Women’s Participation in Education and the Workforce Council of Economic Advisers
Updated October 14, 2014
Executive Summary Over the past forty years, women have made substantial gains in the workforce and economy, but in 2014, far more can still be done to expand economic opportunities for women. While female labor force participation rose through the 1970s and 1980s, it began to stall in the 1990s. Yet women have continued to make gains in earning educational credentials—today young women are more likely than young men to be college graduates or have a graduate degree. These improvements have important implications for American families. On average, women’s earnings account for more than 40 percent of married parents’ income, up from less than a third 40 years ago. And women are the primary breadwinner for nearly 30 percent of dual-earning couples. Despite this progress, a gender wage gap persists: on average, full-time year-round female workers earn 78 cents for every dollar earned by their male counterparts. This gap is even more pronounced among women of color. While the wage gap reflects a variety of causes, there are gaps across the income distribution, within occupations, and are seen even when men and women are working side-by-side performing similar tasks. Additionally, women are still more likely to work in low-wage occupations and are more likely than men to earn the minimum wage. The Administration has supported numerous policies to help ensure equal pay for equal work and help workers better balance their work and family obligations. For example, the President’s proposal to raise the minimum wage would help shrink the gender wage gap by nearly 5 percent. Expanding the EITC for childless workers and extending the 2009 expansions to the EITC and CTC would likewise benefit millions of women. And workplace policies such as paid leave and workplace flexibility can help workers maintain a connection to the labor force as they balance their work and family demands. 1
Female Labor Force Participation Increased Between 1948 and 2000; Most of the Recent Decline is Due to the Aging Population and Cyclical Effects Percent 90
Male and Female Labor Force Participation Rates
80
Men
2014:Q3
70 60 Women
50 40 30 1948
1958
1968
1978
1988
1998
2008
Of the total decrease in labor force participation since 2007: • • •
Half is due to the aging population, One-sixth is due to cyclical factors in line with historical patterns following a recession, and One-third is due to other factors, such as trends that pre-date the recession and the unique severity of the Great Recession.
Source: Bureau of Labor Statistics; CEA calculations.
2
Postsecondary Attainment Has Risen Among Men and Women; Women Now Complete College and Graduate School at Higher Rates Than Men Percent 45
Percent with Bachelor's Degree or Higher, Ages 25 to 34 by Gender Women- At Least a Bachelor's Degree
40 35 Men- At Least a Bachelor's Degree
30 25 20
15
Women- At Least Some Graduate School
10 5 Men- At Least Some Graduate School
0 1964
1974
1984
1994
2004
2014
Women’s college going has surpassed men’s in recent decades and has continued to increase.
Women are more likely to go to college and graduate school and more likely to graduate from when they go. In 2013, 25-34 year old women were 21 percent more likely than men to be college graduates and 48 percent more likely to have completed graduate school.
Source: Current Population Survey; CEA calculations.
3
Women Are Increasingly Attending Professional Degree Programs Percent of Women Among First-Year Students in Selected Professional Programs Percent 60 50
JD Programs
40 MD Programs
30 MBA Programs
20 10 0 1947 1954 1961 1968 1975 1982 1989 1996 2003 2010
Women now account for almost half of students in JD, MBA, and MD programs, up from less than 10 percent in the 1960s. Source: American Bar Association; Association of American Medical Colleges; U.S. Department of Education
4
Occupational Segregation has Fallen: Female College Graduates are Increasingly Employed in Traditionally Male-Dominated Occupations Occupations of College Graduate Women, 30-34 years old
Percent 80 70
Teachers, nurses, librarians, social or religious workers, secretaries and other clerical workers
60 50
40 30 Doctors, dentists, lawyers, professors, managers, and scientists
20 10 0 1968
1978
1988
1998
2008
Women have increasing entered previously male-dominated occupations.
College-educated young women are now as likely to be employed as doctors, dentists, lawyers, professors, managers and scientists as traditionally female-dominated occupations such as teachers, nurses, librarians, secretaries, or social workers. Although the share of male-dominated occupations has fallen since 1970, the share of occupations in which women are at least 80 percent of all workers has remained relatively constant.
