Table of Contents

Preface xii

Part I What Are the Issues in the Economics of Gender? 1

1 Introduction 3

What Is the Economics of Gender? 3

Why Study the Economics of Gender? 4

How are Men and Women Different? 5

Focus: Gender, Gender, Everywhere 6

Why are Men and Women Different? 6

Focus: Why are Women Underrepresented in Science? 9

Critiques of the Economic Approach 14

Communication between Academic Disciplines 16

Focus: Gender and Metaphor in the Language of Economics 17

Summary 18

Endnotes 18

Further Reading 21

Discussion Questions 21

Appendix: The Repercussions of Scarcity 22

Opportunity Cost 22

The Marginal vs. Total Distinction 23

Markets 24

Focus: The Intrinsic Value Paradox: Are Diamonds and Water Like Lawyers and Child Care Workers? 26

Noncompetitive Markets—Monopoly and Monopsony 27

Policy Application: Effects of a Minimum Wage 30

Endnotes 31

Discussion Questions 32

2 Gender Differences in the U.S. Economy 33

How much do men and women work? 33

Focus: Will men be tomorrow’s “second sex”? 38

Where do women and men work? 39

How much money do men and women make? 42

How well-off are women and men? 45

Focus: Gender differences in charitable contributions 47

How do men and women allocate their time? 50

Policy application: Unemployment policy 51

Summary 53

Endnotes 53

Further reading and statistical sources 55

Discussion questions 56

Part II Why Do Women and Men Work? 59

3 The Household as Economic Unit 61

Household and marriage formation 61

Forces determining the division of labor 67

Who to marry and how to share 73

Focus: Is bachelorhood a pitiable state? 76

How is power distributed in households? 77

Focus: The economics of domestic violence 78

Household and marriage dissolution 79

Focus: Prenuptial and postnuptial agreements 80

Policy application: No-fault divorce 81

Summary 83

Endnotes 84

Further reading 88

Discussion questions 88

Appendix: Consumption and production relationships 89

Gains from trade 90

Budget constraints and indifference curves 92

Substitutes and complements 94

Endnote 96

Discussion questions 96

4 Labor Force Participation: Analysis of Trends 97

Trends in labor force participation 97

What has caused these trends? 105

Explanations of the rise in women’s labor force participation 107

Focus: What is higher-quality housework? 112

Explanations of the fall in men’s labor force participation 115

Trends in hours worked 117

Conclusions about economic factors affecting labor force participation 119

Extensions of the simple economic model 119

Focus: Changes in volunteerism rates 121

Predicting changes in the labor market 122

Policy application: Subsidized child care 123

Summary 126

Endnotes 126

Further reading 129

Discussion questions 130

Appendix: Labor supply 130

The decision to work 130

Policy application: An earnings tax 137

Endnotes 139

Discussion questions 139

5 Labor Force Participation: Consequences for Family Structure 140

Demographic trends 140

The question of causality 144

Focus: Early marriage as an element of Utopia 146

New household and family patterns 153

Changes in well-being of households and families 154

Focus: The price of success? Higher education and family life 157

Focus: Teenage mothers and the cycle of poverty 158

Policy application: Regulation of fertility—access to contraception and abortion 160

Summary 163

Endnotes 163

Further reading and statistical sources 167

Discussion questions 167

Part II Policy Application: Welfare Reform 169

What is welfare? 169

Who is poor? 169

Effects of welfare programs 171

Approaches to welfare reform 175

Focus: Making noncustodial parents pay 178

Focus: The Free the Children antipoverty program 179

Recent welfare reform in the U.S. 180

Endnotes 182

Further reading and statistical sources 183

Discussion questions 184

Part III the Earnings Puzzle: Why Do Women Earn Less Than Men? 187

6 Gender Segregation in the Workplace 189

The situation in various occupations 189

Focus: Directors and officers at Fortune 500 companies 192

Interpretation of large changes in the proportion of women in some occupations 192

Segregation index values 195

Cross-cultural segregation data 199

Theories of why segregation occurs and persists 202

Focus: Blind selection processes 205

The relationship between segregation and earnings 205

Focus: University coaches’ salaries 209

Effects of workforce policies on segregation 209

Policy application: Affirmative action 213

Summary 215

Endnotes 215

Further reading 219

Discussion questions 220

7 Causes of Earnings Differences: Human Capital 222

What is human capital? 222

How human capital investments affect earnings 223

Focus: The “mommy track” controversy 228

The significance of human capital theory for occupational choice 229

Focus: Is there gender bias in educational testing? 231

Evidence of effects of human capital differences on gender earnings differences 232

