Why MBA-Wielding Women Still Get Shortchanged
An MBA can do wonders for your resume and your salary. Yet, a study
shows that it's still not enough to close the gender pay gap.
That's right; women with a Master of Business Administration degree still miss out on $400,000 over 20 years as compared to their male counterparts, according to a study of 14,000 business school alumni conducted by the Graduate Management Admission Council (GMAC).
As reported by Fortune.com, the gap is at its narrowest in entry-level jobs — which may inform why many millennial women don't think the gender pay gap applies to them. But the GMAC study found the gap increases as women move up the ranks. Women who've shattered the glass ceiling — or have sights set on doing so — take note: the MBA pay gap is widest in executive-level roles, when women earned an average $165,000 to men's $205,000, or 80 cents to the men's dollar.
Beyond salary, men are also outnumbering women in high-ranking roles.
"...while the degree may provide a gender-blind boost, the fact that the pay differential grows as female alumnae rise up the ranks is clear evidence that an MBA is not enough to blunt the factors that drive the gap," according to the Fortune.com piece.
It's definitely not just women with an MBA being affected, either. On average, U.S. women are making 21 percent less than their male counterparts. And non-white women are making even less than that. Today, more women and more companies are speaking out and stepping up to close the pay gap. In 2014, Gap Inc. was the first Fortune 500 company to announce that it pays employees equally for equal work.
Gap Inc. is spreading awareness of the issue with a shareable salary calculator, which shows, on average, how much women stand to lose over their careers if nothing changes in the fight for equal pay. At the current rate, the U.S. won't achieve equal pay until 2059.