Economics of Gender

Joyce P. Jacobsen is Andrews Professor of Economics at Wesleyan University. Her Ph.D. is from Stanford University. She is co-author, with Gilbert Skillman, of Labor Markets and Employment Relationships (Blackwell, 2004).

• Preface xiiPart I What Are the Issues in the Economics of Gender? 11 Introduction 3What Is the Economics of Gender? 3Why Study the Economics of Gender? 4How are Men and Women Different? 5Focus: Gender, Gender, Everywhere 6Why are Men and Women Different? 6Focus: Why are Women Underrepresented in Science? 9Critiques of the Economic Approach 14Communication between Academic Disciplines 16Focus: Gender and Metaphor in the Language of Economics 17Summary 18Endnotes 18Further Reading 21Discussion Questions 21Appendix: The Repercussions of Scarcity 22Opportunity Cost 22The Marginal vs. Total Distinction 23Markets 24Focus: The Intrinsic Value Paradox: Are Diamonds and Water Like Lawyers and Child Care Workers? 26Noncompetitive Markets—Monopoly and Monopsony 27Policy Application: Effects of a Minimum Wage 30Endnotes 31Discussion Questions 322 Gender Differences in the U.S. Economy 33How much do men and women work? 33Focus: Will men be tomorrow’s “second sex”? 38Where do women and men work? 39How much money do men and women make? 42How well-off are women and men? 45Focus: Gender differences in charitable contributions 47How do men and women allocate their time? 50Policy application: Unemployment policy 51Summary 53Endnotes 53Further reading and statistical sources 55Discussion questions 56Part II Why Do Women and Men Work? 593 The Household as Economic Unit 61Household and marriage formation 61Forces determining the division of labor 67Who to marry and how to share 73Focus: Is bachelorhood a pitiable state? 76How is power distributed in households? 77Focus: The economics of domestic violence 78Household and marriage dissolution 79Focus: Prenuptial and postnuptial agreements 80Policy application: No-fault divorce 81Summary 83Endnotes 84Further reading 88Discussion questions 88Appendix: Consumption and production relationships 89Gains from trade 90Budget constraints and indifference curves 92Substitutes and complements 94Endnote 96Discussion questions 964 Labor Force Participation: Analysis of Trends 97Trends in labor force participation 97What has caused these trends? 105Explanations of the rise in women’s labor force participation 107Focus: What is higher-quality housework? 112Explanations of the fall in men’s labor force participation 115Trends in hours worked 117Conclusions about economic factors affecting labor force participation 119Extensions of the simple economic model 119Focus: Changes in volunteerism rates 121Predicting changes in the labor market 122Policy application: Subsidized child care 123Summary 126Endnotes 126Further reading 129Discussion questions 130Appendix: Labor supply 130The decision to work 130Policy application: An earnings tax 137Endnotes 139Discussion questions 1395 Labor Force Participation: Consequences for Family Structure 140Demographic trends 140The question of causality 144Focus: Early marriage as an element of Utopia 146New household and family patterns 153Changes in well-being of households and families 154Focus: The price of success? Higher education and family life 157Focus: Teenage mothers and the cycle of poverty 158Policy application: Regulation of fertility—access to contraception and abortion 160Summary 163Endnotes 163Further reading and statistical sources 167Discussion questions 167Part II Policy Application: Welfare Reform 169What is welfare? 169Who is poor? 169Effects of welfare programs 171Approaches to welfare reform 175Focus: Making noncustodial parents pay 178Focus: The Free the Children antipoverty program 179Recent welfare reform in the U.S. 180Endnotes 182Further reading and statistical sources 183Discussion questions 184Part III the Earnings Puzzle: Why Do Women Earn Less Than Men? 1876 Gender Segregation in the Workplace 189The situation in various occupations 189Focus: Directors and officers at Fortune 500 companies 192Interpretation of large changes in the proportion of women in some occupations 192Segregation index values 195Cross-cultural segregation data 199Theories of why segregation occurs and persists 202Focus: Blind selection processes 205The relationship between segregation and earnings 205Focus: University coaches’ salaries 209Effects of workforce policies on segregation 209Policy application: Affirmative action 213Summary 215Endnotes 215Further reading 219Discussion questions 2207 Causes of Earnings Differences: Human Capital 222What is human capital? 222How human capital investments affect earnings 223Focus: The “mommy track” controversy 228The significance of human capital theory for occupational choice 229Focus: Is there gender bias in educational testing? 231Evidence of effects of human capital differences on gender earnings differences 232Focus: Is the classroom climate chilly for women? 237Policy implications of human capital theory for the gender earnings gap 238Policy application: Nontraditional job training programs 238Summary 239Endnotes 239Further reading and statistical sources 242Discussion questions 242Appendix: Regression analysis 243Endnotes 247Discussion questions 2478 Causes of Earnings Differences: Compensating Differentials 248What is a compensating differential? 248How do compensating differentials affect earnings? 