Tag Archives: Economics

Liberal feminist Hanna Rosin debunks the 77 percent pay for women myth

In the far-left Slate, of all places.

Excerpt:

The official Bureau of Labor Department statistics show that the median earnings of full-time female workers is 77 percent of the median earnings of full-time male workers. But that is very different than “77 cents on the dollar for doing the same work as men.” The latter gives the impression that a man and a woman standing next to each other doing the same job for the same number of hours get paid different salaries. That’s not at all the case. “Full time” officially means 35 hours, but men work more hours than women. That’s the first problem: We could be comparing men working 40 hours to women working 35.

How to get a more accurate measure? First, instead of comparing annual wages, start by comparing average weekly wages. This is considered a slightly more accurate measure because it eliminates variables like time off during the year or annual bonuses (and yes, men get higher bonuses, but let’s shelve that for a moment in our quest for a pure wage gap number). By this measure, women earn 81 percent of what men earn, although it varies widely by race. African-American women, for example, earn 94 percent of what African-American men earn in a typical week. Then, when you restrict the comparison to men and women working 40 hours a week, the gap narrows to 87 percent.

But we’re still not close to measuring women “doing the same work as men.” For that, we’d have to adjust for many other factors that go into determining salary. Economists Francine Blau and Lawrence Kahn did that in a recent paper, “The Gender Pay Gap.”.”They first accounted for education and experience. That didn’t shift the gap very much, because women generally have at least as much and usually more education than men, and since the 1980s they have been gaining the experience. The fact that men are more likely to be in unions and have their salaries protected accounts for about 4 percent of the gap. The big differences are in occupation and industry. Women congregate in different professions than men do, and the largely male professions tend to be higher-paying. If you account for those differences, and then compare a woman and a man doing the same job, the pay gap narrows to 91 percent. So, you could accurately say in that Obama ad that, “women get paid 91 cents on the dollar for doing the same work as men.”

I believe that the remainder of the gap can be accounted for by looking at other voluntary factors that differentiate men and women.

The Heritage Foundation says that a recent study puts the number at 95 cents per dollar.

Excerpt:

Women are more likely than men to work in industries with more flexible schedules. Women are also more likely to spend time outside the labor force to care for children. These choices have benefits, but they also reduce pay—for both men and women. When economists control for such factors, they find the gender gap largely disappears.

A 2009 study commissioned by the Department of Labor found that after controlling for occupation, experience, and other choices, women earn 95 percent as much as men do. In 2005, June O’Neil, the former director of the Congressional Budget Office, found that “There is no gender gap in wages among men and women with similar family roles.” Different choices—not discrimination—account for different employment and wage outcomes.

A popular article by Carrie Lukas in the Wall Street Journal agrees.

Excerpt:

The Department of Labor’s Time Use survey shows that full-time working women spend an average of 8.01 hours per day on the job, compared to 8.75 hours for full-time working men. One would expect that someone who works 9% more would also earn more. This one fact alone accounts for more than a third of the wage gap.

[…]Recent studies have shown that the wage gap shrinks—or even reverses—when relevant factors are taken into account and comparisons are made between men and women in similar circumstances. In a 2010 study of single, childless urban workers between the ages of 22 and 30, the research firm Reach Advisors found that women earned an average of 8% more than their male counterparts. Given that women are outpacing men in educational attainment, and that our economy is increasingly geared toward knowledge-based jobs, it makes sense that women’s earnings are going up compared to men’s.

When women make different choices about education and labor that are more like what men choose, they earn just as much or more than men. What does it mean that people on the left keep pushing pseudo-science on us to try to punish men and reward women? Why are men so awful that they need to be denigrated like this? And how will men respond to social expectations when they have to face being told that they are “bad”? It seems to me that putting men down is going to lower their level of engagement.

Marco Rubio’s speech exposing the horrors of socialism in Cuba and Venezuela

Here’s an article from the Miami Herald about a recent 15-minute speech by Republican Senator Marco Rubio.

Excerpt:

The U.S. senator from Florida had listened patiently to Sen. Tom Harkin of Iowa speak favorably about his recent trip to Cuba, all the while omitting any real references to the oppression of the totalitarian government there.

