If Women Were More Like Men: Why Females Earn Less

One of the oldest debates in contemporary social science is why women earn less than men. Conservatives tend to argue that because women anticipate taking time off to raise children, they have fewer incentives to work hard in school, and they choose careers where on-the-job training and long hours are less important. Liberals tend to focus on sex discrimination as the explanation. Obviously some mixture of those factors is at work, but academics have long been frustrated when they try to estimate which force is greater: women's choices or men's discrimination.

A new study looks at this problem in a wonderfully inventive way. In previous studies, academics have looked at variables like years of education and the effects of outside forces such as nondiscrimination policies. But gender was always the constant. What if it didn't have to be? What if you could construct an experiment in which a random sample of adults unexpectedly changes sexes before work one day? Kristen Schilt, a sociologist at the University of Chicago and Matthew Wiswall, an economist at New York University, couldn't quite pull off that study. But they have come up with the first systematic analysis of the experiences of transgender people in the labor force. And what they found suggests that raw discrimination remains potent in U.S. companies.