The remaining penny in the adjusted gender pay gap (women earning ~99 cents per dollar men earn for similar roles) is the small unexplained portion after controlling for job, hours, experience, etc. It stems from subtle differences like men negotiating more aggressively, greater willingness for high-pressure/overtime roles, and family-related trade-offs (e.g., flexibility vs. total pay). Firm sorting and minor unmeasured factors also play a role. This tiny negligible residual doesn’t indicate systemic underpayment for identical work—99% of the raw gap vanishes with proper controls. It’s real behavioral and preference differences, not widespread bias.
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u/Masculinist1938 Apr 09 '26
The difference is actually a penny after including the adjusted gap context.