Wanting what works to work

A book with the title is very enticing. Could the author, behavioural economist Iris Bohnet, really have the effective, evidence-based techniques for improving the earnings and job market outcomes of women relative to men? Does she have the answer to the dilemma that a woman can get on by acting like a man, only to be criticised and disliked for being unfeminine.

[amazon_image id=”0674089030″ link=”true” target=”_blank” size=”medium” ]What Works: Gender Equality by Design[/amazon_image]

Well, Bohnet’s list of interventions is very persuasive and she cites plenty of supporting evidence. The first part of the book sets out the evidence of bias, conscious and unconscious. Part 2 is about people management, and focuses on businesses’ hiring, promotion and management. Part 3 is about education. The final part is a set of broader insights about ‘designing’ diversity and covers topics such as the importance of role models, the effectiveness of diverse groups in decision-making contexts (boards and elsewhere), and the role of social norms, of transparency, and indeed of ‘design’, a mnemonic for ‘data, experiment and signpost’. Bohnet argues that use of data uncovers bias, experimenting with changes, and using signposts – largely behavioural nudges – to change people’s behaviour. Do this, she promises, and gender inequality could be overcome within years, not decades.

i’m inclined to agree. The book’s evidence seems solid. There are many examples, such as Google’s discovery that its female employees were twice as likely to quit as the average. It mined its data to discover that the issue was really that parents were more likelt to leave, and it therefore extended both maternity and paternity leave. Now there is no difference between male and female quit rates. The Kennedy School’s own points system (Bohnet is a professor there) looks reasonably effective.

However, the question doesn’t address is what will get institutions and businesses to bother. Even those paying lip service to gender equality don’t have a strong incentive to change their ways, run (largely) by men (largely) for men. Why would they care if profits could be a bit higher in the long run if they acted differently? Things suit them very well as they are. It is hard to see organisations implementing the ‘what works’ measures described here unless they happen to be run by men (or women) who are already converts to the cause. It’s like the old joke about how many psychiatrists it takes to change a lightbulb (only one, but the lightbulb has to really want to change).

So I am ever more certain that tougher legislation will be required to get things moving. Targets for women on the boards of listed companies. Mandated minimum quotas for women and members of minorities in the senior ranks of bodies funded by taxpayers. When that day comes, all those institutions will be able to turn to this book to find out how to do it.

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Non-rational economic man

This past couple of days I’ve been attending the IDEI/Toulouse School of Economics digital economics conference, where the Suzanne Scotchmer Memorial Lecture was given by Joshua Gans.

Josh has a new book out soon (March), definitely one to look forward to, The Disruption Dilemma. The blurb says: “Almost twenty years ago Clayton Christensen popularized the term in his book , writing of disruption as a set of risks that established firms face. Since then, few have closely examined his account. Gans does so in this book. He looks at companies that have proven resilient and those that have fallen, and explains why some companies have successfully managed disruption — Fujifilm and Canon, for example — and why some like Blockbuster and Encyclopedia Britannica have not. Departing from the conventional wisdom, Gans identifies two kinds of disruption: demand-side, when successful firms focus on their main customers and underestimate market entrants with innovations that target niche demands; and supply-side, when firms focused on developing existing competencies become incapable of developing new ones.”

[amazon_image id=”0262034484″ link=”true” target=”_blank” size=”medium” ]The Disruption Dilemma[/amazon_image]

However, his lecture was on his paper on the market for scholarly attribution, which interprets the assignment of co-authorship between senior and junior scientific researchers in terms of a signalling model. It was very interesting and perhaps sheds some light on the growing trend toward larger numbers of co-authors on science papers. The day afterwards, Justin Wolfers wrote in the New York Times about a new paper by Heather Sarsons showing among other results that women get zero credit for papers on which they are listed by co-authors (unless the others are also women). While this is a finding that will not surprise any female academics, it’s also kind of shocking to see the empirical results so starkly. No doubt Josh will blog about the gap between the rational world of his model and the non-rationality of male economists.

