How bad is the wage gap for women in the workplace?
For college graduates, it’s so bad that it begins even before women begin their careers.
According to a study by AAUW, Graduating to a Pay Gap: The Earnings of Women and Men One Year After College Graduation:
Women and men pay the same amount for their college degrees, but they often do not reap the same rewards. Among 2007-08 college graduates, women and men typically borrowed similar amounts to finance their educations, about $20,000. Because women are paid less than men are paid after college, student loan repayments make up a larger part of women’s earnings. In 2009, among full-time workers repaying their loans one year after college graduation, just over half of women (53 percent) compared with 39 percent of men were paying more than what we estimate a typical woman or man could reasonably afford to pay toward student loan debt. These numbers have risen in recent years.
Outstanding student loans today total more than $1 trillion, surpassing credit card debt. Student loan debt has increased nearly 300 percent over the last eight years, according to a report by the New York Federal Reserve.
Is Congress doing anything about this problem? As a matter of fact they are. They’re making it worse.
This July, unless Congress acts, the interest rate on federally subsidized Stafford loans is set to increase from 3.4 to 6.8 percent. In another example of the Congress’ attitude of “don’t tax the rich, but tax the most vulnerable,” student loans are seen as a nice little moneymaker.
The federal government will make $34 billion this year on student loans. If Congress allows the interest rate on these loans to double, the federal government will bring in even more revenue — money that comes straight from the pockets of students who had to borrow money to go to college.
Of course, not everyone has to pay such a burdensome rate of interest on loans. Big banks can borrow money from the Federal Reserve at a rate of less than 1 percent. There’s something very wrong with this picture.
This week, I attended a breakfast meeting with Senator Elizabeth Warren (D. Mass.) where she spoke about the first piece of standalone legislation she is introducing in the United States Senate.
In a speech on the Senate floor, Sen. Warren said:
The Bank on Students Loan Fairness Act would allow students who are eligible for federally subsidized Stafford loans to borrow at the same rate that big banks get through the Federal Reserve discount window. For one year, the Federal Reserve would make funds available to the Department of Education to make loans to students at the same low rate offered to the big banks. This will give students relief from high interest rates while giving Congress time to find a long-term solution.
At our breakfast, I remembered that it was the mobilization of enormous grassroots support for the Consumer Financial Protection Bureau (then-Professor Warren’s brainchild) that kept pressure on Congress to pass the legislation that established that agency. Her fight to keep student loan interest rates low is her next big campaign, and women should pull out all the stops to support her.
AAUW’s findings tell us that women are disproportionately likely to take out loans; among 2007-2008 graduates, 68 percent of women borrowed money for college compared to 63 percent of men.
According to the AAUW report:
For many young women, the challenge of paying back student loans is their first encounter with the pay gap. “Student loan debt burden” is defined as the percentage of earnings devoted to student loan payments. A high student loan debt burden is an indicator that repayment may create hardship. Individuals with high student loan debt burden are less likely to own a home, have a car loan, or even make rent payments. High student loan debt burden is a challenge for a growing number of college graduates, men and women alike, but is particularly widespread among women, in large part because of the pay gap.
The National Organization for Women (NOW) has a long history of supporting equal pay, comparable worth and other policies that advance women’s economic security. NOW was proud to support Elizabeth Warren in her successful campaign for the U.S. Senate, and we are equally proud to support her urgently needed legislation to reduce the burden of student loan debt.
It’s hard to imagine how anyone could oppose a bill that simply requires the Fed to set interest rates for students at the same low rate the big banks get. But get this: an opponent of Sen. Warren’s bill reportedly suggested — presumably hoping we’ve all forgotten about the taxpayers’ bailout of the too-big-to-fail banks — that unlike students, the big banks deserve to pay a super-low interest rate because they never fail. And they say the 1 Percent has no sense of humor.
Elizabeth Warren has planted the flag for student loan reform by introducing her bill, and now it’s up to us to mobilize support and pressure Congress to pass it. This is grassroots democracy at its best. So, blog about this, write letters to the editor, lobby your senators and your representative.
Help ensure that a college education is a pathway to fulfillment and success for women, and not an opening to crushing debt.
