Understanding the gender gap

In the early part of the 20th century, Goldin explained in her UBS Nobel Perspectives interview, only a small fraction of women reported having an occupation. This undercounting of women’s work stems not only from cultural norms but also from the way labor itself was defined. Jobs considered appropriate for women—domestic labor, for instance—were often missing in formal economic data. “I began to look further back in American history, getting sources, and trying to understand what women actually did that would have gotten included in gross national product,” she said. “I started thinking about the fact that there was a vast undercount of employment and that I should go and put people back into the labor force.”

Goldin’s meticulous research ultimately shed light on the types of work that had long been omitted from official records, and thereby helped to explain the historical origins of the gender wealth gap.

The role of education in shaping economic outcomes

One of the major forces reshaping women’s roles in the economy is education, a theme that Goldin explored with rigor in her research. “My interest in education really began when I was studying the female labor force,” she explained. While education imparts skills, Goldin argues, its function extends beyond knowledge acquisition. “Education serves a very important role in certifying that the individual can do something, whether she has a law degree, or a medical degree, or a PhD.”

As more women entered white-collar professions in the 20th century, the stigmas that had previously kept married women out of the workforce began to erode. This erosion of these social norms was critical in enabling women to climb the economic ladder and secure positions that were previously closed off to them.

However, while education has played an important role in increasing women’s participation in the workforce, it hasn’t been sufficient to fully eliminate gender inequality, particularly when it comes to wealth accumulation. Goldin’s research suggests that other barriers, like gendered expectations within households particularly around care, continue to influence women’s career choices and economic outcomes.

Gendered labor market dynamics: The “greedy jobs” problem

One of the most persistent barriers to achieving gender equity in the labor force lies in the structure of jobs themselves. Goldin points to what she deems “greedy jobs” to explain how modern labor markets can reinforce gender disparities. “Work is often very greedy,” she said. “The degree to which you give up your time on vacation or weekends, the degree to which you’re on call in the office, the more you earn.”

In heterosexual couples, this dynamic often leads to an unequal division of labor, particularly when there are care duties required in the home. “The different sex couple is enticed to have one of the members of the couple take the greedy job and one take the flexible job,” said Goldin. “It’s generally the case that it’s the woman who takes the flexible job and the man who takes the greedy job.”

The result is not only a gendered disparity in earnings but also a loss of couple equity, where the sacrifices made by one partner—typically the woman—limit her long-term earning potential and wealth-building opportunities.

Contemporary challenges and solutions

Goldin’s insights suggest that solving these problems will require addressing both the structure of jobs and the support systems available for families. “One part of the solution is a solution about the jobs themselves,” she explained, calling for more flexibility and support in the workplace. In this view, firms should create conditions in which multiple workers can share responsibilities, reducing the need for any one person to take on the full burden of a “greedy” job.

However, Goldin also emphasized that workplace reforms alone are insufficient. Societies must address what she refers to as the “world of care,” ensuring that the responsibility for caregiving—whether for children, disabled, or elderly family members—does not fall disproportionately on women. In countries where care is privatized, like in the United States, care is treated as an individual requirement rather than a societal concern. This exacerbates gender inequalities in the labor market. Changing cultural expectations about gender roles within families is essential to creating a more equitable division of labor, both at home and in the workplace.

While much progress has been made, Goldin’s work reminds us that historical inequalities still cast a long shadow over women’s economic power. Addressing these challenges will require a multi-faceted approach—one that includes rethinking job structures, strengthening social support systems, and shifting cultural attitudes about gender roles. Only then can we move closer to true economic equity.