The Gender Gap

Abstract

The gender gap, like the minority achievement gap, has lately become a hot issue Women are underpaid, undervalued. and overworked across the board But in our rational economy, what could explain the persistence of this phenomenon? A preferential demand for lower paid women should drive their salaries up until they reach the level of men's. The logic seems impeccable, but it is not borne out by the facts. This article provides an explanation based on the coupling of two distinct institutions the family and the market. Families are all about sharing and using common property resources. Firms. instead, use private property to produce private goods and maximize profits. As far as instituations go. the family and the market could not be further apart, yet they Are undeniably intertwined. The way that each responds to the other is critical in understanding and resolving the unequal situation of women in our society.