249Focus: Death on the job 251Sorting of workers across firms and industries 252Gender differences in preferences for job characteristics 253Focus: Gender differences in “selling out” 256Policy implications of compensating differentials for the gender earnings gap 260Policy application: Workplace regulations 260Summary 262Endnotes 262Further reading 264Discussion questions 2649 Causes of Earnings Differences: Discrimination 265How economists define discrimination 265Overview of evidence of workplace discrimination 266Focus: The difficulties of filing discrimination charges 267Focus: The Sears case 273How do discrimination theories explain gender workplace differences? 274Models involving tastes for discrimination 275Models of discrimination that do not involve prejudice 278Can discrimination exist in equilibrium? 284Feedback effects from labor market discrimination 285Devices for combating discrimination 285Focus: Women don’t ask? Improving negotiation skills 287Policy application: Anti-discrimination legislation 288Summary 289Endnotes 289Further reading 294Discussion questions 294Part III Policy Application: Comparable Worth 296What is comparable worth? 296The pros and cons of comparable worth 297Focus: Comparable worth for professors 303How would comparable worth be implemented nationally? 304Estimation of potential comparable worth benefits and costs 305Evaluation of actual comparable worth policies 307The need for policies to correct discrimination 309Endnotes 310Further reading 312Discussion questions 313Part IV Cross-societal Comparisons: Are Gender Differences the Same Everywhere? 31510 Industrialized Capitalist Societies 317Overview of levels and trends in these countries 317Focus: Institutionalized pay discrimination in New Zealand 323Focus: Swedish hiring quotas and Norwegian boardroom quotas 326Examples from particular countries 327Focus: Comparing tax system effects for Sweden and Germany 331Social policies across advanced industrialized countries 332Policy application: Child allowances 335Summary 335Endnotes 336Further reading and statistical sources 339Discussion questions 34011 Socialist and Cooperative Societies 341Why these societies might be expected to display more gender equality 341Evaluation of actual practices 342Focus: Causes of the progress of women in the Soviet Union 347Examples from particular countries 348Focus: How many “missing girls” are there in China? 349Focus: Vietnam as a paradigm for transition? 354Summary 354Endnotes 354Further reading and statistical sources 357Discussion questions 35712 Nonindustrialized Traditional Societies 359Overview of levels and trends in these countries 359Methods for evaluating the extent and value of work 367Focus: Time use in Togo 368Level of gender inequality by type of society 369Focus: Flexible gender roles in American Indian societies 370Focus: Sex ratios across societies 373Examples from particular countries 373Policy application: Rural–urban migration disincentives 376Summary 377Endnotes 377Further reading 380Discussion questions 38113 Effects of the Development Process on Gender Differences 383What is development? 383Focus: Two Brazilian factories 388Development effects on family structure 389Focus: The marriage market in Singapore 390Development policy topics 391Focus: Bank loans in Bombay 394Policy application: Foreign aid practices 395Summary 396Endnotes 396Further reading and statistical sources 398Discussion questions 399Part V Historical Comparisons: How Do Gender Differences Vary Over Time? 40114 Gender Differences in U.S. Economic History 403Overview by era 403 Focus: Mill towns in New England 404Long-run trends in labor markets 407Focus: Bank tellers and the tipping phenomenon 411Policies affecting men and women differently 414Focus: The cigar industry 416Policy application: Marriage bars 417Summary 418Endnotes 418Further reading and statistical sources 421Discussion questions 42215 Race, Ethnicity, and Class Considerations in Interpreting Gender Differences 423Gender differences across groups 423Different conceptual frameworks for analyzing group differences 426Focus: Does U.S. immigration law hurt women? 427Displaced populations—American Indians 427Repercussions of slavery: the African-American experience 428Focus: Black progress in corporate America 430Immigrant experiences 431Group membership considerations in formulation of policy 434Focus: Does Title IX discriminate against black men? 435Policy application: Quotas in educational programs and hiring 436Summary 437Endnotes 437Further reading 439Discussion questions 43916 Policy Proposals 441Summary of policy approaches to gender issues 441General precepts for policy formulation 442Focus: Why don’t women get tenure? 448Focus: Part-time lawyers 449Policy application: Family-friendly benefits 451Summary 451Endnotes 451Further reading and statistical sources 453Discussion questions 453Author index 455Subject index 468

“This book is well-written and well-organized, and considers issues raised across several academic disciplines. Moreover, it is theoretically sound and provides a critical perspective on current research. The international comparisons are integrated and useful, broadening the understanding of gender differences. There is definitely a need for this book.” Kathleen Rybczynski, University of Waterloo “This new edition provides a good understanding of fundamental issues within the neoclassical framework in the specific context of the USA. The data and references too are extremely useful and provide a basis for further enquiry into the under-studied area of gender economics.”Ritu Dewan, Center for Gender Economics, University of Mumbai “This is a very good, accurate book with current empirical evidence and some very interesting discussions. The writing style is clear, and my students find it accessible.”Rhona C. Free, Eastern Connecticut State University