Title

The Gender Wage Gap and the Fair Calculations Act

Document Type

Article

Publication Date

9-2020

Abstract

If enacted into law, the Fair Calculations Act would require forensic economists to ignore an injured party's gender when forecasting the loss in future earnings. We discuss how this would affect the size of awards for men and women, and some of the issues that would arise if the law is enacted. Of particular interest is the extent to which gender differences in earnings, earnings growth, and worklife expectancy are the result of sex discrimination in labor markets as opposed to sex differences in preferences. We present evidence that gender differences in human capital characteristics explain a large share of gender differences is in labor market outcomes, though there is considerable disagreement about how to interpret these results. We also show that gender differences in earnings are diminishing over time, but it is not likely that the gap will disappear in the near future. Finally, we discuss how forensic economists may have to rely on additional information when forecasting earnings if they are no longer allowed to use gender.

DOI

10.5085/JFE-444

Publisher

National Association of Forensic Economics

Publication Information

Journal of Forensic Economics

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