Posts Tagged ‘77 cents on the dollar’
Iceland, irrational laws, and feminist nonsense
As I learned today, there has been a highly negative development and dangerous precedent in Iceland:
An extremely unwise new law requires “equal” pay between men and women*. This is a good example of the problems with a mixture of democracy and stupid/uninformed voters resp. stupid/uninformed/populist politicians; and equally why it is important to have “small government”, with governmental interference limited to what is necessary—not what buys more votes. Further, it is a good example of how a “noble” cause does more harm than good to society.
*The linked-to article uses the absurdly incorrect formulation “legalise”, which would imply that it would be legal to have equal pay. Presumably, the author intended some variation of “legislate”. (If not ideal, at least much better than “legalise”.)
There are at least the following problems involved:
- It falls into the trap of the obnoxious and extremely misleading “77 cents on the dollar” lie. Men and women already have equal pay for equal work in very large parts of the world, including Iceland (and Sweden, Germany, the U.S., …) In fact, in as far as there are differences, they actually tend to favour women… Only by making unequal comparisons by failing to adjust for e.g. hours worked, qualifications, field of work, …, can such nonsense like the “77 cents on the dollar” lie even gain a semblance of truth. Cf. below.
- It fails to consider aspects like skill at negotiation and willingness to take risks. Cf. an earlier post.
- It risks, as a consequence of the two previous items, to give women a major artificial advantage and men a corresponding disadvantage. Basically, if feminist accounting would eventually find “100 cents on the dollar”, a true accounting would imply “130 cents on the dollar”, given women a de facto 30 % advantage instead of the current alleged male 30 % advantage implied by “77 cents on the dollar”).
- Judging whether two people actually do sufficiently similar jobs that the same remuneration is warranted is extremely tricky, and the law risks a great degree of arbitrariness or even, depending on details that I have not researched, that differences in remuneration between people on different performance levels shrink even further*.
*In most jobs, and the more so the more competence they require, there is a considerable difference between the best, the average, the worst of those who carry the same title, have the same formal qualifications, whatnot. This is only very rarely reflected in payment to the degree that it should be (to achieve fairness towards the employees and rational decision making among employers). In software development, e.g., it is unusual that the difference in value added between the best and worst team member is less than a factor of two; a factor of ten is not unheard of; and there are even people so poor that the team would be better off without their presence—they remove value. Do salaries vary similarly? No…
- For compliance, “companies and government agencies employing at least 25 people will have to obtain government certification of their equal-pay policies”. The implication is considerable additional bureaucracy and cost for these organizations and likely, again depending on details I have not researched, the government it self.
To boot, this is exactly the type of regulation that makes it hard for small companies to expand, and that gives the owners incentives to artificially limit themselves.
From the reverse angle, for those who actually support this law, such vagueness could weaken* the law considerably—while keeping the extra cost and bureaucracy. Similarly, if the checks are actually fair and come to a conclusion that reflects reality, then changes in actual pay levels will be small and mostly indirect—with, again, the extra cost and bureaucracy added.
*But I would not bet on it being enough to remove the inherit injustice and sexual discrimination it implies.
- It opens the doors to similarly misguided legislation, like e.g. a law requiring that certain quotas of women are met by all organisations—even when there are few women who are interested in their fields. (Implying that women would be given better conditions and greater incentives than men in those fields. Incidentally, something that can already be seen in some areas even with pressure stemming just from “public opinion” and PR considerations—not an actual law.)
As to the “77 cents on the dollar” and related misconceptions, lies, misinterpreted statistics, whatnot, I have already written several posts (e.g. [1], [2] ) and have since encountered a number of articles by others attacking this nonsense from various angles, for example: [3], [4], [5], [6], [7].
Simply put: Anyone who still believes in this nonsense is either extremely poorly informed or unable to understand basic reasoning—and any politician who uses this rhetoric is either the same or extremely unethical. I try to remain reasonably diplomatic in my writings, but enough is enough! The degree of ignorance and/or stupidity displayed by these people is such that they truly deserve to be called “idiots”. They are not one iota better than believers in astrology or a flat earth.
The “77 cents on the dollar” fraud
One of the most common propaganda tricks from feminists is the claim that women only earn x cents/öre/pence/whatnot for every dollar/krona/pound/whatnot a man earns—in a US context, 77 cents is the most common number. (See also my article on the infamous Anna Ardin for a related example.) This highly misleading claim is either given alone, without context, or made into a direct lie by adding claims about equal pay for equal work. The hitch is that the measurement used compares apples and oranges—it shows unequal pay for unequal work: Women already have equal pay for equal work. (In many advanced countries, including Sweden, the US, and Germany. Indeed, I have heard some claim that women earn more than men in Sweden.)
If we were to alter things so that women, by this twisted measurement, earned a dollar on the dollar, then men would be severely discriminated against. The claim for equal pay amounts to “All employees are equal, but some are more equal than others.” and wanting to eat the cake and keep it too.
The 77 cents arise from a misleading comparison, ignoring factors like hours worked per week, educational level, area of work (including factors such as physical dangers and qualifications needed), and time with the company.
For two very good articles on the subject, see Do Women and Men Earn Equal Pay in 2007?e and 77 cents on the dollar? The truth about the gender wage gape.
A particular interesting partial explanation is simply prioritisations and risk-taking when choosing jobs and negotiating salaries: Men have a higher unemployment than women (incidentally, something which does not bring the feminists to the barricades…) and it is quite possible that men are simply more prone to pick unemployment over a low-paid job, to go through temporary unemployment while looking for the right position with the right company for the right pay, or to make a negotiating gambit for a higher pay (with the risk of not getting the position). Any individual woman could chose to take the same risk for the same chance at the same gain, and those who do not have to live with their choice—just like the men who make the gamble and lose…
For that matter, making a comparison of pay without factoring in involuntary unemployment is inherently misleading.
“But discrimination is real! I have seen it myself!”
That may be. However, individual cases mean comparatively little for numbers like these and, while individual cases need correction, they are not a support for claims of a systematic problem of this alleged size. Further, many cases that are called discrimination are, in fact, not: Different people, be they men or women, earn differently based on a number of factors, including education, experience, dedication to the employer, self-presentation skills, etc., and any one individual woman earning less than any one individual man (or vice versa) is not an indication of discrimination—no matter what propagandists may want us believe. Further yet, unfair pay is nowhere near being the reserve of women, and it is quite possible that even an objectively unfair pay to a woman is not discrimination: A man in the same position in the same company, likely the one in the cubicle next to hers, stands a high risk of being equally unfairly paid.
For a good example of how not to do it, see e.g. the blog entry which prompted this article to be writtene. (If visiting it, also note the flawed reasoning and ad hominem take by the blog author in the comments, and beware that she kept my first two comments unpublished—including my pointing out that the “women are not worthless” slogan is a straw-man attack: The implicit claim that even a sizable part of the population would consider women worthless is grossly incorrect.)
I note that she has subsequently deleted all comments and also “closed” the comments. Unethical and cowardly, if you ask me.