By: Terry O’Neill, President, National Organization for Women, The Huffington Post, May 20, 2013
We know American politics are dysfunctional. But after a week of scandal obsession during which the nation’s capital and the media virtually ignored the problems most voters care about — jobs, incomes, growth, opportunity, education — it’s worth asking if there is something especially flawed about our democracy.
Our circumstances certainly have their own particular disabilities: a radicalization of conservative politics, over-the-top mistrust of President Obama on the right, high-tech gerrymandering in the House and a Senate snarled by non-constitutional super-majority requirements.
Still, while it may not be much of a comfort, the democratic distemper is not a peculiarly American phenomenon. Across most of the democratic world, there is an impatience bordering on exhaustion with electoral systems and political classes.
Citizen dissatisfaction is hardly surprising in the wake of a deeply damaging economic downturn. That doesn’t make the challenge any less daunting. We should consider whether democracy itself is in danger of being discredited. Politicians might usefully disentangle themselves from their day-to-day power struggles long enough to take seriously their responsibility to a noble idea and the systems that undergird it.
It’s not hard to discover that this conundrum is global and not just our own. “Has democracy had its day?” is the headline on Columbia University historian Mark Mazower’s cover story in the May issue of Prospect, a British magazine. The subhead: “Electoral politics has had a bad decade.”
Earlier this month, the Transatlantic Academy, a global partnership of think tanks led by the German Marshall Fund of the United States, issued “The Democratic Disconnect,” a sober report by a group of distinguished academics.
“Democracy is in trouble,” the report begins. “The collective engagement of a concerned citizenry for the public good — the bedrock of a healthy democracy — is eroding. Democratic governments often seem crippled in their capacity to deliver what their people want and need. They are neither as responsive nor as accountable as they need to be in an era of hard choices and rising nondemocratic powers. There is widespread concern about apparent declining rates of voter participation and about the alienation or disaffection of citizens from the political process.”
In Europe, the authors noted, “there is fear that the distance between ordinary citizens and the politicians and bureaucrats in Brussels compromises democratic legitimacy.” In the United States, “lamentations about gridlock and polarization are the order of the day.” Even our peaceable neighbor Canada is not immune. “Canadians,” they write, “worry about the tendency of their political system to place largely unaccountable power in the hands of the prime minister.”
The report does include some useful suggestions for reviving the democratic spirit and improving democratic practice. But it is not alarmist to be uneasy about democracy’s prospects. Ernst Hillebrand, the head of international policy analysis for the Friedrich Ebert Foundation, the German Social Democratic Party’s think tank, describes a chilling finding in a 2009 survey by the German polling firm Forsa: “that zero percent — yes, zero percent — of workers in Germany believe they can have a significant impact on how policy in Germany is shaped via the ballot box.”
And bear in mind that a poll released last week by the Pew Global Attitudes Project found that Germans are far more satisfied with their country’s situation than are their European neighbors.
In a conversation last week during a visit to Washington, Hillebrand pointed to two streams of discontent the world’s democracies face. One is material. The other might be called spiritual.
On the one side, large numbers of lower-middle-class and working-class voters have seen their economic standing deteriorate over two or three decades. There has been a substantial transfer of wealth and income from labor — which is how most people pay their way — to capital. Productivity gains no longer lead to wage gains. This builds justified frustration.
At the same time, he said, many citizens, especially the young, have enhanced expectations for “participation, self-realization and control over their lives.” They do not see current electoral arrangements in democracies giving them much chance to achieve any of these goals.
Since World War II, bouts of economic growth have allowed democracies to buy their way out of trouble. One can hope this will happen again — and soon. In the meantime, politicians might contemplate their obligations to stewardship of the democratic ideal. They could begin by pondering what an unemployed 28-year-old makes of a ruling elite that expends so much energy feuding over how bureaucrats rewrote a set of talking points.
By: E. J. Dionne, Jr., Opinion Writer, The Washington Post, May 19, 2013
“Worsening Jobs Crisis”: America’s Middle Class Is Burning To The Ground, While Washington Fiddles With Scandal Nonsense
At last, some excellent economic news for folks long-mired in the stagnant labor market!
