Even though women have outpaced men in education, labor force participation, and finding meaning in their work, Claudia Goldin, Nobel Prize in Economics recipient, chronicles American women’s journey from holding jobs to pursuing careers. Her work shows that employment is crucial to women’s identity and satisfaction. Over the past 50 years, women’s roles have evolved dramatically, yet women still lag behind men in earning potential, employment rates, and high-level professional positions.
The Industrial Revolution opened doors for a large female workforce, gradually changing gender roles, especially in urban areas. In the U.S, 1970 marked the start of what Goldin calls ‘the quiet revolution’ a significant shift in women’s work commitment and their ability to collaborate with partners on decisions. However, the young women of the 1940s, whose prospects did not match their aspirations, were largely left behind.
Economic Costs of Sexism
Women bear a greater economic burden compared to men. Despite equal qualifications, women are often paid less for the same work. Legislation like “The Equal Remuneration Act, 1976” in India remains ineffective in eradicating wage discrimination. Studies show that families relying on female breadwinners are generally poorer, and women’s job opportunities are shrinking due to technological advancements, especially in sectors like agriculture, textiles, and clerical work. This has decreased women’s contribution to GDP.
Claudia Goldin and Her Work
Goldin’s Nobel Prize-winning work advanced understanding of women’s labor market outcomes in high-income countries, highlighting the persistent wage disparity between men and women. She was the third woman to receive the Nobel Prize in Economics. Goldin’s research, which spans from the late 18th century to today, debunks the notion that women’s employment rises witheconomicgrowth.Her1990 book, *Understanding the Gender Gap: An Economic History of American Women*, revealed that industrialization reduced women’s employment due to the demands of factory labor, which conflicted with domestic roles. This trend persisted despite other factors like social prejudices and restrictive legislation.
Goldin found that motherhood often results in decreased wages for women, partly due to perceptions of reduced availability. A Netflix episode, “Why Women are Paid Less,” highlights the gender gap as the gap between payments to mothers and every one else. Gender remains a factor for BFOQ (Bona Fide Occupational Qualification), legally allowing companies to hire based on gender.
The gender pay gap, or wage gap, is the average difference in earnings between men and women. This gap is a measure of gender inequality, influenced by factors such as parenthood, work flexibility, racial disparities, time out of the workforce, education, gendered job roles, and societal expectations. Parenthood significantly impacts the gender pay gap, with mothers often working fewer hours and earning less. The flexibility to work part-time is often necessary for women, but it results in lower wages. Racial pay disparities further compound the issue, as women of color generally earn less than their white counterparts.
Women are more likely to take career breaks to care for family, affecting their long-term earnings and career progression. Despite women surpassing men intertiary education, they lag in STEM fields and higher-paying jobs. Stereotypical gender roles also devalue “female jobs,” contributing to lower wages in these roles.
Persistent Gender Gaps in Key Areas
Female lawyers earn significantly less than male counterparts. Women’s under representation in senior law firm roles and societal biases contribute to this gap. Female lawyers often receive less career-advancing assignments and face biases in promotion and salary negotiations. Despite graduating at higher rates, women in finance earn less than men. In the UK, men in banking are paid over 24% more per hour than women. The unpaid care burden on women limits their full-time employment opportunities. Women in sports earn significantly less than men.
Factors include revenue generation, performance stereotypes, and underrepresentation in sports governance. For example, Indian cricketer Smriti Mandhana earns just 7% of ViratKohli’s salary. Women in defense face pay and opportunity gaps, underrepresentation in senior roles, and clustering in lower-paying support positions. Societal biases undervalue roles traditionally held by women, perpetuating wage disparities. Female stars earn significantly less than male counterparts. Age exacerbates this gap, with older actresses facing larger pay disparities. Notable examples include Bollywood actresses Priyanka Chopra and Deepika Padukone earning much less than male co-stars.
Conclusion: The Way Forward
Earning parity with men would boost women’s purchasing power, consumer spending, and the economy. Reducing the gender pay gap could promote gender equality and increase women’s work force participation. Achieving gender parity could boost global GDP by 3.9%, or $ 5.8 trillion, by 2025.
To reduce the gender pay gap, promoting transparency in pay structures, flexible work arrangements, unbiased hiring practices, strong parental leave policies, negotiation skills training, and corporate accountability are essential. Iceland’s introduction of paternity leave is one policy success, granting each parent four months of non-transferable leave.
Author K. Adhyaa is a Student at Modern High School for Girls, Kolkata.
