Women and pensions: a decade of progress?

This Issue Brief compares changes from 1989 to 1998 in pension participation, accumulation, and allocation for employed women, versus employed men, ages 18-62. In addition, it provides an estimate of the gender "pension gap" in defined contribution accumulations, contrasts this with the gender "earnings gap," and provides explanations for these differences. Between 1989 and 1998, the percentage of employed women with a pension or retirement plan at their current job increased from 43 percent to 45 percent, compared with a decline from 53 percent to 52 percent for employed men. For both women and men, the percentage with defined contribution retirement plans increased dramatically, while the percentage with defined benefit pension plans dropped sharply. Between 1989 and 1998, the ratio of women's to men's defined contribution plan accumulations increased from 40 percent to 44 percent, indicating a narrowing of the gender pension gap. However, the narrowing was concentrated among the cohort ages 45-53 in 1998. The gender pension gap increased for women in other age groups. Gender differences in defined contribution plan accumulations can be attributed to differences in earnings and job characteristics. Between 1989 and 1998, for workers with defined contribution plans, the ratio of women's to men's earnings remained unchanged at 57 percent. Employed women with defined contribution plans are more than twice as likely to earn less than $25,000 per year than employed men with defined contribution plans, but almost five times less likely to earn more than $100,000 per year. From 1989 to 1998, the percentage of employed men with defined contribution balances invested mostly in low-risk, low-return assets declined much more than the percentage of employed women who followed that investment strategy. Whereas the percentages of men and women with retirement plans invested mostly in bonds were nearly equal at 31 percent and 32 percent in 1989, respectively, by 1998, 20 percent of women (compared with 14 percent of men) had their retirement plans invested mostly in bonds. The trend toward defined contribution plans and riskier retirement portfolios has resulted in significant wealth accumulation over the decade. In real terms, both men and women have greater retirement plan wealth, but increases have been larger for men than for women. Since there is no evidence that plan provisions vary by gender, improvements in the gender pension gap will come only with changes in women's labor force experience and investment decision-making.     

SUBURBAN LABOR MARKETS, URBAN LABOR MARKETS, AND GENDER INEQUALITY IN EARNINGS

This study focuses on the role of labor market location in generating gender inequality in earnings. Specifically, the article examines whether suburban versus urban labor market conditions differentially affect gender-based earnings inequality. Tel Aviv metropolitan area labor force data support the thesis that women's tendency to settle for jobs in the vicinity of home is an exchange between economic opportunities and convenience, to avoid conflict with traditional roles. The cost of staying in the suburban labor market is greater for women than men, and suburban exceeds urban labor market gender-linked economic discrimination.     

The Impact of Labor Market Structure on Sex Differences in Earnings

This research examines how structural features of a labor market affect the size of the male-female earnings differential in that market. Theoretical predictions are tested using data on the earnings of male and female academics in the US. Measures of labor market structure are shown to be significantly associated with the size of the earnings differential in 56 labor markets corresponding to specific academic disciplines. As predicted, an oversupply of labor within a market and greater career embeddedness in a single organization within a market increased the size of the earnings gap between men and women. Contrary to predictions, greater flows of information in the market and market permeability had no impact on the size of the earnings differential within markets. In addition, higher percentages of women in the market decreased the wage differential within markets. Additional analysis at the individual level found that men were penalized less than women when labor market conditions led to lower wages. Findings generally support the theoretical position that structural characteristics of the labor market affect the ability of employers to engage in salary discrimination against women.     

The Effects of Traditional Family and Gender Ideology on Earnings: Race and Gender Differences

Despite increasing gains in labor market opportunities, women and racial minorities earn less than their white male counterparts. Using data from the National Longitudinal Survey of Youth, this study explores racial and gender variation in how family and gender ideology shape this wage gap. The findings reveal that traditional role attitudes reduce earnings for African American men, African American women, and white women. However, white women experience the largest threat to wages as a result of conventional gender ideology. Further, the number of children and the timing of childbearing are detrimental to black and white women’s earnings, while neither of these factors hampers men’s earnings.C. André Christie-Mizell, Department of Sociology, University of Akron, 258 Olin Hall, Akron, OH 44325-1905, USA; e-mail: mizell@uakron.edu.     

