  We analyze and develop a quantitative model describing the evolution of
personal income distribution, PID, for males and females in the U.S. between
1930 and 2014. The overall microeconomic model, which we introduced ten years
ago, accurately predicts the change in mean income as a function of age as well
as the dependence on age of the portion of people distributed according to the
Pareto law. As a result, we have precisely described the change in Gini ratio
since the start of income measurements in 1947. The overall population consists
of two genders, however, which have different income distributions. The
difference between incomes earned by male and female population has been
experiencing dramatic changes over time. Here, we model the internal dynamics
of men and women PIDs separately and then describe their relative contribution
to the overall PID. Our original model is refined to match all principal
gender-dependent observations. We found that women in the U.S. are deprived of
higher job positions. This is the cause of the long term income inequality
between males and females in the U.S. It is unjust to women and has a negative
effect on real economic growth. Women have been catching up since the 1960s and
that improves the performance of the U.S. economy. It will take decades,
however, to full income equality between genders. There are no new defining
parameters included in the model except the critical age, when people start to
lose their incomes, was split into two critical ages for low-middle incomes and
the highest incomes, which obey a power law distribution. Such an extension
becomes necessary in order to match the observation that the female population
in the earlier 1960s was practically not represented in the highest incomes.

General Finance