The baby pay gap is still alive and kicking

Women aren't "the richer sex".

The Spectator's cover story this week is another re-examination of the changing face of the gender pay gap - somewhat provocatively titled "the Richer Sex".

Needless to say, women are not actually the richer sex. Their median wage remains 11 per cent below men's in the latest comprehensive study by the ONS, from 2007. Instead, the piece's author, Liza Mundy, touches on two trends which she sees in the UK.

The first is that, as the pay gap narrows (and it is narrowing – it is down from 16.5 per cent in 1997), the number of women earning more than their male partners will inevitably increase. Mundy highlights the apparently devastating effects that has on these "pursewhipped" men (a word apparently "slowly entering the English language", though not slowly enough):

I interviewed a woman I'll call Felicity, who married a gregarious salesman earning a third of what she did, But while he enjoyed the lifestyle her money could buy, he came to resent it. He started working less, playing golf more and watching TV instead of coming to bed with her. She wasn't surprised when she found his stash of online porn, but was still shocked. She ended up going into therapy.

Much the same argument was made, reduced to its barest essentials, by Tony Parsons on Woman's Hour in May, when he told Jane Garvey "my penis would literally fall off [if my wife earned more than me]. Literally, Jane, it would literally fall off."

Thankfully, this epidemic of shrivelled members is still a long time coming, because the gender pay gap has more structural reinforcement than Mundy makes out.

She correctly points to the fact that, in the first third of their lives, women – particularly educated, middle-class women – have largely closed the gap. Take the continued better performance of girls at GCSE, or her example of university education:

Women receive 58 per cent of all undergraduate degrees. Half of trainee barristers and 56 per cent of medical students are women, compared with 25 per cent in the 1960s.

And the increased success of younger women has paid off: between the ages of 24 and 32, the pay gap is negative. Younger women earn more than younger men.

But therein lies the rub. Munz optimistically assumes that this will continue; as that cohort ages, the gender gap will disappear, and women will actually become the richer sex. But the evidence points to a different outcome. The gender pay gap hasn't disappeared, it's just become a baby pay gap:

The pay gap between women and men with no children is 8.0 per cent. The pay gap between women and men with four children is 35.5 per cent. (For one child, it's 12.3, two is 14.9, and three is 19.0).

The pay gap between men and women who are married, cohabiting or in a civil partnership is 14.5 per cent; the pay gap between single men and women is -1.1 per cent. For the purposes of the point I am making, of course, one can read "single" as "unlikely to have a child any time soon".

It's not even enough to not have children, either. Once a woman reaches an age where potential employers think she might have children, the pay gap starts to widen.

The problem is that we have a legal system which emphatically reinforces the idea of women as carers, and from that we get the society we deserve. With the discrepancy between paternity and maternity leave, it's made unfairly difficult for a family to fight traditional gender roles. And so while I hope that Munz is right, and that we will start "calling into question the old notion that women are 'hard-wired' to seek providers", we can't just hope that a generation of smart girls will do it for us.

She might be earning more now, but it won't last... Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty Images
Show Hide image

There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR