Why Claudia Goldin won the Nobel Prize in Economics
Oct 11, 2023
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Claudia Goldin, the first woman to win the Nobel Prize in Economics solo, discusses her research on the gender pay gap and women's workforce participation. She challenges common beliefs about economic growth, highlights the impact of societal expectations, and examines progress made in recent decades. She also explores the relationship between education, careers, and the persistence of the gender pay gap, especially after women have families.
Claudia Goldin's research revealed the underestimation of women's labor force involvement due to flaws in historical data sets.
Societal expectations and outdated rules played a significant role in limiting women's career choices and labor force participation.
Deep dives
The U-shaped curve and the historical data sets
Claudia Golden's research revealed the U-shaped relationship between economic growth and women's participation in the workforce. She unearthed flaws in historical data sets that had previously ignored the participation of married women, resulting in a significant underestimation of their labor force involvement. Inclusion of these women in the data showed that their participation rates would have been three times higher than previously thought. However, with industrialization, the flexibility for women to work from home decreased, leading to a decrease in labor force participation.
The impact of societal expectations and the gender pay gap
Golden highlighted that societal expectations and outdated rules played a significant role in limiting women's career choices and labor force participation. Marriage often led to termination of employment for women in certain roles, discouraging their long-term workforce commitment. Additionally, women's education choices were influenced by the belief that they would have to drop out of the workforce after marriage. However, as times changed and opportunities grew, women's expectations and choices began to shift. The rise of contraceptive methods also allowed women to delay marriage and invest in their education and careers. Despite progress, the gender pay gap persists due to the unequal burden of childcare responsibilities and the prevalence of 'greedy work,' where longer working hours lead to disproportionate rewards.
On Monday, Harvard economics professor Claudia Goldin made history! She became the first woman to win the coveted Sveriges Riksbank Prize in Economic Sciences solo — meaning she didn’t have to ‘share’ it with another colleague.
So in today’s episode for 11th October 2023, we tell you why she was the chosen one. But before we begin let’s make one thing clear — Goldin didn’t win this prize for one seminal paper that was an aha! moment. She won it for her research spanning decades. But let’s try condensing that, eh?
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