What Can I Do About It?

Commentary on a recent article in The Economist

When it comes to the gender pay gap, you may have more power than you think.

Most parents want their children to be paid fairly when they enter the workforce. They believe that compensation should correlate to value delivered, and that an employee's gender should not impact their pay. Many are passonate about the topic of "equal pay for equal work", and we recently wrote about some of them in the story "When Parents Act Like Corporations".  

The first step toward achieving equal pay is working (i.e. obtaining some pay ;). Then, if you want to compare your compensation to another employee's, you need to produce at least the same results or value as that person. Some fascinating data about the gender pay gap was recently published in the the story "Choices and Consequences". Some studies show that pay rates for men and women align until the birth of their first child. After that, women who have a child find that, on average, their pay dips. Many factors explain the dip, and some people are bothered by it.

Researchers from Princeton, the London School of Economics, and the Danish Ministry of Taxation recently found that in Denmark, one of the greatest predictors for how a woman's pay will be impacted by having a child is the example set by her mother. Specifically, the example her mother sets in terms of how she manages her career. Apparently men's pay, on average, dips very little, if any, after their first child is born. You can read about this research in a short article in The Economist: The roots of the gender pay gap lie in childhood.

So, if you're serious about wanting your daughter to be compensated at the same rate as the men she will work with, look no further than the example set within your own family. 

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Related note: A guy I know recently commented that we often give mothers most of the credit, as well as the blame, related to their children's opportunities and behaviors. We agree. At the same time, many couples believe that childrearing is a team effort, and neither parent's contribution is more important than the other's. Congratulations to all of the parents working so hard to support their children, each other, and their communities. It isn't easy, and that's why we admire you!

The Economist provides news and analysis with a global perspective. Articles strive to offer positions that are neither "right" nor "left" but a blend of the two, drawing on the classical liberalism of the 19th century and coming from what they like to call the radical centre.

Related stories:

• "When Parents Act Like Corporations"
• ​Choices and Consequences