At least, those were the headlines recently trumpeted across the country. “Jobs Spring Back,” exclaimed a typical headline or report that companies added a better than expected 165,000 private-sector jobs in April. Wow — the thunderous, three-year boom of prosperity that has rained riches on Wall Street is finally beginning to shower on our streets, right?
Well, as dry-land farmers can tell you, thunder ain’t rain. Read beneath the joyful headlines hailing April’s uptick in job numbers, and you’ll see the parched truth.
For example, more than a third of working-age Americans are either out of work or have given up on finding a job. Also, last month’s hiring increase was almost entirely for receptionists, waiters, clerks, temp workers, car-rental agents and other low-wage positions with no benefits or upwardly mobile possibilities. On the other hand, manufacturing — generally the source of good, middle-class jobs — did not add workers in April and has cut some 10,000 jobs in the last year.
Especially problematic was the continued rise in underemployment — people wanting full-time work, but having to take part-time and temporary jobs. Underemployment is also pounding college graduates. While they’ve been more successful than non-grads at landing jobs, they’re not getting jobs that fit their career goals or even require the degrees they spent money and time to obtain. Indeed, many of those rental agents and restaurant employees you encounter hold four-year degrees, forcing everyone else to scramble for the few, even lower-paid jobs further down the skill ladder.
Meanwhile, the next graduating class is already beginning to flood into the labor market from colleges and high schools with nowhere to go.
In May, another headline shouted: “Stock Market Soars.” It expressed delight that the Dow Jones Average topped 15,000 for the first time in its history.
Yet this index of Wall Street wealth gives a totally false picture of our nation’s true economic health. Yes, the privileged few are doing extremely well. But the workaday many are struggling — and falling further and further behind as the jobs market sinks steadily from mere recession down into depression.
The monthly unemployment reports don’t tell the depths of misery that’s out here in the real world, beyond the view of Wall Street and Washington elites. For example, President Obama hailed the news that unemployment dipped to 7.5 percent in April. Unstated, though, was the stark reality that this good-news dip was not due to a jump in job offerings, but to a bad-news labor market so weak and discouraging that more and more Americans are dropping out of it or never entering it.
More than a third of our working-age population is no longer even in the job market, and only 58.6 percent of us are employed. Put the opposite way, 41 percent of the potential workforce is not working — about 102 million people. One more statistic, and it’s a chiller: More than one out of five American families report that, last year, not a single family member had a job.
Our people are trapped in a jobs crisis that is sucking the economic vitality out of our nation, but our leaders refuse even to acknowledge it, much less cope with it. In fact, corporate chieftains are deliberately exacerbating the crisis by hoarding trillions of dollars that ought to be rushed into job-creating expansions, and politicians keep adding to the casualties by gleefully eliminating the middle-class jobs of hundreds of thousands of teachers, firefighters, police and other valuable public employees.
America’s middle class is burning to the ground, while Washington fiddles with nonsense and Wall Street feathers its own nest. It’s disgraceful.
By: Jim Hightower, The National Memo, May 15, 2013
So we’re 10 weeks in, and the GOP’s sequester strategy is coming into sharper focus. If a cut affects Americans residing at the higher end of the socioeconomic ladder, move heaven and earth to make it right. But if it affects folks who may have less means … crickets.
So while everyone knows about the heroic efforts of Republicans to rein in flight delays and restart White House tours, we hear a lot less about those who are losing the assistance they need to send their kids to school, eat a hot meal or just make it until they find their next job.
And one is left to wonder: How did a country like America ever get here? The answer is that it’s all part of the GOP’s long game against government.
It starts with a perverse kind of policy math that says if a government cut creates an inconvenience we should do something about it. But if a cut takes away something that’s critical to your survival today or the life trajectory of your kids, well, you’re out of luck.
And the way the sequester plays out – moving slowly across the land, knocking a handful of people out of Head Start here, reducing unemployment checks there – is the perfect way to effectuate a plan as brutal as the one Republicans conceive. Spreading out the impacts keeps the outcry at manageable levels, and ensures that there is no one critical mass of objectors – until it’s too late.
