The content below was summarized and written by ChatGPT. No need for me to interject opinion into the facts – even ChatGPT’s equivocation doesn’t hide what is true. Supporting documents, if available, are provided as downloadable PDFs, and URLs for primary web sources have been linked, when known.

Compared to men, women are struggling financially

The Department of Labor Statistics research on the gender wage gap indicates that, as of 2021, women's median weekly earnings were 82.3% of men's median weekly earnings. This means that, on average, women earned 82.3 cents for every dollar earned by men. The gap has narrowed over time, but progress has been slow. Factors contributing to the gap include occupational segregation, differences in education and experience, and discrimination. The gap is larger for women of color and those with disabilities. Efforts to address the gap include policies to promote pay transparency, equal pay for equal work, and workplace flexibility.

U.S. Bureau of Labor Statistics USDL-24-0068

NWLC November 2023 Fact Sheet

As of January 2022, some general trends and statistics that can provide insight into the cost of living differences between women and men:

1. **Earnings**: On average, women earn less than men. According to the U.S. Bureau of Labor Statistics, in 2020, women's median usual weekly earnings were 82.3% of men's median usual weekly earnings.

2. **Occupational Segregation**: Women are more likely to work in lower-paying occupations compared to men. According to the U.S. Bureau of Labor Statistics, in 2020, women were overrepresented in occupations such as healthcare support, personal care and service, and office and administrative support, which tend to have lower median weekly earnings compared to occupations such as management, business, and financial operations, which tend to have higher median weekly earnings.

3. **Cost of Childcare**: Women are more likely to be responsible for childcare, which can be a significant expense. According to the U.S. Department of Health and Human Services, in 2020, the average annual cost of full-time center-based childcare for an infant was $10,200, while the average annual cost of full-time center-based childcare for a four-year-old was $8,500.

4. **Healthcare Costs**: Women may have higher healthcare costs compared to men due to factors such as reproductive healthcare needs and longer life expectancy. According to the U.S. Department of Health and Human Services, in 2020, the average annual healthcare spending per capita for women was $7,400, while the average annual healthcare spending per capita for men was $6,300.

5. **Housing Costs**: Housing costs can vary significantly based on location and family status, but women may face additional challenges in accessing affordable housing due to factors such as lower earnings and higher childcare costs.

U.S. Bureau of Labor Statistics USDL-23-1943

The "gender tax" is a term used to describe the phenomenon where products and services marketed towards women are priced higher than similar products and services marketed towards men. This can include everything from personal care products like razors and shampoo to clothing and accessories like jeans and sneakers.

The gender tax is often attributed to a variety of factors, including differences in marketing and packaging, differences in quality or features, and societal expectations around gender roles and appearance. For example, products marketed towards women may be packaged in more elaborate or decorative packaging, which can contribute to higher costs. Additionally, products marketed towards women may be marketed as having additional features or benefits, which can also contribute to higher costs.

The gender tax has been the subject of criticism and activism, with some individuals and organizations calling for greater transparency and fairness in pricing. Some companies have responded to this criticism by adjusting their pricing practices, while others have faced legal challenges for discriminatory pricing practices.

NYC Study 2015 Gender & Consumer Pricing

Women’s Objective Economic Value is Negative

NIRS March 2016 Report

Table to the right compares net annual and lifetime earnings of men vs. women based on the 2020 US median income in 2020 of $51,168 per year.

Consider a hypothetical man and woman and calculate their average individual net earnings per year, taking into account the gender wage gap, cost of living difference, gender tax, and cost of child rearing. Then calculate their individual lifetime earnings and ability to save for retirement.

Let's assume the following:

- The man and woman both work full-time and earn the median weekly earnings for their respective genders in the United States in 2020. According to the U.S. Bureau of Labor Statistics, the median usual weekly earnings for full-time workers in 2020 were $984 for men and $843 for women.

- The man and woman both live in the same city and have the same living expenses, including rent, utilities, groceries, transportation, and healthcare. According to the U.S. Bureau of Labor Statistics, the average annual expenditures for a single person in the United States in 2020 were $41,403.

- The man and woman both purchase the same personal care products, clothing, and accessories, and use the same healthcare products and services. According to the New York City Department of Consumer Affairs, women's personal care products cost an average of 13% more than men's personal care products, women's clothing and accessories cost an average of 8% more than men's clothing and accessories, and women's healthcare products and services cost an average of 8% more than men's healthcare products and services.

