Most women still work in female-dominated jobs and at lower wages than men typically earn. This phenomenon puzzles supply-side economists, who believe that the demands of the marketplace and the play of self-interest dictate that all inequities in economic status engendered by discrimination must eventually disappear. One of their number, Solomon Polachek, has recently proposed a supply-side explanation for job segregation by gender that emphasizes the depreciation of human capital while one is on leave from work.
This theory posits that human beings are a form of capital: investments (such as education or job experience) increase market value and depreciation (such as unemployment or voluntary absence from work) decreases market value. Polachek argues, on the basis of this theory, that wage depreciation occurs if a person has lower real wages upon returning to employment than he or she had on quitting. In addition, Polachek asserts that some occupations entail greater risks of wage depreciation than others and that women, who are much more likely than men to plan intermittent full-time employment, may choose occupations with low depreciation penalties in order to maximize lifetime earnings. Since most men, on the other hand, plan continuous full-time employment, they can afford to choose occupations that demand consistent maintenance and improvement of skills. Thus, according to Polachek, differences in employment continuity lead to gender differences in the jobs chosen to maximize lifetime earnings, and hence gender segregation in the workplace is a product of rational pecuniary choices made by male and female workers.
Polachek’s thesis, though quite sophisticated, is not supported by empirical evidence. Contrary to Polachek’s prediction, women in predominantly male occupations suffer the same wage depreciation rates as women in predominantly female occupations. These findings tell us that for women the depreciation penalty—the amount by which real wages drop during periods away from employment—is no lower in female- than in male-dominated jobs. Nor, as some other economists have proposed, do female-dominated jobs have higher entry-level salaries, though much lower wage-appreciation rates, than male-dominated jobs. Thus, there is no economic advantage to women in choosing female-dominated jobs.
Breakdown of the passage:
Paragraph 1: Sets up the problem - women often work in lower-paying, female-dominated jobs. Supply-side economists are puzzled by this. Polachek's theory on job segregation by gender is introduced.
Paragraph 2: Polachek's theory is unpacked - the theory essentially says that employment continuity leads to the job segregation we see. Men and women choose different jobs due to different career continuity expectations.
Paragraph 3: The rug gets pulled from under Polachek's feet! Evidence is shown that doesn't support his theory. Women, it seems, face similar wage depreciation in both male- and female-dominated jobs. And female-dominated jobs don't offer lower wage depreciation or higher starting salaries.
Overall Passage Summary: Polachek's got a theory that he thinks explains why we see gender-based job segregation. It sounds decent at first, but the facts don't back him up. So, we're still left with the big question - why does this job segregation happen?
Question 1: Which of the following best describes the organization of the passage?
(A) An example is cited and elaborate to explain a new theory.
This option is incorrect because there isn’t a specific example discussed in the passage. Instead, the passage debates a broad phenomenon and a theory explaining it.
(B) A puzzle is described, and two competing solutions are analyzed.
This option is incorrect because the passage does not describe two competing solutions, only one (Polachek’s theory) which is then criticized.
(C) A theory is summarized and applied to a concrete situation, and data supporting it are presented.
This option is incorrect because although Polachek's theory is summarized, no data supporting the theory is presented. Instead, data that refutes the theory is offered.
(D) A phenomenon is noted, an explanation is put forward, and the explanation is criticized.
This is the correct answer. The passage indeed notes the phenomenon of gender job segregation, presents Polachek's theory as an explanation, and then criticizes that explanation.
(E) An observation is confirmed and explained by the application of a new theory.
This option is incorrect because Polachek's theory doesn't confirm the observation; instead, it attempts to explain it but is then refuted by empirical data.
Question 2: According to the passage, which of the following is true of the majority of female workers?
(A) They are given raises as frequently as male workers are.
This is not mentioned in the passage, so we cannot select this option.
(B) They are more interested in steady employment than male workers are.
The passage actually suggests the opposite, implying that women are more likely to plan intermittent full-time employment. Hence, this option is incorrect.
(C) They are laid off more often than male workers are.
There is no mention in the passage about layoffs or their frequency, so this option can't be the right answer.
(D) They are uneasy about the possibility of wage depreciation.
While Polachek's theory suggests this, the passage does not provide any direct evidence that women feel uneasy about wage depreciation.
(E) They are employed in occupations dominated by women.
This is the correct answer. The passage states right at the beginning that most women work in female-dominated jobs.
Question 3: Which of the following best expresses the main idea of the passage?
(A) Polachek’s explanation of job segregation by gender does not adequately explain why women work predominantly in lower-paying, female-dominated jobs.
This is the correct answer. The passage presents Polachek's theory and then criticizes it, noting that it fails to account for empirical evidence.
(B) Human capital theory has been used by a number of supply-side economists, most notably Polachek, to explain job segregation by gender.
This option is incorrect as it oversimplifies the argument presented in the passage and focuses too much on human capital theory. The main idea is more about critiquing Polachek's theory, not just explaining it.
(C) Recent empirical work indicates that wage depreciation occurs at roughly the same rates in male- and female-dominated jobs and that these jobs do not differ significantly in the entry-level salaries they offer.
While these facts are included in the passage, they're not the main idea. They are used to refute Polachek's theory, but they don't encapsulate the entire argument of the passage.
(D) New economic theories explaining job segregation by gender will eventually help employers to equalize the gender composition of their work forces.
