Closing the Pay Gap: New Report Ranks Best and Worst States for Women's Earnings

Last Updated: 24.08.2023

Meliza Ahmetxhekaj

Digital PR Specialist

This Women’s Equality Day marks 103 years since women won the right to vote. Yet full gender equality remains elusive. Major gaps persist in pay, leadership, poverty, and violence.

Women earn just 82 cents for every dollar men earn. New data exposes alarming divides in state pay equity. Some states are progressing, while others lag behind. Vermont has the smallest gap at 9%, while Wyoming has the largest at 35%.

Dive into this comprehensive analysis to discover where each state stands and the policy solutions that can bridge the existing gaps.

Key Takeaways

✓ Women working full time in the U.S. earn only 83 cents for every dollar earned by men.

✓ The pay disparity doesn't just affect immediate earnings; it extends into retirement, with women having only 70% of the retirement income that men do.

✓ Considering all workers, the gap widened to 77 cents for every dollar.

✓Women aged 45-54 had the highest median weekly earnings at $1,012. For men, it was the same age group, with earnings of $1,295. The lowest earnings were for the age group 16-24.

✓ Women's earnings have increased since 1979, with White women seeing the most substantial growth at 44% when adjusted for inflation. Men's earnings trends varied, with declines in the early period and slow growth or stagnation in recent years.

✓ States like Vermont, Hawaii, Maryland, California, and Nevada have made great strides with equal pay legislation, salary history bans, and family-friendly policies, leading to some of the smallest gender pay gaps in the nation.

✓ States like Wyoming, Utah, Louisiana, Oklahoma, Alabama, South Dakota, and Idaho lag behind lacking equal pay laws, pay transparency protections, and family support policies, reflected in some of the largest pay disparities nationwide.

Top 7 States Leading the Charge

Vermont

Vermont leads on closing the gender pay gap, with women earning 90% of what men do on average. Women in Vermont earn $46,616 annually, compared to $51,212 for men - just a 9% pay difference between genders. ‍

This is the smallest gap nationwide, making Vermont a model for pay equality.

Hawaii

Hawaii comes in 2nd for progress toward gender pay parity nationwide. With women earning 90% of men's salaries on average, Hawaii has nearly closed its gender pay gap.

Thanks to its island spirit of equity, Hawaii outpaces most other states in approaching equal pay between genders. With swaying palms and equitable paychecks, Hawaii is becoming a leading model of an island paradise for all.

If Hawaii keeps up its drive toward pay fairness, soon both men and women will be able to enjoy its tranquil shores knowing equality prevails.

Maryland

Maryland has made significant strides toward gender pay equity, with one of the narrowest gaps in the nation. Women in the Old Line State earn a median income of $56,545, while men earn $63,272.

Though full parity has not yet been reached, Maryland's 89 cents on the dollar ratio puts the state near the top of the rankings.

With the right policies emphasizing transparency, anti-discrimination protections, and promotion of women, activists argue Maryland has the opportunity to set the standard for equal pay nationwide.

But challenges remain, they say, and leaders cannot become complacent with recent gains. By tackling lingering disparities head-on, the state can cement its reputation as a champion of women in the workplace.

For any state, the path to full gender pay equity is long - but Maryland is further down it than most.

California

When it comes to gender pay equity, California is ahead of the curve compared to many other states. With its reputation as a progressive stronghold, many expect the state to have one of the narrowest pay gaps.

Though a gap persists, data shows California outpaces most of the nation - women there earn 89 cents for every dollar paid to men. Female workers take home a median salary of $50,220 annually, while men average $57,016.

Advocates applaud California's tighter gap, but say more work is needed to achieve full parity.

With its liberal leanings and history of support for working women, California is well positioned to become a model for equal pay if it continues to pursue transparency measures, family-friendly policies, and anti-discrimination protections.

The state still has room for improvement, but has made significant strides. For women seeking careers where their gender isn't a liability, California offers brighter prospects than less progressive parts of the country.

Nevada

Nevada's making progress on the pay gap, but still has work to do. Women earn about $40,775 annually, compared to $46,706 for men - an 11% split.

But the Silver State ranks mid-pack nationally for equity, and boasts rising women's business ownership. Advocates praise new protections and support for female entrepreneurs, but say more's needed to fully close the divide.

Critics urge stronger transparency laws, family leave policies, and anti-discrimination incentives. Nevada's not at the gold standard yet, but it's come a long way.

With continued focus, the state could become a model for pay parity. For women business owners, Nevada provides a landscape of both promise and room for improvement.

New York  

New York women earn median salaries of $51,927 annually, compared to $60,686 for men - a 13% gap.

Though the state ranks 6th for pay equity nationwide, critics argue more needs to be done. Advocates praise New York's anti-discrimination protections, transparency laws and family leave policies.

But they say stronger pay equity incentives and workforce development programs are needed. High costs of living present challenges.

While New York provides a relatively favorable landscape, gaps remain for women workers to earn on par with men.

With continued focus, the Empire State could become a leader in gender pay parity. Progress has been made, but full equity remains elusive.

North Carolina

North Carolina ranks 7th for nearly closing the gender pay gap, but inequities persist. Women entrepreneurs earn median salaries of $40,640, compared to $46,524 for men - a 13% difference.

