MONEY Wages

Here’s One Statistic Explaining Why You Haven’t Gotten a Raise Lately

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Krakozawr—Getty Images

A big chunk of workers are yearning for more hours, raise or no raise.

More than one-third of American workers would be willing to work longer hours without a raise, according to a new Federal Reserve report.

The report, which surveyed nearly 6,000 individuals about their financial well-being, found 36% of respondents would prefer to work more hours at their currently hourly wage. Another 58% of respondents said they are happy with the number of hours they currently work, while 5% wished they could work fewer hours.

While those who took the survey were not necessarily hourly workers, a Federal Reserve spokesperson said the question is a general proxy for whether employees would be willing to work longer for higher pay.

As Bloomberg notes, the Federal Reserve’s findings may help explain why inflation-adjusted wages have remained essentially flat, even as the economy has improved.

“When [Federal Reserve Chair Janet Yellen] says that the unemployment rate probably does not fully capture the extent of slack in the labor market, this is exactly what she’s talking about,” said Thomas Simons, a money-market economist at Jefferies LLC, in an email to Bloomberg. “Until workers perceive that there are more opportunities available that offer higher wages, they will be content to work for the same rate rather than take a risk for more.”

MONEY salary

Temps Make 10% Less Than Full-Time Employees for the Same Work

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Joerg Steffens—Getty Images/OJO Images RF

It's common knowledge that temp workers aren't treated as well as full-timers. But this is pretty awful--and blatant.

There’s bad news for those working as temps or on-call workers—a group of Americans that has grown since the recession.

Despite doing equivalent work, so-called “contingent” employees earn about 10.6% less per hour than standard full-time workers, according to a new report from the Government Accountability Office (GAO).

Contingent employees made up about 18% of the workforce in 2014, up from 12% in 2009. That increase has come in great part because of growth in the “gig economy,” says Mary Beth Maxwell, the Principal Deputy Assistant Secretary for Policy at the U.S. Department of Labor.

“For some, these changes represent greater access to the labor market. For others, they mean reduced access to workplace protections, benefits and stable income, and increased exposure to health and safety risks,” Maxwell wrote in a letter to the GAO.

Indeed, a different new study reveals that on-demand workers (like Uber drivers) most commonly cite low pay as their top reason for quitting.

Some temp workers are paid especially poorly compared to their full-time counterparts, the GAO report found: Teachers and educators make nearly 14% less than standard workers per hour if they are contingent. On the other hand, construction workers make about the same on an hourly basis no matter if they’re contingent or collect salaries full-time.

Unsurprisingly, the job benefits are worse for contingent workers–that is, if they receive benefits at all. Temps are about two-thirds less likely than standard workers to have a work-provided retirement plan and less than half as likely to have employed-based health insurance, the study found.

MONEY home prices

10 States With the Least Affordable Homes

Diamond Head, Oahu, Hawaii
Carl Shaneff—agefotostock Diamond Head, Oahu, Hawaii

A new study shows where in the U.S. home prices are the most out of whack with income.

In most parts of the country, a family with a median household income should—ideally—be able to afford a median-priced home in that area. In fact, an analysis of county-level data from RealtyTrac showed that a monthly payment on a median-priced home was more affordable than fair-market rent on a three-bedroom unit in 76% of counties studied, making buying a home the more economical choice for many Americans.

Of course, there’s a lot more at play when determining if you can afford a house than looking at your paycheck and the rental market—buying a house often requires a home loan, which can be tougher to come by if you don’t have good credit. At the same time, a good credit score will only get you so far in the home-buying process, because if housing in your area is exceptionally expensive, even a median household income may not get you much house. (This calculator can show you how much house you can afford.)

To determine the states where housing is least affordable, the Corporation for Enterprise Development divided the state’s median housing value by the median family income in that state, according to 2013 Census data. A breakdown of all 50 states and the District of Columbia is available through its Assets & Opportunity Scorecard tool. Here are the states with the least affordable homes.

