Bryce Covert

Editor

Recent Posts by Bryce Covert

  • How to Fix the Gender Wage Gap: Going Far Beyond an App

    Feb 2, 2012Bryce Covert

    To change the wage gap, we have to change systemic problems like unionization, work-family policies, and gender segregation.

    To change the wage gap, we have to change systemic problems like unionization, work-family policies, and gender segregation.

    The first piece of legislation that President Obama signed into law after being elected was the Lilly Ledbetter Fair Pay Act. The Act expanded the statute of limitations for cases alleging pay discrimination based on gender. Yet three years after the signing, the gender wage gap has barely budged. It remained statistically unchanged, with women earning 77.4 percent of what men make.

    Obama mentioned this gap briefly in his State of the Union and followed up with a video message about the necessity of ensuring that women make the same as men for equal work. The White House also has an Equal Pay Enforcement Task Force, whose mission is to address loopholes in existing legislation, coordinate the many offices and efforts to enforce current laws, and seek more information on the gap for the public and the government to take more action.

    The Task Force announced an Equal Pay App Challenge this week asking for "help in building innovative tools to educate the public about the pay gap and promote equal pay for women." To help with the challenge, Salary.com is releasing its collection of salary data for more than 4,000 jobs for the first time in its history for use in the app. "Knowing what your job pays is an integral part of negotiating a fair wage," said general manager Abby Euler.

    According to IWPR, nearly half of all U.S. workers are either contractually forbidden or strongly discouraged from discussing their pay with coworkers. While there isn't a direct link between pay secrecy and the wage gap, the gap persists despite the fact that the Equal Pay Act of 1963 prohibits employers from paying women less than men (and vice versa). As IWPR writes, this is in many ways because "in practice, employer policies regarding pay secrecy, including threats of retaliation, make it difficult for workers to discover pay discrimination and effectively use these rights."

    So an app that better allows employees to find out salary information could have an impact on closing the gap. But unfortunately, solutions like these won't address the entire problem, because its roots are systemic. To seriously take action that changes the wage gap, President Obama and Congress would have to look at a variety of solutions, many of which are politically unpalatable.

    For starters, unionization is associated with a lower pay gap. The gap starts to close among men and women who belong to a union compared to those who don't -- unionized women earn 87.8 percent of men's wages versus their non-union counterparts who earn 79.9 percent. IWPR's research shows that unions also help to reduce pay secrecy: half as many unionized workers as nonunion workers are discouraged or prohibited from sharing that information with coworkers. But unionization rates have been flat in recent years and have fallen significantly in recent decades. And more men than women are unionized. That gap has been shrinking since the 1980s, but mostly due to a falloff for men. Increased unionization could be a powerful tool for women to use against employers who discriminate in pay, but the trend in the country is going in the opposite direction.

    Click here to buy Senior Fellow Richard Kirsch’s new book on the epic health care reform battle, Fighting for Our Health.

    At a more fundamental level, our policies to support mothers in the workforce are pitiful compared to other developed countries, yet they have a huge impact on the wage gap. Three-quarters of the women entering the work force will get pregnant on the job, but family leave and childcare policies barely exist.

    For instance, a recent Census Bureau analysis found that about half of working first-time mothers got no paid leave to have their babies. The share of women given time off for pregnancy, birth, and childcare has leveled off. Yet a recent Rutgers study shows, "Paid family leave increases wages for women with children." Women who take leave lasting for a month or more are 54 percent more likely to have wage increases the following year than those who don't take any leave.

    Along similar lines, a UC Berkley study of California's childcare support system found that early care and education systems have much to do with the ongoing wage gap. It says:

    Better pay and benefits are correlated with a continuous work history. Workers' careers are disrupted because of child care failure -- care that is unreliable, unaffordable, or just unavailable -- and these workers are usually women (Hofferth & Collins 2000). Periods of non-employment lead to lower wages because of "skill depreciation," loss of seniority, and sometimes being less likely to receive further training or mentoring due to questions of commitment (Kimmel 2006, p.79).

    In other words, childcare allows mothers to keep showing up at work and not have to leave jobs to care for their children. That means their wages won't be damaged for the theoretical loss of skills during those gaps.

