The Gender Wage Gap, by State

We have blogged and written extensively about the gender pay gap, much of which is not attributable to discrimination, as is commonly invoked. President Obama has taken up the cause; he recently signed two executive orders aimed at closing the gap.  Business Insider recently posted a state-by-state breakdown of the gender wage gap. It is interesting to look at but keep in mind the non-discriminatory factors that contribute to the gap, and therefore consider these numbers with some skepticism:

Wyoming has the biggest pay gap — the median male full-time worker made $51,932, and the median female full-time worker made $33,152. The male worker thus made 56.6% more than the female worker.

Washington, D.C. had the smallest gap — there, men make 11.0% more than women. Among the states, Maryland and Nevada had the smallest gaps, both at 17.2%.

A Good Instrument Is Hard to Find

Phoebe Clarke recently posted a Deadspin article about an article that we just published in The Journal of Socio-Economics. The article, “The Chastain Effect: Using Title IX to Measure the Causal Effect of Participating in High School Sports on Adult Women’s Social Lives,” adopts an ingenious methodology pioneered by Betsey Stevenson (whose research is frequently featured here) in her 2010 study “Beyond the Classroom: Using Title IX to Measure the Return to High School Sports.” Stevenson estimates the effects of participating in high school sports on women’s economic lives, and finds that sports participation leads women to attain higher levels of education and earn more. I apply the same methodology to social outcomes, and find that sports participation causes women to be less religious, more likely to have children, and, if they do have children, more likely to be single mothers.

The Coolest Child Care Program You’ve Never Heard Of

During World War II, U.S. women entered the workforce in record numbers -- factories full of "Rosie the Riveters" producing planes and munitions for the war effort.  In response, Congress passed the Lanham Act of 1940, which administered and subsidized a large childcare system in 635 communities in the whole country except New Mexico from 1943-1946.  A new paper by Chris Herbst examines the effects of the Lanham Act; his research is particularly relevant in light of President Barack Obama's push for universal preschool.  "What's intriguing about the Lanham Act is that it's the U.S.'s first, and only, laboratory within which to assess universal child care," writes Herbst in an email about the paper. "It may just be the coolest child care program you've never heard of."  Here's the abstract:

This paper provides a comprehensive analysis of the Lanham Act of 1940, a heavily-subsidized and universal child care program that was administered throughout the U.S. during World War II. I begin by estimating the impact of the Lanham Act on maternal employment using 1940 and 1950 Census data in a difference-in-difference-in-differences framework. The evidence suggests that mothers’ paid work increased substantially following the introduction of the child care program.

A Unified Theory of Why Women Earn Less

When it comes to the year 1991, history books will undoubtedly focus on the first Gulf War and the dissolution of the Soviet Union, but at least domestically, the biggest change was one you probably never heard about: 1991 was the first year that women overtook men in college attainment, a trend that has only gained steam since. Today 37.2% of women between the ages of 25 to 29 have a four-year college degree or higher versus just 29.8% for men.

Yet for all the academic achievement by women, men still earn a higher wage for equivalent jobs and continue to dominate the highest ranks of society. Senior management positions? Only one in five are held by women. Fortune 500 CEOs? Just 4% and fewer than 17% of the seats in Congress are held by women. 

Scholars have long theorized about the reasons why women haven’t made faster progress in breaking through the glass ceiling. Personally, we think that much of it boils down to this: men and women have different preferences for competitiveness, and at least part of the wage gaps we see are a result of men and women responding differently to incentives.

Is There a Glass Ceiling in Corporate Crime?

Our podcast "Women Are Not Men" looked at a variety of gender gaps, including the fact that the vast majority of violent crime is committed by men. A new paper by Darrell J. Steffensmeier, Jennifer Schwartz, and Michael Roche in the American Sociological Review finds that women are less likely to be involved in corporate crime as well:

Typically, women were not part of conspiracy groups. When women were involved, they had more minor roles and made less profit than their male co-conspirators. Two main pathways defined female involvement: relational (close personal relationship with a main male co-conspirator) and utility (occupied a financial-gateway corporate position). Paralleling gendered labor market segmentation processes that limit and shape women’s entry into economic roles, sex segregation in corporate criminality is pervasive, suggesting only subtle shifts in gender socialization and women’s opportunities for significant white-collar crimes. Our findings do not comport with images of highly placed or powerful white-collar female criminals.

“Men lead these conspiracies, and men generally prefer to work with men,” Steffensmeier told the Washington Post. “If they do use women, they use them because they have a certain utility or they have a personal relationship with that woman and they trust her.”

What Can a Ball and a Bucket Teach Us About Why Women Earn Less Than Men?

