Tag: Paycheck Fairness Act

The Dangers of the “Equal Pay” Canard


In the newest installment of my weekly column for the Hoover Institution’s Defining Ideas, I take issue with the White House’s relentless insistence that there is a crisis in America of institutionalized employment discrimination against women, a claim that can’t stand up to even basic scrutiny:

Labor markets are intensely competitive, so the claim about systematic pay gaps has to assume both that women managers are hostile to women’s economic welfare, and that competitive markets are massively inefficient in matching people with positions. Competition for labor tends to lead to efficient outcomes. Indeed, by the standard account, price discrimination cannot survive in competitive markets, which means that the differentials in wages track differences in performance. Put simply, one danger of the Equal Pay Act is that it could mandate equal wages for unequal work, i.e. for two workers with different productivity.

How Much Do You Really Know About the “Paycheck Fairness Act”?


This week, the Senate has been considering legislation dubbed “The Paycheck Fairness Act.” Proponents argue that it will help women and advance equal pay, but few give any details about how it would accomplish this or explain what the bill actually does. That’s probably because the bill’s actual provisions have little to do with helping women, but much more to do with lining the pockets of lawyers. Indeed, women overall — and certainly those who own small businesses — would probably be more harmed than helped by this law.

Test your knowledge of what’s really in “The Paycheck Fairness Act” by taking this short quiz created by the Independent Women’s Forum. Encourage your friends to do the same. As is often the case, the rhetoric surrounding this bill is very different than its actual substance.