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Why Do Women Earn Less Than Men?

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Why Do Women Earn Less Than Men?
THE EARNINGS PUZZLE: WHY DO WOMEN EARN LESS THAN MEN?

ABSTRACT

Even though it is against the law to pay women a lower wage based on gender, a significant earnings gap exists. Women earn less than men in almost every line of work regardless of age, race, ethnic background or level of education. This study discusses the disparity of income between men and women, and the primary factors that contribute to the disparity. It then looks at some of the legislation that has been passed or is under consideration to address the issue. Finally, it concludes that there are many reasons for the disparity other than gender discrimination. Men and women are motivated by different things and therefore make different choices. Gender discrimination may contribute to the gender earnings gap. However, discrimination is not the only or even the most significant factor.

INTRODUCTION AND OVERVIEW OF THE GENDER EARNINGS GAP

This paper will analyze the gender earnings gap. First, it will present the history of the issue, a current overview of the issue, and associated statistics for both. Second, it will summarize existing research and literature on the subject. It will then examine the factors that contribute to the discrepancy in earnings. Next it will outline some of the measures taken or being considered by the government to remedy this problem. Then, the paper will look at current trends in education and the future implications of those trends. Finally, the paper will conclude that gender discrimination is not the only or most significant factor in the gender earnings puzzle, but is still a problem that deserves attention and needs to be addressed.
The gender wage gap is a significant issue that has been analyzed by economists since at least 1890, and has been a key issue of the women’s movement since the early 1960s. Throughout the history of this issue, substantial changes have occurred in the composition of the workforce, the occupations chosen by men and women, and


References: Barbezat, D., & Hughes, J. 2005. Salary Structure Effects and the Gender Pay Gap in Academia. Research in Higher Education Vol. 46, No. 6 (Sep., 2005), 621-640. Blau, F., Ferber, M., & Winkler, A. 1997. The Economics of Women, Work and Pay. Upper Saddle River, NJ: Prentice-Hall. Blau, F., Ferber, M., & Winkler, A. 2009. The Economies of Women, Men, and Work, 6th edition (Prentice-Hall, New Jersey). Blau, F., & Kahn, L. 2000. Gender Differences in Pay. J. Econ. Perspectives 14 (Fall), 75–99. Brown, C., & Corcoran, M. 1997. Sex-Based Differences in School Content and the Male-Female Wage Gap. Journal of Labor Economics, Vol. 15, No.1, Part 1, 431–465. Cohen, P., & Huffman, M. 2007. Working for the Woman? Female Managers and the Gender Wage Gap. American Sociological Review Vol. 72, No. 5 (Oct., 2007), 681-704. Datcher Loury, L. 1997. The Gender Earnings Gap among College-Educated Workers. Industrial and Labor Relations Review, Vol. 50, No. 4, 580–593. Dollar, D., & Gatti, R. 1999. Gender Inequality, Income, and Growth: Are Good Times Good for Women? Policy Research Report on Gender and Development, Working Paper No. 1 , The World Bank. Falcão, B., & Soares, B. 2008. The Demographic Transition and the Sexual Division of Labor. Journal of Political Economy , Vol Foley, S., Hang-yue, N., Wong, A., Loi, R. 2003. Who Gets More of the Pie? Predictors of Perceived Gender Inequity at Work. Journal of Business Ethics, Vol. 45, No. 3 (Jul., 2003), 227-241. Datta Gupta, N., Oaxaca, R., & Smith, N Goldin, C. Understanding the Gender Gap: An Economic History of American Women. New York: Oxford University Press, 1990. Horrace, W. & Oaxaca, R. 2001. Inter-industry Wage Differentials and the Gender Wage Gap: An Identification Problem. Industrial and Labor Relations Review, April 2001, v. 54, iss. 3, 611-18. Jarrell, S. & Stanley, T. 2004. Declining Bias and Gender Wage Discrimination? A Meta-Regression Analysis. The Journal of Human Resources Vol. 39, No. 3 (Summer, 2004), 828-838. Kahn, L. 2000. Gender Differences in Pay. Journal of Economic Perspectives, Vol. 14, No. 4, 75–100. Kahn, L. 2006. The U.S. Gender Pay Gap in the 1990s: Slowing Convergence. Industrial and Labor Relations Review, Vol. 60, No. 1, 45–66. Kuhn, P., & Weinberger, C. 2010. Changing Levels or Changing Slopes? The Narrowing of the Gender Earnings Gap 1959-1999. Industrial and Labor Relations Review, April 2010, v. 63, iss. 3, 384-406. Lagerlöf, N. 2003. Gender Equality and Long Run Growth. J. Econ. Growth 8 (4), 403–26. McCall, L. 1998. Spatial Routes to Gender Wage (In)equality: Regional Restructuring and Wage Differentials by Gender and Education. Economic Geography Vol. 74, No. 4 (Oct., 1998), 379-404. Mulligan, C., & Rubinstein, Y. 2005. Selection, Investment, and the Women’s Relative Wages since 1975. Manuscript, Univ. Chicago. O’Neill, J. 2003. The Gender Gap in Wages, circa 2000. American Economic Review, Vol. 93, No. 2, 309–314. O’Neill, J., & Polachek, S. Why the Gender Gap in Wages Narrowed in the 1980s. Journal of Labor Economics 11 (January 1993): 205–228. Ridgeway, C. L. 1997. Interaction and the Conservation of Gender Inequality: Considering Employment. American Sociological Review 62, 218-235. Weinberger, C. 1998. Race and Gender Wage Gaps in the Market for Recent College Graduates. Industrial Relations, Vol. 37, No. 1, 67–84.
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