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Wage Determination - the value of Fatherhood

Jonny Clark

25th April 2016

Research released by a left-leaning think tank in conjunction with the TUC has revealed figures that suggest wage discrimination goes beyond the standard issue of gender equality. The research (read the report here) suggests that men with children earn, on average, 21% more than males without children. Indeed, men with 2 children earn (on average) 9% more than those with only one child.

The report gives 2 suggested causes of this increase of one-fifth in average wages. The first is that men with children may be inclined to work longer hours then those without (for various socio-economic reasons). The second is that employment discrimination may well be in evidence - research in the US has suggested that employers look more favourably on men with children then those without (and against women) and are more likely to employ fathers.

Have a think about how you might represent that on an MRP diagram. TUC suggestions on what to do about this research data can be found here.

Jonny Clark

Jon Clark has been teaching economics and business studies for over 25 years primarily in the Further Education sector. Before joining tutor2u, he was a senior manager at South Cheshire College in Crewe.

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