NYC Study Shows Women Pay More for Everyday Items

Did you know that in New York City, women's products cost an average of 7% more than similar products for men? That's according to a new study by the Department of Consumer Affairs (DCA). This "pink tax" adds up over time, costing women tens of thousands of dollars throughout their lives. We know that the pink tax prevents women from building their wealth–combined with the wage gap and we are continuously falling behind our male counterparts.

Still not convinced that the pink tax exists? These statistics might change your mind:

• In 2020, women who worked full-time wages or as salary workers earned 82% of the median usual weekly earnings as men. (U.S. Bureau of Labor Statistics)

• 41% of working women received neither a pay raise nor a better-paying job between August 2021 and August 2022, despite high inflation. (Bankrate)

Historical Context

This issue isn't new. In 1992, the DCA conducted a similar investigation titled "Gypped by Gender." Back then, they found women paid more at used car dealers, dry cleaners, and hair salons. Interestingly, the lack of price transparency back then disadvantaged female shoppers. They simply didn't know men's departments might offer better deals!

The 1992 study exposed some stark examples: women were quoted twice as much for used cars and paid 25% more for haircuts compared to men. Even basic laundry services cost them 27% extra.

DCA's research sparked a national conversation. Other states followed suit, with California estimating a yearly "gender tax" of $1,351 for women in 1994. Several states passed laws to protect consumers from service-based gender pricing, but there are currently no similar laws for goods.

The New Study

The new study compared nearly 800 items across five industries: toys, clothing, personal care products, and senior/home healthcare products. Researchers looked for products across these industries that had clear male and female versions but the offering was almost identical.

The Findings

The results are clear: women's products were more expensive in nearly all categories:

• Toys & Accessories: 7% more for girls

• Children's Clothing: 4% more for girls

• Adult Clothing: 8% more for women

• Personal Care Products: 13% more for women

• Senior/Home Healthcare: 8% more for women

The Impact

This price difference adds up significantly. While the study doesn't estimate a yearly cost, the historical context suggests a substantial financial burden on women over their lifetimes. The most troubling part of this study was seeing that children’s toys had this price discrepancy. The pink tax starts from birth and it is drilled into our minds that female products just cost more money to make (which we now know to be false). The pink tax sends the message that boys and girls are not equal. When girls are consistently paying more for products marketed towards them than boys, it can lead to girls feeling like they're not as valued as their male friends.

Unequal Burden

The study highlights how women have little control over this price difference. Unfortunately, we have almost no choice between companies because everything is owned by a handful of corporations. In previous decades, we would be able to boycott a certain company and go with their competitors. That isn’t the case anymore because the leaders in the industries have put all of their competitors out of business. We can no longer choose the ingredients or materials used and must instead rely on what's available. This puts women at a financial disadvantage compared to men.

What You Can Do

The DCA encourages consumers to raise awareness about gender pricing. Use the hashtag #genderpricing on social media to share examples of unfair pricing and advocate for fair pricing for all. This study sheds light on a concerning trend with historical roots. By working together, we can push for a more equitable marketplace where everyone pays the same price for similar products, regardless of gender.

Check out Janine’s book The Pink Tax: Dismantling A Financial System Designed To Keep Women Broke where she breaks down the 4 foundations of financial feminism while providing insightful real world examples of how the pink tax impacts everyone in our society—not just women.