In Praise of ‘Messy Economics’
Economists needn’t be afraid to fight inequality; it’s the efficient thing to do.
In Praise of ‘Messy Economics’
Women have joined the workforce en masse over the past 50 years. In all that time, they’ve never gained parity with their male counterparts: women serve in far fewer leadership positions and are paid less for the same work.
As well as being an issue in terms of fairness, this is an economics problem, argues Chicago Booth’s Marianne Bertrand, faculty director of Booth’s Rustandy Center for Social Sector Innovation. Companies in search of talent are largely tapping into only half the talent pool.
Solving the problem is more complex than simply hiring more women. Bertrand’s research suggests that quotas can improve gender parity on corporate boards, but that doesn’t always translate into equal pay across the company or more women in other leadership positions. Instead, the broader challenge is to chip away at the implicit biases that keep girls and women from entering male-dominated fields and adopt workplace policies that make child-rearing more gender-neutral.
Research by Bertrand and Chicago Booth’s Emir Kamenica, along with Booth PhD graduate Jessica Pan, AB ’05, PhD ’10, indicates how professional success can take its toll on women’s personal lives. When women outearn their husbands, couples are more likely to divorce, and women are more likely to do more housework and childcare, perhaps to compensate.
Meanwhile, at work, employers are more likely to assign credit for teamwork to men in the group, downplaying women’s contributions, according to research by Chicago Booth’s Heather Sarsons, and her coauthors.
“All should agree that an economy that is tapping into a limited pool (men) to find its leaders must be operating inside the efficiency frontier.”
Discover these stories and much more at Chicago Booth Review.
Economists needn’t be afraid to fight inequality; it’s the efficient thing to do.
In Praise of ‘Messy Economics’A look at what’s holding women back from top-paying jobs.
How to Get More Woman CEOsMarianne Bertrand and Waverly Deutsch discuss the causes and effects of the gender gap, and how to close it.
Why Can’t We Close the Gender Gap?When an employer can't directly observe each individual's contribution to a team's results, demographic characteristics may come into play and affect who gets credit.
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Should We Text Less and Talk More?The Chicago Approach to business education—Booth’s educational philosophy—will teach you how to turn any business challenge, no matter how small or large, into an opportunity. Learn how our transformative curriculum helps our students to ask better questions and discover better answers. No matter which MBA program you pursue—Full-Time, Part-Time, or Executive—you get the same transformative academic experience, the same world-class faculty, the same influential network, the same dynamic community.
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Rustandy Center for Social Sector InnovationOne year after the coronavirus pandemic upended the nature of work around the world, three alumnae gathered to discuss a year of challenges and triumphs.
How Has COVID-19 Affected Women in the Workplace?The influence and impact of Chicago Booth faculty, students, and alumni extends throughout North America.
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