10. (tie) Rhode Island

2013 median housing value: $232,300
2013 median household income: $55,902
Ratio of median housing value to median income: 4.2

10. (tie) Vermont

2013 median housing value: $218,300
2013 median household income: $52,578
Ratio of housing value to income: 4.2

8. Washington

2013 median housing value: $250,800
2013 median household income: $58,405
Ratio of housing value to income: 4.3

7. New Jersey

2013 median housing value: $307,700
2013 median household income: $70,165
Ratio of housing value to income: 4.4

6. Oregon

2013 median housing value: $229,700
2013 median household income: $50,251
Ratio of housing value to income: 4.6

5. New York

2013 median housing value: $277,600
2013 median household income: $57,369
Ratio of housing value to income: 4.8

4. Massachusetts

2013 median housing value: $327,200
2013 median household income: $66,768
Ratio of housing value to income: 4.9

3. California

2013 median housing value: $373,100
2013 median household income: $60,190
Ratio of housing value to income: 6.2

2. District of Columbia

2013 median housing value: $470,500
2013 median household income: $67,572
Ratio of housing value to income: 7

1. Hawaii

2013 median housing value: $500,000
2013 median household income: $68,020
Ratio of housing value to income: 7.4

Those are some eye-popping figures, especially if you’re from the other end of the spectrum, like Iowa or Michigan, where the median home price is just 2.4 times the median income in those states. Places like Hawaii, D.C. and California are significant outliers, though.

Nationwide, the median-priced home ($173,900) is 3.3 times the median household income ($52,250), but homeownership remains out of reach for many Americans. Homeownership rates are at their lowest level in more than two decades, partially due to tight credit in the mortgage market. To have the best chance at getting a home loan, borrowers need to focus on improving their credit standing (you can track your credit scores for free on Credit.com) and paying down debt, so they can prove their ability to repay a home loan.

More from Credit.com

This article originally appeared on Credit.com.

MONEY Workplace

9 Ways to Make More Money at Work

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Jamie Kripke—Corbis

Career strategies for every stage.

Even if you’re not among the super-savers who are on their way to becoming 401(k) millionaires, there are plenty of ways to build wealth on the job. Whether you’re just starting out, in your peak earning years, or planning a career second act, here are 9 ways to fatten your paycheck.

1. Begin your career in a wealth-building city. To maximize your earning potential, minimize the amount you spend on housing—for most people the largest chunk of their monthly budget. According to Zillow.com, three metro areas where job growth exceeds the median 1.3% and housing costs are below the typical 2.9 times income are Dallas (job growth 3.3%, housing costs 2.5x income); Atlanta (job growth 2.4%, housing cost: 2.7x income), and Indianapolis (job growth 2%, housing costs 2.4x income). Plus, these are great places to live: Dallas suburb McKinney and metro Indianapolis both made it onto MONEY’s annual list of the best places to live, while Atlanta is home to the headquarters of Fortune 500 companies including Coca-Cola and UPS.

2. Don’t wait for a performance review to ask for a raise. Most companies do performance reviews in February or March—but set budgets before the end of the prior year. If you can make the case for a raise, start the conversation no later than December.

3. Lead with the dollars. You are more likely to get a raise, and a higher one at that, when you say what you want first and explain why you deserve it second. “It sounds like a trivial difference, but it produces a significantly different outcome,” says negotiations expert Robin Pinkley of Southern Methodist University. You’ll also do better if you couch your request in a range. Asking for an extra $5,000 to $7,000 a year beats plain old $5,000. You’ll seem cooperative and flexible—and make it harder for the boss to return with a lowball counteroffer, according to a new study by Daniel Ames and Malia Mason of Columbia University.

4. Become a free agent. Workers may get 3% raises in 2015, but execs who jump ship can expect 15%, says the executive search firm Salveson-Stetson Group. A raise like that at the age of 40 can boost lifetime income by 9%.

5. Repackage yourself. When you were starting out, you may have played up your full work history. As you advance in your career, tailor your résumé to experiences that speak to a specific job—for instance, how you boosted sales at your last position, says Marcelle Yeager, president of Career Valet. Also, put education credentials at the bottom, says professional résumé writer Dawn Bugni. That you got a bachelor’s degree 20 years ago doesn’t mean that much now.

6. Automate your job search. There are simple ways you can help prospective employers find you with little effort. For starters, make it easy for hiring managers to spot you by filling your LinkedIn profile with keywords associated with the type of job you want. The service will make suggestions for you, but look at job listings posted on the site by companies you want to work for to see what keywords they use as well. Also, sign up for the anonymous job site Poachable, and download the app Poacht.

