Discrimination Is Responsible for the Earnings Differences Between Men and Women?
Full Length Text -- Part: 6 Micro Only Text -- Part: 5 Topic: Topic: 10 7
To Accompany "Economics: Private and Public Choice 10th ed." James Gwartney, Richard Stroup, Russell Sobel, & David Macpherson Slides authored and animated by: James Gwartney, David Macpherson, & Charles Skipton
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Employment Discrimination and the Earnings of Women
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Employment Discrimination and Earnings of Women
75 70 65 60 55 50 1960
Share of females age 20 and over in the labor force (right scale) Female/male annual earnings, full-time workers (left scale)
73.3
85 75 65
60.9
55 45
1965
1970
1975
1980
1985
1990
1995
35 2000
The labor force participation rate of women has steadily increased for several decades. The earnings of women remained around 60 % that of men during the 1960's and 1970's. Since 1980 the earnings of women have been rising relative to men.
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Employment Discrimination and Earnings of Women
Median annual earnings female/male ratio (%), 2000
Married
55 70 65 75 88 89
All workers Full-time, full-year workers
(spouse present)
Total
Singles
The earnings of married female workers are about those of married men. The earnings of single female workers are about 88 percent that of married female workers are The earnings of full-timesingle men. Why the disparity? 70 percent that of full-time married male workers. Why are the earnings ratios greater for full-time workers?
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Earnings Differences
Possible sources of earnings differences between men and women:
Employment discrimination Specialization of roles within the family has traditionally caused gender differences in educational choices & types of jobs held. Women typically worked jobs with more flexible and shorter hours and within where occupations skills were transportable across employers. Continuity of work force participation
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The Changing Workforce Objectives of Women
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Women Entering Professions
Women as a Proportion of Persons Earning Selected Professional Degrees, Selected Years
Field of study Engineering Dentistry Optometry Law Veterinary medicine Medicine Accounting Economics Architecture Pharmacy 197071 0.8 1.2 2.4 7.3 7.8 9.2 10.1 11.2 12.0 25.2 198788 15.3 26.1 34.3 40.4 50.0 33.0 52.6 32.8 38.7 59.7 199798 18.5 38.2 53.4 44.4 65.6 41.6 57.3 31.7 35.1 67.3
The career goals and educational choices of women have changed dramatically during the last 30 years. Does this help explain the rising earnings of women relative to men since 1980? What are the implications of this trend for the future earnings of women relative to men?
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Questions for Thought:
1. During the last 3 decades, the labor force participation rate of married females has almost doubled. What impact has this influx of married workers into the labor force had on:
a. the...