No, Women Don’t Make Less Money Than Men

In 2014, President Obama repeated a spurious gender wage gap statistic in his State of the Union address. “Today,” he said, “women make up about half our workforce. But they still make 77 cents for every dollar a man earns. That is wrong, and in 2014, it’s an embarrassment.”

What is wrong and embarrassing is the President of the United States recited a massively discredited factoid. The 23-cent gender pay gap is simply the difference between the average earnings of all men and women working full-time. It does not account for differences in occupations, positions, education, job tenure, or hours worked per week. When all these relevant factors are taken into consideration, the wage gap narrows to about five cents. And no one knows if the five cents is a result of discrimination or some other subtle, hard-to-measure difference between male and female workers. In its fact-checking column on the State of the Union that year, the Washington Post included the president’s mention of the wage gap in its list of dubious claims. “There is clearly a wage gap, but differences in the life choices of men and women… make it difficult to make simple comparisons.”

Consider, for example, how men and women differ in their college majors. Here is a list (PDF) of the ten most remunerative majors compiled by the Georgetown University Center on Education and the Workforce. Men overwhelmingly outnumber women in all but one of them: