How much of the gender pay gap is explained across the OECD?

There are vast differences in the percentage of the gender wage gap that is left unexplained after adjusting for age, work experience, hours worked, education and job characteristics.

Closing the Gender Gap: Act Now – © OECD 2012OECD Secretariat estimates, based on EUSILC (2008), HILDA (2009), CPS (2008), KLIPS (2007), SLID (2008), JHPS (2009), CASEN (2009) and ENIGH (2010) (Annex III.A3).

Attributing this residual in gender pay gaps to discrimination implies vast differences in sex discrimination between countries with similar cultures. Furthermore, a large part of the gender wage gap is unexplained in countries such as Scandinavia which are held up as models in commitment to gender equality and have many family friendly policies including maternity leave that is generous by New Zealand and American standards.

What is intuition?

@CloserTogether @FairnessNZ nail case for neoliberalism @chrishipkins @Maori_Party

The Council of Trade Unions and Closer Together Whakatata Mai charted similar statistics to show that everything has gone to hell in a hand basket since neoliberalism seized power in New Zealand in 1984 and in particular after the passing of the Employment Contracts Act in 1991.

image

Source: Income Gap | New Zealand Council of Trade Unions – Te Kauae Kaimahi.

The passage of the Employment Contracts Act greatly reduced union power and union membership and with it wages growth in New Zealand, according to what is left of the New Zealand union movement.

image

Source: Income Gap | New Zealand Council of Trade Unions – Te Kauae Kaimahi.

Unfortunately, both charts of the same statistics show the exact opposite to what was intended by The Council of Trade Unions and Closer Together Whakatata Mai.

Even the most casual inspection of the data charted above and reproduced below with some annotations shows that real wages growth returned to New Zealand in the early 1990s after 20 years of real wage stagnation.

image

Source: Income Gap | New Zealand Council of Trade Unions – Te Kauae Kaimahi.

The reforms of the 1980s stopped what was a long-term decline in average real wages. The reforms of the early 1990s including the passing of the Employment Contracts Act was followed by the resumption of sustained growth in average real wages with little interruption since.

Closer Together Whakatata Mai has even stumbled onto the great improvements in household incomes across all ethnicities since the early 1990s.

The increase in percentage terms of Maori and Pasifika real household income is much larger than for Pakeha. As Bryan Perry (2015, p. 67) explains when commenting on the very table D6 sourced by Closer Together Whakatata Mai:

From a longer-term perspective, all groups showed a strong rise from the low point in the mid 1990s through to 2010. In real terms, overall median household income rose 47% from 1994 to 2010: for Maori, the rise was even stronger at 68%, and for Pacific, 77%. These findings for longer- term trends are robust, even though some year on year changes may be less certain. For 2004 to 2010, the respective growth figures were 21%, 31% and 14%.

image

Source: Bryan Perry, Household Incomes in New Zealand: trends in indicators of inequality and hardship 1982 to 2014 – Ministry of Social Development, Wellington (August 2015), Table D6.

As Closer Together Whakatata Mai  documented, incomes increased in real terms by 14% for the bottom and 19% for the middle.

Perry noted that in the lowest decile had too many implausible incomes including many on zero income so he was wary of relying on it. I have therefore charted the second, median and top decile before and after housing costs below. All three deciles charted showed substantial improvements  in incomes both before  and after housing costs.

image

Source: Bryan Perry, Household Incomes in New Zealand: trends in indicators of inequality and hardship 1982 to 2014 – Ministry of Social Development, Wellington (August 2015).

Naturally, measuring changes in living standards over long periods of time is fraught with under-estimation. There are new goods to be accounted for and product upgrades too.

Swedish and Danish top incomes & union decline @FlipChartRick @EconomicPolicy @PoliticalSift

The Danish top 1% and top 10% is even lazier than their transnational co-conspirators. No success at all at either grinding the Danish unions down or extracting more labour surplus from the long-suffering Danish proletariat.

image

Source: OECD StatExtract and Top Incomes Database.

image

Source: OECD StatExtract and Top Incomes Database.

The Swedish top 10% and top 1%  have done a bit better since the economic liberalisation in that country from the early 1990s. But none of that additional labour surplus has anything to do with grinding the unions down because Swedish union membership has not declined.

image

Source: OECD StatExtract and Top Incomes Database.

image

Source: OECD StatExtract and Top Incomes Database.

OECD PPP values for GDP 2011

The Scandinavians and Swiss been way up there in terms of purchasing power parity is no surprise but why is Australia up there with the expensive places?


Data extracted on 01 Nov 2015 06:17 UTC (GMT) from OECD.Stat

Cuts in spending less costly than tax increases @jeremycorbyn @johnmcdonnellMP

Image

Official versus alternative Chinese economic statistics

@tslumley @GraemeEdgeler impact of 3-strikes law on 2nd strikes in NZ – corrected

Via  Three strikes: some evidence | Stats Chat from Graeme Edgeler.

Via  Three strikes: some evidence | Stats Chat.

Via Graeme Edgeler.


Via  Three strikes: some evidence | Stats Chat from Graeme Edgeler.

How to lie about statistics on inequality and global poverty @oxfamnz @Oxfam

George Stigler and the role of scientists in public policy

Image

@RichardvReeves Why did women get a pass on the great wage stagnation and exploitation by the top 1%?

Few labour markets statistics make much sense unless broken down by gender.

Wages growth is no exception with female wages growth quite good for a long period of time after the 1970s – a period in which male earnings stagnated.

