Tag Archives: Government

Wage gap: are women paid less than men because of discrimination?

The pay gap is caused by women's own choices
The pay gap is caused by women’s preference for having children

Liberal feminist Hanna Rosin takes a look at this question 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.

Wayne Grudem explains what the Bible says about parents and schools

This is a must-listen lecture from famous pastor Wayne Grudem.

The MP3 file is here.

Note: public schools = government-run schools.

Topics:

  • Does God care whether we people marry and have children?
  • Does God care whether Christian parents raise their children to know him?
  • Should government promote bearing children?
  • What are some effects of declining birth rates in other countries?
  • What are the economic effects of declining birth rates?
  • Who has the right to decide how children are trained: government or parents?
  • What does the Bible say about parents having to raise children to know him?
  • Does the government have the responsibility for training children?
  • What do educational bureaucrats think of parents training children?
  • What do school boards think of parents training children?
  • Should school boards be elected by local, state or federal government?
  • Should Christians be opposed to government-run education? (public schools)
  • How should schools be viewed by parents? As a replacement or as a helper?
  • How are schools viewed by those on the left and in communist countries?
  • How can you measure how supporting a government is of parental rights?
  • How is parental authority viewed in left-wing EU countries like Germany?
  • How is parental authority respected in the United States?
  • Should parents have a choice of where their children go to school?
  • What is a voucher program? How is it related to parental autonomy?
  • How does competition (school choice) in education serve parental needs?
  • Why do public school teachers, unions and educrats oppose competitition?
  • How well do public schools do in educating children to achieve?
  • Does the government-run monopoly of public schools produce results?
  • Does paying more and more money to public schools make them perform?
  • How do teacher unions feel about having to compete in a voucher system?
  • Does the public school monopoly penalize the poorest students?
  • Does the public school monopoly penalize children of certain races?
  • Does the public school monopoly cause racial prejudice?
  • What else should parents demand on education policy?
  • Is it good for parents when schools refuse to fire underperforming teachers?

This podcast is just amazing! This is what we need to be teaching in church. Church should be the place where you go to learn and reflect about how to tailor your life plan based on what the Bible says. And I think that this whole notion of free market – of choice and competition benefiting the consumer (parents) – applies to everything that government does, especially education and health care. The genius of America is that our Founding Fathers engineered a system that reflected all of this knowledge of economics, which then made it much easier for individuals and families to enjoy liberty and a higher quality of life. If we want to keep the benefits, we have to remember why these decisions were made at the founding of our nation.

Why social conservatives should support free market capitalism

The free enterprise system should not be adopted simply because it is the best system for creating wealth. The best reason to support free market capitalism is a moral reason. Arthur Brooks, President of the American Enterprise Institute, and a Christian, describes the moral argument for free market capitalism.

Excerpt:

It might seem that the best case for free enterprise is the material one. Free enterprise lets people make more money, buy more and nicer stuff, and have a greater degree of comfort. The freer our economy is, the more competitive the US economy is vis-à-vis the rest of the world. And so on.

But these aren’t our best arguments. There is another reason, a transcendent reason, for which free enterprise matters most—and this is the case we all must be able to make today.

We all learned early on in school that the Declaration of Independence claimed for each of us the unalienable right to “life, liberty, and the pursuit of happiness.” Note that the founders didn’t assert a right to be happy; such is the domain of tinpots and crackpots, of 1984’s “Ministry of Plenty” and Josef Stalin’s aggrandizing self-description as the Soviet Union’s “Constructor of Happiness.” So what, in practice, does this right to pursue happiness mean?

It means the right to define and earn our happiness through our ideas, hard work, and gumption, to earn our success by creating value honestly, in our own lives and in the lives of others. It doesn’t mean the pursuit of a big lottery win or an inheritance. Those bring money, but not happiness. And a mountain of evidence shows that after a fairly low threshold, more money doesn’t make us happier. The best case for free enterprise has nothing at all to do with money or material goods or wealth. Those are just icing on the cake. We must stop talking about free enterprise as just an engine of wealth creation. It’s much more than that.

In short, the secret to the pursuit of happiness is earning our own success; creating value with our lives and in the lives of others. This earned success is the fruit of hard work and just rewards in a system built on merit. Only in a free enterprise system is effort and innovation rewarded over connections and predation. (And this means that we have to draw a distinction between free enterprise, which is based on opportunity and competition between ideas, and corporate cronyism, which is just another form of statism masquerading as free enterprise.)

Here are 3 reasons why I think that social conservatives should support free market capitalism.

1) Right to work

It’s very important for Christians to have an economic system in place that allows them to work without having to promote anti-Christians ideas. But when government gets too big, what happens is that Christians are no longer free to take any job they want, and still keep a clear conscience. In some states, you have to join a union which uses your union dues to elect Democrats, who very often are liberal on social issues. Or, you have big government forcing Christians to perform abortions against their consciences. Or, you have big government forcing Christian organizations to provide health insurance plans that cover abortions and contraceptives. That’s why Christians need to vote against big government regulations on employment – we need the freedom to work at a job that does not violate our consciences.

2) Right to earn

It’s very important for Christians to keep what they earn so that they have the maximum amount of money to make decisions that make sense for them, according to their consciences. Take the example of day care and education. The big government statist is constantly trying to to create more and more government-run day care and public schools. Why? They want to take money away from families so that they cannot afford individualized private and parochial schools, and lump them all into government run schools that are more “equal”. The problem is that this is bad for Christians who want more oversight into what their children learn. For example, what sense does it make for a Christian man to pay for day care and public schools when he marries a teacher who becomes a stay at home homeschooling mother for his children? He has to pay for day care and public schools he will never use, and it eats into the money he has to afford a stay-at-home homeschooling mom. Christians should oppose a day care and education system run by a secular leftist government. They will never reflect the values of Christian parents.

3) Right to spend

It’s very important for Christians to have the freedom to purchase products and services that make sense in their worldview. Take the example of health care. Secular leftists would love to force private medical insurance companies to cover things like abortion and contraception as health care. In some states, these things are specified as mandatory for every health care plan. That means that Christians who purchase health care are being forced to pay for services like abortion which they will never use themselves. This is nothing more than the redistribution of wealth in order to lower the cost of abortions for people, in order to encourage them to be sexually active before they are able to accommodate children. Christians need to oppose this – we do not want to have to pay for things that go against our consciences.

So, in addition to the reasons that Brooks mentioned (the happiness of earning your own way and serving others), it’s important for Christians to understand how free market capitalism fits into their plans. We do not want to support big government, especially when big government so often is not compatible with Judeo-Christian values. In the free market, it is much harder for ALL the businesses to conspire together to block Christians from working, earning and spending according to their consciences. We must resist top-down control of the free market so that we have the liberty to do what we ought to do in order to be virtuous.