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Gender Inequality, Bargaining, and Pay in Care Services in the United States

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  • Nancy Folbre
  • Leila Gautham
  • Kristin Smith

Abstract

The authors argue that paid providers of care services in the United States (in health, education, and social service industries) are less able than providers of business services to capture value-added or to extract rents because limited consumer sovereignty, incomplete information regarding quality, and large positive externalities reduce their relative market power. In addition, many care jobs enforce normative responsibility for others and require specific skills that limit cross-industry mobility. Analysis of Current Population Survey data for 2014 to 2019 reveals significant pay penalties in care services relative to business services, controlling for factors such as gender, education, occupation, and public or private employment. Women’s concentration in care services explains a significant proportion of the gender wage gap and raises the possibility of significant potential benefits from industry-level bargaining strategies.

Suggested Citation

  • Nancy Folbre & Leila Gautham & Kristin Smith, 2023. "Gender Inequality, Bargaining, and Pay in Care Services in the United States," ILR Review, Cornell University, ILR School, vol. 76(1), pages 86-111, January.
    • Handle: RePEc:sae:ilrrev:v:76:y:2023:i:1:p:86-111
    DOI: 10.1177/00197939221091157
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    References listed on IDEAS

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    Cited by:

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    2. Armanda Cetrulo & Dario Guarascio & Maria Enrica Virgillito, 2024. "Two neglected origins of inequality: hierarchical power and care work," LEM Papers Series 2024/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Nancy Folbre, 2023. "The Hybrid Vigor of Heterodox Economics: A Feminist Perspective," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 16(1), pages 222-242, Annual.
    4. Francine D. Blau, 2025. "Gender Inequality in the Labor Market: Continuing Progress?," ILR Review, Cornell University, ILR School, vol. 78(2), pages 275-303, March.
    5. Leila Gautham & Nancy Folbre & Kristin Smith, 2024. "Earnings inequality and the expansion of care services in the United States, 1985–2019," Industrial Relations Journal, Wiley Blackwell, vol. 55(2), pages 119-140, March.

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