The state touts its low costs and support for women-owned businesses. But critics argue more pay equity incentives are needed as firms scale. While North Carolina has expanded protections and reporting, loopholes remain.

More progress is required for full parity. But with business-friendly policies and momentum on women's workforce participation, North Carolina could become a model for gender equity if it stays focused.

Bottom 7 States Lagging Behind

Wyoming

Wyoming ranks last for gender pay equity in entrepreneurship. Women business owners earn a median salary of just $37,302, compared to $57,339 for men - a steep 65% gap.

Critics argue Wyoming needs stronger pay equity incentives and anti-discrimination protections. The state lacks transparency laws and workforce policies to support women-led ventures.

While touting low taxes and costs attractive for startups, Wyoming presents challenges for women entrepreneurs to earn fair pay.

To address the sizable earnings divide, the state needs bold action, not just rhetoric. On equal pay for women business owners, Wyoming falls far short.

Utah

Utah women make just 70 cents for every dollar men earn, leaving them 30% short on pay equity. With median earnings of $57,117 for men and $39,982 for women, Utah ranks second to last for gender wage gap.

This steep divide shows the rough terrain ahead before equal pay can be reached. Lawmakers must blaze a trail to close the canyon between men's and women's wages.

Focused reforms to value and fairly compensate women's work can help Utah overcome this obstacle and smooth its rocky record.

Louisiana

Louisiana ranks 3rd worst with a gender pay ratio of 72%.  This lands Louisiana near the bottom pay equity. The median income for Louisiana men is $51,733, while for women it is $37,075.

With such a wide gap between men's and women's earnings, Louisiana needs major reforms to value women's work and pay them fairly.

Lawmakers must implement policies to bridge this divide if Louisiana wants to live up to its nickname as the Sportsman's Paradise for all.

There's still a long bayou to paddle before Louisiana reaches the dock of equal pay. But with focused efforts, it can kick open the door to fair compensation for women.

Oklahoma

Women in Oklahoma earn only 73% of what men make. The median income is $49,721 for men and $36,494 for women, putting Oklahoma at #47 for pay equity.

With such a wide prairie to cross between men's and women's earnings, Oklahoma needs major changes to value women's work and pay them fairly.

Lawmakers must lasso comprehensive reforms if the Sooner State wants to live up to its nickname as a paradise for all. There's still a long, dusty trail to blaze before Oklahoma reaches equal pay.

But with focused efforts, it can throw open the saloon doors to equitable compensation for women.

Alabama

Alabama comes #5th in our gender wage gap ranking, with women earning only 74% of what men make. The median income is $50,018 for men and $37,161 for women, putting Alabama at #46 for gender pay equity.

With such a wide gap between men's and women's pay, Alabama needs serious changes to properly value women's work and compensate them fairly.

Lawmakers must pave new policies to bridge this divide if they want Alabama to live up to its "Heart of Dixie" nickname.

There are still many unpaved backroads until the state reaches equal pay. But with focused efforts, Alabama can crank up the gears for equitable compensation for women.

South Dakota

South Dakota comes in #6th with women earning only 75% of what men make. The median income is $50,196 for men and $37,765 for women, putting South Dakota at #45 for gender pay equity.

With such wide open prairie between men's and women's pay, South Dakota needs major changes to properly value women's work and compensate them fairly.

Lawmakers must saddle comprehensive reforms if the Mount Rushmore State wants to live up to its nickname as a true paradise.

There's still a long, rugged trail until equal pay is reached. But with focused efforts, South Dakota can open the saloon doors to equitable compensation for women.

Idaho

Idaho takes the #7 spot, with women earning 76% of male earnings. With median incomes of $57,117 for men and $39,784 for women, Idaho ranks 44th for wage gap.

This large divide shows the state needs major reforms to value and fairly compensate women. Lawmakers must close the canyon between men's and women's pay.

By addressing the gender wage gap through new policies, Idaho can improve its poor record on equal pay.

What's Needed to Shrink the Divide

Advocates say new laws banning salary history questions and mandating equal pay certification are key steps forward. Family-friendly policies like paid leave and flexible work arrangements also enable better workforce participation.

But much of the onus is also on employers to conduct annual audits, promote women into leadership roles, and create diversity and inclusion programs. A multi-pronged approach is needed to unravel decades of inequality.

While complete pay parity hasn't been achieved, the gains made by top states prove it's possible. With the right policies and practices driving change, the gender wage gap can close for good nationwide.

Methodology

In our comprehensive analysis, we delved into the varying earnings landscapes, specifically highlighting disparities between genders across the many states of our nation. To achieve this, we turned to the comprehensive 2023 Census dataset, with a focal point on the median earnings figures for those employed full-time.

For a structured understanding and a systematic ranking, we aligned our findings with the metrics provided by the AAUW. Their detailed women-to-men earnings ratios for each individual state played a pivotal role in shaping our insights and laying out the nuances in wage structures across the U.S.

In our comprehensive analysis, we delved into the varying earnings landscapes, specifically highlighting disparities between genders across the many states of our nation.

To achieve this, we turned to the comprehensive 2023 Census dataset, with a focal point on the median earnings figures for those employed full-time. For a structured understanding and a systematic ranking, we aligned our findings with the metrics provided by the AAUW.

Their detailed women-to-men earnings ratios for each individual state played a pivotal role in shaping our insights and laying out the nuances in wage structures across the U.S.