Graduate gender pay gap up to 46%: study

A study of 49,000 new graduates by salary benchmarking website Emolument.com finds female graduates earn 17% less than male classmates.

Patterned purse and cash
By analysing salaries for graduates with between 0-5 years’ experience and those with MBAs, often earning salaries and bonuses, the research tracks a widening gender pay gap as graduates’ careers progress.Male salaries are already an average of 17% higher than those earned by females up to five years after graduation, the study finds.The salary gap is highest among the universities studied for graduates from University College London (-21%) and Cambridge University (-19%). Female graduates from London School of Economics (-3%) and King’s College London (-3%) fair better.The salary imbalance widens further for female MBA graduates when bonuses and salaries are accounted for.Despite a slightly smaller gender pay gap based on average salary (-13%) when compared to female bachelor degree holders, female MBA holders are paid on average 26% less overall than their male counterparts when average discretionary bonuses are taken into consideration.The gender gap for bonuses here is, according to Emolument’s crowd-sourced data, a massive 46%. This widens the pay gap further for women more established in their careers.Emolument.com suggests that the secrecy around remuneration in many of sectors favoured by MBA graduates, like financial services and business consultancy, could account in part for the gender pay disparity.CEO of Emolument.com, Thomas Drewry, said, "The gender gap in salaries is a real issue in the UK today, and only by having a level of transparency will we start addressing the problem.“Taking the decision to go to university or study for an MBA is a huge investment in terms of both time and money, so it is important for people to consider what their earning potential might be when they have graduated, so they can manage their own career more effectively. "For more HR news and features from Re:locate, please click here.