New York City Implements Ban, but the Impact on Earnings Goes Beyond Gender
Obese individuals face discrimination in various aspects of their lives, and the workplace is no exception. Previous studies have shown that obese workers earn significantly less than their slimmer counterparts. In an effort to address this issue, several state and local governments in the United States are considering laws to ban weight-based discrimination. On November 22nd, New York City became one of the first places to enforce such a ban. However, new research suggests that the costs of weight discrimination may be even greater than previously thought, affecting both men and women.
The Wage Penalty for Obesity:
Contrary to the prevailing belief that only women experience an obesity wage penalty, recent analysis by The Economist using data from the American Time Use Survey reveals that both men and women suffer from lower earnings due to obesity. While at an aggregate level, men’s body-mass index (BMI) is unrelated to their wages, the situation changes for well-educated men. Obese men with university degrees face a wage penalty of nearly 8%, even after accounting for other factors such as age, race, education, and marital status. The findings hold true for women as well, with obese women experiencing a wage penalty of 12% for those with a bachelor’s degree and 19% for those with a graduate degree.
The Impact of Education and Occupation:
The research also reveals that the higher the level of education, the greater the wage penalty for obesity. Obese men with a bachelor’s degree earn 5% less than their slimmer colleagues, while those with a graduate degree face a 14% wage penalty. Similarly, obese women with a bachelor’s degree earn 12% less than their thinner counterparts, and those with a graduate degree experience a 19% wage penalty. Furthermore, the study finds that the wage disparities due to obesity are most pronounced in high-skilled jobs. Obese workers in healthcare and management roles, for example, earn significantly less than their slimmer colleagues.
The Cost of Wage Discrimination:
Considering the overall impact of weight discrimination on earnings, the costs borne by overweight workers in the United States are substantial. A rough estimate suggests that obese women alone face a total cost of around $30 billion per year due to a 7% wage penalty. However, when accounting for the discrimination faced by men and the higher wage penalty experienced by more educated individuals, the total cost to this larger group more than doubles to $70 billion per year.
Addressing the Issue:
While some cities and states have implemented bans on appearance-based discrimination, including weight-based discrimination, the effectiveness of these measures remains questionable. The recent ban on weight-based discrimination in New York City is unlikely to have a significant impact, as analysis of a similar ban in Michigan, which has been in place for nearly 50 years, shows no reduction in the obesity wage penalty. Outlawing prejudice is one thing, but eradicating it from society is a far more complex task.
Conclusion:
Weight discrimination in the workplace is a pervasive issue that affects both men and women, particularly those with higher levels of education. The research conducted by The Economist highlights the significant wage penalties faced by obese individuals, emphasizing the need for further measures to address this form of discrimination. While bans on weight-based discrimination have been implemented in some areas, the true impact of these policies remains uncertain. Efforts to combat weight discrimination must go beyond legislation and focus on fostering inclusive workplaces that value diversity and promote equality for all employees.
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