7. Climb one more rung. After 45, only the top 2% of earners see real continued wage growth, on average. So it’s time to gun for one more big promotion. For example, while the median salary for a software engineer is $76,000, senior engineers can expect $101,000, according to payScale.com.

8. Switch ladders. Didn’t snag the pay you deserve? With the economy adding 266,000 jobs a month, you have options. After giving notice, arrange a friendly exit interview with the boss—her endorsement will be valuable in the next switch.

9. Have a Plan B. Your middle years are crucial savings years, but perilous careerwise. On average, unemployed Americans 55 to 64 have been jobless for 11 months. so lay the groundwork for a backup plan—whether it’s a short-term project, freelancing, or a business idea.

Adapted from “101 Ways to Build Wealth,” by Daniel Bortz, Kara Brandeisky, Paul J. Lim, and Taylor Tepper, which originally appeared in the May 2015 issue of MONEY magazine.

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MONEY salary

Tesla’s Billionaire CEO Elon Musk Works for Peanuts

Musk has paid himself California’s minimum wage for the past two years, but he only kept $1 and returned the rest to the company. It appears he did the same this year.

MONEY Kids and Money

4 Important Lessons to Teach on Take Your Kids to Work Day

Girl on phone in medical lab office
Stanislas Merlin—Getty Images

On the fourth Thursday of April, working parents all across America take their children to work with them so they can see what Mom or Dad do for a living.

April 23, 2015 marks the 22nd year of ‘Take Our Daughters and Sons to Work’ Day.

Some companies have organized activities for their young visitors; others have little or no planning. Regardless of how things work at your office, you can use your workplace to teach kids about the value of money.

Of course, your lessons must be age-appropriate. It’s difficult, if not impossible, to teach your toddler about the stock market, and older children will be bored with simplistic discussions. With that in mind, here are a few ideas that can spur your thinking on appropriate lessons for your kids.

Salary – You can give younger children an analogy of worth and value by equating your work time to money and purchases. Give them a frame of reference by how much of your work time it takes to buy an ice cream cone or a bike.

Beware of two unintended consequences — make sure your children do not think that just because you work a certain amount of time they will get an ice cream cone or a bike, and make sure they understand that your salary is private. You do not want them relaying their newfound information to everybody they meet in the hallway or the elevator.

Profit – If you work in a manufacturing environment, you can show your children the products you make and talk about profit in general — how it takes money to make the products and how your company has to charge more to be able to pay employees and stay in business. Make the discussion age-appropriate and do not use actual company numbers unless you’ve cleared it with your manager (and even then, it’s not a good idea to be specific).

You can extend the profit discussion to retail jobs as well. It may be harder to illustrate in an office environment, but it’s not impossible to do so.

Sales – If you’re in a retail environment, you may be able to show your children how transactions take place. When ringing up a customer’s cash purchase, you can go over basic math skills with younger children by letting them “help” you make change and hand it out to the customer. You can engage your older children with discussions about credit cards and debit cards — how they work, what the difference is between the two, and pros and cons of each.

Taxes – If you can keep out your own biases (and we all have them), you can teach your kids about taxes. For example, in the retail environment, you can explain why the customer pays more than the price on the price tag because of taxes, where the tax money goes, and how it’s spent.

Take Our Daughters and Sons to Work Day isn’t for everybody. If your workplace is hostile to the idea, you don’t think you can pay sufficient attention to your child and still do your job, or you can’t keep them from disrupting the office, then don’t participate. A bad experience at the office is worse than no experience at the office.

However, you should spend extra time with your children later on and talk to them about what you do at work. You can use that time for teachable moments about money. They may not pay close attention or seem to appreciate the effort now, but as they grow up, you’re more likely to see the fruits of your efforts. Take the extra time to teach your kids about money, and they’ll reward you by staying out of trouble (and out of debt) with their good money-management habits.

MONEY Income equality

Why This CEO Pays Every Employee $70,000 a Year

Dan Price
Dan Price

Dan Price's decision to dramatically increase wages at his company sparked a lot of controversy. Here's why he did it.

Growing up in rural Idaho, Gravity Payments CEO Dan Price remembers learning that one’s values are most sacred.

