Labour market inequality

Published October 11, 2023

THE 2023 Nobel prize in economics has been awarded to American Claudia Goldin for her outstanding achievements in the study of gender differences in the labour market over the centuries. Her work provides the first comprehensive account of women’s earnings and labour market participation. She collected 200 years’ worth of data from the US to understand how and why the gender pay and employment gap exists. Historically, women’s work participation can be viewed as a U-shaped curve, with their contribution taking a dip when the US transitioned from an agrarian to an industrial society, but then rising again during a boom in the services sector. Women’s education levels also increased and the advent of contraceptives impacted women’s career choices. The earnings gap, however, didn’t close, despite modernisation. Ms Goldin’s work highlights that over time, men and women were found to be earning disproportionate wages in the same field of work and that the imbalance largely arose with the birth of the first child.

Pakistan, like many other nations, grapples with pronounced gender inequalities, not just in wages but also in workforce participation. Ms Goldin’s work resonates profoundly, urging us to understand the roots of these discrepancies to chart a more inclusive path forward. The need for flexible working environments, tailored to accommodate the unique challenges faced by women, is more pressing than ever. In bestowing this honour on Ms Goldin, the Nobel committee not only celebrates her academic excellence but also underscores the importance of gender economics in today’s world. Ms Goldin’s research serves as a clarion call: to understand, to act, and to reshape the economic landscape in favour of gender parity. In a world striving for equality, Ms Goldin’s beacon shines brighter than ever. As we join in celebrating her achievements, it is imperative we also take a moment to introspect, ponder upon her findings, and commit to bridging the divide.

Published in Dawn, October 11th, 2023

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