Invest in Women, Invest in America

Invest in Women, Invest in America

A Comprehensive Review of Women In the U.S. Economy

A Report by the Majority Staff of the Joint Economic Committee Representative Carolyn B. Maloney, Chair December 2010

December 2010

The Honorable Nancy Pelosi Speaker of the House, House of Representatives Washington, DC

Dear Madam Speaker:

In 2009, you appointed me to serve as the first female Chair of the Joint Economic Committee (JEC), a bicameral Congressional committee created by Congress in 1946 to "make a continuing study of matters relating to employment, production and purchasing power" in the United States.

In the 111th Congress, as the JEC has examined ways to fuel our country's economic recovery, it has become clear that we must leave no stone unturned. One of our greatest assets in our effort to reinvigorate the country's economy is the know-how and talent of American women. As America steers its way out of the Great Recession, women's participation in the labor market, leadership in corporate boardrooms, and power over household purchases will be critical for economic growth. When we invest in women, we invest in the future of our economy.

In order to have a fuller understanding of the potential that women have to play a stronger role in our recovery, I asked the JEC Majority staff to produce a series of hearings and reports that together would provide a comprehensive assessment of women's role in the economy. It is my hope that this compendium, Invest in Women, Invest in America: A Comprehensive Review of Women in the U.S. Economy, and the facts, data, and forecasts relating to women and the economy it includes, become part of a public record that will help policymakers, economists, private-sector leaders, media, and everyday women and men determine whether policies promote or inhibit women's ability to be powerful contributors to economic growth.

In the ongoing effort to make women full and equal players in the United States economy ? perhaps one of the biggest economic stories in this nation's history ? the Joint Economic Committee has played a critical role in highlighting how women have fared in employment, earnings, education, jobs, and financial institutions. Since the 1970s, the JEC has analyzed the impact of the tax system, Social Security, and other social welfare institutions on women's economic well-being. It has chronicled the trends, challenges, and needs of American women workers as they seek to be part of a vibrant economy. The JEC's historic series of hearings in 1973 entitled The Economic Problems of Women and chaired by Representative Martha Griffiths, the House sponsor of the Equal Rights Amendment, set forth the economic rationale for women's equality. In 1983, a series of hearings, chaired by Senator Olympia Snowe (then a Member of the House of Representatives), explored the changing role of women in the workforce, especially their role in buffering families from the full impact of the 1980s recession. It is appropriate, therefore, that the JEC build on its previous work and prepare this compendium focused on women's contributions ? and impediments to further contributions -- to the economy.

Prepared by the Majority Staff of the Joint Economic Committee

The 111th Congress took key actions to help with some of the challenges that women are facing in today's workplace. As the attached report highlights, one important issue confronting women is gender discrimination. Although women are important contributors to family income, they face gender pay discrimination, earning only 77 cents for every dollar earned by men. Additionally, women are underrepresented in management, especially in upper management, of our country's largest companies. The 111th Congress took action to help eliminate the gender pay gap by passing the Lilly Ledbetter Act of 2009. Additionally, the Dodd-Frank Wall Street Reform Act should boost women's representation in business leadership by establishing an Office of Minority and Women Inclusion at each federal financial services agency. The attached report also highlights other challenges facing women in today's economy that were addressed by the 111th Congress, including discriminatory pricing practices by health insurance companies, which were banned by the Affordable Care Act of 2010; unfair lending practices and lack of transparency in financial products, which were addressed by the Dodd-Frank Wall Street Reform Act of 2010; and the need for additional dollars for early care and education for the children of low-income women, which received a funding boost from the American Recovery and Reinvestment Act of 2009.

At a time when the goals of economic growth and prosperity are coupled with a heightened emphasis on fiscal responsibility, looking at the economy through a gendered lens is all the more critical. The decisions we make today will have dramatic impacts on our nation's future economic well-being, and we must carefully consider what those decisions will mean for women, both as consumers and as producers. For example, Social Security reforms that cut entitlements are likely to disproportionately impact women because of their longer life spans and lower lifetime earnings. Further, women are more often unpaid caregivers for family members and these responsibilities have an impact on their participation in the work force. Legislative action, such as the right to request a flexible work schedule and greater support for early care and education, would benefit American women, their families and the economy.

2010 marked the 90th anniversary of the 19th Amendment to the Constitution, which granted women the right to vote. It is my hope that this JEC report on women's economic well-being and labor force participation will shine a light on our path to full economic equality.

