Category Archives: Income Inequality/Gap

The Gender Wage Gap by Occupation 2017 and by Race and Ethnicity

Source: Ariane Hegewisch, M.Phil., Emma Williams-Baron, Institute for Women’s Policy Research, Fact Sheet, IWPR# C467, April 2018

From the summary:
Women’s median earnings are lower than men’s in nearly all occupations, whether they work in occupations predominantly done by women, occupations predominantly done by men, or occupations with a more even mix of men and women. Data for both women’s and men’s median weekly earnings for full-time work are available for 121 occupations. The occupation with the largest gender wage gap is ‘personal financial advisor;’ in 2017, the median weekly earnings of women ‘personal financial advisors’ were only 58.9 percent of those of men’s, corresponding to a gender wage gap of 41.1 percent….

The Gender Wage Gap: 2017 Earnings Differences by Race and Ethnicity

Source: Ariane Hegewisch, Emma Williams-Baron, Institute for Women’s Policy Research, IWPR #C464, March 2018

From the abstract:
The gender wage gap in weekly earnings for full-time workers in the United States did not improve between 2016 and 2017. In 2017, the ratio of women’s to men’s median weekly full-time earnings was 81.8 percent, a decrease of 0.1 percentage points since 2016, when the ratio was 81.9 percent, leaving a wage gap of 18.2 percentage points, nearly the same as the 18.1 percentage points in 2016. Women’s median weekly earnings for full-time work were $770 in 2017 compared with $941 for men. Adjusting for inflation, women’s and men’s earnings increased by the same amount, 0.7 percent, since 2016.

Another measure of the wage gap, the ratio of women’s and men’s median annual earnings for full-time, year-round workers, was 80.5 percent in 2016 (data for 2017 are not yet available). An earnings ratio of 80.5 percent means that the gender wage gap for full-time, year-round workers is 19.5 percent.  

The gender earnings ratio for full-time, year-round workers, which includes self-employed workers, tends to be slightly lower than the ratio for weekly earnings (which excludes the self-employed and earnings from annual bonuses, and includes full-time workers who work only part of the year). Both earnings ratios are for full-time workers only; if part-time workers were included, the ratios of women’s to men’s earnings would be even lower, as women are more likely than men to work reduced schedules, often in order to manage childrearing and other caregiving work.

State of the Union

Source: Stanford Center on Poverty and Inequality, Pathways, Special Issue, 2018

From the summary:
The Stanford Center on Poverty and Inequality is pleased to present its fifth annual report examining the state of the union. In this year’s report, we provide a comprehensive assessment of gender inequality in eleven domains ranging from education to health, employment, earnings, poverty, sexual harassment, networks, and more. The report concludes with a discussion of the most promising sciencebased policies for reducing gender inequality at home and in the labor market.

Articles include:
Gender Identification
Aliya Saperstein
The traditional gender binary just doesn’t work. When respondents of a national survey were asked about their femininity and masculinity, 7 percent considered themselves equally feminine and masculine, and another 4 percent responded in ways that did not “match” their sex at birth (i.e., females who saw themselves as more masculine than feminine, or males who saw themselves as more feminine than masculine).

Education
Erin M. Fahle and Sean F. Reardon
Despite common beliefs to the contrary, male students do not consistently outperform female students in mathematics. It’s only in high school that the male advantage in mathematics surfaces. What’s going on?

Health
Mark Duggan and Valerie Scimeca
For women and men alike, life expectancy has stagnated for the last several years, primarily due to increases in drug poisoning deaths and in the suicide rate. The male-female life expectancy gap, which favors females, fell from 7.6 years in 1970 to 4.8 years in 2010, a reduction of more than one-third.

Employment
Melissa S. Kearney and Katharine G. Abraham
After rising steadily for many decades, the overall female employment rate has been falling since 2000. Why has it fallen? Are there straightforward policy fixes that could increase women’s employment?

Earnings
Emmanuel Saez
When gender differences in labor force participation, fringe benefits, and self-employment income are taken into account, women earn only 57 cents for each dollar earned by men.

Poverty
H. Luke Shaefer, Marybeth Mattingly, and Kathryn Edin
Are women more likely than men to be in deep poverty, official poverty, and near poverty? Yes, yes, and yes.

Safety Net
Linda M. Burton, Marybeth Mattingly, Juan Pedroza, and Whitney Welsh
Why do women use safety net programs more than men? A hint: It’s not just because they’re more likely to be eligible for them.

Occupational Segregation
Kim A. Weeden, Mary Newhart, and Dafna Gelbgiser
Nearly half of the women in the labor force would have to move to a different occupation to eliminate all occupational segregation by gender. This is a classic case of stalled change: If recent rates of change are extrapolated, it would take 330 years to reach full integration.

Discrimination
David S. Pedulla
A new science of gender discrimination is being built with audit studies and other experiments. A key result: Gender discrimination is more likely to emerge when the applicant’s commitment to work can be called into question or when an applicant is behaving in a gender-nonconforming way.

Workplace Sexual Harassment
Amy Blackstone, Heather McLaughlin, and Christopher Uggen
The workplace is rife with sexual harassment. By age 25 to 26, one in three women and one in seven men experience behavior at work that they define as sexual harassment.

Social Networks
Adina D. Sterling
Although men used to have more social ties than men, now the gender gap has reversed and women have the larger networks. But women still have fewer coworker ties than men … and coworker ties matter a lot.

Policy
Marianne Cooper and Shelley J. Correll
What are the most promising science-based policies for reducing gender inequality at home and in the labor market?