Source: Current Population Survey, CEA calculations.
5
Over the Past Four Decades, Women’s Earnings Have Tracked Per Capita GDP More Closely Than Men’s Per Capita GDP and Median Earnings Growth by Gender 1947 = 100 400 350
Per Capita GDP 2013
300 250 200 150
Men's Median Weekly Earnings
100 50 0 1947 • •
Women's Median Weekly Earnings
1957
1967
1977
1987
1997
2007
Since 1970, men’s real median earnings have slightly fallen 1.3 percent, from $35,709 in 1970 to $35,228 in 2013 (in 2013 dollars). Women’s real median earnings have risen faster and more closely tracked GDP growth, nearly doubling since 1970. In 2013 women’s real median earnings were $22,063, up from $11,976 in 1970. As a result, women’s share of household earnings has risen.
Source: Bureau of Labor Statistics, Current Population Survey, and CEA calculations.
6
Women Are Increasingly Primary Breadwinners in Dual-Earner Couples Percent of Married Couples With a Female Primary Breadwinner Percent 35 2013
30 25
Dual-earning couples
20
15 10 All married couples
5
0 1981
1986
1991
1996
2001
2006
2011
Women earn more than men in 16 percent of all married couples and 29 percent of married couples where both spouses work. These shares have nearly doubled since 1981.
Source: Census Bureau, Historical Income Data.
7
Since the 1970s, Real Earnings Have Increased for Both Married and Single Mothers Real Median Family Income, 1974-2013 2013 dollars 90,000 2013
80,000
Married parents
70,000
Married mothers
60,000 50,000 Married fathers
40,000 30,000
Single mothers
20,000 10,000 Jan-75 Jan-80 Jan-85 Jan-90 Jan-95 Jan-00 Jan-05 Jan-10 Typical income was $84,916 for married parents in 2013. • • •
Median income among married parents increased 2.8 percent between 2012 and 2013. Median income among single mothers increased 1.1 percent between 2012 and 2013, and stood at $26,148 in 2013. While married mothers’ earnings accounted for less than a third of family income in 1974, they have accounted for more than 40 percent since 2010.
Source: Census Bureau, Historical Income Data.
8
Women Have Gained 4.2 Million Jobs Over the Last 55 Months of PrivateSector Job Growth Monthly Change in Private Payroll Employment Thousands of workers 600
600
400 200
Sep-14
200
Female Employment
0
0
-200
-200
-400
-400 12-month moving average
-600 Male Employment
-800
-1,000 Jan-07
400
-600 -800
-1000 Jan-09
Jan-11
Jan-13
Women’s employment is less cyclical than men’s: • • •
Women lost 2.7 million jobs between December 2007 and February 2010, compared to 6.1 million lost among men. Since February 2010, women and men have recouped 4.2 and 6.1 million private sector jobs, respectively. The share of private sector workers who are women rose from 46.9 percent prior to the recession to 47.9 percent this past September.
Source: Bureau of Labor Statistics.
9
Women’s Unemployment Has Fallen From 9.0 Percent in 2010 To 6.0 Percent Female Unemployment Rate, Including Discouraged and Marginally Attached Workers Percent of labor force 12 Sep-2014
10 8
U5 ( Unemployed + Discouraged + Marginally Attached)
6 4
U3 (Unemployed) U4 (Unemployed + Discouraged)
2 0 Jan-2000
Jan-2003
Jan-2006
Jan-2009
Jan-2012
Broader measures of labor underutilization show the same general pattern as the headline unemployment rate. • •
The fraction of female workers either discouraged from looking for work or unemployed averaged 6.7 percent over the past 12 months, down from a 12-month moving average peak of 9.2 percent in 2011. The fraction unemployed, discouraged, or conditionally available for work averaged 8.2 percent, down from 11.2 percent in 2010.
