Women may be closing the gender gap in some professions, but business is not one of them.
While obtaining an MBA is normally seen as a surefire way to gain financial and career success, recent statistics show that women with this high-powered degree lag behind their male counterparts in terms of salary. Compared to a decade ago, the MBA gender wage gap has actually widened.
Female MBAs Earn Less
Research conducted by Bloomberg Businessweek reveals that women with an MBA earn less than men with the same degree. The study surveyed more than 24,000 recent graduates of the top 30 business schools, and the self-reported income levels indicate a growing disparity between the sexes.
Wharton’s 2012 graduating females earned 86 cents for every dollar earned by their male classmates. Women graduating from Stanford earned 79 cents on the dollar.
In 2002, the MBA gender wage gap was only 2% overall, as women earned 98% of the salary of their male counterparts. By 2004, the number was 94.1%. Since that time, it has been somewhat sporadic. It rose in 2006, fell in 2008, rose again in 2010, and fell again – to 93.2% – in 2012.
Wharton stands out in particular, since the salaries for their female graduates dropped from 99% in 2002 to 86%in 2012.
Determining Factors
However, Bloomberg speculates that the career choices of MBA graduates may be a contributing factor in the gender wage gap. For example, the number of women pursuing lucrative careers in finance dropped from 29% in 2002, to 16% in 2012. However, for men, the drop-off was not as steep: 32% versus 23%.
In addition, women were inclined to take more marketing classes, even though this area of business does not pay as well.
In one stark reversal, at the University of Texas at Austin’s McCombs School of Business, female MBA grads earned more than male graduates. A large percentage of the school’s female students pursued lucrative consulting careers, and as a result, earned 102% of the salary made by their fellow male graduates.
And, there are other reasons for the wage gender gap disparity. Female MBA students tend to be at least one year younger and less experienced, which may factor into the salary they can command. In addition, men had higher GPAs, another factor that contributes to higher incomes.
However, most startling is the fact that the gender wage gap grows over the lifetime career of the graduates. According to Marianne Bertrand, one of the study’s co-authors, the gap can increase to 50% in a 10-year period.
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