Focus: Is the classroom climate chilly for women? 237

Policy implications of human capital theory for the gender earnings gap 238

Policy application: Nontraditional job training programs 238

Summary 239

Endnotes 239

Further reading and statistical sources 242

Discussion questions 242

Appendix: Regression analysis 243

Endnotes 247

Discussion questions 247

8 Causes of Earnings Differences: Compensating Differentials 248

What is a compensating differential? 248

How do compensating differentials affect earnings? 249

Focus: Death on the job 251

Sorting of workers across firms and industries 252

Gender differences in preferences for job characteristics 253

Focus: Gender differences in “selling out” 256

Policy implications of compensating differentials for the gender earnings gap 260

Policy application: Workplace regulations 260

Summary 262

Endnotes 262

Further reading 264

Discussion questions 264

9 Causes of Earnings Differences: Discrimination 265

How economists define discrimination 265

Overview of evidence of workplace discrimination 266

Focus: The difficulties of filing discrimination charges 267

Focus: The Sears case 273

How do discrimination theories explain gender workplace differences? 274

Models involving tastes for discrimination 275

Models of discrimination that do not involve prejudice 278

Can discrimination exist in equilibrium? 284

Feedback effects from labor market discrimination 285

Devices for combating discrimination 285

Focus: Women don’t ask? Improving negotiation skills 287

Policy application: Anti-discrimination legislation 288

Summary 289

Endnotes 289

Further reading 294

Discussion questions 294

Part III Policy Application: Comparable Worth 296

What is comparable worth? 296

The pros and cons of comparable worth 297

Focus: Comparable worth for professors 303

How would comparable worth be implemented nationally? 304

Estimation of potential comparable worth benefits and costs 305

Evaluation of actual comparable worth policies 307

The need for policies to correct discrimination 309

Endnotes 310

Further reading 312

Discussion questions 313

Part IV Cross-societal Comparisons: Are Gender Differences the Same Everywhere? 315

10 Industrialized Capitalist Societies 317

Overview of levels and trends in these countries 317

Focus: Institutionalized pay discrimination in New Zealand 323

Focus: Swedish hiring quotas and Norwegian boardroom quotas 326

Examples from particular countries 327

Focus: Comparing tax system effects for Sweden and Germany 331

Social policies across advanced industrialized countries 332

Policy application: Child allowances 335

Summary 335

Endnotes 336

Further reading and statistical sources 339

Discussion questions 340

11 Socialist and Cooperative Societies 341

Why these societies might be expected to display more gender equality 341

Evaluation of actual practices 342

Focus: Causes of the progress of women in the Soviet Union 347

Examples from particular countries 348

Focus: How many “missing girls” are there in China? 349

Focus: Vietnam as a paradigm for transition? 354

Summary 354

Endnotes 354

Further reading and statistical sources 357

Discussion questions 357

12 Nonindustrialized Traditional Societies 359

Overview of levels and trends in these countries 359

Methods for evaluating the extent and value of work 367

Focus: Time use in Togo 368

Level of gender inequality by type of society 369

Focus: Flexible gender roles in American Indian societies 370

Focus: Sex ratios across societies 373

Examples from particular countries 373

Policy application: Rural–urban migration disincentives 376

Summary 377

Endnotes 377

Further reading 380

Discussion questions 381

13 Effects of the Development Process on Gender Differences 383

What is development? 383

Focus: Two Brazilian factories 388

Development effects on family structure 389

Focus: The marriage market in Singapore 390

Development policy topics 391

Focus: Bank loans in Bombay 394

Policy application: Foreign aid practices 395

Summary 396

Endnotes 396

Further reading and statistical sources 398

Discussion questions 399

Part V Historical Comparisons: How Do Gender Differences Vary Over Time? 401

14 Gender Differences in U.S. Economic History 403

Overview by era 403

Focus: Mill towns in New England 404

Long-run trends in labor markets 407

Focus: Bank tellers and the tipping phenomenon 411

Policies affecting men and women differently 414

Focus: The cigar industry 416

Policy application: Marriage bars 417

Summary 418

Endnotes 418

Further reading and statistical sources 421

Discussion questions 422

15 Race, Ethnicity, and Class Considerations in Interpreting Gender Differences 423

Gender differences across groups 423

Different conceptual frameworks for analyzing group differences 426

Focus: Does U.S. immigration law hurt women? 427

Displaced populations—American Indians 427

Repercussions of slavery: the African-American experience 428

Focus: Black progress in corporate America 430

Immigrant experiences 431

Group membership considerations in formulation of policy 434

Focus: Does Title IX discriminate against black men? 435

Policy application: Quotas in educational programs and hiring 436

Summary 437

Endnotes 437

Further reading 439

Discussion questions 439

16 Policy Proposals 441

Summary of policy approaches to gender issues 441

General precepts for policy formulation 442

Focus: Why don’t women get tenure? 448

Focus: Part-time lawyers 449

Policy application: Family-friendly benefits 451

Summary 451

Endnotes 451

Further reading and statistical sources 453

Discussion questions 453

Author index 455

Subject index 468

About the Author

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).

Reviews

“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