    The wage gap is also perpetuated by occupational segregation by gender. IWPR's research shows that "irrespective of the level of qualification, jobs predominantly done by women pay less on average than jobs predominantly done by men." In fact, female-dominated occupations make only 66.9 percent of the wages in male-dominated ones at high-skill level, 79.8 percent at the medium-skilled level, and 73.8 percent at the low-skill level. Yet while there was a steady trend toward better integration of women into men's fields (and vice versa) during the 1970s and 80s, there hasn't been any progress since the mid 1990s.

    It would be nice if we could just enforce existing laws, get better informed, and therefore make the gap disappear. But the wage gap is far too entrenched for that. It will take addressing underlying issues women face in the workforce -- like union representation, work-family policies, and gender segregation -- to make progress on the pay gap.

    Bryce Covert is Editor of New Deal 2.0.

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  • Can Education Be a Driver of Equality?

    Feb 1, 2012Bryce Covert

    Finland's educational success proves that a focus on social justice produces solid outcomes.

    Education was rightly big on Obama's agenda in his State of the Union address last week. As he noted, "[T]o prepare for the jobs of tomorrow, our commitment to skills and education has to start earl[y]." He proposed solutions to getting better outcomes from kindergarten to higher ed. But his eyes were mostly on containing the system we have.

    Finland's educational success proves that a focus on social justice produces solid outcomes.

    Education was rightly big on Obama's agenda in his State of the Union address last week. As he noted, "[T]o prepare for the jobs of tomorrow, our commitment to skills and education has to start earl[y]." He proposed solutions to getting better outcomes from kindergarten to higher ed. But his eyes were mostly on containing the system we have.

    Yet on a more general level, we're still having a conversation as a country about what we mean when we say that we owe every child a decent education. We're currently trying to fix an issue fundamentally about social justice by focusing on accountability, competition, and choice. A conversation about values -- the purpose of education and what it should bring each child -- is lacking. Why do we educate children? Is the end goal a higher salary? High test scores? Or something else?

    Education isn't just about creating better widgets for a smooth running economic machine; it's also about ensuring equality of opportunity to all of our citizens. We used to view education this way, but somehow that framing has gotten away from us. But the example set by Finland's success shows that by keeping a focus on equality, the other desired outcomes will follow.

    Finland has been making news recently for topping the PISA survey of 15-year-old achievement in reading, math, and science in OECD countries. And rightly so: its students rank second in math, second in science, and third in reading. Where do you think the U.S. stands? At a pitiful 24th place for reading, 30th for science, and 32nd for math. Yet, as Anu Partanen writes in an article for The Atlantic, Finland has no standardized tests. There are no lists of best schools or teachers. Finnish doesn't even have a word for accountability. Instead, the emphasis is on equality of opportunity across all of its schools. They all rise and fall together.

    On top of this, no Finnish child pays a cent for education during his or her lifetime. None of the schools are allowed to charge tuition fees, and even its small number of independent schools are publicly financed. This goes for grade school and grad school alike.

    Finland's education policy focus, in stark contrast to the U.S., is not about competition and choice. It's about equality. As Partanen writes, "Since the 1980s, the main driver of Finnish education policy has been the idea that every child should have exactly the same opportunity to learn, regardless of family background, income, or geographic location. Education has been seen first and foremost not as a way to produce star performers, but as an instrument to even out social inequality." And that focus has fostered success for all.

    Click here to buy Senior Fellow Richard Kirsch’s new book on the epic health care reform battle, Fighting for Our Health.

    Many will get to this point in the post and scoff that the United States is nothing like Finland. Therefore it can't possibly stand as a comparable example of what we might be doing. And it's true that Finland is much smaller and more homogenous. But its immigrant population has been rising without changing its educational outcomes. Going further, Finland's percentage of foreign-born residents is identical to a full 18 states here at home -- and education is almost entirely doled out at the state level in our country. And even if we continue to refuse the comparison, we can compare it to Norway, which has taken an approach to education very similar to ours. Yet Norway has produced mediocre PISA results.

    As part of a mission to establish education as a driver of social equality, the issue of tuition has to be front and center. As I said, Fins don't pay a single cent for education, even if they go as far as getting a PhD. Could we do something similar here? Higher education offers one possibility. The skyrocketing cost of college is no secret. Yet most reforms focus on controlling high tuition and subsidizing the loans used to pay for it. What would it mean if instead we made college free? Mike Konczal added up all the money spent on subsidizing higher education through loans and found out that it's not far from what it would take to simply pay for each student's degree.

