2023 prize lecture in economic sciences | Claudia Goldin

The script introduces Peter Frederickson, who honors the 2023 prize lecture on women's labor market outcomes. It discusses the significant rise in women's labor force participation and educational attainment in the 20th century, especially in countries like Sweden and the US. Despite these advancements, a persistent gender income gap exists across OECD countries. The lecture aims to explore the factors influencing women's labor market outcomes and the sources of gender gaps, emphasizing the importance of equal opportunities for economic prosperity. Claudia Goldin, an economic historian and labor economist, is credited for advancing our understanding in this area, being the first woman tenured at Harvard's economics department.

This paragraph delves into the historical pattern of women's participation in the labor market, which has been U-shaped over time and across nations. It explains how women's market activity decreased as work moved out of the home and into larger enterprises but later increased as their earnings rose relative to the cost of household goods. The script also touches on social stigmas and traditions that have historically hindered women's employment, especially in more onerous industrial work. The increase in women's education and employment in less physically demanding jobs contributed to the rise in their labor force participation.

The script describes the 'quiet revolution' of the late 1960s and early 1970s, during which young women began to envision long-term career plans rather than entering the labor force without a long-term perspective. This shift was marked by women taking more math and science courses, increasing college attendance, and shifting their majors towards more lucrative fields. By 1982, women in the US were graduating college at the same rate as men, and by recent years, they made up 58% of BA degree recipients. The paragraph also discusses the slow progress of social and economic change, often requiring multiple generations, and the impact of technological innovations like the birth control pill, which contributed to social change by allowing women more control over their destinies.

The paragraph discusses the major technological changes that influenced the shift from agriculture to industry, increased the economic returns to education, and altered household production. It highlights the critical role of the birth control pill in driving social change, which became more effective with a shift in institutions allowing young, single women access to it legally. This innovation contributed to a rise in the median age at first marriage and provided women with the opportunity to pursue higher education and professional careers, leading to a significant shift in the types of jobs women held and their overall labor force participation.

This section examines the evolution of women's earnings relative to men's and the factors affecting the gender pay gap. It notes that from the 1950s to around 1980, women's earnings did not change significantly relative to men's, partly due to the influx of women with varying job experiences into the labor force. However, from the 1980s onwards, the gap began to narrow as women's job experience increased and their college enrollment rates rose. The script also points out that the gender gap in earnings for college graduates widened around 1990, coinciding with a significant increase in the earnings distribution for college graduates, and discusses the impact of family responsibilities and the birth of a child on women's earnings and work hours.

The script provides an in-depth analysis of the gender pay gap across different sectors, such as health, business, tech, and science, for college-educated individuals in medium to high wage occupations. It reveals that sectors like finance, banking, management, and corporate business have larger gender gaps, while tech and science sectors generally have smaller gaps. The concept of 'greedy occupations' is introduced, where the implicit hourly wage increases with hours worked, which are more common in business occupations and contribute to the pay gap. The paragraph also discusses the characteristics of greedy occupations and their impact on the life cycle of women's earnings and the overall gender pay gap.

The final paragraph discusses the impact of remote work and workplace flexibility on the gender pay gap and family equity. It suggests that the COVID-19 pandemic has led to an increased use of technology for remote work, which has made flexible jobs more productive and greedy jobs more flexible. This development has particularly benefited caregivers, especially women. The script argues that the gender pay gap is not solely due to workplace discrimination but also due to the labor market's offerings that lead couples to make choices based on family responsibilities. It concludes by emphasizing the need for couples to share responsibilities more equitably and for the world of work to facilitate this by reducing the costs associated with flexibility.

In the closing paragraph, the speaker expresses gratitude for being depicted as a detective by the Royal Swedish Academy of Sciences and acknowledges the contributions of others, including Jacob Mincer, Gary Becker, Ester Boserup, and Richard Easterlin, for their influential ideas. The speaker also thanks co-authors and guests for their assistance in adding evidence, stories, and history to the discussion. A special mention is made of the speaker's dog, Pica, who is also depicted by the Academy. The speaker concludes by thanking the committee and the audience.