Weekly Business Insights from Top Ten Business Magazines | Week 317 | Shaping Section | 3

Extractive summaries and key takeaways from the articles curated from TOP TEN BUSINESS MAGAZINES to promote informed business decision-making | Since September 2017 | Week 317 | September October 6-12 , 2023

Claudia Goldin Wins Nobel Prize In Economics For Studying Women At Work

By Kim Elsesser | Forbes Magazine | October 09, 2023

Extractive Summary of the Article | Listen

Harvard professor Claudia Goldin was awarded the Nobel Prize in economics this morning for her research on women at work. She became the third woman in history to win the prize after Elinor Ostrom in 2009 and Esther Duflo in 2019.

The awarding committee gave Goldin the prize “for having advanced our understanding of women’s labor market outcomes.” Goldin analyzed over 200 years of data from U.S. labor, and her research busted some myths about the gender pay gap and women’s participation in the labor force.

In the U.S., women currently make about 82 cents for every dollar a man earns. Historically, Goldin found that differences in education and occupational choices could explain this gender gap in earnings.  Instead, her research suggests that the earnings difference can be blamed, at least partially, on motherhood. In one study of MBA students, Goldin and a fellow researcher found that men far outearn their female counterparts a decade after they graduate from business school. The disparities in income were predominantly tied to women’s career interruptions and a reduction in weekly work hours linked to the birth of a child.

Even when mothers who previously reduced their hours transition to full-time work, they have trouble catching up to the men. Goldin explains this phenomenon in a research paper that compares a parent’s life to a hike: “Parenthood is part of the steep climb during which mothers slow down, reduce their hours of work, and occasionally leave employment for some time or shift into less time-intensive jobs and firms. But there is a moment when childcare demands greatly lessen, and women can increase their hours of paid work and assume greater career challenges. We can think of that moment metaphorically, as when mothers reach a summit and then run down the other side of the mountain. But even though they increase their hours of work, they never reach the rich valley of gender equality. “

Goldin’s research also suggests that sex bias plays a role in the gender pay gap. For example, one of her most fascinating studies shed light on how symphony orchestras saw a significant reduction in gender bias when they implemented blind auditions. Using data from actual auditions, she and her coauthor found that using a screen to conceal the musician’s identity resulted in the hiring of more women.

3 key takeaways from the article

1. Harvard professor Claudia Goldin was awarded the Nobel Prize in economics this morning for her research on women at work. She became the third woman in history to win the prize after Elinor Ostrom in 2009 and Esther Duflo in 2019.
2. The awarding committee gave Goldin the prize “for having advanced our understanding of women’s labor market outcomes.” Goldin analyzed over 200 years of data from U.S. labor, and her research busted some myths about the gender pay gap and women’s participation in the labor force.
3. Her research suggests that the earnings difference can be blamed, at least partially, on motherhood.  Even when mothers who previously reduced their hours transition to full-time work, they have trouble catching up to the men.  Her research also suggests that sex bias plays a role in the gender pay gap.

Full Article

(Copyright lies with the publisher)

Topics:  Women, Empowerment, Gender Equality