimination, subtle biases and stereotypes persist in many workplaces. These can manifest in various ways, such as:
- Unconscious bias in hiring and promotion decisions
- Assumptions about women’s commitment to their careers, especially after having children
- Undervaluing work typically performed by women
- Unequal access to networking and mentorship opportunities
These factors can cause women to be passed over for promotions or receive lower initial salary offers.
- Lack of Pay Transparency
You can’t fight a gender pay gap if you aren’t aware one even exists. Many companies discourage or prohibit employees from discussing their salaries, making it difficult for women to know if they’re being paid fairly compared to their male counterparts. Without this information, women may not realize they’re being underpaid or have the necessary data to advocate for equal compensation. Pay transparency policies can help identify disparities and create positive pressure for employers to address wage gaps proactively.
What’s Being Done?
There have been significant federal policy changes over the years to help address the gender pay gap. The Equal Pay Act of 1963 (addresses sex-based discrimination), the Civil Rights Act of 1964 (addresses race, color, religion, sex, and national origin), and subsequent legislation have laid the groundwork for combating wage discrimination. However, these policies are subject to several loopholes and exceptions that, while seemingly neutral on their face, can sometimes still perpetuate discriminatory practices and pay gaps. (i.e., the Equal Pay Act’s broad exception for “other factors.”)
More recently, many states have enacted stricter equal pay laws and salary history bans, which prevent employers from asking about previous salaries—a practice that often perpetuates wage disparities.
Individual companies are also increasingly conducting pay equity audits and implementing transparency policies. A 2023 study of 5,735 employers found that 60 percent of their organizations publish compensation details when advertising jobs. This figure was up from 45 percent recorded in the prior year’s survey, perhaps due to pay transparency legislation enacted by several states.
Looking to the Future
So, yes—the gender wage gap is still a thing. But there is some good news in this story. Growing public awareness and advocacy have put pressure on businesses and policymakers to take concrete action. The gender pay gap has narrowed for all women since these figures were first tracked as a percentage of men’s compensation in the 1950s-60s. However, while pay gaps have started to narrow, the pace of that narrowing has started to slow in recent years. Progress is slow, but there is still room for optimism.
My advice? Know your worth—and if you can, be prepared to walk. Let’s keep fighting for a future where equal work truly means equal pay, regardless of gender.
