Workplace Salaries: At Last, Women on Top

[lumberjack_jeff]

24. They essentially have.

Labor is a supply and demand thing. The supply of labor has basically doubled as a result of women entering the workforce.

http://www.brookings.edu/blogs/jobs/posts/2011/03/04-jobs-greenstone-looney

Three shifts in the employment landscape are largely responsible for the decline in full-time employment. First, men with jobs are less likely to hold full-time jobs. In 1970, 86 percent of jobs held by prime-age male workers were full-time jobs, compared with 81 percent today. Second, between 1970 and today, the share of men without any earnings at all increased from 6 percent to 18 percent. Third, 2.2 percent of these prime-age men now live in institutions—primarily prisons—and no longer appear in most labor-market statistics.

Thus, the pool of full-time workers has shrunk at the same time that the median wages of full-time workers has stagnated. Why is this important? It means that the statistics about the stagnation of wages like those above are based on a comparison of very different groups of workers. Put plainly, the story of the stagnation of wages is based on a comparison of apples to oranges.

When you compare apples to apples by looking on the experience of all men (rather than just the changing group of men able to find full-time work), the stagnation story has a different ending.

The below figure plots the median earnings based on all males aged 25-64, along with the more conventional plot that is based only on those men aged 25-64 that happen to work full-time.

This analysis suggests that earnings have not stagnated but have declined sharply. The median wage of the American male has declined by almost $13,000 after accounting for inflation in the four decades since 1969. This is a reduction of 28 percent!