    Meanwhile, the cost of a private elementary school education is getting closer to the price of a private college education at the same time that "failing" public schools are being shut down. A recent data analysis by the New York Times showed that the median price of a private first grade education has risen 35 percent nationally over the last decade, while the price of an Ivy League college education has only risen 24 percent. This trend is far starker in New York City, and while the city is notorious for inflated prices, it offers a glimpse into rising private tuitions alongside closing public schools. About 35 public schools have been scheduled to close this year. Meanwhile, the price of a first grade education has risen by 48 percent in the past ten years. Tuition at two schools, in fact, is higher than Harvard's. We're pricing many families out of a decent education. We can do better to extend accessible and quality education to every student.

    Finland's approach to education puts equality squarely at the center of the conversation. And the U.S. is in desperate need of solutions for our yawning inequality. Obama said himself, "No challenge is more urgent. No debate is more important... [than] restor[ing] an economy where everyone gets a fair shot..." Because that's not the reality we live with. In our reality, the gap between the richest one percent and the rest of us more than tripled over the last three decades, leading to a level of income inequality not seen since the Great Depression. Education can be one piece of our arsenal in fighting this inequality. And it will probably lead to better outcomes.

    Bryce Covert is Editor of New Deal 2.o.

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  • Jeff Madrick and Tom Ferguson Sound Off on Real Messages of the SOTU

    Jan 27, 2012Bryce Covert

    After Obama's State of the Union on Tuesday, Roosevelt Institute Senior Fellows Jeff Madrick and Tom Ferguson took to the airwaves to dissect it. Was there substance behind the soaring rhetoric? Can the proposed policies really solve our economic ills?

    Jeff Madrick joined Eliot Spitzer on Keith Olbermann's Countdown, and his analysis could be summed up as: "It was a tougher speech than I expected."

    After Obama's State of the Union on Tuesday, Roosevelt Institute Senior Fellows Jeff Madrick and Tom Ferguson took to the airwaves to dissect it. Was there substance behind the soaring rhetoric? Can the proposed policies really solve our economic ills?

    Jeff Madrick joined Eliot Spitzer on Keith Olbermann's Countdown, and his analysis could be summed up as: "It was a tougher speech than I expected."

    Despite what some naysaying economic advisers may be telling President Obama, "he said forget about all those constraints," Jeff pointed out. "Let me go after the Chinese, let me develop some tax breaks, let me develop some tax penalties." Those FDR fans among us may remember his famous welcoming of Wall Street's hatred, a stance Obama has mostly shied away from. Yet, as Jeff notes, not only did he go after Republicans in Congress and big oil, "he said some pretty nasty things about Wall Street."

    His policy proposals were important too, Jeff said. "Few things are as unambiguous as a need as updating the American infrastructure," and that was a big part of his "constant mention of jobs." Plus there was a heavy emphasis on bringing back manufacturing, although the question remains as to whether that's really possible.

    Meanwhile, Tom Ferguson, while "intrigued" by some of the policies, was "underwhelmed" overall. He told Paul Jay of the Real News Network that "when you start to look at the details" of Obama's proposals, they're "almost meaningless."


    More at The Real News

    Take the plan to have a massive mortgage refinancing program. That could be "a really striking thing and it would likely have a huge effect on the economy," Tom said. But "their record in the last three years is they keep announcing programs and they all fail." Plus the taskforce on mortgage abuses "looks to me like an effort to to rein in the attorneys general" at the state level, he said.

    Things were worse when it came to the "utter tameness" of the ideas around money in politics, Tom said. While banning Congress from insider trading is a good idea, "he's not really touching the essence of the money in politics problem," he points out. "He's basically punted on that one." What could he have proposed that would work? "You could do a lot by simply making the federal election commission a serious part of the civil service to get it out from under its ridiculous domination by Congress," Tom suggests. It's not just Citizens United that should be on reformers' radars.

    And overall, while some of the economic policies may sound good, the underlying push from the administration for austerity and a focus on the deficit went unaddressed. "My guess is that these folks are not planning to change course on the economy," he concludes.

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  • Was the Womancession Addressed in the SOTU?

