What message do you get from the below graphic published in today's New York Times?
Of course, a graph isn't a definitive study establishing cause and effect (or lack there of) but its interesting, isn't it?
Check out the column by David Leonhardt that went with it.
Thoughts from the macroeconomists out there?
Check out this study out of the University of Minnesota: "The perception that women are scarce leads men to become impulsive, save less, and increase borrowing."
"To test their theory that the sex ratio affects economic decisions, the researchers had participants read news articles that described their local population as having more men or more women. They were then asked to indicate how much money they would save each month from a paycheck, as well as how much they would borrow with credit cards for immediate expenditures. When led to believe women were scarce, the savings rates for men decreased by 42 percent. Men were also willing to borrow 84 percent more money each month."
Sex ratios also affect women's expectations, according to the study. When there's a scarcity of women, they expect men to spend more on dates, valentine's gifts and engagement rings. Apparently, the two-months-of-your-salary rule no longer applies when the sex ratio goes your way!
A grad school pal of mine, Jeff Strohl works at Georgetown University's Center for Education and the Workforce and they just came out with this study reports that: [a]n analysis of the projected lifetime earnings of 171 college majors provides a clearer picture of what one bachelor's degree means compared to another in the labor market. And the answer can be as much as $3.64 million.
That's the difference between what petroleum engineering majors can expect to earn over a 40-year career ($4.8 million) and what counseling psychology majors could earn ($1.16 million). Even the lowest-paying major beats the $770,000 average earnings of a person who holds only a high school diploma.
And that gender and race matter: White workers and men fare best, the Georgetown study found. Even in their highest paid major, electrical engineering, blacks earn $12,000 less a year on average than Asians and $22,000 less than whites with the same major. Women tend to hold the majority of degrees in many of the lower-paying fields, such as education. Female chemical engineering majors earn on average $20,000 less a year than male counterparts.