Sunday, March 26, 2006

Sunday 26th March

Oh dear, I actually got off my lazy backside and wrote a long piece, which I seem to have deleted. I'll be quick then - the Tim post which is worthy of a comment today is the one on education and women's earnings.

To summarise the post which is now sitting in some cache in the sky.

1. Tim has written a lot of good and informative posts on this.
2. I think he rather glosses over the use of the 'educated' in Alison Wolf's article, which in turns means 'professional' and refers (in this case) to only 13% of women in employment.
3. The full article though also mainains that the large pay gap of 66% of lifetime earnings for the least educated women (compared to 12% for educated women with children) is due to rational choices on part-time work and bringing up children.
4. That educated women are having fewer children because of a 12% lifetime pay gap seems strange, and Wolf's article doesn't really explain it, though I think she means also in terms of time at work foregone and the cost of bringing up children.
5. Where I might differ from Tim here is that I think his policy desires would make things worse. The nation has an interest in its poplation being maintained. That less-educated women have children therefore is a good thing. The huge pay loss they take (66% of lifetime earnings) is partly made up by government subsidies - child benefit, child trust fund, free heathcare and free education. Tim wants to do away with this and replace it with a negative income tax. This would almost certainly lower the income of lower-educated women, and would certainly raise the relative cost of having children. It's unclear what it would do for the choices of higher-educated women.

3 Comments:

Anonymous Anonymous said...

Congratulations on starting such a worth while blog, the inaccuracies and bias demonstrated by this right-wing economist need to be exposed. It does strike me as a little odd however, that with all the out pouring of this evil chap, that this site has so little to refute or contradict.


Regards Tom

6:52 AM  
Anonymous Hugh Janus said...

What a fucking pointless blog.

9:09 AM  
Blogger Tim Worstall said...

Might as well make an appearance here.

One thing. I’m not an economist. A bad class of degree in the subject 20 odd years ago doesn’t qualify me. Interested amateur is about right.

Right wing? I think of myself as classically liberal.

10:40 AM  

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