Saudi Press

Saudi Arabia and the world
Saturday, Nov 22, 2025

Yes, women earn less than men – but it’s NOT because they are being discriminated against

Yes, women earn less than men – but it’s NOT because they are being discriminated against

Women earn about 82% as much as males, something the Democratic Party’s new Paycheck Fairness Act seeks to address. But the true cause of the gender wage gap is more complex – and is really a marriage and child care penalty.
Representative Rosa DeLauro (D-Connecticut) is the lead person in terms of promoting the Paycheck Fairness Act (H.R. 7). It has been passed by the US House of Representatives, by 217 votes to 210. Its fate in the Senate, where it will be debated later this month, is more precarious.

This sort of effort has been a staple ever since 1997 on the part of those who discern sexual discrimination in the labor market. This proposed legislation puts the onus of employers to justify that any pay differentials are based on bona fide job-related factors, forces them to release data on pay to the authorities, increases penalties for violations and sets up a task force to address enforcement of equal pay laws.

What are the pretty much non-controversial facts? That for full-time workers, females earn 82.4% as much as males, leaving a “gap” of some 18%. This divergence has been pretty steady since 2014.

However, opinions diverge – radically – as to the causes of this imbalance. Critics of the free enterprise system perceive sexual discrimination as endemic to these institutional arrangements. Men, in their view, head most corporations and naturally favor fellow members of their gender. This will be news to sociobiologists, and evolutionary psychologists, who see things in quite the reverse order.

What do economists have to say about them thar apples? For the most part, they reject this hypothesis entirely, attributing this gap to divergent choices made by men and women.

For one thing, if productivity between males and females were really equal, and women were paid less than men, this would set up market forces that would tend to reduce this gap to virtually zero. Consider this simple numerical example. Both males and females have exactly equal productivity on the job. Each can produce at the rate of $100 per day. However, while males are paid that amount (wages tend to mirror discounted marginal revenue product, or, in layman’s terms, productivity), females garner only $82 per day, yielding a “gap” of $18. This means that if you hire a woman, you will be able to “exploit” her to the tune of $18, whereas if you take a man on your employment roll, you reap exactly zero in profits.

Is this an equilibrium situation? Would this state of affairs long endure? Of course not. Firms would start offering members of the distaff side $83 to bid them away from their supposed discriminators. They would implicitly think: better for me to earn $17 from employing this woman than for my competitor to do so at the rate of $18. This would give way to bids of $84, $85, etc., and then on to the races, all the way up to $100, assuming little or no transaction costs.

Here is perhaps an even more convincing argument for those whose cup of tea is not pure economic logic.

While married women earn 75.5% as much as married men, never-married females take home 94.2% compared to their never-married male counterparts. Say what? If discrimination is supposed to account for the female-male wage gap, how do we get such strong divergences based on marital status?

Enter the Marital Asymmetry Hypothesis (MAH). This is based upon a foundational economic principle: alternative or opportunity costs. Whenever you do anything, you do it at the expense of not being able to do something else as well, or, in some cases, at all. Yo-Yo Ma is one of the best cellists on the planet, but his time in the 100 meters is nothing to brag about. Usain Bolt (they really ought to give him a speeding ticket) can do the 100 in a little over an astounding nine seconds, but he does this at the cost of not being able to be a world-class cellist.

So, what is it that married women do, compared to married men, that their unmarried sisters do not do, compared to unmarried men? It is simple: they bear a disproportionate share of housekeeping, cooking, cleaning, shopping, childcare, breastfeeding, etc., compared to the never-marrieds, vis a vis to never-married men.

The 75.5% versus 94.2% divergence is something for which the sexual discrimination hypothesis simply cannot account. But this fact is certainly congruent with the MAH. When children enter the picture, these two proportions diverge from each other even more. There is also the fact that married men have a greater attachment to the labor force than their wives. They are more willing to seek promotion and greater responsibility than their partners. Whereas the never-marrieds are more equal in these regards.

