"Pink Tax"
Why Are Women Paying More?
“Pink tax” is a gender-based cost disparity in which women pay extra daily for feminine care products. Some of these necessities include razors, shampoo, conditioner, clothes, and haircuts. This is not recent news for women; however, some are reluctant to look at price tags and receipts to see the true cost difference. How much does this affect our day-to-day lives? What steps have our legislature tried to take to combat these problems?
Source: Nicole Hwang / The Temple News
The so-called “pink tax” emerged in the late 20th century due to tariffs, product differentiation, and the price elasticity of demand. Products for women cost on average 7% more than comparable products for men. Women pay an additional cost in roughly 30 out of 35 product categories. This is unacceptable- women are paying more than men 42% of the time. According to a California Assembly of Research study in 1994, this tallies up to a total of $1,351 per person, per year. In recent years, 27 out of 50 states still have a tax on tampons and other feminine hygiene products. Deeming tampons and sanitary napkins "unessential," they do not qualify for coverage by federal food stamp and relief programs. Because of this, states profit an estimated $120 million annually off of women.
Source:https://www1.nyc.gov/
Why are economists seemingly okay with price discrimination? It's efficient. Price discrimination allows a company to charge different prices for different people, thus allowing more sought-after products to be less expensive due to demand. If the market weren't segmented, there would be less variety in products. In some instances where there are both men's and women's versions of a hygiene product- for example, razors, men will often buy more than women causing those products to be cheaper.
In recent years, US Legislation tried to pass the Pink Tax Repeal Act and Gender Tax Repeal Act. This would prohibit product manufacturers from selling similar products at different prices based on the gender of the buyers. This bill was re-introduced by Rep. Jackie Speier of California in June 2021, which was the fourth attempt at getting passed on a federal level.
While the halted progression in fixing this issue is frustrating, there are ways to avoid being overcharged on certain feminine care products: Be diligent about researching gender-price differences. Give business to companies that have price equity. Lastly, support change in legislation and use your voice to speak out against price discrimination and "pink tax."
By: Emma Kamins