Saturday, February 20, 2010

The Flat Decade

Another in a series of paradoxes:
Decades ago, in principal at least, we committed to equal pay for women for equal work and equal representation in leadership positions. But U.S. women’s progress toward equality so far in the new century can be called the flat decade. It’s as if feminism hit a societal glass ceiling.

The average gender pay gap for workers without a four-year college degree has slightly narrowed since the mid-1990s, in part due to effects of the Great Recession that began in 2007 described below. Surprisingly, the gap has widened for those with degrees. For example, a study of doctors’ salaries in New York State in first jobs after residency eliminated the effects of inflation, hours worked, practice settings, and specialty choices. It found a $3,600 annual gap between men and women in 1999, but a much larger gap of $16,819 in 2008.

Although the aggregate effect of these opposite trends narrowed the average gender pay gap across all occupations by a few percentage points in the first decade of the new century, the median annual gender pay gap for full time workers reduced by less than one percentage point, despite much greater progress in earlier decades. The median is the income of that man or woman whose income is greater than the lowest half of those workers in his or her respective gender, and also less than the higher half. (Given that a relatively small number of those at the top of the income ladder earn very high wages, the average income is higher than the median.) One explanation for the stagnation in the median gap is that even though women made up fifty percent of the total workforce in 2010, they remained stuck at sixty percent of those in low wage jobs.

One might see some progress in the fact that while women lost the most jobs in the recession of 2001, men held more than three-quarters of the jobs lost during the Great Recession. But a New York Times’ analysis gave feminists little cause for comfort. First, it said the Great Recession hit male dominated industries such as finance and construction the hardest. The Times’ second explanation went straight to the heart of the earnings paradox: because of the wage disparity between men and women, women were in greater demand in the Great Recession because they are willing to work for less than similarly qualified men. Public sector layoffs caused by the recession subsequently increased women’s overall unemployment even as private sector jobs began to recover, because women hold a large majority of public sector jobs. In addition, opposite trends in unemployment rates by gender combined with public sector pay cuts and freezes exacerbated the wage gap rather than narrowed it.


In 2010, a General Accountability Office study examining the most recent data found that between 2000 and 2007 the percentage of women managers grew by only one percent. And growth at the top was flat in the first decade of the new century. In 2002, fewer than sixteen percent of corporate officers in Fortune 500 companies were women, and women held just ten percent of the positions with direct responsibility for profit and loss. In 2008, it was the same.

Although there was some progress in the number of women on boards of directors in the first half of the decade, there was nearly none in the last half. As of 2006, women remained less than fifteen percent of the board directors for Fortune 500 companies. Nearly half of these companies had just one woman or no women on their boards. Stung by criticism for their lack of diversity, by 2008 only thirteen percent of Fortune 500 companies had no women on their boards. But the overall percentage of women on boards barely changed, so this was not progress but rather merely reshuffling the deck. The total number of board positions decreased slightly during this period, which means that for every company that added a woman, another with at least two on its board dropped one. By 2010, women broad members still were less than sixteen percent of the total.

It’s probably not a coincidence that law firm management shows similar percentages. A survey in 1999 found that only sixteen percent of the equity partners in the one hundred largest American law firms were women. Another survey in 2009 found the equity partner percentage had not changed.

Because of Hillary Clinton and Sarah Palin’s historic bids in the Presidential race, and Nancy Pelosi’s ascendency to Speaker of the House, some believe that women made significant gains in elective politics in twenty-first century America. But the sad truth is that women’s hold on political power in the U.S. seems by some measures to no longer be increasing and may even be declining. The percentage of women in elected statewide offices in 2008 shrunk to its lowest level since 1994, at twenty-three percent. It fell half a percent lower still in 2010. In 2008, women were mayors in only eleven of the one hundred largest American cities, a drop of four percentage points from just a few years before. The percentage of women mayors in American cities of at least 30,000 persons was less than sixteen percent in 2008, down five percentage points from 1999. Female representation in state legislatures basically flatlined at twenty-three percent starting in 1999.

In 1997, the U.S. ranked forty-first internationally for female representation in national legislatures. By 2008, the U.S. had fallen to seventieth. At this rate, the U.S. could be at the bottom of the rankings in just two decades.

It’s ironic that in the fourth decade of the modern women’s movement many indicators of women’s participation in government and business are flat, and some are negative. Building on prior efforts, nearly all these indicators should at this point be climbing. But they’re not. A decade from now, will we be looking back at another ten years of zero or minimal growth? Without determined national effort, it’s a distinct possibility.