Thursday 4 June 2015

Being Classically Liberal analyses wage gap propaganda


Being Classically Liberal



(ML) This is the kind of lazy "research" that only helps to advance false narratives that don't stand up to closer scrutiny.

The Economic Policy Institute (a left-leaning think tank) released their analysis of a recent population survey [1] to inform us that there is still a wage gap between men and women. The implication is, of course, that women face unfair discrimination in the workplace when it comes to wages.

What the EPI conveniently didn't control for was the differing majors and career choices of women and men. In fact, when you click on the link to the piece, they admit:

"By definition, young college graduates have the same level of education—which is to say, they all have college degrees. (It should be noted that these data do not allow for differentiation between college major or college quality, whether measured in quality of education or access to career connections via alumni networks.)"

This is an important factor to so blatantly leave out.

Indeed, research has shown that woman and men have vastly different interests when it comes to career choices. [2] [3] Moreover, men are more likely to be interested and pursue careers in higher paying fields. [4] An NBER paper concluded:

"There is no gender gap in wages among men and women with similar family roles. Comparing the wage gap between women and men ages 35-43 who have never married and never had a child, we find a small observed gap in favor of women, which becomes insignificant after accounting for differences in skills and job and workplace characteristics.

This observation is an important one because it suggests that the factors underlying the gender gap in pay primarily reflect choices made by men and women given their different societal roles, rather than labor market discrimination against women due to their sex” [5]

Of course, none of this helps advance the narrative the EPI likes, so it was intentionally ignored. This kind of lazy "research" does nothing to help anyone, and should never be taken seriously.

Citations:

[1] http://www.epi.org/publication/same-education-different-pay/

[2] http://econpapers.repec.org/article/eeejoepsy/v_3a29_3ay_3a2008_3ai_3a4_3ap_3a543-554.htm

[3] Examining the Obstacles to Broadening Participation in Computing:
Evidence from a Survey of Professional Workers
http://www2.ku.edu/~kuwpaper/2008Papers/200808.pdf

[4] https://www.stlouisfed.org/Publications/Regional-Economist/October-2011/Gender-Wage-Gap-May-Be-Much-Smaller-Than-Most-Think

[5] http://www.nber.org/papers/w11240.pdf?new_window=1

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