Nobel Prize in Economics Awarded to Harvard’s Claudia Goldin for Work on Gender Gaps

BOSTON—Harvard University’s Claudia Goldin is a labor economist, teacher and mentor. She is now also a Nobel Prize winner for her groundbreaking research on women in the workforce.

Goldin was awarded the Nobel Prize in Economic Sciences on Monday, the third woman to receive the economics prize since the award started in 1969. The 77-year-old Harvard economist has spent decades analysing troves of data to produce research illuminating the history of women’s job-market experiences.

Goldin’s expansive work portfolio includes pieces on the drivers of female labor-force participation, the origins of the gender pay gap and hiring biases against women. Her paper, “Why Women Won,” which documented the evolution of women’s legal rights, published this month.

The winner of the 2023 Prize in Economic Sciences in Memory of Alfred Nobel American economist Claudia Goldin is seen on a display at the Royal Swedish Academy of Sciences, in Stockholm on October 9, 2023. (Photo by Jonathan NACKSTRAND / AFP) (Photo by JONATHAN NACKSTRAND/AFP via Getty Images)

“Goldin’s discoveries have vast societal implications,” said Randi Hjalmarsson, professor of economics at the University of Gothenburg in Sweden.

Goldin was admittedly tired upon entering Monday’s press conference at Harvard. She was, after all, asleep when she received the early-morning call with the news of her Nobel Prize. Still, her passion regarding decades of research and relationship-building radiated as she spoke at a press briefing.

“The increase of women in economics is important for a host of reasons,” Goldin said. “For me personally it has been important because I have had the most wonderful co-authors.”

One such co-researcher, Claudia Olivetti of Dartmouth College, said Goldin’s body of work has shaped much of the current research on women and labor markets. Perhaps less well known, Olivetti said, is Goldin’s extraordinary mentorship of women.

Goldin “has been a source of inspiration to many women in economics, generously sharing her experiences and demonstrating the possibilities of success,” Olivetti said.

Some professors view themselves as researchers, rather than teachers. Not Goldin.

“I could never do research without doing teaching,” she said. “When I teach, I am forced to confront what I think is the truth.”

Goldin was the first woman to secure tenure in Harvard’s economics department. She follows Esther Duflo in 2019 and Elinor Ostrom in 2009 as female recipients of the economics Nobel Prize.

Goldin is married to Lawrence Katz, also a Harvard economist. Both are avid bird watchers and hikers, colleagues said. She has a 13-year-old golden retriever named Pika and no children.

Around the world, 50% of women have paid jobs, compared with 80% of men, although that gap is smaller in advanced economies. Across the developed economies, women earn 13% less on average and are less likely to play senior roles in the organisations they work for.

Goldin’s research questioned the assumption that women had steadily, or would inevitably, narrow those gaps. Using data that had previously attracted little attention, she established that far fewer women worked in paid employment in the early 1900s than in 1800, while that share rebounded as the 20th century advanced, albeit slowly.

Her writing includes 1990’s “Understanding the Gender Gap: An Economic History of American Women.” Examining 200 years of data, Goldin tracked the changing fortunes of women in the workplace as it changed from farm to factory to office.

She also identified some of the considerations that affected the decisions made by women about their participation in the workforce, as well as the constraints they faced at particular times. In one well-known paper, she examined the effect of the contraceptive pill on decisions about work and marriage.

The pay gap between male and female workers had long been attributed to differences in educational attainment, with women typically spending fewer years in formal education.

But that can no longer be true of many developed countries, where women are now better educated on average than men. Instead, Goldin’s work indicates that the gap in pay occurs with the birth of a first child, with women typically devoting more time to child care.

But darker forces are also at work. In one paper, Goldin and co-author Cecilia Rouse from Princeton University showed that the number of female members of the leading U.S. symphony orchestras rose sharply in the 1980s partly because of the adoption of “blind” auditions, where the candidate for an orchestra position auditioned behind a screen, concealing their gender or race from those doing the hiring.

In their paper, called “Orchestrating Impartiality: The Impact of ‘Blind Auditions’ on Female Musicians,” the authors found data across decades of hiring by symphonies both before and after the introduction of blind auditions to show that about a quarter of the increase in female members of orchestras over that time was due to blind auditions, suggesting previous bias.

Elon Musk’s SpaceX is set to make its stock-market debut Friday in the largest IPO ever—and perhaps the most closely watched. The company sold an outsized portion of the offering to individuals. Its performance on Friday will be a crucial gauge of investor appetite for mega-offerings from OpenAI and Anthropic expected later this year.