To Rubio, like many Cuban exiles and their descendants, it was too much to bear.

“Let me tell you what the Cubans are really good at,” Rubio said Monday when he took to the Senate floor. “What they are really good at is repression … They have exported repression in real time, in our hemisphere, right now.”

[…]For 14 minutes and 16 seconds, Rubio gave the best oration of his political career, speaking largely off the top of his head and with only the barest of notes. Rubio sometimes dripped with sarcasm or simmered with indignation as he made the case to Congress that the United States needs to continue Cuba sanctions and punish Venezuela.

That’s what the speech was about.

Here are some of the details from the speech:

As an aide flipped through over-sized photos of Venezuelan protests, Rubio ticked off the struggles of living in the country, the horrors of its citizens dying and being jailed at the hands of its government.

“This gentleman here is the former mayor of a municipality in Caracas. His name is Leopoldo Lopez,” Rubio said. “And this is the National Guard of Venezuela pulling him into an armored truck last week. You know why? Because he’s protesting against the government.”

Then came the next photograph, a picture of a young woman being driven off on a motorcycle.

“This is Genesis Carmona,” Rubio said. “They shot her in the head. She died last week.”

Rubio continued: “Let me show you the next slide. Here’s a demonstrator detained by police. Look how they drag him through the streets. This is in Caracas, Venezuela.”

Rubio also took issue with a recent survey, cited by Harkin, that indicated a thaw in American and Floridian perceptions of relations with Cuba.

“He cited a poll, ‘More Americans want normal relations with Cuba.’ So do I — a democratic and free Cuba,” Rubio said.

“But you want us to reach out and develop friendly relationships with a serial violator of human rights, who supports what’s going on in Venezuela and every other atrocity on the planet? On issue after issue, they are always on the side of the tyrants. Look it up,” Rubio said. “And this is who we should be opening up to? Why don’t they change? Why doesn’t the Cuban government change? Why doesn’t the Venezuelan government change?”

Rubio said that, just as the United States has sanctions against North Korea and Syria — allies of Cuba — it should keep pressuring the governments in Havana and Caracas.

And he disagreed with the notion that the embargo hurts the Cuban people. Instead, he said, it’s the totalitarian-socialist government that’s to blame for problems in Cuba — As well as in “oil-rich” Venezuela.

“We don’t have an embargo against Venezuela,” he said. “They have a shortage of toilet paper and tooth paste. Why? Because they are incompetent. Because communism doesn’t work. They look more and more like Cuba economically and politically every single day.”

Rubio repeated that last line elsewhere in his speech:

“They look more and more like Cuba economically and politically every single day. What’s the first thing the Venezuelan government did when these broke out? They shut off access to Twitter and Facebook and the Internet. They ran CNN out of there. They closed down the only Colombian station. Years before, they had closed down all the independent media outlets that criticized the government.

“Where did they learn that from? From Cuba. And yet we have to listen to what a paradise Cuba is.”

I am not a fan of Marco Rubio anymore as a candidate for VP or President, nor am I a fan of Paul Ryan. Both have made mistakes that rule them out as conservatives. However, this speech should be seen by all, especially by Americans who do not appreciate how different like is in countries that are further along the socialist road to serfdom. But we’re getting there.

Are liberals or conservatives more likely to believe in weird things?

From the leftist Washington Post, of all places. (H/T ECM)

Excerpt:

A belief in astrology is surprisingly widespread in modern America. The National Science Foundation recently released a report reviewing scientific knowledge and attitudes. As noted by Chris Mooney at Mother Jones, perhaps NSF’s most striking finding was an increase in the belief in astrology from 32 percent in 2006 and 35 percent in 2010 to 45 percent in 2012.

At the Demography of Diversity Project at Northwestern University, we took the same astrology data from the General Social Survey that NSF used and broke it down further by political party and liberal-conservative orientation. The results can be found in a brief report that I put up at the Social Science Research Network: “Who Believes That Astrology is Scientific?”

Here are the top 3 groups:

1. Conservative Democrats

In the 2012 General Social Survey, 56.9 percent of conservative Democrats believe that astrology is very or sort of scientific, while only 43.1 percent believe that it is not scientific at all. This support for astrology is the highest among 15 overlapping political groups.

