What people miss about the gender wage gap

Summary

The gender wage gap in the U.S. is often simplified to women earning 79 cents for every dollar men make, but this overlooks crucial factors like education, age, and occupation. A study of MBA graduates revealed that while women's salaries initially lagged behind men's, the gap widened over time, particularly due to family responsibilities. Research shows varying wage gaps across professions, with flexible jobs like those in tech having smaller disparities compared to rigid business roles. Notably, the wage gap for female pharmacists has significantly decreased as the job structure became more standardized. Addressing workplace flexibility could further reduce this gap.

Takeaways

• 📉 The common statistic that women earn 79 cents for every dollar men make oversimplifies the wage gap issue.
• 📊 The wage gap varies significantly based on factors like education, age, and occupation.
• 👩‍🎓 Research on MBA graduates from the University of Chicago shows that men earn more than women starting out and that the gap widens over time.
• 📅 Nine years after graduation, men earn an average of $400,000, while women earn only $250,000, highlighting a significant disparity.
• 👵 As women age, particularly those born in the late 1940s, the wage gap tends to shrink as they reach their 50s and 60s.
• 👶 Women with children experience a much larger wage gap compared to those without, reflecting the burden of childcare responsibilities.
• 🏠 A Pew survey indicates that in dual-income households, women take on more child-rearing and household responsibilities than men.
• 🔍 Research by economist Claudia Goldin reveals that the gender pay gap varies widely across different occupations.
• 💼 Jobs in the tech and science sectors generally have smaller gender pay gaps compared to those in business.
• ⏳ Flexibility in work hours can help reduce the wage gap; for example, female pharmacists now earn 92% of what their male counterparts make due to shifts in the industry.

Q & A

What is the commonly cited statistic regarding the gender pay gap in the U.S.?

The statistic states that women earn 79 cents for every dollar men make.

What does the statistic about women earning 79 cents fail to capture?

It does not account for variables such as educational levels, ages, or fields of work.

What did the 2009 study of MBA graduates from the University of Chicago reveal about starting salaries?

The study showed that one year after graduation, women earned an average of $115,000 while men earned $130,000.

How did the wage gap change nine years after graduation for MBA graduates?

Nine years later, men earned an average of $400,000, while women earned about $250,000, resulting in a 60% pay gap.

How does the wage gap for college graduates change as women age?

Research indicates that the wage gap initially widens but then tends to shrink as women enter their 50s and 60s.

What is one significant factor contributing to the gender wage gap?

Women often take on a disproportionate share of child-rearing tasks, which affects their career progression and earnings.

How do gender pay gaps vary by occupation according to Claudia Goldin's research?

Goldin's research shows that jobs in the tech sector have smaller pay gaps compared to business jobs, which tend to have larger gaps.

What characteristic of jobs contributes to larger wage gaps between men and women?

Jobs that require specific working hours often have larger wage gaps compared to those with more flexible schedules.

What change occurred in the pharmacy profession regarding the gender pay gap?

In the 1970s, women pharmacists earned about 66% of what men made, but now they earn about 92% of their male counterparts' salaries.

What does the research suggest about the relationship between job flexibility and the wage gap?

Increasing job flexibility can help shrink the wage gap, as it allows women to better balance work and family responsibilities.