America’ s mums

The three S’s in family policy

The main drivers of child poverty

How motherhood in America has changed

Why is the gender gap so large and the glass ceiling so thick in Sweden?

The gender wage gap is no better than the OECD average, despite generous maternity and paternity leave. What gives?

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Source: Closing the gender gap: Act now – http://dx.doi.org/10.1787/9789264179370-en

One important question is whether government policies are effective in reducing the gap. One such policy is family leave legislation designed to subsidize parents to stay home with new-born or newly adopted children.

One of the RLE articles shows that for high earners in Sweden there is a large difference between the wages earned by men and women (the so-called “glass ceiling”), which is present even before the first child is born. It increases after having children, even more so if parental leave taking is spread out.

These findings suggest that the availability of very long parental leave in Sweden may be responsible for the glass ceiling because of lower levels of human capital investment among women and employers’ responses by placing relatively few women in fast-track career positions. Thus, while this policy makes holding a job easier and more family-friendly, it may not be as effective as some might think in eradicating the gender gap.

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via New volume on gender convergence in the labour market | IZA Newsroom.

Child poverty and single parenthood

Why is the gender wage gap so big in the public sector that the unions invoiced the government for it?

The unions representing public servants and the Green Party are very excited about the gender wage gap this week. So much so that the public service union presented the Treasury with an invoice for that wage gap in the public sector of 14.1%.

Oddly enough, despite their concerns with the gender wage gap in the public service, the public service unions are stridently against both privatisation and contracting out.

It is almost trite to note is that one of the earliest analytical results in the labour economics of discrimination was that profit maximising employers are much less likely to discriminate than firms that are not subject to a profit and loss constraint and the discipline of bankruptcy. 

A prejudiced employer pays a wage above the competitive wage to attract the particular recruits he or she is prejudiced in favour of and does not hire enough workers because he must pay higher wages. This results in lower output and profits than without discrimination.

Bureaucrats can indulge their prejudices without putting the survival of their business in jeopardy. Entrepreneurs who don’t hire on merit risk running out of going out of business because their costs are hire and their businesses less productive.

…market mechanisms impose inescapable penalties on profits whenever for-profit enterprises discriminate against individuals on any basis other than productivity. Though bigoted managers may hold sway for a time, in the long run the profit penalty makes profit-seeking enterprises tenacious champions of fair treatment.

Early examples of the greater propensity for discrimination in the public sector and non-profit organisations are by Armen Alchian and Ruben Kessel in Competition, Monopoly, and the Pursuit of Money in 1962 and Gary Becker’s pioneering The Economics of Discrimination in 1957.

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Women and Social Mobility – Key Facts

1. Today’s working women (henceforth described as “daughters”) have higher wages than their mothers – but do not have higher wages than their fathers. Men have higher wages than both their fathers and their mothers.

2. The poorest women are doing best. 80% of daughters raised in the bottom quintile have higher wages than their fathers did. (h/t Scott Winship)

3. “Men’s wages remain more important to increasing couples’ family income,” despite “women’s significant generational gains” …

4. Women who grew up in households where their mother did not work actually have the highest family incomes today—but not because they themselves earn more. Daughters’ individual incomes do not vary significantly by mother’s work status, but family income does—suggesting that daughters whose mothers didn’t work have higher earning husbands. (Catherine Rampell discovered this by asking Pew to split out their analyses by mothers’ labor choices.) Perhaps those raised in more traditional settings are more likely to replicate a traditional division of labor?

via via Women and Social Mobility: Six Key Facts | Brookings Institution.

 

Another gender gap that dare not mention its name

Study: Men are lazy to their core

Adding it all up — both paid work and unpaid housework, including childcare — the average man’s work week was three hours longer than his partner’s before birth, but after parenthood he worked 8.5 hours less than his partner.

This is particularly interesting, given that this is a socio-economic cohort — wealthy and educated — that generally says equality of household labour is important in a relationship.

via Study: Men are lazy to their core – The Washington Post.

There are big differences in part-time employment rates across countries

The rise and rise of mothers as breadwinners

Labour stays silent over gender segregation at party rally

Women are winning the human capital race | Kevin M. Murphy and Robert H. Topel

Why have women outpaced men? There’s little cognitive difference between the sexes, and males do better on standardized tests.

But Murphy, Becker, and Hubbard argue that women tend to have better “non-cognitive skills” than men do. Those personal skills and character traits such as persistence, self-control, and conscientiousness may help women excel academically and stay in school until they graduate.

The academic achievement gap actually starts before college: 25 percent more females than males took high-school advanced-placement tests in 2010, the Cleveland Fed economists find.

“There is a substantial gap between the measured high school performance of males and females,” Topel and Murphy write in a 2014 study, noting that female graduating high school seniors have, as a group, higher grade point averages than their male counterparts. “This high school gender gap in academic performance persists in the population that continues on to college.”

via Women are winning the human capital race | The University of Chicago Booth School of Business.

What is assortative mating?

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