Written by:
Shali Zhu

Pay Disparity: Could a College Degree Close the Gap?

The wage gap that exists between the genders is a well-known phenomenon in the work force. According to a report by the U.S. Census Bureau, as of 2008 the median earnings for women are $10,622 lower than those for men, and women earned only 77 cents to each dollar men earned. Moreover, the National Committee on Pay Equity estimates that over the past 40 years, the real median income for women has fallen short by anywhere from $700,000 to $2 million, depending on the highest level of education attained. In fact, Evelyn Murphy, an economist and the president of The Wage Project, demonstrated that the wage gap, in purely monetary terms, widens as the education level rises; while a female high school graduate may earn up to $700,000 less than a male counterpart over her lifetime, for instance, a female college graduate may see as much as $1.2 million less in the bank.

Some argue that the remaining gap in earnings will eventually disappear. They point out that since women have been graduating from colleges at a higher rate than men, women’s earnings on average, buoyed by the salaries of these college degree holders, will gradually rise to a level equal to that for men. However, there is a plethora of evidence to suggest otherwise. A study conducted by the American Association of University Women Education Foundation found that just one year after graduation from college, a time when men and women should be on relatively equal footing, men are already out earning women by 25%. The earnings gap continues to widen as time goes on. Ten years after graduating from college, women will earn only 69% of the amount earned by their male counterparts. Furthermore, a 2008 report put forth by the U.S. Census Bureau illustrates that the median earnings for women with bachelor’s degrees is nearly $19,000 less than those for men with the same education level, with women earning approximately 67 cents to every dollar earned by men.

To learn more about the earnings gap, read this report by the Institute of Women’s Policy Research by clicking here. Photo courtesy of Flickr.