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Economics and its women problem

It’s International Women’s Day and my Sunday newspaper has a big feature asking ‘Does Tech Have a Women problem?’ (bizarrely, for a tech supplement, not online). A question to which the answer is ‘Duh!’ Shockingly (for a social science), economics isn’t any better. Noah Smith forcefully pointed this out in a recent column.  In the UK, the Royal Economic Society is soon due to publish another report on the proportion of women at different levels in the academic hierarchy, but there’s no reason to think it will be better than the 2012 outcomes. My university is celebrating its women with a little film (including me, hmm) but I don’t think my department is any better than the norm for economics.

There’s no quick fix; it will take a mixture of encouraging female role models for young women economists and students (especially while still at school), making sure all-male panels don’t feature at conferences, raising the consciousness of hiring and promotion panels so they do not confuse “best candidate” with “male”, and so on.

Start today by reading some relevant economics books! I just read Katrine Marçal’s  (I’m reviewing it elsewhere) and although irritating in some if its generalizations about economics, it’s terrific about the role of women in the economy and economics, and is a short and enjoyable read. One of its central arguments is about the need to measure better (mainly) women’s unpaid work outside the market, not included in GDP, something also advocated in my . As the chart below shows, the increase in the UK’s female economic activity rate during the past generation has been substantial (up from 55.5% to 72.4%) and it is extraordinary not to have regular data that make it possible to evaluate the consequences of switching between unpaid and marketed work.

UK female economic activity rate 1971-2014, source ONS

Jonathan Gershuny and his team gather time-use data to explore who does what in the non-market economy in the UK – a new survey is due to be published early in 2016. The database on their website has a bibliography of relevant publications covering time use data from around the world.

[amazon_image id=”B00TOLYFOS” link=”true” target=”_blank” size=”medium” ]Who Cooked Adam Smith’s Dinner?: A Story About Women and Economics[/amazon_image]  [amazon_image id=”1861342004″ link=”true” target=”_blank” size=”medium” ]Seven Years in the Lives of British Families: Evidence on the Dynamics of Social Change from the British Household Panel Survey[/amazon_image]  [amazon_image id=”B00MXDLPSI” link=”true” target=”_blank” size=”medium” ]GDP: A Brief but Affectionate History by Coyle, Diane (2014) Hardcover[/amazon_image]

Recently I reviewed here  by Mukesh Eswaran. Women younger than me are unlikely to have read Simone De Beauvoir’s  – it was all the rage among 1970s/80s vintage feminists. It’s a book that changed my life. Although far more about culture than about economics, it places huge emphasis on the vital need for economic autonomy for women. There is of course a Journal of Feminist Economics. Amartya Sen’s eye-opening article about missing women is 15 years old now. Nothing has changed. The attitudes in India to rape are shocking evidence of that.

[amazon_image id=”B00QASWUU4″ link=”true” target=”_blank” size=”medium” ][(Why Gender Matters in Economics)] [ By (author) Mukesh Eswaran ] [September, 2014][/amazon_image]  [amazon_image id=”0140034633″ link=”true” target=”_blank” size=”medium” ]The Second Sex (Penguin Modern Classics)[/amazon_image]

It would be great to gather more reading suggestions – welcome in comments or via Twitter.

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The Worldly Philosophers – the better half

Yesterday’s post on the women problem in economics prompted a comment asking who would be included in a female version of Robert Heilbroner’s classic . A Twitter conversation later, here is my curated version of the suggestions.

Harriet Martineau

[amazon_image id=”0875802923″ link=”true” target=”_blank” size=”medium” ]Writings on Slavery and the American Civil War[/amazon_image]

[amazon_image id=”0253333938″ link=”true” target=”_blank” size=”medium” ]The Complete Works of Harriet Taylor Mill[/amazon_image]

Clara Collet

[amazon_image id=”1103312634″ link=”true” target=”_blank” size=”medium” ]Educated Working Women: Essays on the Economic Position of Women Workers in the Middle Classes[/amazon_image]

[amazon_image id=”1931859361″ link=”true” target=”_blank” size=”medium” ]The Essential Rosa Luxemburg: Reform or Revolution and the Mass Strike[/amazon_image]

[amazon_image id=”0521297311″ link=”true” target=”_blank” size=”medium” ]My Apprenticeship[/amazon_image]

[amazon_image id=”B002B5X2MK” link=”true” target=”_blank” size=”medium” ]Social Science and Social Pathology [By] Barbara Wootton, Assisted by Vera G. Seal and Rosalind Chambers[/amazon_image]

