Why women earn less than men? Nobel economics laureate reflects on gender gap studies

The Nobel Prize in Economics 2023 was awarded to American economic historian and professor Claudia Goldin on Monday (Oct 9) for her work in examining the wage inequality between men and women “through centuries,” said the Royal Swedish Academy of Sciences.

The prestigious award, formally known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, was awarded to the 77-year-old Harvard professor, “for having advanced our understanding of women’s labour market outcomes.”

The Nobel is a "very important prize, not just for me, but for the many people who work in this field and who are trying to understand why there is so much change, but there are still large differences" in pay, news agency AFP quoted her as saying.

Add WION as a Preferred Source

The jury said that Goldin, through her study of the women in the US workforce, elaborated upon the factors that impacted the supply and demand for women in the labour force.

"She has demonstrated that the sources of the gender gap change over time," Nobel committee member Randi Hjalmarsson told a press conference.

Goldin's findings

The jury stated that around the globe, nearly 50 per cent of women take part in the labour market as compared to 80 per cent of men, however, women earn less and there's less chance of them reaching the top of their career ladder.

As per the findings from Goldin's research, female participation in the labour force showed a "U-shaped curve", which means that the participation of women decreased with a shift from an agrarian to an industrial society.

Gradually, participation started to increase in the early 20th century with the expansion of the service sector.

Her research showed the trends were the result of both "structural change and evolving social norms."

Goldin "has shown that the bulk of this earnings difference is now between men and women in the same occupation".

"It largely arises with the birth of the first child."

Role of contraceptive pills

Her study showed how access to the contraceptive pill played a key role in stepping up the growth in education levels during the 20th century, by "offering new opportunities for career planning," the Nobel committee said.

She explained that women in the US had acquired a considerable basis in their education level, "But in many places, their promotion and pay haven't," and she attributed the gap largely to "the interaction between the marketplace and the home and the family."

(With inputs from agencies)

WATCH WION LIVE HERE

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.