Labor Migration,Remittances and Household Income: A Comparison between Filipino and Filipina Overseas Workers1

The major purpose of the research is to examine gender differences in patterns of labor market activity, economic behavior and economic outcomes among labor migrants. While focusing on Filipina and Filipino overseas workers, the article addresses the following questions: whether and to what extent earnings and remittances of overseas workers differ by gender; and whether and to what extent the gender of overseas workers differentially affects household income in the Philippines. Data for the analysis were obtained from the Survey of Households and Children of Overseas Workers (a representative sample of households drawn in 1999–2000 from four major “labor sending” areas in the Philippines). The analysis focuses on 1,128 households with overseas workers. The findings reveal that men and women are likely to take different jobs and to migrate to different destinations. The analysis also reveals that many more women were unemployed prior to migration and that the earnings of women are, on average, lower than those of men, even after controlling for variations in occupational distributions, country of destination, and sociodemographic attributes. Contrary to popular belief, men send more money back home than do women, even when taking into consideration earnings differentials between the genders. Further analysis demonstrates that income of households with men working overseas is significantly higher than income of households with women working overseas and that this difference can be fully attributed to the earnings disparities and to differences in amount of remittances sent home by overseas workers. The results suggest that gender inequal‐     

Returns vs. Endowments in the Earnings Attainment Process for Metropolitan and Nonmetropolitan Men and Women1

Abstract Three explanations typically are offered for differences in earnings: (1) individuals have different levels of human capital and hold different jobs (endowments differ), (2) rewards to human capital and job characteristics differ (returns differ), and (3) some combination of differences in endowments and returns explain variations in earnings. We argue that the structure of labor markets in nonmetropolitan (nonmetro) areas differs from that in metropolitan (metro) areas such that returns, as well as endowments, vary. These variations in returns favor metropolitan workers, explaining the predominant portion of the metro/nonmetro earnings gap. We examine the earnings differences for metro and nonmetro men and women in both 1977 and 1987, showing that returns outweigh endowments in explaining that gap for both men and women, although their importance decreases over the ten-year period. Research to improve our understanding of how differences in labor market structure produce differential returns has begun and may yield yet another avenue for action for policymakers interested in reducing metro/nonmetro inequalities.     

Gender Role Ideology and the Gender Based Differences in Earnings

Much of the research on gender differences in occupational earnings still focuses on human capital and the structure of the labor market. However, these variables rarely explain even half of the gender gap in earnings. Most research has examined the impact of gender role ideology as it impacts occupational choice, which indirectly can impact earnings. Using data from the National Opinion Research Center General Social Surveys, this research focuses on the relationship between attitudes about gender roles and two variables: (a) earnings, and (b) occupational positions held by women and men. Findings show that traditional gender-role ideology contributes to lower observed earnings for both males and females, independent of the influences of human capital characteristics, occupational context, and ascribed characteristics. Results support socialization as a partial explanation for the gender-based earnings differences and suggest that, to the extent that economic rewards are used to assess the value of gender role expectations, traditional gender role attitudes might continue to change and lead to relatively equal earnings among women and men.     

Die wahrgenommene Gerechtigkeit des eigenen Erwerbseinkommens: Geschlechtstypische Muster und die Bedeutung des Haushaltskontextes

The rise in female labor market participation and the growth of ??atypical?? employment arrangements has, over the last few decades, brought about a steadily decreasing percentage of households in which the man is the sole breadwinner, and a rising percentage of dual-earner households. Against this backdrop, the paper investigates how household contexts in which the traditional ??male breadwinner?? model still exists or has already been challenged affect individuals?? subjective evaluations of the justice of their personal earnings. In the first step we derive three criteria used by individuals to evaluate the fairness or justice of their personal earnings: compensation for services rendered, coverage of basic needs, and the opportunity to earn social approval. In the second step, we apply considerations from household economics and new approaches from gender research to explain why men??s and women??s evaluations of justice are determined to a considerable degree by the specific situation within their household. The assumptions derived regarding gender-specific patterns in justice attitudes are then tested on data from the German Socio-Economic Panel Study (SOEP) from 2007 and 2005. The results support our central thesis that gender-specific patterns in the evaluation of personal earnings are both reduced and increased in dual-earner households. They are reduced because women in dual-income households tend to have higher income expectations that challenge the existing gender wage gap. At the same time, gender-specific patterns are increased because men evaluate the equity of their personal income in relation to their ability to fulfill traditional gender norms and thus their capacity to live up to corresponding notions of ??masculinity.??     

Explaining the Gender Gap in Help to Parents: The Importance of Employment

Although it is well established that adult daughters spend more time giving assistance to their parents than do sons, the sources of this gender gap are not well understood. This paper asks: To what extent can this gap be explained by structural variation, especially the different rates of employment and kinds of jobs that women and men tend to hold? Using data from the National Survey of Families and Households (N = 7,350), the paper shows that both employment status and job characteristics, especially wages and self‐employment, are important factors in explaining the gender gap in the help given to parents, and that these operate similarly for women and men.     

