Market failure in city gender inequality
Study of the labour market includes market failures and gender inequality. It seems to me that, ever since the start of the financial crisis that led to the recession, there has been a series of reports suggesting that if there were more women in positions of power in the city institutions that lost control of their lending, this would never have happened. This is now confirmed by a committee of MP’s (which includes only one woman) which is currently studying the role of women in the City and has been told by a (male) professor from the London School of Economics that a more cautious approach, rather than an “alpha male” one, would be beneficial. Professor Charles Goodhart explained that the more cautious and long-term outlook of women could prove to be a more positive trait than the more aggressive risk-taking stance of men. However, another LSE professor told the committee of MPs that there is a need for a change of culture in the City before this can happen. It seems that women are well-represented on the boards of the FTSE top 250 companies, but very under-represented on the boards of the FTSE 100. In Norway there is a quota system; 40% of board members must be female. Clare Dobie, of the City Women’s Network told the committee that recruiters could do much to help the problem which her organisation sees as an issue of too little demand rather than a shortage of supply of women who are good enough for the job. A report last month from the Equality and Human Rights Commission found that women working in the city are paid on average 39% less than men doing the same job. Women start on a lower salary and never make up the difference. They also earn bonuses which are up to five times smaller than those earned by their male colleagues - on average, women get bonuses of £2,875 compared with £14,554 for men.
However the gender pay gap should be addressed there does remain a practical difficulty though: John Cridland, deputy director general of business group the CBI, said “As in many other areas of business, women applying for the top jobs need more flexibility with hours and childcare responsibilities” . How long will it remain the case that it is the women who need this flexibility, and not the men?
Most Popular Topic Tags on the Economics Blog
recession, demand, economics, unemployment, prices, price, inflation, investment, costs, trade, profit, employment, debt, supply, downturn, euro, gdp, confidence, competition, risk, china, capacity, exports, production, incentives, oil, expectations, manufacturing, sterling, housing, pay, food, profits, banks, tutor2u, globalisation, mortgage, property, revision, retailers, slowdown, borrowing, usa, innovation, emissions, dollar, deflation, airlines, supermarkets, entrepreneur, monopsony, efficiency, productivity, google, elasticity, moodle, wealth, aqa, keynes, protectionism, welfare, consumption, externalities, saving, opec, economist, inequality, strategy, depression, competitiveness, economic cycle, tim harford, stocks, depreciation, jobs, monopoly, infrastructure, carbon, credit crunch, poverty, cars, eu, bank of england, vle, environmental, carbon trading, spare capacity, budget deficit, environment, subsidy, wages, market failure, management, regulation, evaluation, output gap, losses, behavioural, government failure, steel, climate change, construction, macroeconomics, imports, oligopoly, japan, bbc, skills, cpi, commodities, farming, newsnight, paul mason, intervention, fiscal stimulus, multiplier effect, single market, currencies, population, stagflation, itunes, contestable, lse, agflation, minimum wage, interest rates, choices, aviation, amazon, quantitative easing, germany, taxes, uk economy, monetary policy, cartel, survey, nationalisation, india, brazil, rpi, pricing, dan ariely, opportunity cost, apple, pollution, oecd, rationality, keynes society, rsa, relative poverty, shipping, iphone, capital, merger, currency, imf, balance of payments, yuan, tragedy of the commons, price discrimination, current account, economies of scale, redundancies, london, savings, facebook, stakeholders, shareholder, behavioural economics, mpc, supply chain, liquidity, takeover, barriers to entry, reputation, income elasticity, poverty trap, microsoft, hamish mcrae, human capital, subsidies, discrimination, roger bootle, federal reserve, duopoly, robert peston, immigration, suppliers, us economy, quiz, gini coefficient, collapse, coffee, obama, pensions, development, national debt, consumer surplus, crowding