And in the mean time, the GOP gets what it’s long wanted: The slow withdrawal of government from the day-to-day lives of ordinary people. Government will continue to do many expensive things if the sequester plays out as intended: protect the country; administer justice; subsidize some industries and not others. But it will be out of the “help people go as far as their hard work and talent will take them” business. That just won’t be its role anymore.
We can certainly have a society that operates that way. There’s no rule against it. But what will America look like if the GOP gets it way?
On the one hand the amount of taxes some pay should go down. And those who are fortunate enough to be born into good life circumstances will have less competition to fear from those who are less well off – they simply will have less ways to get into a position to compete. Presumably that means wealth continues to collect at the upper ends of the socioeconomic structure, while more families fall to the bottom.
That’s not how the GOP would describe their approach, of course. But at some point we have to move past hysterical rhetoric about big government and get to the nuts and bolts of the policies they are attempting to effectuate under that banner. Now would be a good time to have that discussion.
It’s not only happening on the federal level. Texas Gov. Rick Perry has made headlines by calling on his state’s universities to find a way to provide a college education for $10,000. Now I suppose we could conclude that the governor really is concerned about people who can’t afford a more expensive education, though there’s little in his record to support that notion. More likely, this is his semester sequester. Rather than finding ways for less wealthy students to get the same quality education as their more well heeled counterparts, Perry’s putting the onus on the universities to dumb down their educational offerings for a less wealthy track.
All of this, of course, turns the way most of us think about government entirely on its head. When elected officials run for office, they do so by articulating a philosophy about how to address the problems we face – as a community, town, city or country. We vote for them when we conclude their prescriptions fit with the way we would like to see the problems we care about approached. Over the history of this country, that process – electing people who’s views align with our own – has resulted in the construction of a state that is more muscular in some areas, less so in others.
Another way of saying: Head Start didn’t just emerge like some kind of algae bloom on the national treasury. We, citizens, saw a problem, that disadvantaged kids weren’t getting a very good education. We asked our representatives to do something about it. Head Start was one of the solutions they came up with. If public polling is any indication, we like it. And if research is any guide, it works.
But the sequester means Republicans don’t have to debate the merits of Head Start. Instead, they keep the debate squarely in the frame that suits them best: that government is too big, it doesn’t work, we can slash away and no one will be the worse for it. But of course they will.
So where does this all end up? My guess is programs that people rely on sustain deep cuts, which becomes an argument to cut them even more: Look! Their performance is inexplicably worsening! And in some cases we get back to a place approximating where we were when the programs were first initiated. Over time, news reports and research bubbles up showing the deplorable circumstances under which some folks live, go to school, etc. Stirred by our conscience and the better angels of our nature we decide something has to be done. And we turn to government. Because that’s what its there for.
And at that moment, a cycle of absurd sequester stupidity will have finally run its course.
By: Anson Kaye, U. S. News and World Report, May 2, 2013
Here’s a fact that may not surprise you: the children of the rich perform better in school, on average, than children from middle-class or poor families. Students growing up in richer families have better grades and higher standardized test scores, on average, than poorer students; they also have higher rates of participation in extracurricular activities and school leadership positions, higher graduation rates and higher rates of college enrollment and completion.
Whether you think it deeply unjust, lamentable but inevitable, or obvious and unproblematic, this is hardly news. It is true in most societies and has been true in the United States for at least as long as we have thought to ask the question and had sufficient data to verify the answer.
What is news is that in the United States over the last few decades these differences in educational success between high- and lower-income students have grown substantially.
One way to see this is to look at the scores of rich and poor students on standardized math and reading tests over the last 50 years. When I did this using information from a dozen large national studies conducted between 1960 and 2010, I found that the rich-poor gap in test scores is about 40 percent larger now than it was 30 years ago.
To make this trend concrete, consider two children, one from a family with income of $165,000 and one from a family with income of $15,000. These incomes are at the 90th and 10th percentiles of the income distribution nationally, meaning that 10 percent of children today grow up in families with incomes below $15,000 and 10 percent grow up in families with incomes above $165,000.
In the 1980s, on an 800-point SAT-type test scale, the average difference in test scores between two such children would have been about 90 points; today it is 125 points. This is almost twice as large as the 70-point test score gap between white and black children. Family income is now a better predictor of children’s success in school than race.
