Wages of Sexism, Part II

A creative new study reveals a new dimension of the wage gap between men and women:

In previous studies, academics have looked at variables like years of education and the effects of outside forces such as nondiscrimination policies. But gender was always the constant. What if it didn't have to be? What if you could construct an experiment in which a random sample of adults unexpectedly changes sexes before work one day?

Kristen Schilt, a sociologist at the University of Chicago and Matthew Wiswall, an economist at New York University, couldn't quite pull off that study. But they have come up with the first systematic analysis of the experiences of transgender people in the labor force. And what they found suggests that raw discrimination remains potent in U.S. companies.

Schilt and Wiswall found that women who become men (known as FTMs) do significantly better than men who become women (MTFs). MTFs in the study earned, on average, 32% less after they transitioned from male to female, even after the authors controlled for factors like education levels. FTMs earned an average of 1.5% more.