IT SEEMS AS THOUGH EVERYONE KNOWS THAT WOMEN GET PAID less than men. However, as this section shows, it’s only true that some women get paid less than men. It is important to understand which women get paid less, and why. As it turns out, there are good reasons for the difference.
Once these reasons are identified, the problems with so-called “equal pay” legislation can be understood. Whenever legislators pass measures that distort market incentives, there will be unintended consequences. Such consequences are often the exact opposite of the desires of the proponents.
This section includes two speeches and several newspaper articles, including a brief exchange with a critic who favors such legislation and objects to the interpretation offered here.