The rocket maker, which derives most of its revenue from its satellite internet unit and has a nascent artificial-intelligence business, will trade under the ticker “SPCX.” It sold 555.6 million shares at $135 each, raising about $75 billion in a deal that valued the company at roughly $1.77 trillion.

When will shares open for trading?

SpaceX executives are set to ring the Nasdaq’s opening bell in New York, but shares in buzzy initial public offerings don’t tend to start trading until later in the day.

Bankers leading an IPO typically want to match buyers and sellers for about 10% of the shares sold before opening trading to lessen volatility. For SpaceX, that would be about 55 million shares, or roughly $7.5 billion worth.

Because pre-IPO investors are restricted from selling shares for a while, it can take time to find willing sellers among those who bought shares in a high-demand IPO.

Shares of Alibaba , the largest U.S. IPO until SpaceX, opened for trading a little before noon in its 2014 offering. Last year, one of the highest-profile offerings was that of software maker Figma , whose shares started trading just before 2 p.m.

It is possible that SpaceX’s bankers will decide to start trading without matching the typical portion of orders to ensure the shares have several hours of trading on their first day, people familiar with the matter say.

How volatile will the stock be?

Bankers and traders expect SpaceX’s share price could be volatile in initial trading, thanks in part to the large portion of its shares expected to be held by individual investors. Some who anticipate individuals will rush into the shares worry they could just as easily get spooked and rush out.

Any sharp movement in stock price could trigger so-called circuit breakers that could pause trading. For most newly listed companies, a 10% swing in either direction prompts a five-minute pause. Companies that had their shares halted include Figma and Cerebras Systems , the chip company whose shares soared in its May debut.

These forced timeouts applied to single stocks came after the so-called flash crash in 2010, when the Dow Jones Industrial Average fell 700 points in eight minutes before recouping much of the loss.

What is all the talk about the ‘green-shoe’ option?

If the stock starts trading erratically, bankers have a secret weapon to attempt to calm things down.

Underwriters typically sell more shares to investors than an IPO’s total offer size, colloquially called the green shoe. In SpaceX’s case, they sold about 15% more shares than the stated offering size.

Because this means they technically allocated more than the offering amount, the so-called stabilisation agent, in this case, Morgan Stanley , needs to buy back the excess number of shares to deliver them. If the stock starts to fall, the bank will buy the shares in the open market, which helps buoy the stock price. If the stock isn’t faltering, the stabilisation agent can buy the additional shares they need to deliver to investors directly from the company.

The term “green shoe” comes from the first company to employ a version of this method years ago, a shoemaker that was a predecessor to Stride Rite. When Meta Platforms , then known as Facebook, went public in 2012, its shares started dropping and its bankers stepped in to buy more shares.

How will Elon Musk’s take-it-or-leave-it pricing fare?

Like all things Musk, SpaceX’s IPO bucked the norms. Instead of approaching prospective investors with a possible price range for shares ahead of the IPO and incorporating their feedback, the company set an exact share price from the beginning: $135.

The idea was to limit drama for what is already the biggest IPO of all time. It did, however, remove what many see as an important step along the way: price discovery. The success of this approach will partly be judged by how SpaceX’s shares trade Friday. If the stock surges, critics will say SpaceX left money on the table by not pricing shares higher. If the stock falls or trades flat, there will likely be critiques that SpaceX and its advisers overestimated demand.

Will the machinery hold up—and what will be the wider market impact?

The sheer size of SpaceX’s IPO will test the trading infrastructure at Nasdaq and could have ripple effects in the broader market.

Nasdaq has practiced with mock openings to make sure its trading platform is prepared. When Facebook went public, some investors who tried to change or cancel orders ahead of trading didn’t get confirmations because of a technology malfunction. The confusion contributed to Facebook shares dropping on the first day of trading. They didn’t return back above their IPO price for more than a year.

Meanwhile, some market watchers expect added activity Friday in stocks that individual investors might sell to buy SpaceX shares, such as those of technology companies and Musk’s electric-car maker Tesla . Such sales already appeared to be under way earlier in the week, when individual investors dumped single-stock holdings on a net basis for two days in a row, according to Vanda Research. (To be sure, those sales came on days that were poor showings for tech stocks broadly.)

It will take several days for SpaceX shares to show up in any major index funds , so the offering’s wider impact on the market could play out over the next several weeks or longer.