STATE POLICIES AND GENDER EARNINGS INEQUALITY: A Multilevel Analysis of 50 U.S. States Based on U.S. Census 2000 Data

This article examines distinct dimensions of state government intervention in labor markets across states in the United States and investigates the effect of these interventions on gender inequality in earnings. Statistical models that take into account the contextual effects of family policies on gender inequality in earnings are constructed. Results from multilevel models show that progressive state institutional environments supportive of norms of equality help female employees catch‐up with their male counterparts with regard to rewards, while states that function as welfare providers and employers exacerbate the gender gap in earnings.     

Gender differences in the reemployment status of displaced workers human capital as signals that mitigate effects of bias

Data from the Current Population Survey's Displaced Workers Supplement for year 2000 indicate that after job loss, women become reemployed less frequently than do men. To explain this difference, we test sets of hypotheses derived from Human Capital and Gender Queuing theories. The results support the theory that in their hiring of displaced workers, employers tend to place men in a higher labor queue than women. Net of human capital factors, women are significantly less likely than men to be reemployed following the loss of a job. However, results also show that for women only, certain human capital characteristics substantially improve their reemployment chances. Unmarried women displaced from full-time and white-collar high-level occupations were significantly more likely to become reemployed than were women without these characteristics. The results suggest that queuing processes interact with human capital characteristics in a gender specific manner. Because employers lack perfect information about job applicants, they rely on certain human capital characteristics that signal the extent to which women in the labor market depart from prevailing negative stereotypes about women workers. To employers, unmarried women displaced from full-time managerial and professional jobs may appear more productive and committed to work than do women lacking these types of human capital. Thus, the possession of certain types of human capital among women can mitigate the effects of gender bias in the hiring of displaced labor.     

Early Women,Late Men: Timing Attitudes and Gender Differences in Marriage

Around the world, women marry earlier than men, but it is not well understood why this gender gap exists. Using panel data collected in Nepal, the authors investigate whether attitudes about marital timing held by unmarried youth and their parents account for women marrying earlier than men. They also examine whether the influence of timing attitudes differs by gender. On average, unmarried youth and their parents viewed 20 to 25 as acceptable ages for women to marry, whereas ages 23 to 30 were appropriate for men. In turn, women entering the acceptable marriage age range earlier than men accounted for a third of the gender gap in marital timing. The influence of youth and parents' timing attitudes did differ by gender, but only at the extreme. When they were much too young for marriage, both genders were less likely to marry, but this dampening effect was substantially larger for women.     

DOMESTIC WORK, FAMILY CHARACTERISTICS, AND EARNINGS:

Using the 1996 Indiana Quality of Employment Survey, we reexamine gender and class differences in the effects of domestic work and family characteristics on earnings. We expand upon Coverman's (1983) original model by including several new measures. We find that the gender gap in domestic work has narrowed considerably, not because men are doing more but because women are doing less than they were twenty years ago. Women's earnings suffer more than men's from time spent on domestic work and generally benefit more from partners' domestic help. Women's earnings are more advantaged than men's by having preschool children, and men's earnings are more advantaged when their partner works. We find significant class differences in the effects of domestic work between working-class and non-working class women and in the effects of family characteristics between working-class and non-working class men. Non-working class women's earnings suffer more from time they put into domestic work, but their earnings generally benefit more from partners' or outside domestic help. Working-class men's earnings are more advantaged by having school-age children and more disadvantaged by having progressive gender ideologies. Non-working class men's earnings benefit more when their partners hold a job but suffer more as their partners work more hours.     

Earnings mobility of first and "1.5" generation Mexican-origin women and men: a comparison with U.S.-born Mexican-Americans and non-Hispanic whites

"This study addresses the following questions: Are Mexican immigrants closing the earnings gap with greater time in the United States, compared to U.S.-born Mexican Americans and non-Hispanic whites? What factors are most important in determining their earnings? How are earnings determinants different for women versus men, and those who came to the United States as children, versus those who came as adults and those born in the United States?... With greater time in the United States, male immigrants achieve average earnings comparable to U.S.-born Mexican Americans, but not to non-Hispanic whites, controlling for human capital variables. With greater time in the United States, female immigrants approach the number of hours of paid work of U.S.-born women, but not the earnings received per hour. Gains in earnings associated with age, time in the United States, and English proficiency differ by gender, reflecting structural differences in the labor market."     

EAST-WEST DIFFERENCES IN ATTITUDES ABOUT EMPLOYMENT AND FAMILY IN GERMANY

This article examines East-West differences in attitudes toward the traditional gender division of labor among German women and men, using data from the 1991 German Social Survey (ALLBUS). We test hypotheses about the effects of region and gender, and the interaction of both, in shaping gender-role attitudes. The results indicate that the combination of region and gender produces (1) a similar gender gap in attitudes in both regions, with women in East and West voicing stronger opposition to traditional gender roles than their male counterparts and (2) regional differences in attitudes, with East Germans more likely than West Germans to oppose a gender-based division of labor. Thus, this study shows that although state socialism was successful in fostering more progressive attitudes among East Germans, especially women, it did not eliminate the gender gap in attitudes about gender, work, and family.     

