Tag Archives: Economics

Feminist Hanna Rosin debunks the myth of a gender pay gap caused by discrimination

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.

Wisconsin abortions decline again by 4.4% after Governor Walker’s pro-life laws

Wisconsin Governor Scott Walker
Wisconsin Governor Scott Walker

Life News reports.

Excerpt:

Abortion are on the decline in Wisconsin and they are poised to drop further thanks to new pro-life laws signed by Governor Scott Walker. Abortions dropped 7.4 percent in Wisconsin in the prior report.

Last year, Walker added to his pro-life list of accomplishments today by signing bills the pro-life movement supported, including measures to stop abortion funding in Obamacare and webcam abortions.

Wisconsin Right to Life officials told LifeNews Wisconsin abortions have decreased 68% from their all-time high in 1980 and 60% since Wisconsin began requiring abortion reporting in 1987.

[…]According to an AP report, abortions declined 4.4 percent from 2011-2012:

The Department of Health Services reported Monday that there were 6,927 abortions in 2012. That is down from 7,249 in 2011 for a drop of 4.4 percent.

It marks the third year in a row that abortions have gone down. Prior to an increase between 2008 and 2009, abortions had dropped for five straight years.

The rate of women aged 15-44 who had an abortion in 2012 was 6.1 per 1,000, down from 6.3 per 1,000 the year before. That is well below the national rate of 15.1 per 1,000 as of the most recent data available from 2009.

State law requires any facility that provides abortions to report statistics to the state.

In July, Walker signed Senate Bill 206 (Sonya’s Law) into law.  This important new law requires that women seeking abortions in Wisconsin be given the opportunity to see their unborn children through ultrasound.

Just hours before Walker signed the law, the Planned Parenthood abortion business announced it would file a lawsuit seeking to stop women from seeing these ultrasounds.

[…]After Walker signed the bill, the Planned Parenthood abortion business shut down one clinic in Appleton and another facility end abortions at another center in Green Bay.

But he’s not just a social conservative, but a fiscal conservative, too.

Excerpt:

Wisconsin is living proof that elections have consequences. The last 10 years of public policy in the state proves this, providing a sharp contrast between Republicans and Democrats and highlighting the positive results of Republican leadership.

The previous Governor left Wisconsin with a $3.6 billion budget deficit and a bleak economic outlook. In fact, during Governor Jim Doyle’s last term, Wisconsin lost over 133,000 jobs, and only 10% of employers thought our state was headed in the right direction.

At the polls in 2010, Wisconsinites elected Scott Walker and Republican majorities in the Assembly and Senate. Since taking office, Republicans have turned things around. Unlike the Democrats, who in 2009 were debating over $3 billion in tax hikes, State Republicans have been cutting taxes and eliminating regulations to foster a pro-growth environment in Wisconsin. In fact, the current budget provides nearly $1 billion in tax relief for hard-working middle class families.

In a stunning reversal of Doyle-era job loss, Wisconsin created over 14,000 jobs in June alone. The budget is balanced, and 94% of employers say our state is headed in the right direction. Furthermore, a leading economic indicator from the Federal Reserve Bank of Philadelphia just ranked Wisconsin second in the nation in jobs outlook for the next six months.

What if he were to run in 2016? Well, Scott Walker is a favorite of social conservatives, but remember that this is the same Scott Walker who took on the labor unions to limit collective bargaining and he won. His law, which has produced an economic boom in Wisconsin, is still standing. He’s showing leadership on social AND fiscal issues. It’s not just talk, it’s action. I think he should be considered in 2016, along with governors Bobby Jindal (LA), Rick Perry (TX), John Kasich (OH), and Mike Pence (IN).

Related posts

Percentage of single mothers who have never married 11 times higher than in 1960

The Heritage Foundation reports.

Excerpt:

Forty-four percent of single mothers have never been married. This is 11 times the percent of never-married single mothers in 1960.

The Pew Research Center reports:

In 1960, of all single mothers, more than eight-in-ten (82%) were divorced, separated or widowed. An additional 14% were married, but their spouses were not living in the household. Only 4% of all single mothers had never been married.