John List and Uri Gneezy have appeared on our blog many times. Now they have written a book, The Why Axis: Hidden Motives and the Undiscovered Economics of Everyday Life. (The title, by the way, was crowdsourced on this blog). Below is the first in a series of guest posts adapted from the book; Gneezy spoke about this research in our podcast "Women Are Not Men."

What can a Ball and Bucket Teach Us About Why Women Earn Less than Men?
By Uri Gneezy and John List

The sign on the road leading to the city of Shilong in the Khasi hills of northeast India had a puzzling message: “Equitable distribution of self-acquired property rights.” Later we’d find out that the sign was part of a nascent men’s movement, as the men in the Khasi society were not allowed to own property. We’d traveled across the world in search of such a parallel universe—one where men felt like “breeding bulls and babysitters”—because evidence in the U.S. was starting to point to a massive gap in preferences towards competition between the genders and we wanted to understand the reason why.

Our plan was to take a simple game to a matrilineal society (the Khasi) and patrilineal society (the Masai in Tanzania) and give participants just one choice: Earn a small certain payment for their performance in the game or earn a much bigger payment for their performance, but only if they also bested a randomly chosen competitor. The game we settled on? Tossing tennis balls into a bucket 3 meters away.  The experiment was conducted with Kenneth Leonard as a coauthor.

Why Don't More Men Pursue Female-Dominated Professions?

A reader named Albert Hickey writes:

I'm a father of three girls and I'm into technology. I keep hearing that there is a major bias toward men in STEM (Science, Technology, Engineering and Maths) at college and in the workforce.  I also regularly see blog posts, videos, interviews and podcasts where women are discussing how this is not right and that we need to have more equality in STEM. All good and more women in tech would be a good thing as women are major users of technology.

But it struck me that I have near heard of men fighting for more men to study traditionally female-dominated subjects or jobs like primary-school teacher, nurse, PR officers and therapists.

Why are women fighting for more women to do STEM while men are not fighting for more men to be therapists?

My quick response to him:

I'm guessing it's b/c of the wage differential but you are right, it's worth asking.

Albert wrote back with more detail:

Women and Philosophy

In our podcast "Women Are Not Men," we explored why Wikipedia has such a low percentage of female editors. John Riedl, the researcher who studied the Wikipedia gender gap (and who passed away this summer), had this to say:

RIEDL: We know from a bunch of psychology studies that women tend to be made more uncomfortable by conflict than men are made uncomfortable by conflict. And so one of the ideas is maybe in Wikipedia where the fundamental nature of the site is that if you want to correct what someone else has done, the way you do that is you delete it and write them a really mean message. Well, maybe that’s creating a culture of conflict that is driving women away. They just don’t find it a place they enjoy being, and so they go places where they’re happier.

An op-ed by Linda Martín Alcoff in The New York Times reports a similar discussion in the field of philosophy, where only 16.6 percent of professors are women, and none are women of color.

The Gender Gap in Organ Donors in Taiwan

Al Roth reports on an interesting gender gap in Taiwan: according to an article in Focus Taiwan, "Of the 620,000 people on Taiwan's organ donation list, 65 percent are women..."  The article goes on to point out that:

The trend is more pronounced in the largest demographic of organ donors, those aged 21-50, which features 2.2 times more women than men, Wu [Ying-lai] said, based on an analysis of the 223,250 people who have signed up for the national organ donation program in the past 10 years.

Looking at the data more closely, the largest groups of donors are women aged 31-40, followed by women aged 41-50, women aged 21-30, men aged 31-40, and men aged 41-50, she noted.

When a Wife Earns More

A new working paper (abstract; PDF) by Marianne Bertrand, Jessica Pan, and Emir Kamenica looks at gender identity and its affect on household income. Their findings will depress anyone concerned with gender equality. Here's the abstract:

We examine causes and consequences of relative income within households. We establish that gender identity – in particular, an aversion to the wife earning more than the husband - impacts marriage formation, the wife's labor force participation, the wife's income conditional on working, marriage satisfaction, likelihood of divorce, and the division of home production. The distribution of the share of household income earned by the wife exhibits a sharp cliff at 0.5, which suggests that a couple is less willing to match if her income exceeds his. Within marriage markets, when a randomly chosen woman becomes more likely to earn more than a randomly chosen man, marriage rates decline. Within couples, if the wife's potential income (based on her demographics) is likely to exceed the husband's, the wife is less likely to be in the labor force and earns less than her potential if she does work. Couples where the wife earns more than the husband are less satisfied with their marriage and are more likely to divorce. Finally, based on time use surveys, the gender gap in non-market work is larger if the wife earns more than the husband.