Men’s earnings have fallen since 1970’s, Census says

THE GENDER pay gap has begun narrowing over the last four decades – and women’s earnings are now closer to men’s. But that is not only because women are doing better.

The trend is also in part because men are earning less. Earnings for men have fallen in the decade since the recession, and are even below levels for much of the 1970s and 1980s.

Men are still paid about US$ 10,000 more on average than women, according to Census Bureau figures released on Wednesday, but the gender earnings gap has grown smaller.

From 1973 to 2017, men’s earnings fell by about US$ 3,200, or about five per cent, in numbers adjusted for inflation. Earnings for African-American men fell even more steeply than those of white men, according to experts.

“We’re talking about a 40year period of people working full-time who are not doing better than their fathers and grandfathers did, and are basically doing worse,” said Mark Rank, an inequality expert at Washington University in

We’re talking about a 40-year period of people working full-time who are not doing better than their fathers and grandfathers did, and are basically doing worse. It’s a really striking pattern going on over a long period of time.

St Louis. “It’s a really striking pattern going on over a long period of time.”

Census data show that average earnings for men fell again in 2017, the first year of the Trump administration. They fell for this same group in four of the eight years of the Obama administration as well: 2011, 2013, 2014, and 2016.

Women still face enormous barriers in the labour market, including gender discrimination in hiring and pay, as well as sexual harassment. Women’s earnings are still only 81 per cent that of men, essentially unchanged from last year, as inflation-adjusted earnings fell slightly for both genders, according to the Census.

But women’s average earnings have crept upwards slowly over the long and short run, in healthy signs of progress, while those of men have not. Since 2010, average earnings have fallen by about US$ 2,000 for men. They have risen by about US$ 500 for women over the same period.

The Census figures published Wednesday did show an increase in median household income, which jumped to an all-time high of US$ 61,372. But that increase appears to have been driven by an addition of workers to the labor force, which drives up overall median income even though it does not mean median earnings rise for those who are working, according to Rank.

Experts disagree about the cause of the decline in men’s earnings, with some pointing to the decline in manufacturing jobs and others citing the long decline of organised labour in America.

In the early 1980’s, close to one in every four men was in a union. Now only about 11 per cent of men are in a union, while 10 per cent of women are unionised. Several studies have pointed to a link between higher wages and union membership, which allows workers to bargain for higher wages.

“The deterioration of unions has had a rougher effect on men’s incomes because men had been much more a part of organised labour,” said Lawrence Mishel, an economist at the Economic Policy Institute, a left-leaning think-tank.

The decline of unions has particularly damaged the economic fortunes of black men. From 1983 to 2015, the wage gap between black men and white men grew by about three per cent among older men, according to research by Valerie Wilson, an economist at the Economic Policy Institute. About half of that can be explained by the decline of unionization -- both in terms of fewer people in a union, and less generous wages for those in them – over that period of time, Wilson found. (1983 is the earliest year for which those numbers are available.)

“The general trend is wages have been fl at or declining for white and black men,” Wilson said. “But they’ve fallen more for black men.”

Some conservatives cast doubt on the Census data showing wage and income declines, with Brian Riedl of the Manhattan Institute noting they are closely tied to volatile infl ation measures that may be artificially lowering long-run earnings. But Riedl also acknowledged a troubling lack of readily available highpaying jobs for men compared to several decades ago.

“It’s certainly true that for working class males a few decades ago a high school diploma was a ticket to a pretty good union job in manufacturing, and that’s not the case anymore” Riedl said. “But there is no great solution – no single lever we can pull – to help working class men with high school diplomas suddenly gain upper-middle class incomes.”

Mark Rank, inequality expert