“My dad would ask me a question…He’d say, ‘How much money is your integrity worth?’ His point was there’s no amount of money that he would be willing to sell his integrity for. And that was ingrained in me at a very, very young age.”

Fast forward to today, the 30-year-old CEO is staying true to those principles. Just last week he announced he’d be taking a $930,000 pay cut to help afford raising the minimum wage at his Seattle-based credit card processing company to $70,000. This means that out of the 120 employees, 70 will be getting raises and 30 will see their incomes double.

For Price, this will also mean reducing his $1 million annual salary to $70,000. “I may have to sell my house, to be honest,” he told me.

I spoke with Price on my daily podcast, So Money, about how he arrived at choosing $70,000 as the company’s starting salary and how he’ll be measuring the success of this bold decision. While Price’s move was born out of a desire to bring more income equality to his workforce, he’ll be looking to his customers to learn if, in fact, he made the best decision.

Farnoosh Torabi: You were inspired to raise the minimum wage because of a well-known Princeton study that found that emotional well-being rises with income—but only to an extent, which is around $75,000 dollars. Was it just the study that was the game changer for you? The numbers also had to make sense for the business, right?

Dan Price: To me, once you know the right thing to do, and it’s the right thing for everybody involved and it’s going to be beneficial to everyone, it becomes a moral imperative to actually do it. In the past, as much as I would have wanted to do something like this, it wasn’t practical, it wasn’t the right timing. And so, with that Princeton study, one of the other aspects that really hit home with me was, “The dollars that you’re making underneath that amount are causing harm to your well-being.” And that, to me, is powerful stuff. And we only get to live this life once. And I want everybody that I’m partnered with at Gravity to really live the fullest, best life that they can. And so, that was a big part of it. And to be honest with you, all of those studies and stuff, you can throw them out the window. If you just talk to people around Seattle, or really anywhere, and you see how it’s impacting them, that’s the top thing for me.

The day I decided to do this, I was on a hike with a friend who had her rent hiked up a little bit. And she’s incredibly smart, very hard-working, and her employer does a great job taking care of her, but market rates being what they are, and living expenses being what they are, it was creating a very difficult, stressful situation for her.

[Editor’s note: The cost of living in Seattle is 24% above the national average, according to PayScale, mainly due to the high price of housing. Home prices are 51% above the national average.]

FT: You said from the beginning that this is really just an experiment for now. How will you be measuring its success?

DP: First and foremost will be our client satisfaction. That’s what we’ve always built the whole company on. In my mind, I am a butler, I’m a servant for our clients, which are amazing independent businesses all over the country, and we help them accept credit cards for less and give them great service. And so, if our clients are more satisfied, that’s going to be, for me, the most important bellwether.

We never really had trouble attracting talent because we’re very purpose-oriented. We never really had trouble retaining talent because the most important thing we provide our team isn’t money, but an opportunity—an opportunity to serve, an opportunity to grow. But I do think that there was some level of distraction, and there must be when you’re living paycheck to paycheck. And so, I honestly believe that removing that distraction will significantly increase our ability to take care of our clients.

Every day, MONEY contributing editor Farnoosh Torabi interviews entrepreneurs, authors, and financial luminaries about their money philosophies, successes, failures and habits for her podcast, So Money—which is a “New and Noteworthy” podcast on iTunes.

More from Farnoosh Torabi:
How to Raise Kids Who Aren’t Obsessed With “Stuff”
Self-Help Guru Tim Ferriss Confesses His Biggest Financial Mistake
How I Conquered My Fear of Going Broke

MONEY wage gap

The 25 Careers in Which Women Are Most Underpaid

equal pay day wage gap women
Michael Hanson—Aurora Photos Female farmers, on average, earn just 60% of what their male counterparts do.

Females in financial services suffer some of the biggest pay gaps—but farmers don't have it great either.

On this Equal Pay Day, let’s take a moment to acknowledge where the greatest strides have yet to be made.

While gals make 78¢ to the dollar that guys do on average, the differential in some professions is much greater. Female securities and financial services sales agents, for example, are the most underpaid professionals compared with their male peers, getting a mere 55¢ per $1 of their counterparts’ compensation.

The Census bureau tracks earnings by gender for more than 500 occupational categories; the table below shows 25 fields where, based on 2013 data, the difference in what she makes and what he makes is the biggest.

