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Economics of Women, Men and Work - Essay Example

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This essay "Economics of Women, Men and Work" focuses on the book that is titled ‘Economics of Women, Men and Work’ by Blau, Ferber and Winkler and offers qualitative and quantitative insight into the establishment of the economics of Women, Gender, and Work. …
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The book titled ‘Economics of Women, Men and Work’ by Blau, Ferber, and Winkler offers a qualitative and quantitative insight into the economics of Women, Gender, and Work. The book contains comprehensive information and analysis on Gender and Employment and aims to understand the latest trends in the labor markets from several perspectives. The three chapters on occupation and earnings discuss differences and trends in these domains based on human capital and labor market discrimination.

 

Chapter 5: Differences in Occupations and Earnings: Overview

 

This chapter provides an introductory overview of the various dynamics influencing occupations and earnings including preferences among employers and employees, family issues, financial constraints, education, and human capital. Thus, this chapter discusses both the supply-side and demand-side factors that lead to differences in occupations and earnings.

 

The authors, based on statistical analysis, note here that occupational segregation has declined over the past 30-40 years as women increasingly aspire for better education and have become more competitive than before. They however warned that despite these latest trends, gender disparity continues to be noticeable among different occupations. For example, Women comprised over 95% of nurses and constituted over four-fifths of all schoolteachers during the mid-nineties. Men, on the other hand, were dominant in the manufacturing sector. Blau et al note that gender and wage differences have remained existent for long periods as both groups have restricted themselves to such specific professions. They further attribute gender differences as the primary reason for discrepancies in job hierarchies, promotions, and pay and analyze these factors to highlight their individual and collective impact on the male and female workforce.

 

Chapter 6: Differences in Occupations and Earnings: The Human Capital Model

 

This chapter introduces the role of various factors like educational attainment, productivity, and training in narrowing the gap in pay based on gender differences. The authors contend that rising educational qualifications among women have resulted in subtle cracks in the glass ceiling that is apparent in most corporate organizations, and explain it using the Human Capital Model.

 

The authors study the relationship between labor longevity and investment in higher education and argue that women tend to invest in the latter as they see better prospects for staying within the workforce for longer durations. They further noted that women prefer on-the-job training citing better employment prospects as a way to reduce any potential barriers to career advancement. These trends reflect declining barriers to career opportunities besides throwing light on changing practices among educational institutions with regard to admission policies and the inclusion of a higher percentage of women. The authors also cite several legislations such as the Title IX of 1972 as additional reasons for the reduction in gender-based discrimination among educational establishments. For instance, the percentage of women in institutions of higher education has risen from a meager 7% during the 1960s to as much as 35-40% across all professional fields and courses of study.

 

The authors also discuss in length the ‘Index of Segregation’, which measures the extent of segregation on the basis of gender across several hundred occupations. Numerically, this index estimates the percentage of each sex who must change jobs in order for the professional distribution between the two groups to reach equilibrium. Over the years, the Index has reduced from a massive 67% (in terms of women) to nearly half by the turn of the century.

 

Chapter 7: Differences in Occupations and Earnings: The Role of Labor Market Discrimination

 

Through this chapter, the authors primarily demonstrate that discrimination within the labor market does exist when two similar individuals with equal qualifications, experience, and profiles are compared against each other solely on the basis of their gender.

 

The Labor Force Participation Rate (LFPR), which estimates the level of employed people from within the entire potential workforce, was used to highlight this discrepancy. The analysis by the authors shows that the LFPR has increased by over 9 percentage points since the 1950s. Additionally, participation among Women has increased during this period in comparison to the pre-1940 era mainly due to the Second World War gave the enhanced demand for labor to fuel the war economy. Besides, the war also resulted in numerous vacancies in fields traditionally dominated by males who had to fight in the war, leaving these positions to be filled by Women. In fact, the LFPR between 1940 and 1945 jumped from 28% to over 36% as a consequence.

 

Overall, the authors conclude that occupational segregation continues to exist and is primarily reflected by the disparities in wages. While traditionally disadvantaged groups such as females have been gaining momentum in educational attainment and professional qualifications, they still lag behind males over wage increases and job opportunities. This implies that women are largely employed in service-oriented or clerical positions that offer lesser remuneration and reduced avenues for career growth. The authors believe that sought-after jobs in areas like engineering, business, and medicine are concentrated in the hands of males, although this trend is shifting gradually in favor of women. Besides the Human Capital Model that studies the demand-supply forces associated with occupational segregation, the authors also rely on identifying numerous institutional policies and practices which have contributed to its existence.

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