Race and Economic Opportunity in the United States

Source: Raj Chetty and Nathaniel Hendren, Equality of Opportunity Project, March 2018

In our most recent study, we analyze racial differences in economic opportunity using data on 20 million children and their parents. We show black children have much lower rates of upward mobility and higher rates of downward mobility than white children, leading to black-white income disparities that persist across generations. While Hispanic and black Americans presently have comparable incomes, the incomes of Hispanic Americans are increasing steadily across generations.

The black-white gap in upward mobility is driven entirely by differences in men’s, not women’s, outcomes. Black and white men have very different outcomes even if they grow up in two-parent families with comparable incomes, education, and wealth; live on the same city block; and attend the same school. Black-white gaps are smaller in low-poverty neighborhoods with lower levels of racial bias among whites and a larger fraction of black fathers at home. We conclude that reducing the black-white income gap will require efforts whose impacts cross neighborhood and class lines and increase upward mobility specifically for black men.
Related:
Non-technical summary
Data tables

Inequality and Competition in State Redistributive Systems: Evidence From Welfare and Health

Source: NakHyeok Choi, Milena I. Neshkova, The American Review of Public Administration, OnlineFirst, Published March 5, 2018
(subscription required)

From the abstract:
When determining their redistributive budgets, states must strike a subtle balance—to provide for their needy residents without becoming a “welfare magnet” and attracting poor individuals from neighboring states. We examine the competing incentives that state politicians face in federal systems and their effects on program accessibility and redistributive spending across U.S. states between 2005 and 2011. Comparing two redistributive programs under state control—Medicaid and Temporary Assistance for Needy Families (TANF)—we find strong evidence of interstate competition in the case of cash assistance programs, but less evidence in the case of health care. Yet our data show that states do not alter their policies in response to rising inequality, that is, when the median voter becomes poorer than the average voter. Moreover, the Great Recession had a greater impact on TANF than Medicaid. We attribute these differential effects to different funding mechanisms used by the federal government to finance the two state-administered programs.

The Changing Effectiveness of Local Civic Action: The Critical Nexus of Community and Organization

Source: Wesley Longhofer, Giacomo Negro, Peter W. Roberts, Administrative Science Quarterly, Online First, Published February 26, 2018
(subscription required)

From the abstract:
We examine changes in the effectiveness of local civic action in relation to changes over time in racial diversity and income inequality. Local civic action comprises situations in which community members come together—typically with support from local organizations—to address common issues. The collective orientation of local civic action makes it sensitive to changes in local social conditions. As these changes unfold, local organizations become differentially able to support civic action. Here, our core argument features the process through which community members associate with different local organizations and how mandated versus voluntary association results in distinct responses to increased social and economic heterogeneity. We test this argument using three decades of data describing local campaigns of the annual Trick-or-Treat for UNICEF program. A baseline model shows that within-county increases in racial diversity and income inequality are associated with diminished campaign effectiveness. Subsequent models that separate out campaigns organized by schools, churches, and clubs show that schools are relatively more effective mobilizers as racial diversity and income inequality increase, arguably due to the greater demographic matching that is induced by mandated school participation.

50 years after the Kerner Commission: African Americans are better off in many ways but are still disadvantaged by racial inequality

Source: Janelle Jones, John Schmitt, and Valerie Wilson, Economic Policy Institute, February 26, 2018

From the summary:
The year 1968 was a watershed in American history and black America’s ongoing fight for equality. In April of that year, Martin Luther King Jr. was assassinated in Memphis and riots broke out in cities around the country. Rising against this tragedy, the Civil Rights Act of 1968 outlawing housing discrimination was signed into law. Tommie Smith and John Carlos raised their fists in a black power salute as they received their medals at the 1968 Summer Olympics in Mexico City. Arthur Ashe became the first African American to win the U.S. Open singles title, and Shirley Chisholm became the first African American woman elected to the House of Representatives.

The same year, the National Advisory Commission on Civil Disorders, better known as the Kerner Commission, delivered a report to President Johnson examining the causes of civil unrest in African American communities. The report named “white racism”—leading to “pervasive discrimination in employment, education and housing”—as the culprit, and the report’s authors called for a commitment to “the realization of common opportunities for all within a single [racially undivided] society.”1 The Kerner Commission report pulled together a comprehensive array of data to assess the specific economic and social inequities confronting African Americans in 1968.

Where do we stand as a society today? In this brief report, we compare the state of black workers and their families in 1968 with the circumstances of their descendants today, 50 years after the Kerner report was released. We find both good news and bad news. While African Americans are in many ways better off in absolute terms than they were in 1968, they are still disadvantaged in important ways relative to whites. In several important respects, African Americans have actually lost ground relative to whites, and, in a few cases, even relative to African Americans in 1968….

Related:
Press release

Negotiating While Female

Source: Andrea Kupfer, Marquette Law School Legal Studies Paper No. 18-12, Posted: February 16, 2018  

From the abstract:
Why are women paid less than men? Prevailing ethos conveniently blames the woman and her alleged inability to negotiate. This article argues that blaming women for any lack of negotiation skills or efforts is inaccurate and that prevailing perceptions about women and negotiation are in-deed myths. The first myth is that women do not negotiate. While this is true in some lab studies and among younger women, more recent workplace data calls this platitude into question. The second myth is that women should avoid negotiations because of potential backlash. Although women in leadership do face an ongoing challenge to be likeable, it is clear that not negotiating has long-term detrimental effects. The third myth, based on the limited assumption that a good negotiator must be assertive, is that women cannot negotiate as well as men. However, the most effective negotiators are not just assertive, but also empathetic, flexible, socially intuitive, and ethical. Women can and do possess these negotiation skills. This article concludes by proposing an action plan which provides advice on how women can become more effective negotiators and identifies structural changes that might encourage negotiation and reduce the gender pay gap.