The Economics of Women, Men, and Work bla20851_fm_i-xxvi.indd i 06/07/17 03:31 PM The Economics of Women, Men, and Work Eighth Edition FRANCINE D. BLAU Cornell University ANNE E. WINKLER University of Missouri—St. Louis New York Oxford OXFORD UNIVERSITY PRESS bla20851_fm_i-xxvi.indd iii 06/07/17 03:31 PM Oxford University Press is a department of the University of Oxford. It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide. Oxford is a registered trade mark of Oxford University Press in the UK and certain other countries. Published in the United States of America by Oxford University Press 198 Madison Avenue, New York, NY 10016, United States of America. © 2018 by Oxford University Press This book was previously published by Pearson Education, Inc. For titles covered by Section 112 of the US Higher Education Opportunity Act, please visit www.oup.com/us/he for the latest information about pricing and alternate formats. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, by license, or under terms agreed with the appropriate reproduction rights organization. Inquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above. You must not circulate this work in any other form and you must impose this same condition on any acquirer. Library of Congress Cataloging-in-Publication Data CIP data is on file at the Library of Congress 978-0-19-062085-1 9 8 7 6 5 4 3 2 1 Printed by LSC Communications in the United States of America. bla20851_fm_i-xxvi.indd iv 06/07/17 03:31 PM For Lawrence M. Kahn Daniel Blau Kahn Lisa Blau Kahn Devaney Bennett Maren Francine Kahn and Michael Joseph Kowalkowski Henrik Francis Kowalkowski Andrew Joseph Kowalkowski With Love In Memoriam Our dear colleague, friend, and collaborator, Marianne A. Ferber, January 30, 1923 – May 11, 2013 The Economics of Women, Men, and Work, both the textbook and the field of study, have been deeply enriched by her contributions. bla20851_fm_i-xxvi.indd v 06/07/17 03:31 PM About the Authors Francine D. Blau is Frances Perkins Professor of Industrial and Labor Relations and professor of economics at Cornell University. She is also a research associate of the National Bureau of Economic Research (NBER) and a research fellow of the Institute for the Study of Labor (IZA). She received her Ph.D. in economics from Harvard University and her B.S. from the School of Industrial and Labor Rela- tions at Cornell University. Before returning to Cornell in 1994, she was for many years on the faculty of the University of Illinois, Urbana-Champaign. Professor Blau has served as president of the Society of Labor Economists (SOLE) and of the Labor and Employment Relations Association (LERA), vice president of the American Economic Association (AEA), president of the Midwest Economics Association (MEA), and chair of the AEA’s Committee on the Status of Women in the Economics Profession (CSWEP). She is a fellow of the Society of Labor Econ- omists, the American Academy of Political and Social Science, and the Labor and Employment Relations Association. In 2010, she received the IZA Prize for out- standing achievement in labor economics (the first female recipient) and, in 2017, the Jacob Mincer Award for lifetime contributions to the field of labor economics from SOLE. She was also the 2001 recipient of the Carolyn Shaw Bell Award from CSWEP for furthering the status of women in the economics profession. She is an associate editor of Labour Economics and was formerly an editor of the Journal of Labor Economics and an associate editor of the Journal of Economic Perspectives. She serves or has served on numerous editorial boards, including of the A merican Economic Review, the Journal of Labor E conomics, the Journal of Economic Perspectives, the ILR Review, Feminist Economics, Signs, and The Annals, among others. Professor Blau has written e xtensively on gender issues, wage inequality, immigration, and international comparisons of labor market out- comes. She has published widely in refereed journals and is the author of Equal Pay in the Office and of Gender, Inequality, and Wages and, with Lawrence Kahn, of At Home and Abroad: U.S. Labor Market Performance in International Per- spective. She is also coeditor of The Economic and Fiscal Consequences of Immigration, The Declining Significance of Gender?, and Gender and Family Issues in the Workplace. vi bla20851_fm_i-xxvi.indd vi 06/07/17 07:12 PM ABOUT THE AUTHORS vii Anne E. Winkler is professor of economics and public policy administration at the University of Missouri–St. Louis (UMSL). She is also a research fellow at IZA (the Institute for the Study of Labor). She received her Ph.D. in economics from the