Tag: Women’s incomes

Women’s Wages and the ’77 Cents’ Myth — Again and Again and Again

 

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Eventually, liberals/progressives/Democrats might stop using the “women make 77 cents for every dollar a man makes” factoid. This is a two “Pinocchio” claim, according to the Washington Post, by the way. I also recommend this critical note from my AEI colleagues Andrew Bigg and Mark Perry, which concludes, “Once education, marital status and occupations are considered, the ‘gender wage gap’ all but disappears.” And now we have this new study from the New York Fed, which also finds a relatively tiny gap:

Among recent college graduates as a whole, women earn about 97 cents on the dollar compared with men. That said, within this group, women tend to out-earn men in a number of college majors, sometimes by a substantial margin. We find these early career patterns fascinating, in part because they seem to present counter examples to the well-established male wage premium, but mostly because it is not entirely clear why we observe these patterns. To the extent that a wage premium for one gender represents discrimination, it may be that discrimination can occur in favor of either men or women, depending on college major, at least among recent college graduates. By mid-career, however, any wage premium earned by women completely disappears. As we grapple with the issue of gender pay equity, it is vital that we continue to examine these trends in more detail so that we can better understand their sources.