Do Women Earn Less Than Men?

President Obama’s been loudly hitting the supposed pay gap between women and men. All too typically, this is a phony issue distracting from our true economic problems he should be tackling.

Obama dismisses pay gap deniers by saying, “It’s just math.” I’m reminded of the old line, “figures don’t lie, but liars can figure.”

True, if you average all American women, and all men, women earn less. But what’s the significance of this? Not much – because it ignores differences in jobs, industries, career paths, etc. The fact is that women and men don’t have comparable working lives. Women – for a host of reasons (many having to do with differences in psychology and temperament; male and female brains don’t work identically; not to mention divergent parenting roles) – tend to have different talents and proclivities, to want different things, and to choose different careers and jobs than men. They tend to interrupt their career paths more often. And to be less aggressive in seeking advancement.

Such factors explain why, on average, women earn less. But – studies have found that if you control for these factors – that is, you analyze women and men following comparable career paths in comparable jobs – the pay gap is practically zero.

The President might reply that, well, women can’t necessarily get the jobs men get. But that’s wrong for the same reason that pay for comparable jobs really is virtually equal.

Because in today’s highly competitive globalized economy, businesses cannot afford to discriminate against women, instead needing to get the best talent, irrespective of gender. In fact, if it really were true that firms could hire women with equal qualifications for less pay than men – why would they hire any men?

Undoubtedly, at one time women did face severe career limitations.

But that time is long past, and so this latest presidential crusade is disgracefully bogus; a cynical political ploy to posture as the champion of women (against a purported Republican “war on women”) and to perpetuate a gender gap that really does exist – in voting.

But it actually sends women a bad message, falsely warning that they face workplace discrimination. How many young women will thereby be discouraged in their career choices? Wrongly imagining they’d be blocked in their true ambitions, and choosing lesser ones instead? And I don’t think the politics of stoking resentments is good for the country.

Nor are the remedies Obama seeks for this largely nonexistent bugaboo of discrimination. All would reduce flexibility while adding bureaucratic and paperwork burdens for businesses, and pretexts for proliferating litigation, making it harder and costlier for firms to function. Yet again we see a president who constantly whines about jobs and pay yet constantly does things that handicap the businesses that provide jobs and their ability to pay workers.

Meantime he ignores what is surely our biggest economic problem: ever more retirees soaking up pensions and health care, with an ever shrinking percentage of working people taxed to pay for it. That’s our real pay gap, and borrowing cannot bridge it forever. It will end in an equal-opportunity catastrophe, for all Americans – working and nonworking – and women as well as men.