1. Is Discrimination Responsible for the Earnings Differences Between Men and Women?

2. TRUE or FALSE
1. The labor force participation rate of women has risen from 37.6% in 1960 to 60.6% in 2002.
2. The hourly earnings of full-time working women were approximately 80% of those of men in 2002.
3. Until recently, more than ½ of all women were employed in just 4 occupations – clerical workers, teachers, nurses, and food service workers.
4. Women have tended to seek jobs with more flexible hours.
5. The male/female earnings differential was just as large between single males and females as between married males and females, strongly suggesting that employment discrimination is responsible for the earning difference.

3. TRUE or FALSE
6. By 1968, the majority of females 14 to 24 expected to be working at age 35.
7. Since 1970, the proportion of degrees in economics and engineering earned by women has fallen, while the proportion in veterinary medicine and accounting has risen.
8. The 1962 equal pay legislation and the 1964 civil rights legislation resulted in a substantial increase in the earnings of females relative to males during the 60s and 70s.
9. The earnings of women is expected to continue to rise relative to the earnings of men in the near future.
10. When employment discrimination results from the personal prejudices of employers, economic theory suggests that employers who discriminate will have higher costs than employers who do not.

4. Employment Discrimination and Earnings of Women75
77.0 85 70 75
Female/male annual earnings, full-time
workers (left scale) 65 65
60.4 60 55
Share of females age 20 and over in the labor force (right scale) 55 45 50 35
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
The labor force participation rate of women has steadily increased for several decades.
The earnings of women remained around 60 % that of men during the 1960’s and 1970’s.
Since 1980 the earnings of women have been rising relative to men.

5. Median female/male annual earnings ratio (%), 2005
Employment Discrimination and
Earnings of Women
Median female/male annual earnings ratio (%), 2005
All workers:
Total
Married
(spouse present)
Never Married
58 %
69 %
81 %
Full-time, full-year workers:
Never Married
Total
Married
(spouse present)
69 %
76 %
100 %
The earnings of married female workers are about ½ those of married men. The earnings of single female workers are about 81 percent that of single men.
The earnings of full-time married female workers are 69 percent that of full-time married male workers.

6. Possible sources of earnings differences between men and women:
Employment discrimination
Specialization of roles within the family has traditionally caused gender differences in educational choices & types of jobs held.
- Women typically worked jobs with more flexible and shorter hours and within occupations where skills were transportable across employers.
Continuity of work force participation
- maternity leave, child care, and ___________

7. The Changing Workforce Objectives of Women
Women as a Proportion of Persons Earning Selected Professional Degrees, Selected Years
Field of study
1970–71
1987–88
2000–01
2004–05
Engineering
0.8
15.3
19.9
19.9
Dentistry
1.2
26.1
38.6
43.8
Optometry
2.4
34.3
54.5
61.5
Law
7.3
40.4
47.3
48.7
Veterinary medicine
7.8
50.0
69.8
75.6
Medicine
9.2
33.0
45.3
47.3
Accounting
10.1
52.6
60.5
59.7
Economics
11.2
32.8
34.1
31.9
Architecture
12.0
38.7
35.8
38.8
Pharmacy
25.2
59.7
66.1
67.5
The career goals and educational choices of women have changed dramatically during the last 35 years.
Does this help explain the rising earnings of women relative to men since 1980?
What are the implications of this trend for the future earnings of women relative to men?

8. Female Share of College Graduating Classes
4/20/2017
Women as a Share of Persons
Graduating from College:
Female Share of College Graduating Classes
57 %
58 %
53 %
49 %
43 %
39 %
1961
1970
1980
1990
2000
2006
Women have constituted an increasing share of college graduates.
Today, almost three of every five graduating seniors are women.
Does this indicate that colleges discriminate against men?

9. Due by next class:
page 715 Question 3