Economic Woman

Econometrics, gender, equity and more.

Posts Tagged ‘income

Money, happiness and gender

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Economix, which is becoming a consistent source of news about gender and economics, has a post up about income and job satisfaction by gender. Their data is from a website called PayScale, where users share their salary and related information. In other words, the workers that make up this data set had to seek out PayScale and then fill out a survey. Most survey research suffers from low response rates, but this is a decidedly non-random sample. Among other things, we are only learning about people concerned enough with their salary to discover a site like PayScale. So this isn’t an ideal research environment.

That said, the Times economics editor, Catherine Rampell, makes a couple interesting observations.

Men and women are about equally likely to say that they are satisfied with their jobs; about 65 percent of both sexes say they are satisfied. Plus, for both sexes higher job satisfaction is associated with higher job pay. But it typically takes a lot less money to get women to say they are satisfied with their work than it does to get men to say it. […] Bumping men into a higher-satisfaction group requires a bigger increase in pay than women would need to in order to go up a ‘satisfaction’ level.

One of Rampell’s suggested explanations rings particularly true for me:

Perhaps this difference is reflective of the men’s and women’s divergent priorities in their career choices. After all, much of the overall gap between men’s and women’s earnings can be explained by the types of careers they choose (or others might argue, the types of careers available to them). Women are more disproportionately represented in industries like health care and education, for example, that are less lucrative than some male-dominated fields but that are — as public subsidies might indicate — generally viewed as contributing to the public good. Supporting this theory is another PayScale statistic: Women were more likely to tell PayScale that say they find their jobs “very meaningful” than men were, with 35 percent of women and 27 percent of men describing their jobs this way.

But the commenters are even cleverer. Cathy A. reminds us that a better study would correct for occupation categories:

At 40,000 a year, a woman may have the same job as a man making 60,000 a year (or close to that). Your simple analysis fails to account for the type of job a person is doing. For 40,000 a year, a man may be a laborer. But a woman making 40,000 a year (or even less) may be helping to manage a research project at a university.

And “Another View” points out that men and women face different substitutes:

Women are accustomed to doing a considerable amount of unpaid work at home; that is, time away from the office is not necessarily time off.

Beautiful. Read the comments, folks.

Written by Allison

28 November 2009 at 1:48 pm

American women’s political economics in one picture

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I find myself clicking back to Dani Rodrik’s “American political economics in one picture” about the impact of Democratic vs. Republican presidents on the distribution of income. (To oversimplify, under Democratic presidents poor people do a little better.) It’s a compelling result, but there are some sensible criticisms in the comment thread. Shouldn’t the congressional balance of power be at least as important as the orientation of the executive branch? I would be more convinced by some sort of index which incorporates the affiliations of the party, the House, the Senate, etc.

In any case, I’m wondering what a similar analysis broken down by gender would show. The effect might be more pronounced, to the extent that the US government has done anything to keep women in the work force – and I confess some ignorance on this point, I know much more about European child care and leave policies. Of course, given that women’s widespread participation in the formal sector is only a few generations old, the sample might be too small.

Written by Allison

4 April 2008 at 1:43 pm