I n t h I s c h a p t e r y o u w I l L

comparable worth,
a doctrine whereby jobs deemed comparable should
be paid the same wage.
Advocates of comparable worth point out that traditionally male occupations
have higher wages than traditionally female occupations. They believe that these oc-
cupational differences are discriminatory against women. Even if women were paid
the same as men for the same type of work, the gender gap in wages would persist
until comparable occupations were paid similar wages. Comparable-worth advo-
cates want jobs rated according to a set of impartial criteria—education, experience,
responsibility, working conditions, and so on. Under this system, comparably rated
jobs would pay the same wage. A librarian with a master’s degree, ten years of ex-
perience, and a 40-hour workweek, for instance, would be paid the same as an engi-
neer with a master’s degree, ten years of experience, and a 40-hour workweek.
Most economists are critical of comparable-worth proposals. They argue that
a competitive market is the best mechanism for setting wages. It would be nearly
impossible, they claim, to measure all of the factors that are relevant for determin-
ing the right wage for any job. Moreover, the fact that traditionally female occupa-
tions pay less than traditionally male occupations is not by itself evidence of
discrimination. Women have in the past spent more time than men raising chil-
dren. Women are, therefore, more likely to choose occupations that offer flexible
hours and other working conditions compatible with child-rearing. To some ex-
tent, the gender gap in wages is a compensating differential.
Economists also point out that comparable-worth proposals would have an
important unintended side effect. Comparable-worth advocates want the wages in
traditionally female occupations to be raised by legal decree. Such a policy would
have many of the effects of a minimum wage, which we first discussed in Chapter
6. In particular, when the wage is forced to rise above the equilibrium level, the
quantity of labor supplied to these occupations would rise, and the quantity de-
manded would fall. The result would be higher unemployment in traditionally fe-
male occupations. In this way, a comparable-worth law could adversely affect
some members of groups that the policy is aimed at helping.
Q U I C K Q U I Z :
Why is it hard to establish whether a group of workers is 
being discriminated against?
◆
Explain how profit-maximizing firms tend to 
eliminate discriminatory wage differentials.
◆
How might a discriminatory 
wage differential persist?
C O N C L U S I O N
In competitive markets, workers earn a wage equal to the value of their marginal
contribution to the production of goods and services. There are, however, many
things that affect the value of the marginal product. Firms pay more for workers
who are more talented, more diligent, more experienced, and more educated be-
cause these workers are more productive. Firms pay less to those workers against
whom customers discriminate because these workers contribute less to revenue.
c o m p a r a b l e w o r t h
a doctrine according to which jobs
deemed comparable should be paid
the same wage

---

C H A P T E R 1 9
E A R N I N G S A N D D I S C R I M I N AT I O N
4 3 3
The theory of the labor market we have developed in the last two chapters ex-
plains why some workers earn higher wages than other workers. The theory does
not say that the resulting distribution of income is equal, fair, or desirable in any
way. That is the topic we take up in Chapter 20.
O
VER THE PAST SEVERAL YEARS
, 
THE IDEA OF
comparable worth—sometimes called
pay equity—has made a comeback
among some political leaders.