The percent of unwed births also grew dramatically over the same period. Today, over 40 percent of all children are born to single women, compared with less than 10 percent in 1960.

Children raised in single-parent homes are much more likely to live in poverty or struggle with other problems that take a toll on their ability to thrive.

Of course, other trends such as a high divorce rate—although the divorce rate has declined since its peak in the 1980s—have implications for children’s and society’s well-being.

Today, less than half (46 percent) of American children who reach age 17 have been raised by their continuously married, biological parents. This is taking a toll. Children do best when raised by their married mother and father. They are at lower risk of engaging in substance abuse, delinquent behavior, and early sexual activity, and they are less likely to drop out of high school or suffer abuse.

Michael Tanner of the Cato Institute explains how welfare provides an incentive to women to have babies without getting married.

Cato Institute economist Dr. Michael Tanner explains:

At the same time, the evidence of a link between the availability of welfare and out-of-wedlock births is overwhelming. There have been 13 major studies of the relationship between the availability of welfare benefits and out-of-wedlock birth. Of these, 11 found a statistically significant correlation. Among the best of these studies is the work done by June O’Neill for the U.S. Department of Health and Human Services. Holding constant a wide range of variables, including income, education, and urban vs. suburban setting, the study found that a 50 percent increase in the value of AFDC and foodstamp payments led to a 43 percent increase in the number of out-of-wedlock births.(7) Likewise, research by Shelley Lundberg and Robert Plotnick of the University of Washington showed that an increase in welfare benefits of $200 per month per family increased the rate of out-of-wedlock births among teenagers by 150 percent.(8)

The same results can be seen from welfare systems in other countries. For example, a recent study of the impact of Canada’s social-welfare system on family structure concluded that “providing additional benefits to single parents encourages births of children to unwed women.”(9)

Of course women do not get pregnant just to get welfare benefits. It is also true that a wide array of other social factors has contributed to the growth in out-of-wedlock births. But, by removing the economic consequences of a out-of-wedlock birth, welfare has removed a major incentive to avoid such pregnancies. A teenager looking around at her friends and neighbors is liable to see several who have given birth out of wedlock. When she sees that they have suffered few visible immediate consequences (the very real consequences of such behavior are often not immediately apparent), she is less inclined to modify her own behavior to prevent pregnancy.

Proof of this can be found in a study by Professor Ellen Freeman of the University of Pennsylvania, who surveyed black, never-pregnant females age 17 or younger. Only 40% of those surveyed said that they thought becoming pregnant in the next year “would make their situation worse.”(10) Likewise, a study by Professor Laurie Schwab Zabin for the Journal of Research on Adolescence found that: “in a sample of inner-city black teens presenting for pregnancy tests, we reported that more than 31 percent of those who elected to carry their pregnancy to term told us, before their pregnancy was diagnosed, that they believed a baby would present a problem…”(11) In other words, 69 percent either did not believe having a baby out-of-wedlock would present a problem or were unsure.

Until teenage girls, particularly those living in relative poverty, can be made to see real consequences from pregnancy, it will be impossible to gain control over the problem of out-of- wedlock births. By disguising those consequences, welfare makes it easier for these girls to make the decisions that will lead to unwed motherhood.

Current welfare policies seem to be designed with an appallingly lack of concern for their impact on out-of-wedlock births. Indeed, Medicaid programs in 11 states actually provide infertility treatments to single women on welfare.(12)

I should also point out that, once the child is born, welfare also appears to discourage the mother from marrying in the future. Research by Robert Hutchins of Cornell University shows that a 10 percent increase in AFDC benefits leads to an eight percent decrease in the marriage rate of single mothers.(13)

What is this story about welfare and single mothers doing in the 6 PM “Christian apologetics” time slot?

Well, it turns out that without a father in the home, children are far more likely to lose their faith.

Here is some statistical evidence that should have Christians everywhere concerned.

Excerpt:

In 1994 the Swiss carried out an extra survey that the researchers for our masters in Europe (I write from England) were happy to record. The question was asked to determine whether a person’s religion carried through to the next generation, and if so, why, or if not, why not. The result is dynamite. There is one critical factor. It is overwhelming, and it is this: It is the religious practice of the father of the family that, above all, determines the future attendance at or absence from church of the children.

