Posts Tagged "earnings disparity"

Students graduating during the pandemic

Women Faster to Accept Jobs. Pay Suffers

Women attend college at higher rates than men. Women’s labor force participation was also fairly steady prior to COVID, while men’s declined, and women continue to move into fields traditionally held by men.

Despite all this progress, women still earn much less than men.

Discrimination partly explains the pay gap, as does motherhood, which can interrupt the smooth progression in women’s careers at a critical time. But another explanation doesn’t get as much attention: women earn less because they’re not as confident as men about how much they can get and are more afraid of taking some risks in negotiations with employers.

In the 2018 and 2019 graduating classes at Boston University’s Questrom School of Business, women started their job searches earlier and accepted employers’ offers more quickly, according to a new analysis of student surveys before graduation and after they’d landed a job.

Men, on the other hand, do take risks, extending the negotiation with employers to see how much they can secure or even rejecting a job in hopes that a better one comes along.

Prior to graduating, nearly two-thirds of the women in BU’s business school had accepted a job during their junior or senior years but only about half of the men had, the researchers found.

The male students also enter their pay negotiations with higher expectations of what they want to earn. Their optimism, verging on overconfidence, serves them well. Male graduates from the BU business school earned about $6,700 more, on average, than their female classmates.

Men’s natural advantages in two psychological attributes – optimism and a willingness to take risks – “play a non-trivial role in generating early career earnings gaps among the highly skilled,” the study concluded. …Learn More