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.
Teamwork Counts More for Men Than WomenThrough their data-driven insights, our researchers are tackling some of the world's biggest global issues. Explore more research from Booth.
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Executive EducationAs Booth’s social impact hub, the Rustandy Center offers hands-on learning opportunities, supports innovative courses, and pursues research—all with the goal of developing people and practices with the potential to solve the world’s biggest problems.
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.
Booth in North AmericaBooth brings our MBA degree and Executive Education offerings and our own renowned faculty members to our new campus in London, the financial heart of Europe.
Learn More about Booth in EuropeBooth's Hong Kong campus brings our MBA degree and Executive Education offerings and our own renowned faculty members to this financial center of the Asia-Pacific region.
Building Connections in AsiaThe Executive MBA Program is registered under the Hong Kong Education Bureau. Registration No.: 262427. It is a matter of discretion for individual employers to recognise any qualification to which this course may lead.
An anniversary celebration at the Hong Kong campus highlighted Booth’s impact in the Asia-Pacific region, lessons in leadership, social innovation, and more.
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Charting a Course Back to NormalThe associate professor of finance will use the grant to expand her research efforts on global dollar funding markets.
Professor Wenxin Du Awarded Sloan Research Fellowship