The Buzz: Digging Deep on Gender Pay Disparities

Dr. Deborah Ashton, Chief Diversity Officer at Novant Health, recently released a study of pay inequities that was published in an HBR Blog post. Her analysis showed even when you adjust for educational levels all women, in general, make less than men.

“Men, regardless of race or ethnicity, earn more than women of any race when education level is held constant, with one exception – Asian women. Asian women with bachelor’s and advanced degrees are the only women who make more than one group of men–black men, who earn the least in comparison to their male counterparts at every level of education.

Black and Hispanic women are paid the least at every level of education, and she found that the gender pay gap actually increases with higher education for black, white, and Hispanic women.

It was interesting to read the comments that were posted in response to her findings.

The majority of them criticized her analysis as too simplistic, not taking into account job functions. One naysayer commented that women and people of color often choose disciplines that do not pay as much and that Asian women are more likely to be in the sciences where the pay is generally higher.

It really irks me that we continue to try to rationalize why women on average earn only 82 cents to every man, up from 77 cents in 2012. Dr. Ashton’s is not the only study that has revealed vexing pay inequities.

Last summer The Inclusion Solution featured a series on why women earn less than men. We cited a study by Bloomberg that essentially said that even women at the very top of the house make 18% less than their male counterparts. The study suggested, which others have as well, it is because men are better at negotiating salaries. From my perspective, which is articulated in the series mentioned above, negotiating skills is not a valid excuse. I just don’t buy that women are poor negotiators, different perhaps but not deficient. I believe that deep-seated unconscious bias is the culprit (i.e. “Men are the primary breadwinners and need to make more money”—even though so not true anymore.).

Another study conducted by Catalyst in 2010 found that on average, men earn $4,600 more than women in their first post-MBA jobs.

Additional research conducted by the American Association of University Women, which did adjust for profession and other factors, found that just one year after graduation, college-educated women were on average already making $7,600 less each year than their male counterparts.

So the argument that women choose professions that pay less, just does not hold up. Additionally the long held myth that that companies pay a premium to attract women and people of color does not seem to bear out either.

While I do agree with the commenters to Dr. Ashton’s research that the issues are complex, I also believe they are “fixable”. Every hiring manager, every HR professional, has the ability to ensure pay equity in their organizations. It is not rocket science, folks.