by goronbjorn on 3/3/14, 4:34 PM with 124 comments
by simonsarris on 3/3/14, 5:40 PM
There was someone on HN a while ago who hired several engineers, and said that his company pays women less than men because he makes the same starting offer to several people, and almost all the men asked for more money, yet none of the women did. So the offers the company made were "fair", but the end results were very skewed wages.
There are entire books about this subject, such as "Women Don't Ask: The High Cost of Avoiding Negotiation"[1]
Companies could fix this overnight by disallowing negotiation (Didn't Fog Creek do this?), or making all employees salaries transparent (countries like Norway do this, and we do this for C-levels often in the US, just not plain old employees).
I suspect nothing institutional will change though because it would ultimately cost companies money. They benefit too much from workers who negotiate poorly.
by adamwong246 on 3/3/14, 5:40 PM
by rayiner on 3/3/14, 5:38 PM
by ameister14 on 3/3/14, 5:53 PM
Basically, in a study of federal workers, a 7% unexplained gap exists between male and female worker's wages when controlling for occupational, experiential and educational differences, among other things.
Especially relevant data is on pages 84-86.
(edited for clarity)
by abalone on 3/3/14, 6:06 PM
by collyw on 3/3/14, 7:14 PM
I wonder how how it would look after that age range.
I am guessing from my anecdotal experience that most professional women usually wait until around that sort of age to have children, and how much having children is a factor in gaining higher salaries.
In addition to that, I am guessing that people early in their careers are less likely to negotiate salary. I certainly was. Now I have a fair bit of experience, I can see that I am more knowledgeable and valuable than some of my colleagues, and so I am in a position to negotiate, with good reasons to back it up. Graduating in the dot-com bust, I was happy just to get a job after nearly a year and a half of searching. I didn't feel I was in any position to negotiate then.
by velis_vel on 3/3/14, 5:39 PM
The problem with controlling for all those things is that you leave out other factors; for example, if men were preferentially hired over women, that wouldn't show up in this data.
by sonnyz on 3/3/14, 6:15 PM
by Spooky23 on 3/3/14, 6:43 PM
My wife was out on unpaid leave for nearly two years when we had our first child. That meant that she missed two salary scale steps, which are earned based on satisfactory performance over a period of at least 1,500 paid hours/year. In her case, that means that a male who started the same day as her makes approximately $2,500 more than her, assuming the same career path. (She started at level-x and is at level-x+y.)
For a nurse, or techie, salary is driven by the market in most cases.
by NinjaEconomics on 3/9/14, 8:49 PM
It is interesting to discuss whether there is more pay equality in STEM fields, specifically engineering, because females in these fields are also more comfortable with (and better at) negotiating higher salaries for themselves. At the moment there isn't research to suggest this but it could be a contributing factor.
- @NinjaEconomics
by codr on 3/3/14, 7:10 PM
"When controlled for all factors other than gender, the earnings difference between men and women is about 6.6%, something most people don’t know."
by iamwithnail on 3/3/14, 8:02 PM
by Carioca on 3/3/14, 6:13 PM
by callesgg on 3/3/14, 9:28 PM
by michaelochurch on 3/3/14, 6:47 PM
Regression analysis was used to estimate wage differences, after controlling for the following choices and characteristics: graduates’ occupation, economic sector, hours worked, employment status (having multiple jobs as opposed to one full-time job), months unemployed since graduation, grade point average, undergraduate major, kind of institution attended, age, geographical region, and marital status.
That's really misleading. Some of those variables at least might have gender baked into them. For one example, let's say that women are more likely to have longer unemployment spells after college. (I don't know if this is true.) Then there could be zero gender correlation in the model not because there is none, but because that input factors it out.
With 11 variables, some of those being categories, you're going to almost certainly have "small data" issues on real world datasets, where the inputs (empirical "design matrix") are not even remotely orthogonal. So pardon me if I don't buy it.
The issue isn't that companies explicitly choose to pay women poorly. It's that many tech companies end up with shitty cultures that exclude women, which leaves them out of the loop and causes them to end up on shitty projects. It doesn't happen by intention. The leadership of most tech companies is criminally negligent on a lot of cultural issues, but not explicitly sexist.
ETA: it's also worth pointing out the "women don't negotiate" argument. I think this is because they get worse results. My wife is a better negotiator than I am, in terms of skill level, but whenever we have to haggle on the price of something, I go out... and I often get more, not because I am better, but because a 6' male is more intimidating.
by caiob on 3/3/14, 6:27 PM
by undoware on 3/3/14, 6:17 PM
Wake me when there's justice.
by anovikov on 3/3/14, 6:06 PM