The Controversial 2023 Nobel Prize Explained

We've avoided talking about the gender pay gap for a long time because, frankly, it's an emotional topic. But this year's Nobel Prize in Economics (Sveriges Riksbank Prize) was awarded to Claudia Goldin for her work explaining the gender pay gap using historical data and taking the emotion out of the equation.

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[JANL]

An interesting fact is that women who adopt children have the same drop in earnings as women that give birth to their biological children even though they don't go through pregnancy.
The presence of children matters much more than the impact of pregnancy itself.

[DKH]

All this stock footage is so funny. It's like a view into an alternative dimension where everybody's good looking, attentively listens to their colleagues presentations, and generally goes through their workday with the seriousness of someone solving the big problems of the world.

[SilenceOnPS]

The prize money disparity due to the Swedish Krona's inflation had me in stitches. Well done, well done.

[LA-hxgj]

The truth about the pay gap has been available for anyone interested in truth for a decade. Anyone complaining about it nowadays is just an ideologue.

[jeffreyfahie]

I spent the entire video waiting for the ground-breaking, Nobel prize-level information to be disclosed. Instead, the best part was the chuckle I had for the award paying 10% less than the male winners from last year.

[scotttaylor]

There's also the social pressure; for males it's not about 'being all you can be'.

If you don't make enough you're not a suitable partner in life so your level of achievement financially has a large impact on your dating and lifelong relationship (if you get to have a family, marriage) outlook as well. For females it's not the same since men and women select each other for different reasons.

I think this is always understated as a reason for the difference in earnings. If women don't earn as much it's a missed personal goal. If men don't earn enough their ability to get married, have a family at all is at risk. That's a much heavier motivating factor for males that they all come to understand pretty quick into adulthood. It's really quite different than proving that you can or just reaping the financial benefits of a good career.

[uchoobe]

So we're just going to ignore the fact that there is way more social pressure on men to earn more than women?

[seannaesseannaes]

100% of physical labor jobs I have worked, women got paid the same for doing less. I am 6’8” 210 lbs, I can comfortably lift/move 2-3 times more then the strongest women I have worked with. When I only did the same work as the women, I was verbally written up for not working hard enough, when I bring up they are not doing as much as me, I’m told they are smaller women and I need to pick up the slack because I am so big and can do more easily, I should not expect them to be able to do the same as me.

[ThinkTwice]

Thomas Sowell has been saying this since the 80s...

[openwater]

Current big corporate companies exclude young men from getting access to free leadership courses and women only support events, not to mention women in leadership quotas. Its sexist yet said to be inclusive.

[mrmeldrew]

My wife works about 16 hours a week around the kids.
I work around 60 hours to support them.
Waaahhh....patriarchy.

[garryjones]

I work in a predominantly female (75%?) organisation of around 80 people. We have a myriad of flexible working patterns. Im not aware of any of the men having one.

[TehSuperHero]

Maybe I'm dumb but I'd like to understand what the TL;DR of what Claudia Goldin discovered/proved...
Is there a gap when controlled for same position?
Is there a gap when not?

[franciscodanconia]

Walter Williams summed it up best by pointing out that if women were 28% cheaper to hire than men, companies would only hire women, or hire a majority of women. Which would drive up demand for female labor, thus driving up the cost of that labor. Hence the supposed wage differential would cease to exist.

[floridaman]

You cannot have equal outcomes without removing freedom and rights.

[John_Doe]

I remember my parents used to say how, when they were kids, it was almost surreal to imagine a life where only one person in the house had to work.
This idea that women are just now entering the labour market is ridiculous to anyone who doesn't think History started in 1950's America.

[BulletRain]

This work really just seems to prove that things people have previously assumed were common sense are in fact correct, and it used economics to prove things already proven by other academic fields such as history and anthropology. There is value in such research, but I'm surprised this won a Nobel Prize.

[marcquees]

8:25 reminds me of the book Deep Work by Cal Newport in a portion of the book where he explains the “Metric Black Hole”. Since we don’t have direct metrics to measure most things outside of physical output it’s hard to know what’s actually working at times

[adamlee]

I've worked in low skill manufacturing and warehousing roles and the women who worked by my side were paid the same and expected to do less work.
If something heavy need lifting or a message needed running it was always the men who the ladies would call out for.

A lot of this pay-disparity issue is taking place in the middle-class and I couldn't care less because to me they all seem wealthy.

[Anon-fvee]

Why do we rarely hear nurses and teachers complaining about the pay gap? It’s because their pay is set by an award or enterprise agreement. Everyone is paid the same rate, regardless of gender/race/religion etc. Same goes for the railways, emergency services, retail, hospitality and countless other industries, both public and private. So where can the pay gap exist? Any job where pay is a direct negotiation between employee and employer. This can include white collar (law, accounting) and creative industries (entertainment, media). But these industries represent only a fraction of the total workforce. Awards and EBA’s are published, but most private employment contracts have a confidentiality clause which prohibits discussion of pay. So how can this information be researched reliably without guesswork? For public companies, the annual report will disclose both pay and composition (male/female) of the board and senior executives. Yet this may be skewed and not representative of a company’s total workforce.
In Australia the ‘pay gap’ became a thing when the Workplace Gender Equality Agency was established in 2012. The WGEA Act requires private employers with 100 or more employees to report various stats. The agency then publishes an annual report. But what about small businesses with <100 employees which account for the majority of employers? The WGEA takes a skewed and unreliable dataset and reports this as fact. These ‘facts’ are then used by activists and some media to perpetuate the myth. Unconscious bias and prejudice can exist but it’s almost impossible to measure.