The Minnesota Model

In 1982, a study initiated by Nina Rothschild, the director of Minnesota’s Council on the Economic Status of Women, and State Senator Linda Bergland found that state employees in female-dominated job categories were paid significantly less than employees in male-dominated job categories. Rothschild, Bergland, and pay equity advocates launched a campaign to evaluate and adjust the pay of state government workers.

Minnesota had recently adopted the Hay System, which assigns points to jobs based on levels of skill, effort, responsibility, and working conditions. With the point-factor system, female-dominated and male-dominated jobs could be compared on these criteria. Despite the fact that female- and male-dominated jobs were rated similarly on these factors, female jobs were consistently paid less than male jobs.

Because of the advocacy campaign, in 1983, the legislature earmarked $21.7 million (1.25% of the state’s payroll) to remedy these inequities. Another $11.7 million was appropriated be the legislature in 1985. In the end, 8,500 employees received pay equity raises. The raises averaged $2200. No male salaries were lowered. Minnesota continues to evaluate women’s and men’s jobs every year and makes adjustments as needed to preserve wage equity.

In 2002, women who worked for the state of Minnesota earned about 97 cents for every dollar men make. Women in Minnesota who did not work for the state were paid only 73 cents to a man’s dollar.

Materials on Minnesota’s pay equity experience provide a blueprint for how your company or institution can close the wage gap.