100 Percent Myth: The 77 cent wage gap statistic needs to go away.

July 22, 2015

Yesterday, The Way Station bar in Brooklyn sold drinks to women at a discount – 77 percent of their full price. Why? The bar announced, “According to The White House, full-time working women earn just 77 cents for every dollar a man earns. That’s some shameful s—-. So The Way Station is going to do something about it. On July 7th, or 7/7, this dubious honor will be recognized by charging all women 77 percent of what they owe, all night long.”

This latest stunt is consistent with the narrative that the statistic that women make 77 cents for each dollar men make is evidence of rampant sex discrimination. As I’ve written before, the use of the statistic this way has been widely debunked. It doesn’t take into account individual choices – choices that we want people to have – such as the type of work, hours worked and education level. And these choices impact earnings.