EEOC Research Finds Gender Pay Gap was Larger Among Federal Employees Age 40 and Over

WASHINGTON – The U.S. Equal Employment Opportunity Commission (EEOC) today released a report titled, “The Impact of Age on the Gender Pay Gap in the Federal Sector.” The EEOC examined data on over two million federal employees to assess whether the gender pay gap differs for people under age 40 compared to people age 40 and over (who are protected from age discrimination by federal law). The analysis also examined how the factors associated with the gender pay gap differed between these two age groups.

“Gender pay gaps are larger for older employees. Over a lifetime, this adds up,” said Karen Brummond, a social science research analyst at the EEOC’s Office of Federal Operations and author of the report. “A small gender pay gap early in one’s career can multiply into a larger gap over time.”

The main findings from this report include:

• Regardless of how it was measured, the gender pay gap was larger among employees age 40 and over.
• In the younger age group, federal work experience was the most influential attribute, increasing the gender pay gap by $2,105 annually or 2.9 cents on the dollar on average. Pay generally increases with experience, and the average man under age 40 had about 1.1 more years of federal work experience than their female counterparts. Occupation was the second most influential attribute at $1,153 annually or 1.6 cents on the dollar.
• In the older age group, occupation was the most influential attribute ($2,005 annually or 2.1 cents on the dollar), followed by federal work experience ($743 annually or 0.8 cents on the dollar).
• Gender distribution differences by agency contributed 1.0 cents on the dollar ($742 annually) to the pay gap of women under age 40 and 0.5 cents on the dollar ($461 annually) to the pay gap of women over age 40. Different Federal agencies use different pay scales to compensate their employees. If there are more men at agencies with higher pay scales, this could increase the gender pay gap.
• Among the younger age group, educational attainment was the attribute most associated with decreasing the gender pay gap, decreasing it by $1,665 annually or -2.3 cents on the dollar.
• Veteran status also helped decrease the gender pay gap by $1,157 annually (-1.6 cents on the dollar) for the younger group and by $1,314 annually (-1.4 cents on the dollar) for the older group.
• In both age groups, men and women were rewarded (in this case, paid) in different ways even when having the same attributes. Within age groups, men’s pay increased with age more so than women’s pay, increasing the gender pay gap by $2,420 annually (3.4 cents on the dollar) for those under age 40 and by $10,534 annually (11.2 cents on the dollar) for those over age 40.
• In the older age group, rewards to occupation ($1,572 annually or 1.7 cents on the dollar) and education ($466 annually or 0.5 cents on the dollar) were also significantly associated with a larger gender pay gap.

Based on the above findings, the EEOC recommends the following:

• Federal agencies should make efforts to identify and address barriers creating gender differences in occupation, which are greater among workers age 40 and over.
• Governmentwide initiatives to eliminate gender pay inequities should focus on the agencies with the largest gender pay gaps.
• Additional research should seek to identify the personnel practices and occupations most associated with gender pay differences across age groups in the federal sector.

The EEOC prevents and remedies unlawful employment discrimination and advances equal opportunity for all. More information is available at www.eeoc.gov. Stay connected with the latest EEOC news by subscribing to our email updates.