The same pattern is evident in other, more tangible, measures of educational success, like college completion. In a study similar to mine, Martha J. Bailey and Susan M. Dynarski, economists at the University of Michigan, found that the proportion of students from upper-income families who earn a bachelor’s degree has increased by 18 percentage points over a 20-year period, while the completion rate of poor students has grown by only 4 points.
In a more recent study, my graduate students and I found that 15 percent of high-income students from the high school class of 2004 enrolled in a highly selective college or university, while fewer than 5 percent of middle-income and 2 percent of low-income students did.
These widening disparities are not confined to academic outcomes: new research by the Harvard political scientist Robert D. Putnam and his colleagues shows that the rich-poor gaps in student participation in sports, extracurricular activities, volunteer work and church attendance have grown sharply as well.
In San Francisco this week, more than 14,000 educators and education scholars have gathered for the annual meeting of the American Educational Research Association. The theme this year is familiar: Can schools provide children a way out of poverty?
We are still talking about this despite decades of clucking about the crisis in American education and wave after wave of school reform.Whatever we’ve been doing in our schools, it hasn’t reduced educational inequality between children from upper- and lower-income families.
Part of knowing what we should do about this is understanding how and why these educational disparities are growing. For the past few years, alongside other scholars, I have been digging into historical data to understand just that. The results of this research don’t always match received wisdom or playground folklore.
The most potent development over the past three decades is that the test scores of children from high-income families have increased very rapidly. Before 1980, affluent students had little advantage over middle-class students in academic performance; most of the socioeconomic disparity in academics was between the middle class and the poor. But the rich now outperform the middle class by as much as the middle class outperform the poor. Just as the incomes of the affluent have grown much more rapidly than those of the middle class over the last few decades, so, too, have most of the gains in educational success accrued to the children of the rich.
Before we can figure out what’s happening here, let’s dispel a few myths.
The income gap in academic achievement is not growing because the test scores of poor students are dropping or because our schools are in decline. In fact, average test scores on the National Assessment of Educational Progress, the so-called Nation’s Report Card, have been rising — substantially in math and very slowly in reading — since the 1970s. The average 9-year-old today has math skills equal to those her parents had at age 11, a two-year improvement in a single generation. The gains are not as large in reading and they are not as large for older students, but there is no evidence that average test scores have declined over the last three decades for any age or economic group.
The widening income disparity in academic achievement is not a result of widening racial gaps in achievement, either. The achievement gaps between blacks and whites, and Hispanic and non-Hispanic whites have been narrowing slowly over the last two decades, trends that actually keep the yawning gap between higher- and lower-income students from getting even wider. If we look at the test scores of white students only, we find the same growing gap between high- and low-income children as we see in the population as a whole.
It may seem counterintuitive, but schools don’t seem to produce much of the disparity in test scores between high- and low-income students. We know this because children from rich and poor families score very differently on school readiness tests when they enter kindergarten, and this gap grows by less than 10 percent between kindergarten and high school. There is some evidence that achievement gaps between high- and low-income students actually narrow during the nine-month school year, but they widen again in the summer months.
That isn’t to say that there aren’t important differences in quality between schools serving low- and high-income students — there certainly are — but they appear to do less to reinforce the trends than conventional wisdom would have us believe.
If not the usual suspects, what’s going on? It boils down to this: The academic gap is widening because rich students are increasingly entering kindergarten much better prepared to succeed in school than middle-class students. This difference in preparation persists through elementary and high school.
My research suggests that one part of the explanation for this is rising income inequality. As you may have heard, the incomes of the rich have grown faster over the last 30 years than the incomes of the middle class and the poor. Money helps families provide cognitively stimulating experiences for their young children because it provides more stable home environments, more time for parents to read to their children, access to higher-quality child care and preschool and — in places like New York City, where 4-year-old children take tests to determine entry into gifted and talented programs — access to preschool test preparation tutors or the time to serve as tutors themselves.
But rising income inequality explains, at best, half of the increase in the rich-poor academic achievement gap. It’s not just that the rich have more money than they used to, it’s that they are using it differently. This is where things get really interesting.
