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.

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What is the EU customs union and will Brexit make us leave?

International trade secretary Liam Fox's job makes more sense if we leave the customs union. 

Brexiteers and Remoaners alike have spent the winter months talking of leaving the "customs union", and how this should be weighed up against the benefits of controlling immigration. But what does it actually mean, and how is it different from the EU single market?

Imagine a medieval town, with a busy marketplace where traders are buying and selling wares. Now imagine that the town is also protected by a city wall, with guards ready to slap charges on any outside traders who want to come in. That's how the customs union works.  

In essence, a customs union is an agreement between countries not to impose tariffs on imports from within the club, and at the same time impose common tariffs on goods coming in from outsiders. In other words, the countries decide to trade collectively with each other, and bargain collectively with everyone else. 

The EU isn't the only customs union, or even the first in Europe. In the 19th century, German-speaking states organised the Zollverein, or German Customs Union, which in turn paved the way for the unification of Germany. Other customs unions today include the Eurasian Economic Union of central Asian states and Russia. The EU also has a customs union with Turkey.

What is special about the EU customs union is the level of co-operation, with member states sharing commercial policies, and the size. So how would leaving it affect the UK post-Brexit?

The EU customs union in practice

The EU, acting on behalf of the UK and other member states, has negotiated trade deals with countries around the world which take years to complete. The EU is still mired in talks to try to pull off the controversial Transatlantic Trade and Investment Partnership (TTIP) with the US, and a similar EU-Japan trade deal. These two deals alone would cover a third of all EU trade.

The point of these deals is to make it easier for the EU's exporters to sell abroad, keep imports relatively cheap and at the same time protect the member states' own businesses and consumers as much as possible. 

The rules of the customs union require member states to let the EU negotiate on their behalf, rather than trying to cut their own deals. In theory, if the UK walks away from the customs union, we walk away from all these trade deals, but we also get a chance to strike our own. 

What are the UK's options?

The UK could perhaps come to an agreement with the EU where it continues to remain inside the customs union. But some analysts believe that door has already shut. 

One of Theresa May’s first acts as Prime Minister was to appoint Liam Fox, the Brexiteer, as the secretary of state for international trade. Why would she appoint him, so the logic goes, if there were no international trade deals to talk about? And Fox can only do this if the UK is outside the customs union. 

(Conversely, former Lib Dem leader Nick Clegg argues May will realise the customs union is too valuable and Fox will be gone within two years).

Fox has himself said the UK should leave the customs union but later seemed to backtrack, saying it is "important to have continuity in trade".

If the UK does leave the customs union, it will have the freedom to negotiate, but will it fare better or worse than the EU bloc?

On the one hand, the UK, as a single voice, can make speedy decisions, whereas the EU has a lengthy consultative process (the Belgian region of Wallonia recently blocked the entire EU-Canada trade deal). Incoming US President Donald Trump has already said he will try to come to a deal quickly

On the other, the UK economy is far smaller, and trade negotiators may discover they have far less leverage acting alone. 

Unintended consequences

There is also the question of the UK’s membership of the World Trade Organisation, which is currently governed by its membership of the customs union. According to the Institute for Government: “Many countries will want to be clear about the UK’s membership of the WTO before they open negotiations.”

And then there is the question of policing trade outside of the customs union. For example, if it was significantly cheaper to import goods from China into Ireland, a customs union member, than Northern Ireland, a smuggling network might emerge.

 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.