The beginning of male wage stagnation seemed to coincide with the closing of the gender wage gap.

Presumably if men were previously profiting from patriarchy, that should have some implications for future wage growth and promotions for men as women catch up.

Presumably if men were previously profiting from patriarchy, that should have some implications for future wage growth for men as women catch up. Men lost the wage premium they previously earned from the sex discrimination directly in hiring, wage setting and promotions and investing in more education because they expected to be discriminated favourably at the expense of women.

image

Not surprisingly the convergence in the male-female wage ratios started  in the 1970s which was the decade that male wage stagnation started.

The gender wage gap started converging again also pretty much in lockstep with the top 1% starting to grab higher and higher proportions of income.

image

Source: Alvaredo, Facundo, Anthony B. Atkinson, Thomas Piketty and Emmanuel Saez, The World Top Incomes Database.

Mises on the role of statistics

Some basics about opinion polls and polling results

@Income_Equality there’s an Internet you know – was there next to no unemployment prior to the mid-1980s in New Zealand?

Today, Closing The Gap – The Income Inequality Project boldly claimed today that there was next to no unemployment in New Zealand prior to the onset of the curse of neoliberalism.

image

There is an Internet on computers now where it is easy to find data showing that the unemployment rate was rising rapidly in New Zealand in the 1970s and in double digits by the end of the 1980s – see figure 1.

Figure 1: harmonised unemployment rates, Australia and New Zealand, 1956-2014

image

Source: OECD StatExtract.

Figure 1 shows unemployment was rising rapidly in the 1970s and wasn’t much different by the end of the 1970s to the unemployment rates recorded after about 2000 in New Zealand.

One of the reasons that Sir Roger Douglas wrote There’s Got To Be A Better Way was the rapidly rising unemployment in New Zealand and the stagnant economic growth in the late 1970s and early 1980s.

New Zealand was one of the most regulated economies, so much so that Prime Minister David Lange said:

We ended up being run very similarly to a Polish shipyard.

As for those jobs on the railways, the then Reserve Bank Governor Don Brash said in 1996:

Railways cut its freight rates by 50 percent in real terms between 1983 and 1990, reduced its staff by 60 percent, and made an operating profit in 1989/90, the first for six years.

Measurement error in the computer age

https://twitter.com/NickTimiraos/status/621878673264746496/photo/1

Previous Older Entries Next Newer Entries

Fardels Bear

A History of the Alt-Right

Vincent Geloso

Econ Prof at George Mason University, Economic Historian, Québécois

Bassett, Brash & Hide

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Truth on the Market

Scholarly commentary on law, economics, and more

The Undercover Historian

Beatrice Cherrier's blog

Matua Kahurangi

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Temple of Sociology

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Velvet Glove, Iron Fist

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Why Evolution Is True

Why Evolution is True is a blog written by Jerry Coyne, centered on evolution and biology but also dealing with diverse topics like politics, culture, and cats.

Down to Earth Kiwi

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

NoTricksZone

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Homepaddock

A rural perspective with a blue tint by Ele Ludemann

Kiwiblog

DPF's Kiwiblog - Fomenting Happy Mischief since 2003

The Dangerous Economist

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Watts Up With That?

The world's most viewed site on global warming and climate change

The Logical Place

Tim Harding's writings on rationality, informal logic and skepticism

Doc's Books

A window into Doc Freiberger's library

The Risk-Monger

Let's examine hard decisions!

Uneasy Money

Commentary on monetary policy in the spirit of R. G. Hawtrey

Barrie Saunders

Thoughts on public policy and the media

Liberty Scott

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Point of Order

Politics and the economy

James Bowden's Blog

A blog (primarily) on Canadian and Commonwealth political history and institutions

Science Matters

Reading between the lines, and underneath the hype.

Peter Winsley

Economics, and such stuff as dreams are made on

A Venerable Puzzle

"The British constitution has always been puzzling, and always will be." --Queen Elizabeth II

The Antiplanner

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Bet On It

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

History of Sorts

WORLD WAR II, MUSIC, HISTORY, HOLOCAUST

Roger Pielke Jr.

Undisciplined scholar, recovering academic

Offsetting Behaviour

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

JONATHAN TURLEY

Res ipsa loquitur - The thing itself speaks

Conversable Economist

In Hume’s spirit, I will attempt to serve as an ambassador from my world of economics, and help in “finding topics of conversation fit for the entertainment of rational creatures.”

The Victorian Commons

Researching the House of Commons, 1832-1868

The History of Parliament

Articles and research from the History of Parliament Trust

Books & Boots

Reflections on books and art

Legal History Miscellany

Posts on the History of Law, Crime, and Justice

Sex, Drugs and Economics

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

European Royal History

Exploring the Monarchs of Europe

Tallbloke's Talkshop

Cutting edge science you can dice with

Marginal REVOLUTION

Small Steps Toward A Much Better World

NOT A LOT OF PEOPLE KNOW THAT

“We do not believe any group of men adequate enough or wise enough to operate without scrutiny or without criticism. We know that the only way to avoid error is to detect it, that the only way to detect it is to be free to inquire. We know that in secrecy error undetected will flourish and subvert”. - J Robert Oppenheimer.

STOP THESE THINGS

The truth about the great wind power fraud - we're not here to debate the wind industry, we're here to destroy it.

Lindsay Mitchell

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Alt-M

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

croaking cassandra

Economics, public policy, monetary policy, financial regulation, with a New Zealand perspective