Nobel Prize in Economic Sciences 2023

Why in News?

   Recently, Claudia Goldin, a Harvard University professor, has been awarded the 2023 Nobel Prize in Economics for her groundbreaking research on the Gender Gap in the Labor Market.

About Claudia

1. Goldin, a pioneer in economic studies, has written extensively on women's roles in the economy, including Understanding the Gender Gap and Career & Family.
2. Goldin is the third woman to win this honor, following Elinor Ostrom in 2009 and Esther Duflo in 2019.

Claudia’s Contribution

1. Goldin provided the first comprehensive account of women's earnings and labor market participation throughout the centuries.
2. Her research identifies the factors driving change and the primary causes of the remaining gender gap.
3. Goldin's groundbreaking work reveals women's labor market participation and the persistent pay gap, despite women's higher education in high-income countries.
4. Her research, which focused on the US, yielded findings that are applicable to numerous other countries.

Findings of Claudia’s Research Related to Women’s Participation in Workforce

1. Historical Perspective: Prior to Industrialization, women were more likely to engage in agricultural and cottage industries-related economic activities.
2. Role of the Services Sector: The services sector's growth in the early 20th century significantly impacted women's access to higher education and employment opportunities.
3. Marriage Barriers: During the early 20th century, 20% of women were gainfully employed, but only 5% were married.

• Goldin noted that "marriage bars" legislation often hindered married women from pursuing careers as teachers or office workers.
• Despite the growing labor demand, certain segments of the labor market were largely excluding married women.

4. Role of Expectations and Career Choices: The Gender Pay Gap is significantly influenced by women's expectations about their future careers.

• The experiences of mothers significantly influenced women's career choices, leading to choices that did not always prioritize long, uninterrupted, and fruitful careers.

5. Role of Contraceptive Pills: The advent of accessible contraceptive pills by the late 1960s empowered women with greater control over childbirth, enabling them to plan their careers and motherhood.

• The increase in women's studies in law, economics, and medicine led to a rise in their employment opportunities.

6. Role of Parenthood in Pay Gap: Despite advancements in women's education and employment prospects, a substantial gender-based pay disparity persisted.

• Despite having similar education and professions, women's earnings declined after the first child arrived, with earnings not increasing at the same rate as men's earnings.

 Must Check: Best IAS Coaching In Delhi