Economic historian Claudia Goldin from Harvard University has been awarded the 2023 Sveriges Riksbank Prize in Economic Sciences, often referred to as the “economics Nobel,” for her pioneering work in advancing the understanding of women’s labor market outcomes. Goldin’s research has shed light on why women have historically been underrepresented in the labor market and why they continue to earn less than men, despite having higher educational levels in many high-income countries.
Goldin’s work combines historical data analysis with insights from economic theories of wage determination, employment, discrimination, and political economy. She has debunked the notion that women’s increased participation in the labor force is solely linked to economic growth by showing that women’s involvement in paid work dates back to the late eighteenth century, even during periods of slower economic growth. She highlighted that industrialization disrupted this pattern by making it harder for women to work from home, ultimately leading to a U-shaped curve in women’s labor participation over 200 years.
Additionally, Goldin’s research has shown that women’s career choices were influenced by expectations, and they often made educational decisions that didn’t align with future career prospects. The introduction of the contraceptive pill in the 1960s gave women more control over family planning, which, in turn, influenced their career choices.
Goldin’s work has also highlighted the complex relationship between gender pay gaps and economic growth. For instance, she revealed that the pay gap was smaller during the industrial revolution of 1820–50, but it changed little between 1930 and 1980, largely due to de facto wage discrimination when women suspended or restricted work for child-rearing.
While Goldin’s research does not directly offer policy recommendations, it provides valuable insights into the historical factors that have shaped women’s labor market outcomes. Her work has influenced discussions and policy changes related to family-friendly work arrangements and other practices to attract and retain female talent in various professions.
However, it’s important to note that some of Goldin’s findings, such as the U-shaped curve in female labor-force participation, may not hold universally, as globalization and economic development have allowed some countries to transition to female-intensive industries more rapidly. Nonetheless, her research has had a significant impact on understanding and addressing gender inequalities in labor markets.
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Reference: https://www.nature.com/articles/d41586-023-03190-4
