Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Yes, women earn less than men – but it’s NOT because they are being discriminated against

Yes, women earn less than men – but it’s NOT because they are being discriminated against

Women earn about 82% as much as males, something the Democratic Party’s new Paycheck Fairness Act seeks to address. But the true cause of the gender wage gap is more complex – and is really a marriage and child care penalty.
Representative Rosa DeLauro (D-Connecticut) is the lead person in terms of promoting the Paycheck Fairness Act (H.R. 7). It has been passed by the US House of Representatives, by 217 votes to 210. Its fate in the Senate, where it will be debated later this month, is more precarious.

This sort of effort has been a staple ever since 1997 on the part of those who discern sexual discrimination in the labor market. This proposed legislation puts the onus of employers to justify that any pay differentials are based on bona fide job-related factors, forces them to release data on pay to the authorities, increases penalties for violations and sets up a task force to address enforcement of equal pay laws.

What are the pretty much non-controversial facts? That for full-time workers, females earn 82.4% as much as males, leaving a “gap” of some 18%. This divergence has been pretty steady since 2014.

However, opinions diverge – radically – as to the causes of this imbalance. Critics of the free enterprise system perceive sexual discrimination as endemic to these institutional arrangements. Men, in their view, head most corporations and naturally favor fellow members of their gender. This will be news to sociobiologists, and evolutionary psychologists, who see things in quite the reverse order.

What do economists have to say about them thar apples? For the most part, they reject this hypothesis entirely, attributing this gap to divergent choices made by men and women.

For one thing, if productivity between males and females were really equal, and women were paid less than men, this would set up market forces that would tend to reduce this gap to virtually zero. Consider this simple numerical example. Both males and females have exactly equal productivity on the job. Each can produce at the rate of $100 per day. However, while males are paid that amount (wages tend to mirror discounted marginal revenue product, or, in layman’s terms, productivity), females garner only $82 per day, yielding a “gap” of $18. This means that if you hire a woman, you will be able to “exploit” her to the tune of $18, whereas if you take a man on your employment roll, you reap exactly zero in profits.

Is this an equilibrium situation? Would this state of affairs long endure? Of course not. Firms would start offering members of the distaff side $83 to bid them away from their supposed discriminators. They would implicitly think: better for me to earn $17 from employing this woman than for my competitor to do so at the rate of $18. This would give way to bids of $84, $85, etc., and then on to the races, all the way up to $100, assuming little or no transaction costs.

Here is perhaps an even more convincing argument for those whose cup of tea is not pure economic logic.

While married women earn 75.5% as much as married men, never-married females take home 94.2% compared to their never-married male counterparts. Say what? If discrimination is supposed to account for the female-male wage gap, how do we get such strong divergences based on marital status?

Enter the Marital Asymmetry Hypothesis (MAH). This is based upon a foundational economic principle: alternative or opportunity costs. Whenever you do anything, you do it at the expense of not being able to do something else as well, or, in some cases, at all. Yo-Yo Ma is one of the best cellists on the planet, but his time in the 100 meters is nothing to brag about. Usain Bolt (they really ought to give him a speeding ticket) can do the 100 in a little over an astounding nine seconds, but he does this at the cost of not being able to be a world-class cellist.

So, what is it that married women do, compared to married men, that their unmarried sisters do not do, compared to unmarried men? It is simple: they bear a disproportionate share of housekeeping, cooking, cleaning, shopping, childcare, breastfeeding, etc., compared to the never-marrieds, vis a vis to never-married men.

The 75.5% versus 94.2% divergence is something for which the sexual discrimination hypothesis simply cannot account. But this fact is certainly congruent with the MAH. When children enter the picture, these two proportions diverge from each other even more. There is also the fact that married men have a greater attachment to the labor force than their wives. They are more willing to seek promotion and greater responsibility than their partners. Whereas the never-marrieds are more equal in these regards.

Will these facts get aired when the Senate debates this bill? I certainly hope so.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
Finnish MP Dies by Suicide in Parliament Building
Outrage in the Tennis World After Jannik Sinner’s Withdrawal Storm
Class Action Lawsuit Against Volkswagen: Steering Wheel Switches Cause Accidents
UK Government Tries to Sue 4chan for Breaching Online Safety Act
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Cambridge Dictionary Adds 'Skibidi,' 'Delulu,' and 'Tradwife' Amid Surge of Online Slang
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
The CEO Who Replaced 80% of Employees for the AI Revolution: "I Would Do It Again"
"Every Centimeter of Your Body Is a Masterpiece": The Shocking Meta Document Revealed
Character.ai Bets on Future of AI Companionship
China Ramps Up Tax Crackdown on Overseas Investments
Japanese Office Furniture Maker Expands into Bomb Shelter Market
Intel Shares Surge on Possible U.S. Government Investment
Hurricane Erin Threatens U.S. East Coast with Dangerous Surf
EU Blocks Trade Statement Over Digital Rule Dispute
EU Sends Record Aid as Spain Battles Wildfires
Beijing is moving into gold and other assets, diversifying away from the dollar
China Requires Data Centres to Source Majority of AI Chips Locally, For Technological Sovereignty
Escalating Clashes in Serbia as Anti-Government Protests Spread Nationwide
Category 5 Hurricane in the Caribbean: 'Catastrophic Storm' with Winds of 255 km/h
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Digital Humans Move Beyond Sci-Fi: From Virtual DJs to AI Customer Agents
YouTube will start using AI to guess your age. If it’s wrong, you’ll have to prove it
Jellyfish Swarm Triggers Shutdown at Gravelines Nuclear Power Station in Northern France
OpenAI’s ‘PhD-Level’ ChatGPT 5 Stumbles, Struggles to Even Label a Map
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
The World Economic Forum has cleared Klaus Schwab of “material wrongdoing” after a law firm conducted a review into potential misconduct of the institution’s founder
A Computer That Listens, Sees, and Acts: What to Expect from Windows 12
Bitcoin hits $123,000
Southwest Airlines Apologizes After 'Accidentally Forgetting' Two Blind Passengers at New Orleans Airport and Faces Criticism Over Poor Service for Passengers with Disabilities
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Russian Forces Advance on Donetsk Front, Cutting Key Supply Routes Near Pokrovsk
It’s Not the Algorithm: New Study Claims Social Networks Are Fundamentally Broken
Sixty-Year-Old Claims: “My Biological Age Is Twenty-One.” Want the Same? Remember the Name Spermidine
Saudi Arabia accelerates renewables to curb domestic oil use
The Billion-Dollar Inheritance and the Death on the Railway Tracks: The Scandal Shaking Europe
World’s Cleanest Countries 2025 Ranked by Air, Water, Waste, and Hygiene Standards
Denmark Revives EU ‘Chat Control’ Proposal for Encrypted Message Scanning
Perplexity makes unsolicited $34.5 billion all-cash offer for Google’s Chrome browser
Cristiano Ronaldo and Georgina Rodríguez announce engagement
×