Sincerely,

CAROLYN B. MALONEY Chair, Joint Economic Committee

Prepared by the Majority Staff of the Joint Economic Committee

Invest in Women, Invest in America:

A Comprehensive Review of Women in the U.S. Economy

December 2010

Joint Economic Committee

Invest in Women, Invest in America: A Comprehensive Review of Women in the U.S. Economy

Part I: Invest in Women, Invest in America

A. Decades of Progress for Women in the Workforce..............................................................5 B. Women's Potential Power....................................................................................................7 C. What's Holding Women Back?...........................................................................................8 D. Potential Solutions.............................................................................................................15

Part II: Compendium of JEC Reports and Hearings from the 111th Congress

A. Women in the Economy Today.......................................................................................31 1. Report: "Women in the Economy 2010: 25 Years of Progress but Challenges Remain" (October 2010)............................................................................................33 2. Report: "Easing the Squeeze on Women and Their Families" (May 2009).................................................................................................................44 3. Report: "Women in the Recession ? Working Mothers Face High Rates of Unemployment" (May 2009).....................................................................................49 4. Report: "Working Mothers in the Great Recession" (May 2010).............................59

B. Equal Pay..........................................................................................................................65 1. Hearing: "Equal Pay for Equal Work? New Evidence on the Persistence of the Gender Pay Gap" (April 2009) a. Testimony: Lisa Maatz, Director of Public Policy and Government Relations, American Association of University Women........................................................67 b. Testimony: Randy Albelda, Professor of Economics, University of Massachusetts-Boston............................................................................................78 c. Testimony: Andrew Sherrill, Director, Education, Workforce, and Income Security Issues, Government Accountability Office.............................................88 2. Hearing: "New Evidence on the Gender Pay Gap for Women and Mothers in Management" (September 2010) a. Testimony: Andrew Sherrill, Director, Education, Workforce, and Income Security Issues, Government Accountability Office.............................................99 b. Testimony: Ilene H. Lang, President and Chief Executive Officer, Catalyst, Inc.........................................................................................................109 c. Testimony: Michelle J. Budig, Associate Professor of Sociology, University of Massachusetts-Amherst.................................................................134 3. Report: "Earnings Penalty for Part-Time Work: An Obstacle to Equal Pay" (April 2010)..............................................................................................................149 4. Report: "Large Pay Gap for Older Workers Threatens Economic Security of Older Women" (December 2010).........................................................154

Prepared by the Majority Staff of the Joint Economic Committee

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Invest in Women, Invest in America:

A Comprehensive Review of Women in the U.S. Economy

December 2010

Joint Economic Committee

C. Access to Benefits...........................................................................................................159 1. Report: "Comprehensive Health Insurance Reform: An Essential Prescription for Women" (October 2009)...........................................161 2. Report: "Expanding Access to Paid Sick Leave: The Impact of the Healthy Families Act on America's Workers" (March 2010)..................................185 3. Hearing: "Balancing Work and Family in the Recession: How Employees and Employers Are Coping" (July 2009) a. Testimony: Ellen Galinksy, President, Families and Work Institute.................................................................................198 b. Testimony: Karen Nussbaum, Executive Director, Working America.................................................................................................232 c. Testimony: Cynthia Thomas Calvert, Deputy Director, The Center for WorkLife Law.............................................................................240

D. Retirement Security.......................................................................................................247 1. Report: "Social Security Provides Economic Security to Women" (August 2010)..........................................................................................................249

E. Appendix.........................................................................................................................253 1. Report: Government Accountability Office. 2009. Gender Pay Gap in the Federal Workforce Narrows as Differences in Occupation, Education, and Experience Diminish. 2. Report: Government Accountability Office. 2010. Women in Management: Female Managers' Representation, Characteristics, and Pay.

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Prepared by the Majority Staff of the Joint Economic Committee

Invest in Women, Invest in America:

A Comprehensive Review of Women in the U.S. Economy

December 2010

Joint Economic Committee

PART I: INVEST IN WOMEN, INVEST IN AMERICA

Prepared by the Majority Staff of the Joint Economic Committee

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Invest in Women, Invest in America:

A Comprehensive Review of Women in the U.S. Economy

December 2010

Joint Economic Committee

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Prepared by the Majority Staff of the Joint Economic Committee

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