If you're struggling to make ends meet where you live, the gender wage gap may be a major factor. A new USA Today analysis has found that the pay disparity between men and women is a key driver of the high cost of living in many states across the country.
A Widening Divide
According to the data, the typical full-time working woman made just 82 cents for every dollar earned by a man in 2022. That $11,000 gap in median annual earnings is a major contributor to financial strain, especially in high-cost areas.
The Midwest Squeeze
The problem is particularly acute in Midwest states like Illinois, Indiana, and Ohio, where the gender pay gap is among the largest in the nation. Women in these states earn 25-30% less than their male counterparts, making it extremely difficult to afford the basics like housing, childcare, and healthcare.
A Vicious Cycle
What this really means is that the wage gap is trapping women in a cycle of financial insecurity. Without equal pay, they have less purchasing power to afford the high costs of living in their state. And with less income, they have fewer opportunities to build wealth and get ahead. The bigger picture here is that closing the gender pay gap could be transformative for households and local economies.
As Brookings researchers have found, narrowing the divide would boost consumer spending, tax revenues, and overall economic growth. So the stakes couldn't be higher for policymakers and employers to take meaningful action.
Until then, the wage gap will continue to be a major factor keeping many Americans - especially women - from living comfortably in their state. As this USA Today analysis shows, the numbers don't lie.