2. Moderate Democrats

The political group that is second most likely to believe in astrology is moderate Democrats. A majority of them — 52.0 percent — think that astrology is at least sort of scientific.

3. Democrats (overall)

Although liberal Democrats are insignificantly less likely than average to believe in astrology (43.5 percent), the difference is not enough to offset the beliefs of moderate and conservative Democrats. Thus, Democrats overall are in the third position, with nearly half (49.1 percent) believing in astrology.

The surprising thing is that no Republicans appear in the top 7 groups.

Pew Research

I blogged a Pew Research survey before.

Excerpt:

Among both evangelical and mainline Protestants, those who attend church weekly express much lower levels of belief in reincarnation, yoga, the existence of spiritual energy in physical things and astrology compared with those who attend religious services less often.

[…]Older people (those over age 65) consistently express lower levels of acceptance of these kinds of beliefs compared with younger people. These beliefs are more common among Democrats and independents than Republicans and are more widely held by liberals and moderates than conservatives.

[…]Evangelical Protestants are the group least likely to say they have felt in touch with a dead person (20%).

[…]Compared with those with a college degree, more Americans with a high school education or less report having felt in touch with a dead person (32% vs. 24%) and having seen a ghost (21% vs. 13%). However, Americans with less education are no more inclined to have consulted a fortuneteller than are Americans with a college education (13% vs. 17%). Conservatives and Republicans report fewer experiences than liberals or Democrats communicating with the dead, seeing ghosts and consulting fortunetellers or psychics.

It’s not just Pew, it’s Gallup, too.

Gallup survey

And here is a Wall Street Journal article about the Gallup survey entitled “Look Who’s Irrational Now“.

Excerpt:

“What Americans Really Believe,” a comprehensive new study released by Baylor University yesterday, shows that traditional Christian religion greatly decreases belief in everything from the efficacy of palm readers to the usefulness of astrology. It also shows that the irreligious and the members of more liberal Protestant denominations, far from being resistant to superstition, tend to be much more likely to believe in the paranormal and in pseudoscience than evangelical Christians.

The Gallup Organization, under contract to Baylor’s Institute for Studies of Religion, asked American adults a series of questions to gauge credulity.

[…]The answers were added up to create an index of belief in occult and the paranormal. While 31% of people who never worship expressed strong belief in these things, only 8% of people who attend a house of worship more than once a week did.

And it’s not just spiritual superstition, it’s economics, too.

Zogby survey

And of course, Republicans are more informed on economic issues than Democrats, and even Independents. The Wall Street Journal explains.

Excerpt:

Who is better informed about the policy choices facing the country—liberals, conservatives or libertarians? According to a Zogby International survey that I write about in the May issue of Econ Journal Watch, the answer is unequivocal: The left flunks Econ 101.

Zogby researcher Zeljka Buturovic and I considered the 4,835 respondents’ (all American adults) answers to eight survey questions about basic economics.

The first question was “Restrictions on housing development make housing less affordable.” The right answer there is agree, because any time you restrict supply while demand is high, you create a shortage, causing prices to go up.

Here are the others:

The other questions were: 1) Mandatory licensing of professional services increases the prices of those services (unenlightened answer: disagree). 2) Overall, the standard of living is higher today than it was 30 years ago (unenlightened answer: disagree). 3) Rent control leads to housing shortages (unenlightened answer: disagree). 4) A company with the largest market share is a monopoly (unenlightened answer: agree). 5) Third World workers working for American companies overseas are being exploited (unenlightened answer: agree). 6) Free trade leads to unemployment (unenlightened answer: agree). 7) Minimum wage laws raise unemployment (unenlightened answer: disagree).

And the results:

How did the six ideological groups do overall? Here they are, best to worst, with an average number of incorrect responses from 0 to 8: Very conservative, 1.30; Libertarian, 1.38; Conservative, 1.67; Moderate, 3.67; Liberal, 4.69; Progressive/very liberal, 5.26.

To be conservative means to understand the world as it is, and how it really works. We don’t believe in superstitious nonsense like astrology and socialism.