Your Gender *Still* Determines Your Graduate Salary — Here's What You Need To Know

It's 2023 and the gender pay gap still exists — and it's especially clear when it comes to graduate salaries.

University and education are for everyone, but while there's no shortage of students of all genders applying to university, it turns out that your gender can still impact how much you're likely to be paid when you graduate from uni.

With the International Women's Day theme being #EmbraceEquity, it feels more important than ever to highlight this rift in graduate salaries and use this knowledge to empower both men and women to close that pay gap.

In recent years, a lot of gender bias has been removed when it comes to choosing to study certain subjects that were traditionally regarded as more masculine or feminine. Initiatives such as women in STEM encourage women to take up degrees and careers in engineering, maths, science or tech and aim to tackle gender bias around this.

On the flip side, degrees that have been stereotypically considered more feminine and have a stigma attached that they don't lead to "real" careers (such as arts or creative degrees), have been embraced as subjects for everyone.

Universities have no shortage of women applying, in fact, in 2010-2011 there were more women (55%) than men (45%) enrolled in universities across the UK, a trend which hasn't shrunk since. However, while women are certainly attending uni and obtaining degrees, when it comes to graduate salaries, men are still coming out on top.

What impacts the graduate gender pay gap?

There are many influential factors when it comes to the overall gender pay gap, one of which is unequal childcare responsibilities between men and women. The gender pay gap widens after women begin to have children, as women often choose jobs closer to home. This not only limits their career options but also means they may need to take regular time off work for childcare responsibilities, or may need to work part-time and therefore will take a pay cut.

However, research has now shown that female graduates fresh out of uni who have not yet started having children still experience pay inequality. Despite the fact that women are more likely to get a first-class degree or a 2:1 than men are, young women will still often find themselves on lower starting salaries than their male counterparts.

At age 25, the average male graduate earns 5% more per year than the average female graduate, and by 30, the gender pay gap in annual earnings stands at 25%.

On top of this, over their working lives, on average, men will be £130,000 better off by going to university after student loans and taxes are taken into account, while for women the figure stands at £100,000.

Why is there still a gender pay gap for graduates?

One reason suggested by researchers is that the difference in degree choices can have a big impact, with men being more likely to study degrees that will lead to higher-paying jobs, while women are over-represented in degree subjects with low financial returns. Degrees in subjects such as social care, psychology, nursing, creative arts, sociology and English are dominated by women and lead to careers which can typically be lower paid, especially at entry level.

While there are many women taking subjects such as law, medicine or engineering that can lead to high-paying jobs at entry level, these are subjects that are still mainly male-dominated. This could be because men are encouraged to take up these subjects from school age and deterred from pursuing subjects that typically have a low financial return, whereas women are encouraged to take them.

This essentially leads back to centuries of gender bias where men are expected to be the primary breadwinner, whereas women can take a backseat to focus on childcare and housekeeping, and aren't encouraged to be high earners as they can depend on a man to do this instead.

IFS research shows that studying economics at university can boost a woman's earnings by 75% by age 30, compared to a 7.2% increase in creative subjects. However, women make up less than a third of economics graduates and nearly two-thirds of creative graduates. So, perhaps a plausible explanation is that it's all down to what subject you choose to study and what career path you take— but this doesn't account for the gender pay gap in high-earning fields in later life.

Research has also shown that median earnings for male graduates grow strongly once they hit their 30s, however, for women who are beginning to have children, this is where things could start to slow down only further widening the pay gap.

What can be done to change this?

Unfortunately, the answer is not black and white. Many women do choose career fields that have higher-paid jobs, but may still find themselves victims of the gender pay gap.

Sadly, there's also still a stereotype that women are better suited to jobs such as social care, nursing or creative arts than men are, and that women are less likely to succeed in male-dominated fields and while it's 2023, many women who do choose STEM careers are still victims to sexism both in university and the workplace.

It shouldn't just be down to what degree you choose to take. Regardless of your gender, careers in STEM, law or medicine are simply unappealing to some, and it shouldn't just be widely accepted that careers outside of these sectors will be paid much less if that's your dream career path.

For graduates searching for a job, it's best to take a closer look at the companies you're applying for. Unfortunately, many companies are not transparent about their salaries and won't list them on job applications. It's best to look at websites such as Glassdoor to better understand the average salary for different roles.

Plus, know what you're worth! A quick Google search can tell you how much graduates in different fields can expect to earn, so don't settle for a salary that you know is less than you deserve, as, after all, two people doing the same job should not be paid differently based on gender.

For younger students who have not yet applied to university, it's important to consider all options. At the end of the day, you shouldn't choose a degree just because you know it's likely to lead to a better-paid job at the end if it's not a subject you enjoy and are passionate about. Trust us, studying a subject you really don't like that much for 3 years isn't going to end well.

What do students think about everyday misogyny and sexism?

We asked our followers on Instagram what everyday workplace and uni sexism and misogyny they encounter that needs to change, and many of the responses agreed that the gender pay gap and bias around degrees need to change. Responses included "assuming that social courses are for women", "men earning more than women" and "the pay gap"–– which only backs up the fact that it's clear that things need to change.

The reality is that there's still a long way to go when it comes to the gender pay gap, especially for graduates. However, due to pressure from employees, many companies are now opting for more transparency around salaries and gender pay gaps, so while there's still work to be done, perhaps things are looking up for the future.

Women and men should be encouraged to chase whatever career path they want and should expect to receive the same salary as one another for it, but until then, all we can do is continue to hold businesses and employers accountable and encourage graduates to chase their dream careers regardless of their gender as well as empowering women to know their worth and fight for fairer salaries.