University of Illinois at Urbana-Champaign and her undergraduate degree in eco- nomics from Wesleyan University. She has been a faculty member at UMSL since 1989. She serves on the editorial boards of Social Science Quarterly and Journal of Labor Research. She previously served as second vice president of the Midwest Economics Association and as president of the St. Louis Chapter of the National Association for Business Economics (NABE). She also served as board member of the American Economic Association’s Committee on the Status of Women in the Economics Profession (CSWEP). Her main areas of research interest are in the eco- nomics of gender, the economics of the family, and welfare and poverty. Her work has appeared in economics and broader social science journals including Journal of Human Resources, Research in Labor Economics, Monthly Labor Review, Demog- raphy, Journal of Policy Analysis and Management, Journal of Urban Economics, Management Science, and IZA World of Labor. A Note from the Authors In publishing this eighth edition with Oxford University Press, we honor the memory and warmly acknowledge the enduring influence of our longtime coauthor and dear friend, Marianne A. Ferber. Marianne Ferber and Francine Blau collaborated on The Economics of Women, Men, and Work, the first-ever textbook on this topic, in the early 1980s. Anne Winkler joined with the third edition, and the book was coauthored by all three through the seventh edition, all of which were published by Prentice-Hall/Pearson. This is the first edition that does not bear Marianne Ferber’s name. We encourage readers to learn more about her remarkable life and profes- sional contributions.* It is our hope that Marianne Ferber’s legacy—her professional achievements, per- sonal story, and long-lasting influence on this text—will inspire young women to pursue in life what is most meaningful to them and, for those pursuing a profession, to have the opportunity to rise to the highest echelons of their field. FDB and AEW June 2017 *Committee on the Status of Women in Economics, “An Interview with the 2001 Carolyn Shaw Bell Award Co-recipients Marianne A. Ferber and Francine D. Blau,” CSWEP Newsletter (Fall 2002); and Francine D. Blau and Anne E. Winkler, “Remembering Marianne A. Ferber,” CSWEP Newsletter (Winter 2014), https://www.aeaweb.org/ about-aea/committees/cswep bla20851_fm_i-xxvi.indd vii 06/07/17 07:12 PM Brief Contents PREFACE xxi ACKNOWLEDGMENTS xxiv PART I INTRODUCTION AND 11 Labor Market Discrimination: HISTORICAL PERSPECTIVES 1 Theory 301 12 Government Policies to Combat 1 Introduction 3 Employment Discrimination 323 2 Women and Men: Historical Perspectives 16 PART IV THE ECONOMICS OF THE FAMILY: THEORY, EVIDENCE, AND PART II THE ALLOCATION OF TIME POLICY 347 BETWEEN THE HOUSEHOLD AND THE LABOR MARKET 39 13 Changing Work Roles and Family Formation 349 3 The Family as an Economic Unit: 14 The Changing American Family and Theoretical Perspectives 41 Implications for Family Well-Being 381 4 The Family as an Economic Unit: 15 Government Policies Affecting Family Evidence 66 Well-Being 399 5 The Labor Force: Definitions and 16 Balancing the Competing Demands of Trends 90 Work and Family 425 6 The Labor Supply Decision 109 PART V THE ECONOMIC STATUS PART III LABOR MARKET OUTCOMES: OF THE WORLD’S WOMEN 457 THEORY, EVIDENCE, AND POLICY 155 17 Gender Differences Around the 7 Evidence on Gender Differences in Labor World 459 Market Outcomes 157 18 A Comparison of the United States 8 Gender Differences in Educational to Other Economically Advanced Attainment: Theory and Evidence 191 Countries 489 9 Other Supply-Side Sources of Gender Differences in Labor AUTHOR INDEX 507 Market Outcomes 232 SUBJECT INDEX 518 10 Evidence on the Sources of Gender Differences in Earnings and Occupations: Supply-Side Factors versus Labor Market Discrimination 263 viii bla20851_fm_i-xxvi.indd viii 06/07/17 03:31 PM Contents PREFACE XXI ACKNOWLEDGMENTS XXIV PART I INTRODUCTION AND HISTORICAL PERSPECTIVES 1 1 Introduction 3 What Economics Is About 5 Uses of Economic Theory 6 The Scope of Economics 7 Individuals, Families, and Households 8 A Further Note on Terminology 9 Outline of the Book 10 Questions for Review and Discussion | Key Terms 11 APPENDIX 1A A Review of Supply and Demand in the Labor Market 12 2 Women and Men: Historical Perspectives 16 The Source of Gender Differences: Nature Versus Nurture— The Ongoing Debate 17 Factors Influencing Women’s Relative Status 20 Women’s Roles and Economic Development 21 The US Experience 24 Colonial America: The Preindustrial Period 24 Period of Industrialization 25 ix bla20851_fm_i-xxvi.indd ix 06/07/17 03:31 PM