TEXT E In a perfectly free and
open market economy, the type of employer—government or private-should have
little or no impact on the earnings differentials between women and men.
However, if there is discrimination against one sex it is unlikely that the
degree of discrimination by government and private employers will be the same.
Differences in the degree of discrimination would result in earnings
differentials associated with the type of employer. Given the nature of
government and private employers, it seems most likely that discrimination by
private employers would be greater. Thus, one would expect that, if women are
being discriminated against, government employment would have a positive
effect on women’s earnings as compared with their earnings from private
employment. The results of a study by Fuchs support this assumption. Fuchs’s
results suggest that the earnings of women in an industry composed entirely of
government employees would by 14. 6 percent greater than the earnings of women
in industry composed exclusively of private employees, other things being
equal. In addition, both Fuchs and Sanborn have suggested that
the effect of discrimination by consumers on the earnings of self-employed women
may be greater than the effect of either government or private employer
discrimination on the earnings of women employees. To test this hypothesis,
Brown selected a large sample of white male and female workers from the 1970
Census and divided them into three categories: private employees, government
employees, and self-employed. (Black workers were excluded from the sample to
avoid picking up earnings differentials that were the result of racial
disparities. ) Brown’s research design controlled for education, labor-force
participation, mobility, motivation, and age in order to eliminate these factors
as explanations of the study’s results. Brown’s results suggest that men and
women are not treated the same by employers and consumers. For men,
self-employment is highest earnings category, with private employment next, and
government lowest. For women, this order is reversed. One can
infer from Brown’s results that consumers discriminate against self-employed
women. In addition, self-employed women may have more difficulty than men in
getting good employees and may encounter discrimination from suppliers and from
financial institutions. Brown’s results are clearly consistent
with Fuchs’s argument that discrimination by consumers has a greater impact on
the earnings of women than does discrimination by either government or private
employers. Also, the fact that women do better working for government than for
private employers implies that private employers are discriminating against
women. The results do not prove that the government does not discriminate
against women. They do, however, demonstrate that if government is
discriminating against women, its discrimination is not having as much effect of
women’s earnings as is discrimination in the private sector. The passage mentions all of the following as difficulties that self-employed women may encounter EXCEPT______.
A.discrimination from suppliers B.discrimination from consumers C.problems in obtaining good employees D.problems in obtaining government assistance