The passage does not suggest that new economic theories will lead to equalization of gender composition. This option is not correct.
(E) There is little evidence to support the claim that individuals consciously choose occupations on the basis of maximizing lifetime earnings.
This is not the main idea of the passage. While it touches on the choice of occupation, the focus is on critiquing Polachek's explanation of job segregation by gender, not on the decision-making process of individuals.
Question 4: According to the passage, some economists have suggested that which of the following is a characteristic of female-dominated jobs as compared to male-dominated jobs?
(A) They provide greater job security.
This is not mentioned in the passage. The passage doesn't discuss job security in relation to female-dominated jobs, so we can eliminate this choice.
(B) They pay higher starting salaries.
This is the correct answer. The passage mentions that some economists have suggested that female-dominated jobs might have higher entry-level salaries, even though the passage later refutes this notion.
(C) They require less preemployment training.
The passage does not make this claim. There is no mention of the level of preemployment training required for different types of jobs.
(D) They have higher depreciation penalties.
This is not mentioned in the passage. Actually, it is stated that women in both female and male-dominated occupations suffer the same rates of wage depreciation.
(E) They give leaves of absence more readily.
This option is not supported by the passage. The issue of leaves of absence is not discussed in the context of female-dominated jobs.
Question 5: The primary function of the passage as a whole is to
(A) explain a puzzling phenomenon
This option isn't correct because the passage doesn't just explain the phenomenon; it critiques an explanation for the phenomenon.
(B) report on a current controversy
There isn't really a "controversy" discussed in the passage. It's more about an explanation and its criticism. So, this isn't the best choice.
(C) describe and criticize an explanation
This is the correct answer. The passage describes Polachek's explanation of job segregation by gender and then criticizes it based on empirical evidence.
(D) compare and contrast opposing sets of data
The passage doesn't compare and contrast data sets; it primarily provides a critique of an explanation, making this option incorrect.
(E) introduce and defend a theory
This is not correct because the passage does not defend Polachek's theory. Instead, it critiques it.
Question 6: In the discussion of Polachek's analysis of job segregation by gender, the author of the passage can best be described as
(A) respectful but unconvinced
This is the correct answer. The author presents Polachek's theory in a respectful manner, describing it as "quite sophisticated," but the author is clearly unconvinced, providing empirical evidence that contradicts the theory.
(B) intrigued but disappointed
The author doesn't express intrigue or disappointment, just a disagreement with the theory, making this option incorrect.
(C) puzzled and dismayed
There's no indication in the passage that the author is puzzled or dismayed, so we can eliminate this option.
(D) surprised and alarmed
The author doesn't express surprise or alarm in the passage. The tone is more of disagreement and critique, not shock.
(E) contemptuous and dismissive
This choice isn't accurate because while the author disagrees with Polachek's theory, the tone isn't contemptuous or dismissive. The author provides a reasoned critique.
Question 7: It can be inferred from the passage that Polachek assumes which of the following about individuals who are about to make career decisions?
(A) They have trained themselves as well as possible for the careers they are about to enter.
While this might be a fair assumption in some cases, the passage does not specifically mention anything about individuals training themselves for careers. Therefore, we cannot select this as the correct answer.
(B) They have spent little time thinking about their long-term employment futures.
Polachek's theory is based on individuals considering their long-term employment futures, including the depreciation of their skills, making this statement contradictory to what's presented in the passage. We can eliminate this option.
(C) They are aware of the depreciation penalties for the various jobs they are considering.
This is the correct answer. Polachek's theory assumes that individuals are aware of the risks of wage depreciation in their chosen occupations and make choices based on that awareness.
(D) They are attracted to those jobs that offer the highest entry-level wages.
While wage is definitely a factor in job selection, Polachek's theory emphasizes the consideration of wage depreciation more than the appeal of entry-level wages. Therefore, this choice is not the best fit.
(E) They will choose occupations on the basis of their interest in the kind of work being offered.
Polachek's theory is based on the premise that individuals make rational pecuniary choices, focusing on the economic aspect, not necessarily on their interest in the work. So, we can eliminate this option.
Question 8: If wage differentials by gender were to persist, it can be inferred from the passage that supply-side economists like Polachek would be likely to draw which of the following conclusions?
(A) Wage depreciation has occurred even during short periods of unemployment
This statement does not necessarily follow from the passage. The passage discusses wage depreciation in the context of leave from work, not specifically unemployment, so we cannot select this as the correct answer.
(B) Wage depreciation penalties continue to be uneven across occupations.
This is the correct answer. If wage differentials by gender persist, it might indicate to supply-side economists like Polachek that wage depreciation penalties differ across occupations, reinforcing his theory of individuals choosing jobs based on the risk of wage depreciation.
(C) Human-capital theory continues to apply to occupational choices of males but not to those of females.
This conclusion does not follow from the passage. Polachek's theory applies to both men and women, stating that their job selection differs based on different expectations of employment continuity.
(D) Gender stereotyping continues to have a strong effect on occupational choice.
Polachek's theory doesn't center on gender stereotyping, but rather on rational pecuniary choices made by individuals. Therefore, we can eliminate this option.
(E) Individual self-interest continues to be over-ridden in planning employment continuity.
This contradicts Polachek's theory which assumes that individuals are making rational pecuniary choices. Thus, we can eliminate this option.