Let's calculate the man and woman's average individual net earnings per year:

1. **Man's Earnings**: $984 per week x 52 weeks = $51,168 per year

2. **Woman's Earnings**: $843 per week x 52 weeks = $43,836 per year

3. **Man's Living Expenses**: $41,403 per year

4. **Woman's Living Expenses**: $41,403 per year

5. **Man's Additional Expenses**: $0 per year

6. **Woman's Additional Expenses**: $41,403 per year x 0.13 (13% more for personal care products) + $41,403 per year x 0.08 (8% more for clothing and accessories) + $41,403 per year x 0.08 (8% more for healthcare products and services) = $5,396 per year

7. **Man's Net Earnings**: $51,168 per year - $41,403 per year = $9,765 per year

8. **Woman's Net Earnings**: $43,836 per year - $41,403 per year - $5,396 per year = -$2,963 per year

As we can see, the woman's net earnings are negative, which means that she is not able to cover her living expenses and additional expenses with her earnings. This is due to the gender wage gap, cost of living difference, and gender tax. The man's net earnings are positive.

According to the U.S. Department of Agriculture’s (USDA) Expenditures on Children by Families report, the average cost of rearing a child to the age of 18 is approximately $11,030 per year.

No we factor in the impact of child rearing on the individual net earnings of the hypothetical man and woman, and account for the cost of providing for a child until the age of 18.

We assume the following:

- The woman takes time off work for child rearing and experiences a 39% decrease in earnings after the birth of her first child, while the man experiences a 23% increase in earnings after the birth of his first child.

- Both the man and woman spend 40 years in the workplace (ages 25 - 65), and 10 of those years precede the birth of the first child

- The man and woman share the costs associated with raising the child equally until the child is 18

Now let's calculate the man and woman's average individual net earnings per year, as well as their retirement savings, taking into account the impact of child rearing and shared financial responsibility for a child until the age of 18:

9. **Man's Net Earnings Before Child Rearing**: $51,168 per year - $41,403 per year = $9,765 per year

10. **Woman's Net Earnings Before Child Rearing**: $43,836 per year - $41,403 per year - $5,396 per year = -$2,963 per year

11. **Woman's Net Earnings During Child Rearing**: $43,836 per year x 0.61 (39% decrease of original earnings after birth of first child) = $26,727 per year - $41,403 per year (living expenses) - $5,396 per year (gender tax) = -$20,072 - $5,515 (cost of child) = -$25,578 per year

12. **Man's Earnings During Child Rearing**: $51,168 per year x 1.23 (23% increase of original earnings after birth of first child) - $41,403 per year (living expenses) = $21,564 per year - $5,515 (cost of child) = $16,049 per year

1. U.S. Bureau of Labor Statistics. (2020). Median usual weekly earnings of full-time wage and salary workers by sex, quarterly averages, seasonally adjusted. Retrieved from https://www.bls.gov/news.release/pdf/wkyeng.pdf

2. U.S. Bureau of Labor Statistics. (2020). Consumer Expenditures in 2019. Retrieved from https://www.bls.gov/news.release/pdf/cesan.pdf

3. New York City Department of Consumer Affairs. (2015). From Cradle to Cane: The Cost of Being a Female Consumer: A Study of Gender Pricing in New York City. Retrieved from https://www1.nyc.gov/assets/dca/downloads/pdf/partners/Study-of-Gender-Pricing-in-NYC.pdf

4. New York City Department of Consumer Affairs. (2016). From Cradle to Cane: The Cost of Being a Female Consumer: A Study of Gender Pricing in New York City. Retrieved from https://www1.nyc.gov/assets/dca/downloads/pdf/partners/Study-of-Gender-Pricing-in-NYC.pdf

5. U.S. Census Bureau. (2018). Income and Poverty in the United States: 2018. Retrieved from https://www.census.gov/library/publications/2019/demo/p60-266.html

6. National Women’s Law Center. (2018). The Wage Gap: The Who, How, Why, and What to Do. Retrieved from https://nwlc.org/resources/the-wage-gap-the-who-how-why-and-what-to-do/

7. National Institute on Retirement Security. (2019). Shortchanged in Retirement: Continuing Challenges to Women’s Financial Future. Retrieved from https://www.nirsonline.org/wp-content/uploads/2019/03/Shortchanged-in-Retirement-Continuing-Challenges-to-Womens-Financial-Future.pdf

8. U.S. Department of Agriculture. (2020). Expenditures on Children by Families. Retrieved from https://www.usda.gov/media/blog/2017/01/13/cost-raising-child