Salary gap between men and women persists
Local experts sound off on the reasons
While a lot of things have changed in the workplace since the early days of the women's liberation movement, some things have stayed the same.
A recent study by the American Association of University of Women Educational Foundation found that the salary gap between men and women still exists, with women on average making only 80 percent of the salary their male peers do one year after college. After 10 years, the gap widens with women earning 69 cents for every dollar a man makes.
"There was a real closing of the gap for a while, and then it sort of dissipated," said Deborah Kolb, the Deloitte Ellen Gabriel Professor for Women & Leadership at the Simmons School of Management in Boston.
In Massachusetts, women with college degrees had a median income of $48,162, 70 percent less than the median income for men, according to the foundation study, which looked at salaries from 2003 to 2005.
Gender dynamics
The reasons for the pay disparities between men and women are varied, according to Laura Graves, a professor at Clark University in Worcester who's studied the salary the gap.
Part of the reason is simply due to the "differences in what women and men look for in work," she said. For example, studies have shown that women focus more on their feelings about their work, while "men are more focused on actual dollars as a measure of success," she said.
Another factor, according to Kolb, is that women just aren't taking the high-paying jobs.
"There are subtle gender dynamics going on, with women being channeled to lower-paying occupations," in areas like human resources and public relations, she said.
Locally, there are only two women who have made it to the highest pay levels at publicly traded companies: Marita Zuraitis, president of property and casualty companies for Hanover Insurance, and Carol Meyrowitz, CEO of TJX Cos. Inc.
Zuraitis' total compensation in 2006 was $2.8 million, making her the second-highest paid employee at the company, behind its president and CEO Frederick H. Eppinger. Meyrowitz, who was only named CEO in 2006, has a pay package totaling $7.6 million for the 2007 fiscal year, making her the highest paid employee at the company.
Because there are so few women that make it to the highest rungs of the corporate ladder, the pay disparities between men and women grow even larger at the executive level, according to Kolb.
So, what's the solution?
For businesses, Graves advises that managers look at a company's pay scale for evidence of pay disparity, and take steps to correct it. She also urges companies to "redefine the notion of career." Women are often at a disadvantage if they take time off from work to care for family, but Graves said the more traditional "linear career pattern" is outmoded in today's world.
Kolb said one of the most important things for a woman – or any person negotiating a salary – is to arm herself with solid research on salaries within her industry. Secondly, she suggested that all women have a clear understanding of their value to a company.
"Everybody works hard, but it's what you have delivered in terms of currency to the business that matters," she said.
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