U.S. gender pay gap is getting worse

A new Report on Gender pay gaps:

Women are only now earning the amount that men did in 2006, data from the WEF’s Global Gender Gap report says.

It says progress on closing the gap has stalled in recent years at a time when more women are entering the workplace.


Some years ago, Claudia Goldin said the following about the gender gap:

What accounts for the difference in earnings between men and women? According to the literature, observable factors that affect pay—such as education, job experience, hours of work, and so on—explain no more than 50 percent of the wage gap. The most recent studies, as reported in a review by economists Francine Blau and Lawrence Kahn (2000), found that the fraction explained is now even lower, about 33 percent. The reason is that the decrease in the gender gap in earnings was largely due to an increase in the productive attributes of women relative to men. The remainder of the gap—termed the residual—is the part that cannot be explained by observable factors. This residual could result from workers’ choices or, alternatively, from economic discrimination. Surprisingly, the differing occupations of men and women explain only 10–33 percent of the difference in male and female earnings. The rest is due to differences within occupations, and part of that is due to the observable factors. In just about any year chosen, the ratio of women’s to men’s earnings decreases with age and rises with education. Most telling is that the ratio is higher for single than for married individuals, particularly for those without children. Family responsibilities have been an important factor in slowing women’s occupational advancement over the life cycle.




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