Prof Claudia Goldin
By Whitney Akinyi
The awarding of the 2023 Nobel Prize in economics to Prof Claudia Goldin of Harvard University for her groundbreaking studies on women at work is a pleasant surprise for the African researchers and organisations involved in the IDRC’s Growth and Economic Opportunities for Women (GrOW) – East Africa project.
Prof Goldin’s Nobel Prize award is a strong indicator that empowering women in the economy and closing gender gaps in the world of work are key to achieving gender equality and sustainable development. However, increasing the number of women who work for pay is not enough.
Due to certain sociocultural norms and economic circumstances, many women have no choice but to accept vulnerable employment, work in the lowest-paying jobs in the informal sector and do the majority of unpaid care work at home.
The GrOW – East Africa project, co-funded by the Bill and Melinda Gates Foundation and the Hewlett Foundation, seeks to develop effective approaches and solutions that will empower women and girls to take charge of their own lives and livelihoods and will generate complementary approaches to address persistent economic gender gaps.
Prof Goldin’s research has advanced the world’s understanding of women’s labour-market outcome. As an economic historian and a labour economist, her work, work considered of greatest benefit to humankind, covers a wide range of topics, including the female labor force and the gender gap in earnings.
Her research incisively addresses the underrepresentation of women in the global labor market and the persistent wage gap between men and women. Through extensive archival research spanning over 200 years, she has meticulously demonstrated how and why gender disparities in earnings and employment rates have evolved over time.
Prof Goldin’s U-shaped curve on women’s participation in the labour market over the years indicates that the participation of married women declined during the transition from agrarian to industrial societies in the early 19th Century.
The curve began to rise again with the growth of the service sector in the early 20th Century. She attributes this pattern to structural changes and evolving social norms regarding women’s roles at home and in family life.
In the 20th Century, women’s educational levels saw a continuous rise, surpassing those of men in most high-income countries. Her research highlights the pivotal role played by the contraceptive pill in accelerating this significant shift, offering women new opportunities for career planning and development.
Despite the modernization of societies, economic growth, and a rise in the number of employed women in the 20th Century, the earnings gap between men and women remained stubbornly wide in favour of men for a significant period.
Prof Goldin’s insights suggest that a part of the explanation lies in the fact that educational decisions, which shape a lifetime of career opportunities, are made at a relatively young age. Expectations and choices are often influenced by the experiences of previous generations, such as mothers who delayed their return to work until their children had grown up.
Historically, differences in educational and occupational choices explained much of the gender earnings gap. However, her research reveals a shift in this pattern. Today, the bulk of the earnings difference is found between men and women in the same occupation, particularly arising with the birth of the first child.
“Understanding women’s role in the labor market is crucial for society. Thanks to Claudia Goldin’s groundbreaking research, we now possess a deeper understanding of the underlying factors and the barriers that need to be addressed,” said Jakob Svensson, Chair of the Committee for the Prize in Economic Sciences.