Source: Bureau of Labor Statistics; CEA calculations. Note: 12 month moving average of non-seasonally adjusted data
10
Over the Past Year, the Labor Market was about 65-75 Percent Recovered For Women on Average Labor Market Indicators in the Recession for Women All Data as of August 2014 Remaining Elevation as of August 2014
Percent Increase to Great Recession Peak
Overall Unemployment Rate (UR)
28
White UR Black UR Hispanic UR Asian UR
26
72
83 88
28
74
72
72
26
87
4
Less than High School UR High School UR Some College UR College UR
74
94 26
96 74
75
33
100
39
61 69
120
30
70
86 82
34 50
Discouraged Marginally Attached Part-Time for Economic Reasons
67
105
31
U-4 (UR + Discouraged) U-5 (U-4 + Other Marginally Attached) U-6 (U-5 + Part-Time for Economic Reasons)
Percent Recovered
66 50
84
39
61
199
47
53 67 71
Short-term UR Long-term UR
0
29
103
100
54 319
40
-50
50
150
250
60
350
Percent Change in Indicator Relative to 2001-07 Average
Paralleling trends for the labor market as a whole, among women, unemployment rates have fallen across demographic groups and by measures of labor underutilization, but the recovery remains incomplete. Source: Current Population Survey, January 2001-August 2014; CEA calculations. Note: Data for August 2014 are a 12-month average over September 2013 to August 2014 and are not seasonally adjusted.
11
On Average, Full-Time, Year-Round Women Workers Make 78 Percent of What Men Earn; The Gender Pay Gap Is Greater Among Women of Color Gender Pay Gap Among Full-Time, Year-Round Workers, by Race and Ethnicity Percent 85 2013
80 All workers
75
Non-Hispanic black, relative to non-Hispanic white men
70 65 60 55 50
Hispanic, relative to non-Hispanic white men
45 40
1987
1992
1997
2002
2007
2012
Despite gains over the past half century, a gender pay gap still exists. For every dollar earned for full-time, yearround, non-Hispanic white men, in 2013: • •
Non-Hispanic black women earned 64 cents. Hispanic women earned 56 cents.
Source: Census Bureau, Historical Income Data.
12
Men and Women Have Similar Earnings After Completing Professional School, but Men’s Earnings Grow Substantially More Thereafter
$
Median Salary of Professional Degree Recipients by Age and Gender
140,000 120,000
Men
100,000 80,000 60,000
40,000
Women
20,000 0 26
28
30
32
34
36 Age
38
40
42
44
The gender wage gap is particularly high among those with advanced degrees and it grows throughout women’s lifetimes. Men and women with professional degrees have similar earnings in their 20s. The earnings gap widens over time, so that by their late 30s, men earn approximately 50% more than women. Source: Current Population Survey, 2010-2014.
13
Women of Color, Particularly Hispanic Women, Are Less Likely to Have Access to Paid Leave and Flexible Work Arrangements Access to Leave and Flexibility Arrangements, by Race and Ethnicity Percent 90 80 70
Non-Hispanic white Non-Hispanic black Hispanic
60 50 40 30 20 10 0 Access to Paid Leave
Access to Unpaid Leave
Access to Workplace Flexibility
Less than half of Hispanic women have access to paid leave, compared to just under 60 percent of nonHispanic women. Hispanic and black women are also less likely than non-Hispanic white women to have access to unpaid leave or flexible work arrangements. Source: American Time Use Survey, 2011; CEA calculations
14
Administration Proposals to Increase the Minimum Wage and Expand the EITC Would Help Millions of African-American and Hispanic Women Black and Hispanic Women As a Share of Labor Force and Those Helped by Administration Policies Percent of all workers 18 16 14 12 10 8 6 4 2 0
Non-Hispanic black women Hispanic women
Employed
Helped By Helped by Minimum Wage Childless Worker EITC
Helped by EITC/CTC Expansion
Black and Hispanic women account for 6 and 7 percent of the labor force, respectively, and: • • •
9 and 12 percent of workers who would benefit from increasing the minimum wage, 7 and 9 percent of workers who would benefit from expanding the EITC for childless workers, and 10 and 16 percent of workers who would benefit from extending the EITC and CTC expansions.
Source: Current Population Survey
15