Temporary Migration Overseas and Household Labor Supply: Evidence from Urban Philippines

The impact of international migration on the labor supply of workers' nonmigrant relatives has not been well documented in the literature. Using household survey data representing mostly overseas contract workers, i.e., temporary migrants, this paper shows that labor supplies of migrants and their nonmigrant relatives are inseparable. Migrants reduce the labor supply of nonmigrant relatives, which translates into lower earnings from local labor markets. Households substitute income for more leisure – a significant and previously little recognized benefit of emigration for Philippine households. This benefit varies by gender of nonmigrants and is generally higher for men.     

Research on Household Labor: Modeling and Measuring the Social Embeddedness of Routine Family Work

This article reviews more than 200 scholarly articles and books on household labor published between 1989 and 1999. As a maturing area of study, this body of research has been concerned with understanding and documenting how housework is embedded in complex and shifting social processes relating to the well‐being of families, the construction of gender, and the reproduction of society. Major theoretical, methodological, and empirical contributions to the study of household labor are summarized, and suggestions for further research are offered. In summary, women have reduced and men have increased slightly their hourly contributions to housework. Although men's relative contributions have increased, women still do at least twice as much routine housework as men. Consistent predictors of sharing include both women's and men's employment, earnings, gender ideology, and life‐course issues. More balanced divisions of housework are associated with women perceiving fairness, experiencing less depression, and enjoying higher marital satisfaction.     

Women’s Tertiary Education Masks the Gender Wage Gap in Turkey

This paper investigates the gender wage gap for full-time formal sector employees, disaggregated by education level. The gap between the labor force participation rate of women with tertiary education and those with lower levels of education is substantial. There is no such gap for men. Hence, existing gender wage gap studies for Turkey, where we observe lopsided labor force participation rates by education levels, compare two very different populations. We disaggregate the whole sample by education level to create more homogenous sub-groups. For Turkey, without disaggregation, the gender wage gap was 13% in 2011, and women are significantly over-qualified relative to men on observed characteristics. Once we disaggregate the sample by education level, we show that the gender wage gap is 24% for less educated women and 9% for women with tertiary education in full-time formal employment. Observed characteristics only explain 1 % of this gap in absolute terms. We further disaggregate the data by public and private employment. The gender gap is higher in the private sector. However, women with tertiary education in the public sector are significantly better qualified compared to men, and consequently the adjusted gender wage gap is higher for women with tertiary education in the public sector. Our estimates also indicate a rise in the gender wage gap between 2004 and 2011.     

INTEGRATING ECONOMIC DUALISM AND LABOR MARKET SEGMENTATION:

Although the U.S. economy of the early twenty-first century is vastly different from the U.S. economy prior to the 1970s, the nature of these economic changes and their impact on U.S. workers is unclear. This article claims that despite contemporary economic shifts, differential labor and employer power continues to segment the economy, and workers' position in the labor market continues to predict their rewards, beyond the effects of gender, race, and human capital. Drawing on segmented labor market and dual economy research, we propose a four-category model of the structural factors that influence variance in work-related rewards. We examine the distribution of jobs in each of four categories between 1974 and 2000 and observe that losses and gains across categories are unevenly distributed by race and gender. While white men have experienced the greatest declines in employment and earnings, they have maintained their absolute advantage over women and nonwhites. In multivariate analyses, we find that the structural position of employment continues to be a significant determinant of wages. Although women and racial minorities have experienced sizable increases in employment in primary labor market jobs in the core of the economy, both groups remain overrepresented in low-paying jobs. Moreover women, but not nonwhite men, consistently receive significantly fewer rewards for their labor in both low-paying and high-paying jobs. Our findings suggest that structural factors continue to influence earnings inequality, especially across race and gender lines.     

THE EFFECTS OF OCCUPATIONAL GENDER SEGREGATION ACROSS RACE

The general relationship between occupational gender segregation and earnings inequality is well documented, although few studies have examined the relationship separately by race/ethnicity. This article investigates occupational gender segregation effects across whites, African Americans, Hispanics, and Asians. In addition, we explore two ways in which segregation may affect earnings: (1) by lowering the earnings of workers in female-dominated occupations and (2) by lowering the earnings of all workers in highly segregated labor markets. Our central findings are that both segregation effects contribute to earnings inequality and that the effects are observed quite broadly across racial/ethnic groups, although they particularly impact the earnings of African American women.