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Vol. 3, Issue 2, February 2007

in this issue

Gender Pay Gap Widening

ID Theft: Don't Be a Victim

Fast Facts


 

Gender Pay Gap Widening
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According to the Labor Department, women from all economic levels made significant gains in narrowing the pay gap between them and their male counterparts throughout the 1980s and mid-90s. Francine Blau, a Cornell economist and researcher of gender and pay, notes that women’s pay made the greatest gains in the 1980s, reaching a high in the mid-90s. At that time, women were earning 75 cents for every dollar in hourly pay that men did, but that trend has slowed.

Since the mid-90s, the pay gap between college- educated women and college-educated males has widened slightly, while the gap for women without a college education has narrowed slightly. Reasons for this disparity include discrimination and the choices women make regarding their work.

The Labor Department reports that the number of women choosing to stay home with young children is rising. By far, the largest increase has been among highly educated women, those who would likely earn the highest salaries. Moreover, the rate at which women are entering into high-earning fields is also slowing.

Some experts argue that women have more responsibility for care-taking of families, forcing them to choose between career and family or perhaps choosing lower paying jobs. Those who hold this view contend that government-sponsored daycare programs like those offered in many European countries would make it easier for women to have greater choice.

Others believe that fewer women today give such a high priority to money. They argue that women choose to forgo a career in favor of taking care of family or simply prefer jobs in sectors that offer them greater satisfaction through helping others (e.g., service-related or nonprofit jobs).

Claudia Goldin, a Harvard economist, asks whether society truly wants women to have an equal opportunity to work long weekly hours during their prime reproductive years. While she believes women should have an equal chance, she goes on to say that society does not expect “women will take that chance equally often.”

Regardless of whether women’s preferences contribute to the pay gap, many women say they continue to experience subtle forms of prejudice in the workplace. The Economic Policy Institute reports that the pay gap between men and women of similar qualifications and work in the same field has barely moved since 1990. Women say that discrimination today frequently comes from bosses who believe they treat everyone equally. Nonetheless, women report barriers that prevent them from attaining the best jobs. A notable example is the much-publicized class- action lawsuit against Wal-Mart, where women allege they are paid significantly less than their male counterparts in similar jobs. (Source: New York Times news service)



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  • ID Theft: Don't Be a Victim
  • thief

    A number of friends have recently had their identities stolen. I also had a recent scare when the American Red Cross said a laptop had been stolen that had blood donor information on it, including address and social security numbers. In light of this fast-growing trend, I felt it would be helpful to alert you of some ways you can protect yourself.

    A few months ago, a lawyer gave a presentation to my Rotary club on how to freeze access to your credit. She said this is one of the best ways to protect yourself from the most common form of ID theft. By freezing access to your credit, no one can go to a car dealer or a department store, for example, and receive instant credit. If you plan to purchase a car or a home, you can temporarily have the freeze lifted.

    While it costs $30 to freeze your credit, it’s well worth the money and the small amount of time it takes to do this in order to protect yourself. You could end up spending years trying to undo the damage that occurs from ID theft. Experts say the typical victim of ID theft ends up paying more than $30,000 by the time he or she hires a lawyer to intervene with creditors, plus the time spent in contacting creditors and getting a new driver’s license, social security card, and credit cards. Years later, victims are often still dealing with the consequences.

    For example, a receptionist in my office complex recently had her identity stolen by an employee of a dry cleaners where she regularly shopped. He stole her credit card number, along with those of more than 900 other customers. Another person had her information stolen by someone who sifted through her apartment complex’s trash compactor and found unsolicited credit card offers.

    Buy a confetti shredder immediately if you don’t have one. Instead of discarding your mail or old bills, shred every item that has your address or other personal information on it. Lock up important documents and bills so no one can break into your home and gain access to your sensitive information.

    Sign up at the social security website to request an annual report of your salary and social security benefits. This way, you can discover early on if someone is illegally using your social security number. You could end up owing the government for taxes on wages you never earned if someone steals your information. This type of theft is happening frequently. In North Carolina, a few month ago, several illegal immigrants were arrested who were running an ID theft ring. They had thousands of people’s driver’s licenses and social security numbers. The link I’m providing is to the North Carolina Department of Justice, but each state offers a similar service. Contact your state attorney general.

    To learn more . . .
  • Fast Facts
  • Wage and Job Growth: Recent government figures show that wages are rising for workers in many sectors, despite the housing recession. Fourth-quarter economic growth was higher than third-quarter growth for the first time since 2001-2002. Economists expect job growth to continue over the next few months. The largest gains are expected in professional services and health care. The January 2007 McKinsey Global Survey of Business Executives also reports that companies plan to increase their hiring in 2007. One interesting trend to note is that executives in India say that many of the new jobs created by their companies will be offshored, mirroring the trend of their Western counterparts. (Sources: U.S. Department of Labor and The McKinsey Quarterly)

    Behavioral and Personality Testing: Annual “Top Ten” trends and predictions for 2007 show that the staffing industry expects personality and behavioral testing for job candidates to become more widespread in 2007. The Staffing Industry Report indicates that more staffing and executive search firms will use behavioral testing as one way to find the best-fit candidates for their clients. Organizations of all sizes are increasingly turning to personality testing as part of its employment arsenal because of the growing body of research that demonstrates the validity and predictive value of personality testing. (Source: Birkman International)

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