Tag Archives: gender wage gap

If I see one more irresponsible gender wage gap article, I’ll scream!

Link: These are the 30 office jobs with the biggest gender pay gaps

The link above is from Business Insider, but there are a ton more totally superficial, uninformed, and infuriating articles like it. (And from reputable sources. See Fortune, and USA Today, and Washington Post.)

Is there a reduction in income when women take time off to have kids? Sure! No one (I hope) debates that. But I’m not sure it’s such an awful thing. Articles use words with negative connotations, like motherhood “penalty” or “tax” to describe it, and some articles and organizations promote the idea that adjustments should be made to make up for the lost income. I don’t agree. If someone is paid appropriately for valuable contributions in a job, and that person takes time off and gives up experience and opportunity to do something else, I would not expect that person to be paid equally upon return to the work force. Simply put: value in = pay out.

Many oversimplify the issue by pointing to the woman who took five years off to raise kids and not work professionally at all during that time (which by the way, is probably rarer these days than people think given the economy and what it costs to raise a family). However, I think a large part of the gender wage gap explanation that isn’t discussed is about the woman simply choosing to work more flexibly (off hours, fewer hours) which translates to less pay. And that’s OK. I’m not sure that’s a “problem” that needs to be “fixed” as many (including President Obama in his State of the Union speech) argue.

Put it this way: If you asked me whether I would prefer (a) a job that will always pay exactly what my male colleagues get for valuable contributions but allows very little flexibility, or (b) a job that will pay for my valuable contributions but gives me all the flexibility I want, I will pick (b) every time. And I bet if you asked around, most women – especially moms – would do the same. And they do.

Gaps in pay are generally attributable to some common-sense factors, and these include things like experience, skills, educational background, standard of living where the job is, and risks involved with the job (hazard pay).

Beyond these factors, however, there is one other that helps to explain the gender wage gap that these frustrating articles never talk about: gender wage differences exist in jobs with the highest degree of what Claudia Goldin out of Harvard calls “temporal flexibility” – jobs in which women can control their hours more, still do valuable but scaled back work, opt out of certain traditional office hours in order to work off-line earlier or later, and so on. Goldin found that a lot of professional jobs where the wage gap exists do, in fact, allow for people to run individual practices or otherwise be self-employed, and it is in those types of professions where that temporal flexibility exists.

Here is a great interview with Goldin from Marketplace’s Freakonomics series:

http://freakonomics.com/podcast/the-true-story-of-the-gender-pay-gap-a-new-freakonomics-radio-podcast/

The temporal flexibility concept is very hard to control for in studies and analytics because (1) the data collection systems do not account for it, and (2) it is difficult to define appropriate proxies in the existing data to try to account for it. Really, all I would like to see is the mere mention of this very real factor in the reporting of the “flat” income numbers that are thrown out by the media all the time!