The Big Female Shift
How women transformed the economy in just 50 years, and the barriers that are holding them back
Fifty years ago, women in the U.S. were granted the legal right to access credit independently with the passage of the Equal Credit Opportunity Act in 1974, ending a requirement for male co-signers. This milestone, alongside landmark advances like Title IX and Roe v. Wade, marked significant progress for women’s equality. Today, women outnumber men in higher education, control vast financial assets, and have increased their economic power. However, challenges persist, including wage gaps, the “motherhood penalty,” menopause-related workplace barriers, and limited access to venture capital, highlighting the need for further policy reforms to achieve full economic equality.
WASHINGTON — Only 50 years ago, women in the United States gained the right to access credit independently. Yes, it’s that recent.
Before the passage of the Equal Credit Opportunity Act (ECOA) in 1974, lending institutions often required women to have a male co-signer—usually a husband or father—even if they were employed and had their own income. The ECOA changed that, making it illegal for creditors to discriminate based on sex or marital status and granting women the ability to apply for credit cards, loans, and mortgages in their own names.
This landmark law was part of a wave of progressive policies that began to level the playing field for women in the 20th century. It followed Title IX in 1971, which ensured women equal access to educational programs funded by the federal government. It came just a year after the Supreme Court’s 1973 decision in Roe v. Wade, which recognized national reproductive rights for women. These milestones, alongside the 19th Amendment in 1920, granting women the right to vote, and the Civil Rights Act of 1964, prohibiting discrimination based on sex, among other things, laid the groundwork for women to achieve greater equality in American society.
Progress, Measured
Today, women have surpassed men in several key areas, particularly in education. Women now hold higher levels of education than their male counterparts, especially in large metropolitan areas. According to recent data compiled by The Chronicle of Higher Education, women made up 58% of all college students in 2020, a notable increase from 56.6% just six years earlier.
While women have outnumbered men in college for decades, the gap continues to widen. In 1979, about 200,000 more women were enrolled in college than men. By 2021, that number had swelled to 3.1 million. Historically, earning a college degree has been a gateway to higher wages.
In 1974, women earned just 59 cents for every dollar men earned. In 2023, that figure improved, but women still earn, on average, only 82 cents for every dollar men earn. However, there are exceptions: a GoBankingRates report shows that women in 42 U.S. cities now out-earn their male counterparts, largely due to lower average incomes and greater transparency around salaries. But in nearly 1,800 cities, women continue to earn less than men.
As women have gained access to education and credit, their role in the labor market has expanded, and their purchasing power has skyrocketed. In 2020, women controlled an estimated $10 trillion in U.S. household financial assets, according to McKinsey & Co. This figure is expected to grow substantially with the Great Wealth Transfer, as women inherit a significant portion of wealth from older generations. This financial shift will amplify women’s influence in the marketplace, prompting businesses to cater more to female consumers.
Hurdles Ahead
Despite significant strides over the past 50 years, women still face structural and societal barriers to true economic equality. One of the most pervasive challenges is the “life-stage penalty,” an unwritten rule that impacts women disproportionately during key phases of their lives—such as motherhood, menopause, and caregiving for both children and aging parents.
For many women, career momentum stalls at motherhood. The demands of childbirth, parental leave, and child-rearing often force women to step back from their careers, leading to lost earnings, missed promotions, and a widening gap in retirement savings. In fact, research shows that women’s earnings decline significantly after becoming mothers, while men’s tend to rise after fatherhood—an effect known as the “motherhood penalty” and the “fatherhood bonus.” This disparity persists even when accounting for education, job type, and work experience.
As women age, new challenges arise. Menopause is another life stage that remains largely overlooked in workplace policies. Symptoms such as fatigue, mood swings, and cognitive changes can impact job performance and well-being. However, most employers are ill-equipped to support women during this phase, offering few accommodations, if any. This lack of support often leads women to scale back their careers or exit the workforce altogether, exacerbating income inequality and financial insecurity in later life.
Caregiving responsibilities also disproportionately fall on women. As the primary caregivers for both children and elderly relatives, many women face a double burden that affects their ability to maintain full-time employment. According to the AARP and the National Alliance for Caregiving, women comprise 61% of caregivers in the U.S., often taking on unpaid caregiving roles that limit their participation in the workforce. This unpaid labor contributes to a widening gender wealth gap, particularly in retirement, as women accumulate less wealth over their lifetimes due to interrupted careers and lower wages.
Moreover, systemic issues like unequal access to venture capital continue to hinder women’s progress. Female entrepreneurs face greater difficulty securing funding compared to their male counterparts. In 2022, women received just 2% of venture capital funding in the U.S., a figure that has barely budged over the past decade. This stark imbalance limits the growth of women-led businesses, stifling innovation and economic diversity.
Political headwinds are also mounting. Recent attacks on reproductive rights, including the rollback of Roe v. Wade, threaten women’s autonomy over their bodies and economic futures. Research shows that access to reproductive healthcare is closely linked to women’s ability to participate fully in the labor market, pursue higher education, and plan their financial futures. The erosion of these rights may have long-term economic consequences for women, especially those in low-income and rural communities who already face limited access to healthcare.
While women have gained significant ground in the past half-century, these persistent hurdles continue to create disparities that hold them back from achieving full economic equality. Without comprehensive policy changes—such as better support for working mothers, menopause-friendly workplaces, affordable childcare, and equitable access to capital—the progress made could stall or even reverse.