Work Relocations Aggravate the Gender Pay Gap – The University of Chicago Booth School of Business

Report on Gender Bias in Household Relocation Decisions and its Impact on Sustainable Development Goals

Key Findings and Implications for SDG 5 (Gender Equality)

• Research indicates that household decision-making models are heavily weighted towards male income, undermining gender equality in career progression.
• A study of heterosexual couples found that the likelihood of relocation doubled when the male partner faced job loss compared to the female partner, highlighting a direct challenge to SDG 5’s goal of ending gender-based discrimination.
• This gender norm restricts women’s ability to pursue career opportunities in different locations, positioning them as “tied movers” whose economic potential is secondary.
• Such biases limit women’s full and effective participation in economic life and their opportunities for leadership and career advancement.

Economic Consequences and Relevance to SDG 8 (Decent Work and Economic Growth)

1. Suppressed Female Income: The prioritization of male careers contributes to women experiencing larger and more sustained income drops following job loss, hindering progress towards decent work for all.
2. Suboptimal Household Economics: By undervaluing female income, households often forego opportunities to maximize their collective earnings, which can negatively impact overall economic growth and prosperity.
3. Unequal Access to Employment: The reluctance to relocate for a woman’s career limits her access to full and productive employment, directly conflicting with the principles of SDG 8.

Addressing Systemic Barriers to SDG 10 (Reduced Inequalities)

• The research challenges the notion that the gender pay gap is solely attributable to “child penalties,” identifying a more pervasive societal norm that devalues women’s professional contributions.
• This norm, which favors male career growth, is a significant driver of the gender pay gap following both childbirth and geographic relocation, thereby perpetuating economic inequality.
• Addressing this systemic bias is crucial for achieving SDG 10, as it represents a fundamental barrier to reducing income inequalities and promoting the economic inclusion of women.

Analysis of Sustainable Development Goals in the Article

SDGs Addressed in the Article

• SDG 5: Gender Equality

  The article directly addresses gender inequality by examining how societal norms influence household decisions regarding career moves. It highlights a bias that prioritizes men’s careers over women’s, stating that “couples put more weight on the income earned by the man than that of the woman.” This leads to unequal economic opportunities and outcomes, which is a core issue of SDG 5.

• SDG 8: Decent Work and Economic Growth

  The discussion revolves around employment, job loss, income, and career opportunities. The article explains how gender norms can hinder “decent work for all” by creating disadvantages for married women. It explicitly links these norms to economic consequences, such as why “women face larger income drops after losing a job than men do” and how they contribute to the gender pay gap, which are central concerns of SDG 8.

• SDG 10: Reduced Inequalities

  The article focuses on inequalities of outcome and opportunity based on gender. The finding that households “act as if a woman’s income is worth less than a man’s” points to a systemic inequality within the family unit that has broader economic repercussions. This directly relates to SDG 10’s goal of reducing inequalities and promoting the social and economic inclusion of all individuals.

Specific SDG Targets Identified

1. Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life.

   The article demonstrates a barrier to women’s full economic participation. The phenomenon of women being “tied movers” who “struggle to seize career opportunities in different locations” shows a lack of equal opportunity in making career-advancing moves. This directly hinders their ability to achieve full and equal participation in economic life.

2. Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value.

   The research provides a direct explanation for the gender pay gap, a key component of this target. The article states that the “societal norm favoring men’s career growth can explain the gender pay gap.” By showing that women experience income reductions as a result of joint relocation decisions, the article addresses the challenge of achieving equal pay and productive employment for women.

3. Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of… sex…

   The article highlights a lack of economic inclusion for married women. The finding that a couple’s likelihood of moving “doubled when the man faced a job loss” compared to the woman facing one underscores how women’s economic stability and career progression are not equally prioritized. This demonstrates an inequality that prevents their full economic empowerment and inclusion.

Indicators for Measuring Progress

1. The Gender Pay Gap

   The article explicitly mentions the gender pay gap as a key outcome of the described gender norms. It states that the research helps “explain the gender pay gap” and that the same norm is the “reason for the gap after a couple moves.” The difference in income drops between men and women after a job loss is a measurable indicator of this economic disparity.

2. Likelihood of Relocation Based on Gender

   A clear, quantifiable indicator implied in the article is the differential probability of a household moving based on which partner loses a job. The research finds that “the likelihood of moving doubled when the man faced a job loss, underscoring a gender norm prioritizing men’s career progress.” This ratio serves as a direct measure of the bias in household decision-making.

3. Income Changes for “Tied Movers”

   The article implies an indicator related to the economic outcome for women who relocate for their husband’s career. It notes that women may be “‘tied movers,’ benefiting less from relocating” and “even experiencing income reductions as a result.” Measuring the income changes for women who move as part of a couple versus those who move individually would be a specific indicator of this phenomenon.

Table of SDGs, Targets, and Indicators

Source: chicagobooth.edu