Closing the Gender Wealth Gap

Advancing Gender Equity Through Guaranteed Income

5 min read4 days ago

To close the gender wealth gap we need an economy that is truly equitable and inclusive. Unfortunately, our current system is far from that ideal. Wealth disparities continue to grow, leaving women, especially women of color, more likely to live in poverty, work in low-wage jobs, and face barriers to essential healthcare.

If you’re curious about wealth inequality and how it intersects with gender, don’t miss this foundational discussion featuring WOMEN’S WAY’s Chief Disruptor Diane Cornman-Levy in conversation with Marjorie Kelly, author of “Wealth Supremacy.”

It’s clear that it’s time to uplift new solutions that will ensure our economy offers the same opportunities to all of us. That’s why WOMEN’S WAY’s 2024 Closing the Gender Wealth Gap Forum series focused on exploring alternative approaches and solutions that can build an economy where we all thrive.

In this blog, we spotlight one such approach— guaranteed income — and its potential to impact the gender wealth gap.

Guaranteed Income Basics

Guaranteed income has shown it can make a difference in the lives of women through regular, no-strings-attached cash payments. Unlike other assistance programs, guaranteed income participants can use the money however they see fit — whether it’s for rent, groceries, or other necessities.

Dr. Amy Castro from the University of Pennsylvania explains,

“The idea behind guaranteed income is really based on the thought that people are experts of their own lives and they know best where they can leverage that money to help smooth income volatility and help their family achieve upward mobility.”

The RISE guaranteed income program in Cambridge, Massachusetts is one example of guaranteed income in action. A recent study showed that the program’s $500 monthly stipend helped 130 single caregivers (96% women, 62% African American) achieve greater stability. It did this by improving their financial health, employment opportunities, self-care, and parenting opportunities.

This case study shows that guaranteed income is much more than just a financial boost — it alleviates stress, improves health, and creates opportunities for long-term stability, all of which are critical for closing the gender wealth gap.

Local Spotlight

Closer to home, Philadelphia’s Philly Joy Bank is a powerful new example of a recently launched guaranteed income program in our own backyard.

Created by the Philadelphia Community Action Network (CAN), the Philly Joy Bank launched this past summer (July 2024) to support pregnant Philadelphians, fight the maternal and infant mortality crisis, and reduce racial and gender health disparities. 250 participants from the Cobbs Creek, Strawberry Mansion, and Nicetown-Tioga neighborhoods are set to receive $1,000 each month for 18 months through this pilot. Program participants will be able to choose how, when, and why to use the cash — no questions asked.

Philly Joy Bank Overview Video

When pregnant people do not have access to quality healthcare, there is a ripple effect on the individual, their family, and the economy. The Philly Joy Bank aims to address that. In an article for The Inquirer, the Philly Joy Bank’s Program Manager, Nia Coaxum, shares:

“The idea is that providing folks with extra cash during their pregnancy will lower stress, which also has negative impacts on the body, especially health-wise. We’re really hoping that participants can use this money to address their basic needs, which will then, in turn, improve their health outcomes and birth outcomes.”

With the Philly Joy Bank as the newest addition to the growing number of guaranteed income pilots nationwide, Philadelphia advocates eagerly await the results and impacts of this exciting new program and the model it can set.

Challenges and Opportunities

Even with documented positive results from guaranteed income programs nationwide, opposition remains strong. Opponents believe that no-strings-attached payments discourage work and lack oversight on spending. These unfounded concerns stem from longstanding myths about who deserves help, especially when it comes to women and welfare.

“[Guaranteed income has] gone from the radical to the mainstream, but I think a lot of the opposition that we’re experiencing is still the same. It’s really rooted in these racist and sexist tropes about what poor people do when they’re given money, who is poor, and why they’re poor in the first place,” explains Cambridge RISE Director Sukhi Samra in an article for The 19th.

This past spring, WOMEN’S WAY hosted a Closing the Gender Wealth Gap Forum that delved into this topic in greater depth with panelists and moderator Anne E. Price, Co-President and Founder of The Maven Collaborative; Dr. Amy Castro, Associate Professor, University of Pennsylvania, and Co-Founder of the Center for Guaranteed Income Research; William Hall, Deputy Executive Director for Policy and Programs, City of Philadelphia’s Office of Community Empowerment and Opportunity; and Nia Samuels, Co-Chair of the Philly Joy Bank Steering Committee.

During the forum, panelists emphasized the urgency of changing the narrative around guaranteed income and addressing other barriers that advocates are facing. Here are some key take aways our panelists outlined:

Guaranteed income has the potential to address gender and racial wealth gaps by empowering women, especially women of color, and giving them more bargaining power and the ability to make choices about their own economic security.
Implementing guaranteed income programs requires careful consideration of narratives and community collaboration to avoid perpetuating harmful stereotypes or top-down solutions. Elevating the voices and experiences of program participants is crucial.
There is bipartisan interest in guaranteed income, but the motivations and perspectives of advocates from different sides of the political aisle. Building diverse coalitions to advocate for guaranteed income and address systemic inequities is important.
Guaranteed income alone is not a silver bullet, and must be coupled with efforts to address low wages, predatory lending, and other extractive economic practices that perpetuate poverty and wealth inequality.
Guaranteed income programs are facing increasing political backlash, requiring advocates to be in it for the long haul and prepared to contend with narratives that seek to undermine or limit the reach of these initiatives.

Want to hear more from our panelists and dig deeper into this conversation? You can watch the entire session below to learn more!

WOMEN’S WAY