Quotulatiousness

March 12, 2018

The pesky and persistent gap between what men earn and what women earn

Filed under: Britain, Business, Economics — Tags: , , , — Nicholas @ 05:00

Tim Worstall responds to yet another Guardian article decrying the difference in earnings for men and women:

There is a gender earnings gap in British – as with all others – society. The interesting question is what is causing it, the important one what we do about it. The answers being, in turn, children and nothing.

This is not, you will note, the general direction of the political conversation. It does have the merit of being true on both counts.

Take this finding that there are lots more highly paid men out there:

    There are almost four times more men than women in Britain’s highest-paid posts, according to “scandalous” figures that show the extent of the glass ceiling blocking women from top jobs.

    Government data reveals the huge disparity in the number of men and women with a six-figure income, fuelling concerns over the gender pay gap in the City and other professions.

    There were 681,000 men earning £100,000 or more in 2015-16, according to new HMRC data. It compares with only 179,000 women. The latest figures show that 17,000 men earned £1m in 2015-16, while only 2,000 women did so.

Those numbers are true. There are more men earning higher incomes than there are women. This is the entire and whole driver of that gender pay gap – or what it actually is, a gender earnings gap. And what is the cause of this? As the TUC has pointed out [PDF]:

    There is an overall gender pay gap of 34 per cent for this cohort of full-time workers who were born in 1970. This gap is largely due to the impact of parenthood on earnings – the women earning less and the men earning more after having children.

That really is just about all there is to it. It’s illegal, and has been for decades, to pay people differently based solely upon their gender. People doing the same job get the same pay by gender – there’re fortunes to be made dobbing in employers where this isn’t the case and we don’t see such dobbing in happening.

[…]

We can also point out that the true answer here is entirely in womens’ hands. Granny knew how to manage G-Pops, Lysistrata shows the Ancient Greeks got the point. If the only way men got nookie and or children was by being house husbands then there wouldn’t be a gender earnings gap, or it would run the other way. That women don’t strike for this – perhaps that not enough do – shows that this might well not be what women actually want.

OK, maybe not in womens’ hands but certainly in their control….

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