Male/Female Wage gap from Census Current Population Survey
We loaded the March 2014 U.S. Census Current Population Survey into a MySQL database for our students at MIT. In showing them how painful it is to calculate medians in standard SQL we discovered a larger-than-expected female/male wage gap. We limited our results to young people, age 22-36. They all had the same level of education: a Bachelor’s degree (no more, no less). They all worked at least 30 hours per week. Within the sample, men generally worked 2-6 hours more per week (e.g., 44 hours versus 40). We’re going to make the virtual machine available, probably from the Three-Day RDBMS course page if you want to poke around in the data (you can try right now from the Day 1 problems). Note that we started with a CSV file from the National Bureau of Economic Research. I’ve seen various statistics on male/female wage gaps. Supposedly the trend is that when corrected for working hours, years in the work force, education, etc., there isn’t much of a gap. This is as you’d expect from classical economics. If women were truly cheaper to employ, adjusted for skills and productivity, Target could put Walmart out of business simply by hiring only women. How does the theory translate into practice?
| CPS F | CPS M | Cents/Dollar | |
| Alabama | $40,000 | $47,000 | 85 |
| Alaska | $43,600 | $50,000 | 87 |
| Arizona | $30,000 | $50,000 | 60 |
| Arkansas | $42,000 | $57,000 | 74 |
| California | $40,000 | $55,000 | 73 |
| Colorado | $41,600 | $45,000 | 92 |
| Connecticut | $35,000 | $60,000 | 58 |
| Delaware | $46,000 | $40,000 | 115 |
| District of Columbia | $47,000 | $55,000 | 85 |
| Florida | $40,000 | $50,000 | 80 |
| Georgia | $38,000 | $43,004 | 88 |
| Hawaii | $43,000 | $45,000 | 96 |
| Idaho | $31,000 | $53,000 | 58 |
| Illinois | $40,000 | $50,000 | 80 |
| Indiana | $35,000 | $43,680 | 80 |
| Iowa | $38,000 | $67,000 | 57 |
| Kansas | $46,000 | $50,000 | 92 |
| Kentucky | $40,000 | $45,000 | 89 |
| Louisiana | $32,828 | $63,000 | 52 |
| Maine | $28,000 | $46,500 | 60 |
| Maryland | $37,000 | $51,000 | 73 |
| Massachusetts | $35,000 | $45,000 | 78 |
| Michigan | $37,000 | $60,000 | 62 |
| Minnesota | $45,000 | $58,000 | 78 |
| Mississippi | $25,000 | $38,670 | 65 |
| Missouri | $40,000 | $50,000 | 80 |
| Montana | $28,000 | $40,000 | 70 |
| Nebraska | $36,000 | $50,000 | 72 |
| Nevada | $38,000 | $50,000 | 76 |
| New Hampshire | $42,000 | $60,000 | 70 |
| New Jersey | $43,000 | $53,000 | 81 |
| New Mexico | $35,000 | $40,000 | 88 |
| New York | $47,000 | $53,000 | 89 |
| North Carolina | $37,000 | $36,000 | 103 |
| North Dakota | $35,000 | $39,000 | 90 |
| Ohio | $40,000 | $45,000 | 89 |
| Oklahoma | $30,000 | $40,000 | 75 |
| Oregon | $30,000 | $43,700 | 69 |
| Pennsylvania | $40,000 | $50,000 | 80 |
| Rhode Island | $40,000 | $60,000 | 67 |
| South Carolina | $34,000 | $50,000 | 68 |
| South Dakota | $38,000 | $50,000 | 76 |
| Tennessee | $37,000 | $42,000 | 88 |
| Texas | $41,400 | $50,000 | 83 |
| Utah | $40,000 | $62,500 | 64 |
| Vermont | $38,000 | $45,000 | 84 |
| Virginia | $40,000 | $74,000 | 54 |
| Washington | $41,804 | $55,000 | 76 |
| West Virginia | $28,000 | $60,000 | 47 |
| Wisconsin | $48,000 | $45,000 | 107 |
| Wyoming | $40,000 | $55,000 | 73 |
| average | 77 |
Note that the sample size is fairly small for the CPS. There are 224 women in California in our restricted sample and 210 men, for example. So that could account for a fair amount of variance but I don’t think it can explain the overall pattern.
Related:
- August 2014 posting on whether public companies should be allowed to hire men
- December 2012 posting about the profit opportunity to be exploited if the wage gap is real
- January 2015 posting questioning whether looking at the wage gap makes sense (given that spending ability is what most people care about)
Update: In response to reader comments that some the differences might be due to marital status, I ran the queries again on the 22-36-year-old population of Americans with Bachelor’s degrees. The results were limited to people working at least 30 hours per week and earning at least $5000 per year. The median earnings of women went up from 77 percent of men’s earnings to 86.7 percent. Note that the virtual machine with all of the data loaded is available so readers can do their own poking around (given minimal knowledge of SQL).
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