A recent study from The Federal Reserve Bank of New York found that women will accept a salary of nearly $25,000 less than men when accepting a new job offer. The study examined consumers’ experiences and expectations regarding the labor market. Men and women have much different minimum pay expectations. We’ll break down some of the study findings below.
Workers will accept as little as $78,645 to take a new job
The Federal Reserve Bank of New York recently released the findings of its July 2023 SCE Labor Market Survey. As part of the study, respondents were asked to provide their reservation wage, which is the lowest wage they would be willing to accept for a new job.
On average, respondents were willing to accept a new job offer with a salary as little as $78,645. This is significantly higher than the July 2022 report, which found that the average reservation wage respondents would be willing to accept for a new job was $72,873. Rising living costs could be one major factor for why workers are seeking more money.
Women will accept a salary as low as $66,068
The study also broke down the average reservation wage for men and women. For women, the average lowest wage they would be willing to accept for a new job offer is $66,068. But for men, the average lowest wage they would be willing to accept for a new job offer is $91,048. That’s a yearly salary difference of almost $25,000.
Is the gender wage gap to blame?
So, why are women willing to accept a lower salary than men? The gender wage gap likely plays a part. Unfortunately, there is still a noticeable gender wage gap in the United States, and it greatly impacts the bank accounts of women.
According to the Pew Research Center, American women typically earned $0.82 for every $1 that men made. The wage gap hasn’t changed much in the last 20 years. In 2002, women earned $0.80 for every $1 earned by men.
Considering this data, many women may have lower wage expectations due to their previous salary experiences. They may have received similarly low-wage offers in the past and assume that employers aren’t willing to pay much more. They may have also been denied higher pay when fighting for a raise or negotiating for a higher salary offer previously.
It’s also likely that many women aren’t aware of how much money their colleagues make. Having open discussions with friends, family, and coworkers can be an excellent way for both women and men to understand current average salaries better so they can push for higher pay and get paid their worth. It pays to gather more knowledge.
Be willing to negotiate when receiving a job offer
The first salary offer you receive may not be the maximum amount an employer is willing to pay you for a job. Before discussing salary with a potential employer, it’s worthwhile to research current salary ranges for similar roles.
Once it comes time to discuss pay and benefits, negotiating can help you get closer to your wage goals. It’s worthwhile to put in extra effort to negotiate higher pay because a higher salary can significantly impact your personal finances.
Are you looking for a new job and want to ensure you get paid your worth? Here are a few tips to help you negotiate higher pay. If you feel uncomfortable negotiating salary, consider practicing the discussion with a close friend or family member to feel more prepared.
But most importantly, don’t give up as you continue your job search. There is well-paying work out there, and you deserve to be paid a salary that comfortably covers your living expenses.
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