Women’s Participation in Education and the Workforce

Council of Economic Advisers

Updated October 14, 2014

1

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.

Executive Summary

Female Labor Force Participation Increased Between 1948 and 2000; Most of the Recent Decline is Due to the Aging Population and Cyclical Effects

2Source: Bureau of Labor Statistics; CEA calculations.

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.

30

40

50

60

70

80

90

1948 1958 1968 1978 1988 1998 2008

Male and Female Labor ForceParticipation RatesPercent

2014:Q3Men

Women

Postsecondary Attainment Has Risen Among Men and Women; Women Now Complete College and Graduate School at Higher Rates Than Men

3

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.

0

5

10

15

20

25

30

35

40

45

1964 1974 1984 1994 2004 2014

Women- At Least a Bachelor's Degree

Women- At Least Some Graduate School

Percent with Bachelor's Degree or Higher, Ages 25 to 34 by Gender

Men- At Least Some Graduate School

Men- At Least a Bachelor's Degree

Percent

Women Are Increasingly Attending Professional Degree Programs

4

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

0

10

20

30

40

50

60

1947 1954 1961 1968 1975 1982 1989 1996 2003 2010

Percent of Women Among First-Year Students in Selected Professional Programs

JD Programs

MD Programs

MBA Programs

Percent

Occupational Segregation has Fallen: Female College Graduates are Increasingly Employed in Traditionally Male-Dominated Occupations

Source: Current Population Survey, CEA calculations.

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.

5

0

10

20

30

40

50

60

70

80

1968 1978 1988 1998 2008

Occupations of College Graduate Women, 30-34 years old

Percent

Teachers, nurses, librarians, social or religious workers, secretaries and other clerical workers

Doctors, dentists, lawyers, professors, managers, and scientists

Over the Past Four Decades, Women’s Earnings Have Tracked Per Capita GDP More Closely Than Men’s

6Source: Bureau of Labor Statistics, Current Population Survey, and CEA calculations.

• 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.

0

50

100

150

200

250

300

350

400

1947 1957 1967 1977 1987 1997 2007

1947 = 100

Per Capita GDP

Women's Median Weekly Earnings

Men's Median Weekly Earnings

Per Capita GDP and Median Earnings Growth by Gender

2013

Women Are Increasingly Primary Breadwinners in Dual-Earner Couples

7Source: Census Bureau, Historical Income Data.

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.

0

5

10

15

20

25

30

35

1981 1986 1991 1996 2001 2006 2011

Percent of Married Couples With a Female Primary Breadwinner

Percent

2013

Dual-earning couples

All married couples

Since the 1970s, Real Earnings Have Increased for Both Married and Single Mothers

8Source: Census Bureau, Historical Income Data.

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.

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Jan-75 Jan-80 Jan-85 Jan-90 Jan-95 Jan-00 Jan-05 Jan-10

Real Median Family Income, 1974-20132013 dollars

2013

Married parents

Single mothers

Married mothers

Married fathers

Women Have Gained 4.2 Million Jobs Over the Last 55 Months of Private-Sector Job Growth

9Source: Bureau of Labor Statistics.

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.

-1000

-800

-600

-400

-200

0

200

400

600

-1,000

-800

-600

-400

-200

0

200

400

600

Jan-07 Jan-09 Jan-11 Jan-13

Monthly Change in Private Payroll Employment

Thousands of workers

Female Employment

Male Employment

12-month moving average

Sep-14

Women’s Unemployment Has Fallen From 9.0 Percent in 2010 To 6.0 Percent

10Source: Bureau of Labor Statistics; CEA calculations.Note: 12 month moving average of non-seasonally adjusted data

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.

0

2

4

6

8

10

12

Jan-2000 Jan-2003 Jan-2006 Jan-2009 Jan-2012

Female Unemployment Rate, Including Discouraged and Marginally Attached Workers

Percent of labor force

Sep-2014

U5 ( Unemployed + Discouraged+ Marginally Attached)

U4 (Unemployed + Discouraged)

U3 (Unemployed)

Over the Past Year, the Labor Market was about 65-75 Percent Recovered For Women on Average

11

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.

60

100

29

47

61

50

66

70

69

61

67

74

96

74

72

74

72

319

54

103

67

199

84

82

86

120

105

100

75

94

87

72

88

83

40

0

71

53

39

50

34

30

31

39

33

26

4

26

28

26

28

-50 50 150 250 350

Long-term UR

Short-term UR

Part-Time for Economic Reasons

Marginally Attached

Discouraged

U-6 (U-5 + Part-Time for Economic Reasons)

U-5 (U-4 + Other Marginally Attached)

U-4 (UR + Discouraged)

College UR

Some College UR

High School UR

Less than High School UR

Asian UR

Hispanic UR

Black UR

White UR

Overall Unemployment Rate (UR)

Remaining Elevation as of August 2014 Percent Increase to Great Recession Peak

Percent Change in Indicator Relative to 2001-07 Average

Labor Market Indicators in the Recession for WomenAll Data as of August 2014

Percent Recovered

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

12Source: Census Bureau, Historical Income Data.

Despite gains over the past half century, a gender pay gap still exists. For every dollar earned for full-time, year-round, non-Hispanic white men, in 2013: • Non-Hispanic black women earned 64 cents.• Hispanic women earned 56 cents.

40

45

50

55

60

65

70

75

80

85

1987 1992 1997 2002 2007 2012

Gender Pay Gap Among Full-Time, Year-Round Workers, by Race and Ethnicity

Percent

2013

All workers

Non-Hispanic black,relative to non-Hispanic white men

Hispanic, relative to non-Hispanic white men

Men and Women Have Similar Earnings After Completing Professional School, but Men’s Earnings Grow Substantially More Thereafter

Source: Current Population Survey, 2010-2014.

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.

13

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

26 28 30 32 34 36 38 40 42 44

Median Salary of Professional Degree Recipients by Age and Gender

$

Men

Women

Age

Women of Color, Particularly Hispanic Women, Are Less Likely to Have Access to Paid Leave and Flexible Work Arrangements

14Source: American Time Use Survey, 2011; CEA calculations

Less than half of Hispanic women have access to paid leave, compared to just under 60 percent of non-Hispanic women. Hispanic and black women are also less likely than non-Hispanic white women to have access to unpaid leave or flexible work arrangements.

0

10

20

30

40

50

60

70

80

90

Access to Paid Leave Access to UnpaidLeave

Access to WorkplaceFlexibility

Access to Leave and Flexibility Arrangements, by Race and Ethnicity

Percent

Non-Hispanic whiteNon-Hispanic blackHispanic

Administration Proposals to Increase the Minimum Wage and Expand the EITC Would Help Millions of African-American and Hispanic Women

15Source: Current Population Survey

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.

0

2

4

6

8

10

12

14

16

18

Employed Helped ByMinimum Wage

Helped byChildless Worker

EITC

Helped byEITC/CTCExpansion

Percent of all workers

Black and Hispanic Women As a Share of Labor Force and Those Helped by Administration Policies

Non-Hispanic black womenHispanic women