Will these facts get aired when the Senate debates this bill? I certainly hope so.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Trump Elevates Saudi Arabia to Major Non-NATO Ally as MBS Visit Yields Deepened Ties
Iran Appeals to Saudi Arabia to Mediate Restart of U.S. Nuclear Talks
Musk, Barra and Ford Join Trump in Lavish White House Dinner for Saudi Crown Prince
Lawmaker Seeks Declassification of ‘Shocking’ 2019 Call Between Trump and Saudi Crown Prince
US and Saudi Arabia Forge Strategic Defence Pact Featuring F-35 Sale and $1 Trillion Investment Pledge
Saudi Sovereign Wealth Fund Emerges as Key Contender in Warner Bros. Discovery Sale
Trump Secures Sweeping U.S.–Saudi Agreements on Jets, Technology and Massive Investment
Detroit CEOs Join White House Dinner as U.S.–Saudi Auto Deal Accelerates
Netanyahu Secures U.S. Assurance That Israel’s Qualitative Military Edge Will Remain Despite Saudi F-35 Deal
Ronaldo Joins Trump and Saudi Crown Prince’s Gala Amid U.S.–Gulf Tech and Investment Surge
U.S.–Saudi Investment Forum Sees U.S. Corporate Titans and Saudi Royalty Forge Billion-Dollar Ties
Elon Musk’s xAI to Deploy 500-Megawatt Saudi Data Centre with State-backed Partner HUMAIN
U.S. Clears Export of Advanced AI Chips to Saudi Arabia and UAE Amid Strategic Tech Partnership
xAI Selects Saudi Data-Centre as First Customer of Nvidia-Backed Humain Project
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
President Trump Hosts Saudi Crown Prince Mohammed bin Salman in Washington Amid Strategic Deal Talks
Saudi Crown Prince to Press Trump for Direct U.S. Role in Ending Sudan War
Trump Hosts Saudi Crown Prince: Five Key Takeaways from the White House Meeting
Trump Firmly Defends Saudi Crown Prince Over Khashoggi Murder Amid Washington Visit
Trump Backs Saudi Crown Prince Over Khashoggi Killing Amid White House Visit
Trump Publicly Defends Saudi Crown Prince Over Khashoggi Killing During Washington Visit
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
Saudi Arabia’s Solar Surge Signals Unlikely Shift in Global Oil Powerhouse
Saudi Crown Prince Receives Letter from Iranian President Ahead of U.S. Visit
Saudi Arabia’s Crown Prince Begins Washington Visit to Cement Long-Term U.S. Alliance
Saudi Crown Prince Meets Trump in Washington to Deepen Defence, AI and Nuclear Ties
Saudi Arabia Accelerates Global Mining Strategy to Build a New Economic Pillar
Crown Prince Mohammed bin Salman Arrives in Washington to Reset U.S.–Saudi Strategic Alliance
Saudi-Israeli Normalisation Deal Looms, But Riyadh Insists on Proceeding After Israeli Elections
Saudis Prioritise US Defence Pact and AI Deals, While Israel Normalisation Takes Back Seat
Saudi Crown Prince’s Washington Visit Aims to Advance Defence, AI and Nuclear Cooperation
Saudi Delegation Strengthens EU–MENA Security Cooperation in Lisbon
Saudi Arabia’s Fossil-Fuel Dominance Powers Global Climate Blockade
Trump Organization Engages Saudi Government-Owned Real-Estate Deal Amid White House Visit
Trump Organization Nears Billion-Dollar Saudi Real Estate Deal Amid White House Diplomacy
Israel Presses U.S. to Tie Saudi F-35 Sale to Formal Normalisation
What We Know Now: Donald Trump’s Financial Ties to Saudi Arabia
Saudi Arabia’s Ambitious Defence Wish List for Washington: From AI Drones to Nuclear Umbrella
Analysis Shows China, Saudi Arabia and UAE among Major Recipients of Climate Finance Loans
Why a Full Saudi–Israel Normalisation Deal Eludes Trump’s Reach
Trump Presses Saudi Arabia to Normalise Ties with Israel as MBS Prepares for White House Visit
US-Saudi Summit Set for November 18 Seeks Defence Pact and Israel Normalisation Momentum
Comcast CEO Brian Roberts Visits Saudi Arabia Amid Potential Bid for Warner Bros. Discovery
Cristiano Ronaldo Embraces Saudi Arabia’s 2034 World Cup Vision with Key Role
Saudi Arabia’s Execution Campaign Escalates as Crown Prince Readies U.S. Visit
Trump Unveils Middle East Reset: Syria Re-engaged, Saudi Ties Amplified
Saudi Arabia to Build Future Cities Designed with Tourists in Mind, Says Tourism Minister
Saudi Arabia Advances Regulated Stablecoin Plans with Global Crypto Exchange Support
Saudi Arabia Maintains Palestinian State Condition Ahead of Possible Israel Ties
Chinese Steel Exports Surge 41% to Saudi Arabia as Mills Pivot Amid Global Trade Curbs
×