If both father and mother attend regularly, 33 percent of their children will end up as regular churchgoers, and 41 percent will end up attending irregularly. Only a quarter of their children will end up not practicing at all. If the father is irregular and mother regular, only 3 percent of the children will subsequently become regulars themselves, while a further 59 percent will become irregulars. Thirty-eight percent will be lost.

If the father is non-practicing and mother regular, only 2 percent of children will become regular worshippers, and 37 percent will attend irregularly. Over 60 percent of their children will be lost completely to the church.

Let us look at the figures the other way round. What happens if the father is regular but the mother irregular or non-practicing? Extraordinarily, the percentage of children becoming regular goesupfrom 33 percent to 38 percent with the irregular mother and to 44 percent with the non-practicing, as if loyalty to father’s commitment grows in proportion to mother’s laxity, indifference, or hostility.

[…]In short, if a father does not go to church, no matter how faithful his wife’s devotions, only one child in 50 will become a regular worshipper. If a father does go regularly, regardless of the practice of the mother, between two-thirds and three-quarters of their children will become churchgoers (regular and irregular). If a father goes but irregularly to church, regardless of his wife’s devotion, between a half and two-thirds of their offspring will find themselves coming to church regularly or occasionally.

A non-practicing mother with a regular father will see a minimum of two-thirds of her children ending up at church. In contrast, a non-practicing father with a regular mother will see two-thirds of his children never darken the church door. If his wife is similarly negligent that figure rises to 80 percent!

The results are shocking, but they should not be surprising. They are about as politically incorrect as it is possible to be; but they simply confirm what psychologists, criminologists, educationalists, and traditional Christians know. You cannot buck the biology of the created order. Father’s influence, from the determination of a child’s sex by the implantation of his seed to the funerary rites surrounding his passing, is out of all proportion to his allotted, and severely diminished role, in Western liberal society.

Here’s an interesting post about a new book by Mary Eberstadt which makes the same point with even more data.

Excerpt:

The French Revolution gave the West the first self-consciously secular government at the end of the 1700s, and one of its first revolutionary acts was to liberalize its marriage laws. But what people may not realize, was that France was the first country in Europe to experience a decline in fertility rates within marriage, and an increase in cohabitation and illegitimacy, decades before the French Revolution. In the early 1700s, over a half century before the Revolution, illegitimacy was only at 1%, but by the storming of the Bastille, which ushered in the Revolution, France’s illegitimacy rate had climbed to 20% overall, with a 30% rate in the boiling pot of Paris. The French Revolution’s successful attack on Christianity, and the consequent secularization of France, was, in part, the result of the prior erosion of the family.

We see the same pattern in the UK, argues Eberstadt. “In Britain…the decline in births started a century later [than in France] at the very height of Victorian England,…Bit by bit…the same family trends already established in France—fewer births, more divorces, more out-of-wedlock births—also began reshaping the world of Britain. By our own time, over half of all children in Britain are born to unmarried people, and the fertility rate stands at 1.91 children per woman.” Not surprisingly, Britain’s churches are, like those of France, largely empty.

In the Scandinavian countries, like Sweden, where marriage rates are lowest, and divorce, cohabitation, and single-family households, and out-of-wedlock births are the highest, we find the greatest degree of secularization.

The obvious lesson we must draw, says Eberstadt, is “Vibrant families and vibrant religion go hand in hand.”

I get annoyed when I hear people talk about how they are socially conservative, but not fiscally conservative. If you are socially conservative, and you believe in faith, marriage and family, then you need to think about what policies do to encourage people to either get married or not get married. Single mother welfare is nothing more than paying people to have children before they are married. Not only is it bad for them to be dependent on government, but that money has to come from somewhere else – probably from some hard-working man who is now taxed so much that his wife has to go to work to make ends meet, weakening the family and potentially exposing the child to more unfiltered influence from secular schools and secular culture. Think about fiscal policy, because it matters.