There was a time where women were not allowed to work. But now, women are a large part of the business world. Women have proved that they are as capable as men can be. A testimony to this is how some of them became some of the wealthiest persons in the world. Despite this, the majority of the wealthiest people are still men. Why are there more rich men than women? And how much are their differences?
Richest Men and Women
Before anything else, let us compare how much of the wealthiest people are men and how many are women. According to the numbers, more women are becoming the wealthiest people on the planet. Unfortunately, their number is vastly inferior compared to men who are entering the list. The top list of the wealthiest people on the planet is still more filled with men than women.
According to Wealth-X, a research firm that looks into billionaires, almost 90% of the richest people in 2016 are men. Another research firm, WealthInsight, agrees with their findings that only 10% of global millionaires are women. As of 2018, only 11.7 of the total billionaires are women. Some reports even say the number is slightly decreasing over the years. Why are there more men millionaires than women? Here are some of the reasons why.
Most Richest Women Inherited Fortune
According to a study, the majority of the women that are among the richest people only inherited their fortune. According to the mentioned research firms, only 49 out of the 249 billionaires are self-made. The rest became the wealthiest people due to their inheritance, may it be partly or fully. And almost all of them are among the 50 most popular women in the world.
In prospering countries, more women are becoming some of the wealthiest people. Out of almost 30,000 millionaires in the world, one-third of them are self-made women millionaires. Despite their increasing numbers, some of the women are dropping off the list of the richest people.
Difference in Wages
One reason why there are richer men than women is because of the gender pay difference. In the United States, the average yearly income of women before tax is only 80% of that of the average men. There are many reasons why there is a huge gender pay gap in most countries. Attained education, total working hours, work experience, and type of job are often the reasons why men and women have different pay wages. In some studies, the overall performance of women in work also affects the median salary. Also, the type of job they do is a factor. Take an example; if the job a lady does is nurse, which is mostly done by women or waitress, a job done by Kelsey Henson, it would be not very easy to become a millionaire. This does not mean that in any way the jobs women do are less important.
According to a study, men are more often able to negotiate a higher pay rate than women. The research shows that 83% of men negotiate for a higher pay rate as opposed to only 58% of the women. Some women are offered or paid less according to their marital status and age. These are just some of the factors that affect gender pay difference.
Another common reason for the wide gender pay gap is discrimination. Although it is hard to measure the effects of discrimination accurately, it still is a widely acknowledged contributing factor when it comes to gender pay difference.
Discrimination at The Top
Aside from the basic gender pay gap, there is also discrimination at the top of the wealth pyramid. According to Julia Pimsleur, a founder of a multimillion-dollar company, there is still discrimination in the top levels of the wealth pyramid. She believes that men actually want to see more women at the top of the richest people’s list. She added that men do not necessarily keep women out at the top, but discrimination still exists, even if it’s unconsciously.
There is also a wrong notion that women don’t want to reach the top. Pimsleur added that women do want to have money, meaning, and mobility. Yet, women value freedom and flexibility.