Equal Diplomas, Unequal Salaries: How Much is the Gender Pay Gap Hurting Your Wallet?

The persistent pay gap between men and women cannot be closed by education alone, according to a recent U.S. study. report from the Census Bureau.

Insights from Census Bureau Data

According to Census Bureau data, women still make around 71 cents on the dollar for every dollar earned by males with the same degree of education, regardless of whether they complete a post-secondary certificate program or graduate from a prestigious institution.

Even though women make up over half of college graduates and are entering the workforce at historically high rates, this disparity is becoming increasingly evident on Equal Pay Day.

Economist Kendall Houghton, a co-author of the research, explained that the Census Bureau report, released on February 22, contrasts men and women with the same educational attainment, such as graduates of certificate programs and those who hold bachelor's degrees from the most prestigious universities, rather than comparing full-time working men and women. Graduates who may have chosen to remain unemployed, such as women who took up child care duties, are also included in the report.

A large portion of the variance may be attributed to factors such as educational field, career choice, and work hours. For example, the field of study accounts for a little portion (3.8%) of the salary differential for degree holders with less selective degrees, but much more (24.6%) for top grads.

Additionally, the number of hours and weeks worked has a greater impact on the wage gap for certificate holders (26.4%) compared to selected bachelor's degree holders (11.3%), indicating a greater gender disparity in certificate holders' job engagement, according to Binder.

Simultaneously, around 31% of the disparity for every educational level is still unaccounted for, indicating the possibility of less quantifiable issues like prejudice and gender stereotypes.

The Persisting Gender Wage Gap

According to Chantel Adams, there is still a gender wage disparity that exists even between men and women who have the same amount and caliber of education, and it is more noticeable for Black and Hispanic women.

Adams, a senior marketing executive with an MBA from the Kenan-Flagler Business School at the University of North Carolina, said that her credentials are insufficient to overcome the obstacles a Black woman experiences in the workplace.

Adams said she was rejected for a promotion despite taking on additional duties and putting on an undeniably great performance, claiming she was informed that "I was so articulate and sharp that it was intimidating to some people."

The C-suite and high-earning industry presence of women has significantly increased, but the progress in the salary gap has stagnated over the past 20 years, according to Aragao. The persistent pay disparity is caused by a number of factors, including uneven family and child care obligations, declining college wage premiums, and an overrepresentation of lower-paying occupations.

Adams said that the Forte Foundation, a nonprofit organization that promotes women's advancement, job coaching, mentorship, and support have all been crucial to her success. She also believes that laws requiring salary transparency, as well as salary transparency within social circles, could lessen the severe pay gap issues that women of color face.

But since the Supreme Court invalidated affirmative action in college admissions, an increasing number of cases have targeted business diversity efforts. Adams expressed concern that business racial diversity may also decline in the absence of affirmative action.