Pay equity: Cleveland’s path to economic growth and opportunity [Op-ed]

Economic empowerment comes in many forms, but few are as powerful and direct as ensuring women receive pay equity. 

Since 1979, HHW Ohio has matched women seeking lifelong careers with employers needing skilled workers. Over 90% of the women we’ve served come from low-income backgrounds, and many are single mothers who have struggled with low-wage, dead-end jobs. When these women gain access to fair-paying careers, the impact ripples throughout our entire economy. We’ve spent over four decades helping women achieve financial security and we’ve seen firsthand how pay equity transforms lives and communities.

Cities like Cincinnati, Toledo, and Columbus have already passed components of pay equity policies with positive results. These policies include two proven strategies: requiring employers to disclose salary information to job candidates, and prohibiting employers from asking about salary history during hiring. Both approaches have demonstrably reduced gender pay gaps and increased earnings for women, and Cleveland has the opportunity to pass an ordinance that includes both of these policies.

Advertisement

Without this legislation, the data paints a stark picture. Women in our workforce earn just 73 cents for every dollar earned by white men. The disparity deepens for women of color, with Black women earning 69 cents and Latina women just 57 cents on that same dollar. 

Over a 40-year career, the gender wage gap costs women an average of $417,400 in lost wages. For Black women, that figure soars to nearly $1 million, and for Latina women, it exceeds $1.15 million. This doesn’t just hurt women and their families; it actively undermines Cleveland’s economic potential.

Pay equity legislation is smart economic policy. When women earn their fair share, they lift entire households out of poverty. Children have better educational outcomes, families can afford stable housing, and dependence on social services decreases. Every dollar of that $417,400 in lost wages could have been spent in local businesses. 

For businesses, pay equity creates a more competitive workforce. At HHW Ohio, we engage with industry leaders who understand that when qualified women earn fair wages, employee retention improves, training costs decrease, and productivity rises. Research has shown that employees who feel compensated fairly are more motivated, reducing turnover costs and fostering a more dedicated workforce.

Cities that have implemented robust pay equity measures have seen positive effects on their economies. For example, states with stronger equal pay laws have experienced higher GDP growth rates and increased workforce participation among women. Cleveland, with its diverse industries and skilled workforce, stands to gain significantly by following suit.

The expanded tax base that results from pay equity is substantial. When thousands of women across Cleveland earn their fair share, city revenue increases, allowing for investments in infrastructure, education, and services that benefit everyone. This creates a virtuous economic cycle—better-paying jobs lead to stronger neighborhoods, which attract new businesses and residents.

As a community, we cannot wait until 2088—the projected year when the gender pay gap will close at our current pace of progress. Cleveland deserves better, and our economy needs it now. By implementing comprehensive pay transparency legislation at the city level, we can accelerate progress and position our city as a leader in workplace fairness and economic opportunity.

HHW Ohio calls on Cleveland’s leadership to join other Ohio cities in passing robust pay transparency laws and salary history bans. These proven strategies will strengthen our economy, support working families, and create a more vibrant, equitable Cleveland for all. After more than 40 years of supporting women in the workforce, we know that when empowered women earn their fair share, they empower our entire community.