(You can discover what each of these fields entails by typing in the category listed at O*Net Online, and find your own field’s pay differential via this Census table.)

Nearly half the jobs on this list are in financial fields. It’s also worth noting that 17 out of 25 are majority male in makeup, compared with half of the fields where the pay gap for women is the smallest.

Need a pick-me-up after this list? Check out The 25 Careers with the Smallest Wage Gaps for Women. And read up on how to reduce the pay gap for yourself, no matter where your own field falls.

Occupational Category % Women in Field Median Earnings, Men Median Earnings, Women % Women’s Earnings to Men’s % Margin of Error
1. Securities, commodities, and financial services sales agents 30% $93,795 $51,284 54.7 5.7
2. Financial specialists, all other 55% $81,859 $48,869 59.7 7.5
3. Morticians, undertakers, and funeral dirs. 20% $51,129 $31,023 60.7 10.5
4. Farmers, ranchers,agricultural mgrs. 11% $41,691 $25,310 60.7 5.0
5. Personal financial advisors 31% $98,126 $60,359 61.5 5.5
6. Financial clerks, all other 61% $67,732 $42,122 62.2 5.8
7. Financial analysts 32% $100,081 $63,424 63.4 7.9
8. Financial managers 54% $90,278 $57,406 63.6 2.0
9. Supervisors housekeeping/janitorial 33% $41,180 $26,860 65.2 2.4
10. Production, planning, and expediting clerks 57% $56,437 $37,246 66.0 1.6
11. Credit counselors and loan officers 54% $69,726 $46,394 66.5 4.2
12. Insurance sales agents 45% $61,639 $41,250 66.9 1.4
13. Photographic process and processing machine workers 45% $31,888 $21,348 66.9 14.0
14. Jewelers and precious stone and metal workers 30% $36,494 $24,657 67.6 17.5
15. Driver/sales workers and truck drivers 4% $40,865 $27,657 67.7 3.8
16. Dentists 24% $151,071 $102,460 67.8 9.3
17. Tax preparers 52% $70,641 $47,997 67.9 7.1
18. Artists and related workers 36% $54,669 $37,261 68.2 9.0
19. Photographers 40% $44,513 $30,455 68.4 7.0
20. Welders, solderers, and brazers 5% $39,281 $26,893 68.5 3.6
21. Tax examiners, collectors, and agents 65% $66,754 $45,704 68.5 9.5
22. Economists 29% $120,076 $82,427 68.6 10.1
23. Credit authorizers, checkers, and clerks 73% $50,853 $35,037 68.9 10.9
24. Physicians and surgeons 33% $202,533 $140,036 69.1 4.0
25. Cutting workers 20% $31,113 $21,516 69.2 3.5

More from Money.com on equal pay:

The 25 Careers with the Smallest Wage Gaps for Women

5 Ways Women Can Close the Pay Gap for Themselves

The Single Best Thing Women Can Do to Help Themselves in Salary Negotiations

MONEY wage gap

The 25 Careers With the Smallest Wage Gaps for Women

wage gap careers equal pay day
Robert J. Ross—Getty Images On average, female media producers and directors outearn men.

Plus, 9 fields where women actually earn more

Tuesday is Equal Pay Day, intended to raise awareness of the fact that women still earn less than their male counterparts. That’s 22¢ to the dollar less on average, in case you haven’t been paying attention.

This date was not chosen randomly: Equal Pay Day is purposely held in April to illustrate the fact that it takes four months into the year for the average woman to catch up to the average man’s earnings from the last year. And it’s on a Tuesday to show how long into the week it takes to match a man’s previous-week earnings.

Of course, in some fields, getting up to par is quicker than others.

The Census bureau tracks earnings by gender for more than 500 occupational categories; the table below shows 25 fields where, based on 2013 data, the difference in what she makes and what he makes is the smallest. (You can find out what each of these fields entails by typing in the category listed at O*Net Online, and find your own field’s pay differential via this Census table.)

As you’ll see, there are nine fields where the average woman actually outearns her male counterpart, though the margins of error on these are high enough as to possibly undo the findings. Also worth noting: Half of the professions in the top 25 are made up of a majority of women, vs. only six of the bottom 25.