High-income families are increasingly focusing their resources — their money, time and knowledge of what it takes to be successful in school — on their children’s cognitive development and educational success. They are doing this because educational success is much more important than it used to be, even for the rich.
With a college degree insufficient to ensure a high-income job, or even a job as a barista, parents are now investing more time and money in their children’s cognitive development from the earliest ages. It may seem self-evident that parents with more resources are able to invest more — more of both money and of what Mr. Putnam calls “‘Goodnight Moon’ time” — in their children’s development. But even though middle-class and poor families are also increasing the time and money they invest in their children, they are not doing so as quickly or as deeply as the rich.
The economists Richard J. Murnane and Greg J. Duncan report that from 1972 to 2006 high-income families increased the amount they spent on enrichment activities for their children by 150 percent, while the spending of low-income families grew by 57 percent over the same time period. Likewise, the amount of time parents spend with their children has grown twice as fast since 1975 among college-educated parents as it has among less-educated parents. The economists Garey Ramey and Valerie A. Ramey of the University of California, San Diego, call this escalation of early childhood investment “the rug rat race,” a phrase that nicely captures the growing perception that early childhood experiences are central to winning a lifelong educational and economic competition.
It’s not clear what we should do about all this. Partly that’s because much of our public conversation about education is focused on the wrong culprits: we blame failing schools and the behavior of the poor for trends that are really the result of deepening income inequality and the behavior of the rich.
We’re also slow to understand what’s happening, I think, because the nature of the problem — a growing educational gap between the rich and the middle class — is unfamiliar. After all, for much of the last 50 years our national conversation about educational inequality has focused almost exclusively on strategies for reducing inequalities between the educational successes of the poor and the middle class, and it has relied on programs aimed at the poor, like Head Start and Title I.
We’ve barely given a thought to what the rich were doing. With the exception of our continuing discussion about whether the rising costs of higher education are pricing the middle class out of college, we don’t have much practice talking about what economists call “upper-tail inequality” in education, much less success at reducing it.
Meanwhile, not only are the children of the rich doing better in school than even the children of the middle class, but the changing economy means that school success is increasingly necessary to future economic success, a worrisome mutual reinforcement of trends that is making our society more socially and economically immobile.
We need to start talking about this. Strangely, the rapid growth in the rich-poor educational gap provides a ray of hope: if the relationship between family income and educational success can change this rapidly, then it is not an immutable, inevitable pattern. What changed once can change again. Policy choices matter more than we have recently been taught to think.
So how can we move toward a society in which educational success is not so strongly linked to family background? Maybe we should take a lesson from the rich and invest much more heavily as a society in our children’s educational opportunities from the day they are born. Investments in early-childhood education pay very high societal dividends. That means investing in developing high-quality child care and preschool that is available to poor and middle-class children. It also means recruiting and training a cadre of skilled preschool teachers and child care providers. These are not new ideas, but we have to stop talking about how expensive and difficult they are to implement and just get on with it.
But we need to do much more than expand and improve preschool and child care. There is a lot of discussion these days about investing in teachers and “improving teacher quality,” but improving the quality of our parenting and of our children’s earliest environments may be even more important. Let’s invest in parents so they can better invest in their children.
This means finding ways of helping parents become better teachers themselves. This might include strategies to support working families so that they can read to their children more often.. It also means expanding programs like the Nurse-Family Partnership that have proved to be effective at helping single parents educate their children; but we also need to pay for research to develop new resources for single parents.
It might also mean greater business and government support for maternity and paternity leave and day care so that the middle class and the poor can get some of the educational benefits that the early academic intervention of the rich provides their children. Fundamentally, it means rethinking our still-persistent notion that educational problems should be solved by schools alone.
The more we do to ensure that all children have similar cognitively stimulating early childhood experiences, the less we will have to worry about failing schools. This in turn will enable us to let our schools focus on teaching the skills — how to solve complex problems, how to think critically and how to collaborate — essential to a growing economy and a lively democracy.
By: Sean F. Reardon, Professor of Education and Sociology, Stanford University; Published in The New York Times, Opinion Pages, April 27, 2013