Earning Disparities

Earning disparities are systematic differences in wages, salaries, and total earnings between individuals or social groups, such as men and women, racial and ethnic groups, occupations, regions, and educational levels. They are measured through indicators such as the gender pay gap, racial earnings gaps, and the ratio of top to median pay. Gary Becker’s theory of taste-based discrimination and human capital theory offered economic explanations, while Jacob Mincer examined the returns to education and experience. Sociologists emphasize structural factors. Barbara Reskin and Paula England have documented occupational sex segregation and the devaluation of work done by women, and Joan Acker showed how organizations are gendered. Shelley Correll’s research on the motherhood penalty found that mothers are judged as less competent and offered lower pay. Devah Pager and Bruce Western documented the penalties of race and incarceration, and Claudia Goldin has traced the gender pay gap to greedy work and the cost of flexibility. Thomas Piketty and Emmanuel Saez have charted the rise of top incomes, and Peter Doeringer and Michael Piore’s dual labor market theory explains segmentation. Earning disparities remain central to research on inequality, discrimination, labor markets, gender, and social policy.