    Jan 26, 2012Bryce Covert

    Beyond some symbolic gestures, keeping women employed may be fading from the president's radar.

    In President Obama's speech before a joint session of Congress in September of last year, I didn't expect to hear much about the womancession. But I was pleasantly surprised. The plan he put forward had the womancession in its crosshairs: it included $30 billion to prevent up to 280,000 teacher layoffs, among other supports to keep women in the public sector in their jobs.

    Beyond some symbolic gestures, keeping women employed may be fading from the president's radar.

    In President Obama's speech before a joint session of Congress in September of last year, I didn't expect to hear much about the womancession. But I was pleasantly surprised. The plan he put forward had the womancession in its crosshairs: it included $30 billion to prevent up to 280,000 teacher layoffs, among other supports to keep women in the public sector in their jobs.

    Government jobs are key to keeping women employed. During this weak recovery period, women have gained only three percent of the 1.4 million jobs added to the economy. And while men's unemployment rate rose dramatically during the recession, it's now fallen to a level where it may be converging with women's: men now stand at 8 percent while women are at 7.9. Public sector layoffs have had a lot to do with it: while women represent just over half of the public workforce, they lost 65 percent of the jobs cut. According to the White House itself, as of October nearly 300,000 education jobs had been lost, over half of all the job losses in local government. Women make up the overwhelming majority of teachers.

    Obama's State of the Union on Tuesday took a different approach. Teachers were lauded for the difficult tasks they perform everyday, sometimes dipping into their own measly pay to buy classroom necessities. But the focus was mostly on improving education, not on helping teachers avoid getting laid off. Education is without question an issue begging to be addressed in this country. It's vital we keep investing in it in order to have a skilled workforce and spread equality of opportunity. But the issue of employment was off the docket.

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    Women have also been hemorrhaging jobs in the private sector, a fact that won't be addressed by his focus on bringing manufacturing back. Those manufacturing jobs are going to men. Symbolically, however, there was a nod toward some women who have been losing a huge amount of the private sector jobs: secretaries. As of July, women had lost a total of 925,000 jobs as office and administrative support, while men had gained 204,000, even though women make up 75 percent of these jobs.

    Warren Buffett's secretary was in attendance, getting a long time in the camera's spotlight, although she was there as an example of everyday Americans who pay lower tax rates than those with lots of investments. But as Addie Stan tweeted during the speech, it was poignant to have a secretary stand in as an example of working Americans. Even if the fact that they're losing jobs wasn't mentioned, we should keep them in mind when we talk about the working class.

    He also mentioned the gender wage gap, an issue pressing down on women in tough economic times. Yet it only warranted a quick reference. It's not the sort of problem that can be solved just by naming it.

    Obama's renewed focus on fairness is refreshing and important. Women have been waiting for economic fairness for a long time. Many of the policies put forward on Tuesday are important and, if enacted, will help the economy for men and women alike. But the womancession may be slipping off his radar.

    Bryce Covert is Editor of New Deal 2.0.

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  • Meet the Millennials Who Are Changing the World

    Jan 24, 2012Bryce Covert

    Who says young people aren't paying attention? This year's Roosevelt Institute | Campus Network Senior Fellows have ideas that aim to solve issues from boosting economies in developing countries, finding new thinking in the Arab world, and ending the school-to-prison pipeline. They may still be in school, but their ideas could reach every corner of the country -- and even the globe. Watch them talk about their inspiring projects:

    Who says young people aren't paying attention? This year's Roosevelt Institute | Campus Network Senior Fellows have ideas that aim to solve issues from boosting economies in developing countries, finding new thinking in the Arab world, and ending the school-to-prison pipeline. They may still be in school, but their ideas could reach every corner of the country -- and even the globe. Watch them talk about their inspiring projects:

    Whoever thinks that young people are only good for knocking doors and showing up on election day hasn't spoken to these students. Ahmad wants to "think about things in a new way" after the Arab Spring. David plans to "engage a whole new group of students in policy activism" through new approaches to global warming. May wants to "give [students] the power to talk to administrations, draft things out, look at budgets and be like, 'Wow, this really isn't effective.'" And Rajiv wants to "make sense of the byzantine way in which [health care] policy is created."

    You won't find apathy here. Stay tuned for an upcoming series on all of the ideas proposed by Campus Network students for the annual 10 Ideas publication.

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