Joan Robinson

[amazon_image id=”B00I70KLUY” link=”true” target=”_blank” size=”medium” ]The Accumulation of Capital (Palgrave Classics in Economics)[/amazon_image]

Phyllis Deane

[amazon_image id=”B00425W4WG” link=”true” target=”_blank” size=”medium” ]The First Industrial Revolution. Second Edition.[/amazon_image]

Anna Schwartz

[amazon_image id=”0691137943″ link=”true” target=”_blank” size=”medium” ]The Great Contraction, 1929-1933 (Princeton Classic Editions)[/amazon_image]

Elinor Ostrom

[amazon_image id=”0521405998″ link=”true” target=”_blank” size=”medium” ]Governing the Commons: The Evolution of Institutions for Collective Action (Political Economy of Institutions and Decisions)[/amazon_image]

There were also Twitter suggestions about women economists living and working now, including: Anne Kruger, Dambisa Moyo, Ngozi Okonjo-Iweala, Emily Oster, Esther Duflo, Helene Rey, Deirdre McCloskey. But I can think of many others and I think a Worldly Philosophers-type collection would need to stop short of modern times. One needs a bit of hindsight to judge lasting influence, although I’m sure many of those on the list will qualify in time.

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Economics and women

Economics has a women problem. It’s obvious enough just looking at the talking econo-heads who appear on TV, but the data confirm the impression. Studies by the Women’s Committee of the Royal Economic Society have found that in academic research and employment, women are in a minority in economics departments, and the proportion declines the higher the level – women are under-represented as professors in particular. The latest report also finds a decline in the proportion of undergraduate economics students who are female (although numbers overall of economics students have been rising).

A new working paper (pdf) by Mirco Tonin and Jackline Wahba of the University of Southampton finds that the gender gap precedes university: despite the relatively high pay and the potential for an influential career offered by an economics degree, in the UK only 27% of students enrolling for economics degrees are female, compared to 57% of all students enrolling for university. (They use the UCAS data on acceptances for the 2008 round.) They find no evidence of universities discriminating against would-be female economists; the gap lies in the fact that girls are less likely to apply to do economics, even after controlling for individual characteristics, type of school and region. A large part, but not all, of the gap is due to the differences in girls’ A level choices at school, as they are less likely to have chosen maths and economics at 16.

The paper therefore urges better maths preparation for girls in high school, so that more of them choose to study it for longer. Some people, of course, would urge economics to become less mathematical, but I’m not one of them, although it should never be only about the mathematical models. In many ways, a more ‘real-world’ economics would need more proficiency – think, for example, about network theory, or the use of non-linear dynamic systems in macroeconomics.

The paper landed in my email in the wake of the arrival of a new book, , by Mukesh Eswaran. It’s fascinating.

[amazon_image id=”0691121737″ link=”true” target=”_blank” size=”medium” ]Why Gender Matters in Economics[/amazon_image]

There are three sections, covering: whether women and men behave differently in economic situations (more or less altruistic, risk averse etc) and their power within households when it comes to economic decisions; gender in markets, which covers the labour and credit markets and globalization; and finally a section on the institution of marriage looking at questions such as access to birth control and fertility rates. It’s a non-technical book, having grown out of an undergraduate course. It discusses these questions in the setting of both poor and rich countries. Of course, it does not summarize all the empirical literature on these questions, but it gives readers the analytical tools to think about them, and enough of a flavour of the state of evidence on the answers.

The book ends on a sombre note, reporting the evidence of a decline in the subjective well-being of women, either absolutely or relative to men, in recent data for developed and developing countries.

We certainly need more women economists for its own sake – there is likely to be distortion in the questions addressed by any subject which is only a quarter female, and an odd sociology. To give just one example, the absence of data on unpaid work in the home makes it hard to evaluate lots of policy proposals concerning (paid) labour force participation; the economists and statisticians who concluded unpaid domestic labour should be outside the GDP production boundary were men.

Beyond this, though, Tonin and Wahba are right to say that a career in economics is potentially influential. Economists wield great influence over public policy, including policies affecting the lives, economic power and ultimately the well-being of women. There is lost ground to make up. Girls, women, brush up on the maths a bit if you need to, but above all come and study economics!

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