Tag Archives: Salary

Commentary

Carrie Lukas does the math on the male-female pay gap

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Carrie Lukas
Carrie Lukas

A popular article by Carrie Lukas, writing in the Wall Street Journal. (H/T Mary)

Excerpt:

The unemployment rate is consistently higher among men than among women. The Bureau of Labor Statistics reports that 9.3% of men over the age of 16 are currently out of work. The figure for women is 8.3%. Unemployment fell for both sexes over the past year, but labor force participation (the percentage of working age people employed) also dropped. The participation rate fell more among men (to 70.4% today from 71.4% in March 2010) than women (to 58.3% from 58.8%). That means much of the improvement in unemployment numbers comes from discouraged workers—particularly male ones—giving up their job searches entirely.

Men have been hit harder by this recession because they tend to work in fields like construction, manufacturing and trucking, which are disproportionately affected by bad economic conditions. Women cluster in more insulated occupations, such as teaching, health care and service industries.

[…]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.

Choice of occupation also plays an important role in earnings. While feminists suggest that women are coerced into lower-paying job sectors, most women know that something else is often at work. Women gravitate toward jobs with fewer risks, more comfortable conditions, regular hours, more personal fulfillment and greater flexibility. Simply put, many women—not all, but enough to have a big impact on the statistics—are willing to trade higher pay for other desirable job characteristics.

Men, by contrast, often take on jobs that involve physical labor, outdoor work, overnight shifts and dangerous conditions (which is also why men suffer the overwhelming majority of injuries and deaths at the workplace). They put up with these unpleasant factors so that they can earn more.

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.

My favorite book on feminism, economics and marriage is Carrie Lukas’ “The Politically Incorrect Guide to Women, Sex and Feminism“. If you don’t have the book, then please go out and buy one for you, and one for a young, unmarried woman in your life. Books like this one are for women who are serious about making their marriages last. And men can read them, too – so that we’ll know what to look for in women. There is nothing more attractive to a marriage-minded man than a fiscally conservative woman.

Here’s an interview of Carrie Lukas conducted by famous men’s rights activist Bernard Chapin. The next time you see men reading the Sports Illustrated Swimsuit Issue, take a closer look. On the inside of that magazine we are often concealing a copy of Carrie Lukas’ book. When Carrie Lukas talks about economics and policy, men think about marriage.

News

Veronique de Rugy debunks myths about public sector pension liabilities

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From Reason magazine. (H/T Hyscience)

Bullet point summary:

Myth 1: Unfunded state pensions do not represent an immediate threat and are therefore not in crisis.
Fact 1: In the best case scenario, some state pension funds will run out as soon as 2017. And the longer the states wait to fully fund their pensions, the more drastic the financial consequences will be.

Myth 2: State debt accurately reflects state liabilities. And state default is not a concern because the federal government will bail the states out before they reach that point.
Fact 2: Many government pension liabilities are kept off the books, so most states and cities underestimate their actual debt.

Myth 3: State and local workers are not overpaid. And even if they are, changing their compensation won’t make a difference.
Fact 3: While this is a complex issue, the total compensation package for state workers does tend to exceed that of their private-sector counterparts.

Myth 4: The financial crisis, which caused a depreciation of pension assets, is the real culprit behind pension underfunding.
Fact 4: While the recession dealt a severe blow to state pensions, the problem of pension underfunding dates back to the early 2000s. Many states had already failed to cover the cost of promised benefits even before they felt the full weight of the Great Recession.

And conclusion:

Here’s the bottom line: We can argue endlessly over when the pension plans will run out of cash, or what the true value of the unfunded liabilities is. We can even debate what the true meaning of being broke. But there is one issue where there is no room for debate. Once the pension plans run out of money, the payments will have to come out of general funds, meaning out of the pockets of taxpayers. If the states want to avoid this, they must push through reforms as soon as possible. A good first step would be to switch to accounting methods that show the true market value of their liabilities. Once those methods are in place, lawmakers should consider moving away from defined benefit pensions.

What states like Wisconsin and Ohio are doing is completely necessary. This is a real crisis, and we need to act now to make sure that taxpayers are not squeezed when the money runs out.

News

Republicans introduce national right-to-work legislation

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Sen. James Demint

From the Hill.

Excerpt:

Eight Republican Senators introduced a bill Tuesday giving workers a choice as to whether to join labor unions, which they argue will boost the nation’s economy and provide an increase in wages.

Sen. Jim DeMint (R-S.C.), introduced the National Right to Work Act to “reduce workplace discrimination by protecting the free choice of individuals to form, join, or assist labor organizations, or to refrain from such activities,” according to a statement.

Seven other Republicans signed onto the effort: Sens. Tom Coburn (Okla.), Orrin Hatch (Utah), Mike Lee (Utah), Rand Paul (Ky.), James Risch (Idaho), Pat Toomey (Pa.) and David Vitter (La.).

“Facing a steady decline in membership, unions have turned to strong-arm political tactics to make forced unionization the default position of every American worker, even if they don’t want it,” Hatch said. “This is simply unacceptable. At the very least, it should be the policy of the U.S. government to ensure that no employee will be forced to join a union in order to get or keep their job.

“Republicans cited a recent poll they said shows that 80 percent of union members support having their policy and that “Right to Work” states outperform “forced-union” states in factors that affect worker well being.

From 2000 to 2008, about 4.7 million Americans moved from forced-union to right to work states and a recent study found that there is “a very strong and highly statistically significant relationship between right-to-work laws and economic growth,” and that from 1977 to 2007, right-to-work states experienced a 23 percent faster growth in per capita income than states with forced unionization.

“To see the negative impacts of forced unionization, look no further than the struggling businesses in states whose laws allow it,” Vitter said. “It can’t be a coincidence that right-to-work states have on balance grown in population over the last 10 years, arguably at the expense of heavy union-favoring states.”

DeMint blamed the problems faced by U.S. automakers on the unions.

“Forced-unionism helped lead to GM and Chrysler’s near bankruptcy and their requests for government bailouts as they struggled to compete in a global marketplace,” he said. “When American businesses suffer because of these anti-worker laws, jobs and investment are driven overseas.”

If you want to attract businesses, then you need to have pro-business laws. That’s where jobs come from – businesses.

Here’s an article about states who are trying to pass these laws to attract more employers.

Excerpt:

Currently 14 states beyond Indiana and Wisconsin are considering legislation that would limit union benefits and/or collective bargaining power. They are: Alaska, Hawaii, Maine, Michigan, Minnesota, Missouri, Montana, New Hampshire, New Mexico, Ohio, Pennsylvania, Virginia, Washington (state) and West Virginia. In any number of these states, supporters have planned or held rallies against the measures. But public support might be less than deep. According to a Rasmussen Poll conducted late last week and released Monday, 48 percent of likely U.S. voters sided with Wisconsin Governor Walker whereas only 38 percent sided with his union opponents; the other 14 percent were undecided. And 50 percent of the respondents favored reducing their home state’s government payroll by one percent a year for 10 years either by reducing the work force or reducing their pay. Only 28 percent opposed such action.

This is how we are going to turn the recession around. Cut off the spending on left-wing special interests – NPR, PBS, ACORN, Planned Parenthood, Unions. They all will have to pay their own way, just like the grown-ups do.