out, etonomics, eurozone, crude oil, scarcity, labour market, petrol, ecb, taxation, tesco, free, brand, paradox of thrift, smoking, budget, cost of living, transport, labour mobility, liquidity trap, speculation, global, starbucks, recovery, iceland, allocative efficiency, behaviour, surplus, david smith, waste, shareholders, ireland, happiness, growth, information failure, vat, creative destruction, open source, cost benefit analysis, trade deficit, tariffs, northern rock, edinburgh, comparative advantage, ownership, scrappage, robert frank, ocr economics, aggregate demand, freight, diane coyle, kaletsky, royal economic society, eton college, exploitation, fishing, labour force survey, government borrowing, utility, edexcel economics, sony, leverage, marginal cost, tax, paul krugman, information, discounting, animal spirits, peter day, contestable market, anchoring, nissan, zimbabwe, european union, savings ratio, wiki, needs, internet, public sector, evan davis, public goods, heathrow, price war, hotels, energy, standard of living, contestability, hbos, stephanie flanders, twitter, wants, blog, migrants, poland, consumer welfare, aqa economics, spain, devaluation, pubs, milk, foreign exchange, indirect tax, forecast, external shocks, eu enlargement, movies, advertising, enlargement, bond, mervyn king, income elasticity of demand, property rights, blogging, ebea, accelerator, edmund conway, deforestation, house prices, copper, hot money, ucas, jim o'neill, bonds, trend growth, libor, elasticity of supply, carbon tax, income, diesel, income tax, jobless, accelerator effect, law of unintended consequences, bric economies, guardian, youth unemployment, john kay, google wave, fixed costs, deficit, global economy, sub-prime, economic efficiency, exchange rates, vacancies, research, biofuel, profit margin, renewable, companies, joint venture, price capping, price mechanism, natural monopoly, world bank, martin wolf, training, startups, competition commission, gilts, geoff riley, immobility, coal, fairness, producer surplus, congestion, greece, redundancy, social costs, will king, sentiment, corus, base rate, walmart, ageing population, disposable income, equity, collusion, tickets, oil prices, fair trade, dynamic efficiency, obesity, social entrepreneur, russia, real income, res, binge drinking, philip allan, low pay, price fixing, king of shaves, vehicles, broadband, cash, tariff, hysteresis, tata, supply-side, government spending, eastern europe, internet explorer, income distribution, compound interest, contestable markets, positional goods, repossession, economax, sustainability, general motors, satisficing, students, green shoots, ftse, age structure, frictional, logic of life, pay floor, disincentives, yahoo, oft, aldi, resources, gillette, liberalisation, blackberry, negative externalities, migration, economics revision, financial times, fiscal drag, healthcare, asda, market structure, cadbury, credit, ryanair, wheat, market power, winners curse, apprenticeships, british airways, deindustrialisation, hidden unemployment, demography, cyclical, sovereign debt, credit cards, declan curry, nokia, renewable energy, optimal currency area, anti-trust, public good, decoupling, markets, rory cellan-jones, diseconomies of scale, the economist, barclays, economic welfare, tax burden, undercover economist, child poverty, retailing, pension, landfill, schumpeter, gold, veblen goods, enterprise, brics, redistribution, floating exchange rate, unintended consequences, vertical integration, structural, nairu, costa, monetary policy committee, nhs, reserve currency, single currency, football, job losses, nelson thornes, scotland, deleveraging, green revolution, drugs, collaboration, hyperinflation, automatic stabilisers, monopoly power, podcast, o2, motor industry, pay cuts, real gdp, ocr as economics, global business,All tags
ECONOMICS TEACHER RESOURCE NEWSLETTER
Join over 4,000 other Economics Teachers in the UK and around the world who receive the tutor2u Economics Resource Email newsletter. Get special offers, first news of latest resources, teaching ideas, conferences and workshops.
Recent Threads on the Economics Teacher Discussion Forums:
Posts in: General Economics Teaching
Need help. - Economic Growth
Economies of scale presentation A2
Economic development
International Competitiveness
Keynesian Aggregate Supply
Demand Supply (% VAT Imposed) How to...?
Policy conflict and the Euro
Registering for the tutor2u VLU
Video Case-study - lunchtime prices slashed
Long Exam Example to Use for Revision Please?