Some have argued that if women simply went into higher paying fields they could eliminate a wage discrepancy, but the data argue against that. After all, physicians and surgeons—who take home very healthy paychecks—suffer among the greatest pay discrepancies, with women in these fields making 69% of what men do.

Instead, Harvard economist Claudia Goldin, author of Understanding the Gender Gap: An Economic History of American Women, attributes a higher salary differential to the fact that some fields disproportionately incentivize people to work long hours and certain hours. That punishes women who take time out from their careers and require some flexibility in their work lives to raise children.

In aggregate, earnings between men and women are not that different until women enter child-bearing years, Goldin says. “But in some occupations, there isn’t a large penalty for time out of the workforce or shorter hours,” she notes.

What often separates those fields, she says, is that another person with a similar title can take over to serve as a perfect substitute. It’s easier for a woman to leave at 5 p.m. to pick up her kids if information systems or a standardization of product makes handing off her duties costless.

Goldin gives the example of a pharmacist (a profession in which women earn a high 93% of what men do). In that role, a computer system provides access to standard data about the customer, so that the customer needn’t always see the same person.

Okay, good to know, but if your field doesn’t allow this flexibility you likely won’t be able to make changes overnight. Nor are you probably interested in changing industries now just to gain the greater equality offered by the jobs below.

So what can you do? Advocating for yourself and asking the right people to advocate for you can help around the edges.

And Goldin suggests that you might work toward getting the men in your company to work less. The less willing they are to put in long hours without phenomenally more money, she notes, the more likely companies will be to put in place systems that allow workers to be more interchangeable.

“Ironically, rather than women leaning in,” she says, “it’s about getting men to start leaning out.”

 

Occupational Category % Women in Field Median Earnings, Men Median Earnings, Women % Women’s Earnings to Men’s % Margin of Error
1. Media producers and directors 37% $62,368 $66,226 106.2 10.3
2. Cleaners of vehicles and equip. 14% $23,605 $24,793 105.0 9.6
3. Wholesale and retail buyers 49% $41,619 $42,990 103.3 5.9
4. Transportation security screeners 36% $40,732 $41,751 102.5 4.4
5. Social and human service assistants 79% $34,967 $35,766 102.3 11.6
6. Special education teachers 85% $46,932 $47,378 101.0 3.5
7. Transportation, storage, and distrib. mgrs. 18% $52,017 $52,259 100.5 5.5
8. Dishwashers 16% $17,302 $17,332 100.2 7.4
9. Counselors 70% $42,299 $42,369 100.2 2.2
10. Industrial truck/tractor operators 7% $31,002 $30,981 99.9 2.9
11. Massage therapists 76% $29,272 $29,240 99.9 11.1
12. Counter and rental clerks 47% $27,449 $27,194 99.1 19.6
13. Biological scientists 48% $57,653 $57,107 99.1 9.8
14. Tellers 89% $25,564 $25,222 98.7 3.0
15. Musicians, singers, and related 20% $42,988 $42,279 98.4 13.7
16. Misc. personal appearance workers 79% $22,047 $21,632 98.1 4.0
17. Meeting and event planners 81% $47,876 $46,973 98.1 12.7
18. Security/surveillance guards 22% $30,546 $29,883 97.8 4.1
19. Computer network architects 8% $96,549 $94,445 97.8 5.7
20. Social workers 80% $42,821 $41,795 97.6 3.9
21. Computer occupations, all other 23% $66,971 $65,329 97.5 5.0
22. Nonfarm animal caretakers 69% $25,025 $24,401 97.5 9.4
23. Dietitians and nutritionists 88% $49,001 $47,717 97.4 7.7
24. Postal service clerks 50% $54,166 $52,574 97.1 1.5
25. Hotel, motel, and resort desk clerks 65% $21,995 $21,329 97.0 4.8

More from Money.com on equal pay:

The 25 Careers in Which Women are Most Underpaid Relative to Men

5 Ways Women Can Close the Pay Gap for Themselves

The Single Best Thing Women Can Do to Help Themselves in Salary Negotiations

MONEY salary

MSNBC’s Mika Brzezinski: What Women Do Wrong When Negotiating Their Salary

MSNBC Morning Joe co-anchor Mika Brzezinski explains the mistake that she and other women have made when asking for a raise.

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