More on the wage gap

When Jill Abramson was fired from her post as executive editor of the New York Times last Wednesday, the world took notice. The New Yorker reported on tensions between Abramson and the paper’s owner, which may have been heightened in part by an argument over her pay relative to that of her male predecessor.images-1

Whether Abramson’s pay did or didn’t have anything to do with her dismissal from the Times, one thing is certain: there is a gender wage gap. Among full-time workers, women earn 77% of what men earn. Even after accounting for the fact that women often work in different occupations and industries than men, as well as differences in work experience, union status, education and race, 41% of that gap is still unexplained. When social scientists control for every employment factor that could possibly explain the disparity, women still earn 91% of what men earn for doing the same job.

Female-dominated occupations tend to pay less, often much less, than male-dominated occupations. Women made great progress in the 1970s and 1980s in moving into careers traditionally dominated by men, but since the mid-1990s that progress has largely stalled. Today women still account for the vast majority of waitresses, retail workers, administrative assistants and nurses, but very few engineers, scientists, managers and technicians. Women also tend to work in service jobs and not-for-profit and public-sector organizations, which aren’t highly valued in a market economy. Moreover, though women lost fewer jobs than men did in therecession, they gained fewer during the recovery. And many of the gains were in sectors facing serious budget cuts, like education and social services.

What’s more, education has not effectively reduced the gender wage gap, even though women are now substantially more educated than men. Women surpassed men in college enrollment in the mid-1990s, and the gap has been growing ever since. Today 45% of young women are enrolled in college, compared with 38% of young men; 36% of young women have a bachelor’s or a graduate degree, compared with 28% of young men. Yet women with graduate degrees earn the same as men with bachelor’s degrees, and women with bachelor’s degrees earn the same as men with associate’s degrees.

What’s behind these differences? Part of the problem lies in what women study, which plays a large role in where they work later on. Women aren’t likely to choose high-paying majors like engineering; instead, they often gravitate to low-paying majors like education, psychology and social work. Women represent 97% of early-childhood-education majors but only 6% of mechanical-engineering majors. Continue reading “More on the wage gap”

Revisiting the 47 percent

Just in from Pew Research: 47% of Americans see themselves as lower or lower-middle class.

As PolicyMic reports: “600 economists now say it’s time the federal minimum wage to $10.10, including seven Nobel laureates, attaching their name to a letter from the Economic Policy Institute asking lawmakers to reform wage laws.

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“It couldn’t come at a more pertinent time. On Tuesday during the State of the Union, President Obama is widely expected to state that he will raise the minimum wage for future federal contractors to $10.10 an hour from $7.25 via an executive action. The raise would affect some two million federal employees, and show that the president is serious about backing a proposal stalled in Congress to raise the minimum wage for all employees to $10.10 over three years and then index it to inflation.

“And Americans support it by huge margins. A January Quinnipiac poll discovered that some 71% of American voters support raising the minimum wage. That includes 52% of Republicans. As liberal economist Paul Krugman noted, perhaps the reality of class distinctions is beginning to sink in for many Americans as they see an economy recovery bypass so many of them and opportunities disappear across the board. A Pew survey found that Americans’ perception of their class status is converging towards reality, with some 47% of Americans defining themselves as lower and lower-middle class. Krugman thinks this is why economic inequality is now such a popular issue across the country. Continue reading “Revisiting the 47 percent”

Why the minimum wage matters

Three and a half million people of color would be lifted out of poverty if Congress raised the minimum wage to $10.10, according to a new report from the restaurant workers’ group ROC United. According to a recent post on ThinkProgress:  “This would be the majority of the six million people overall who would be lifted out of poverty. People of color are far more likely to work minimum wage jobs, as they represent 42 percent of those earners even though they make up just 32 percent of the workforce.images

“That big number is in large part thanks to the overrepresentation of people of color in low-wage restaurant industry jobs. Over 500,000 of those lifted out of poverty by a raise in the minimum wage would be restaurant workers, 300,000 of whom would be workers of color.

“Restaurants are the single largest employer of people of color, but they are disproportionately concentrated in the lowest paying positions. As the report notes, “Two of the lowest-paying jobs, dishwashers and fast food preps and cooks, are 59% and 35% people of color, and earn a median wage of $8.78 and $8.85, respectively.” Forty percent of tipped workers — who make an even lower minimum wage of $2.13 — are people of color.

“The people of color who hold these jobs are also more likely to live in poverty. They make up more than half of tipped workers and restaurant workers with incomes below the poverty line.”

 

Read full story at: http://thinkprogress.org/economy/2013/06/21/2194701/race-minimum-wage/

Support for raising minimum wage

Seven in 10 Americans say they would vote “for” raising the minimum wage to $9 per hour if given the opportunity, while 27% would vote against such a bill, reports Gallup. “The proposal, made by President Barack Obama in his 2013 State of the Union speech, is backed by over 90% of Democrats and self-described liberals, and by over two-thirds of independents and moderates. Republicans are evenly split on the proposal, while conservatives tilt slightly in favor.imgres Continue reading “Support for raising minimum wage”

The other sin of the American South

imgres-2Contemporary American politics cannot be understood apart from the North-South divide in the U.S., as I and others have argued, writes Michael Lind in today’s Salon Magazine.   “Neither can contemporary American economic debates.  The real choice facing America in the 21st century is the same one that faced it in the 19th and 20th centuries — Northernomics or Southernomics?

“Northernomics is the high-road strategy of building a flourishing national economy by means of government-business cooperation and government investment in R&D, infrastructure and education.  Continue reading “The other sin of the American South”