Understanding the Impact of Higher Education on Reducing the Gender Pay Gap

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Abstract Higher education was studied as it relates to reducing the gender pay gap. Undergraduate and graduate and doctoral degrees are proven to decrease the pay gap. Earning a doctoral degree and working in the field of academia proved to have a larger gender gap but has lessened within the context of the field (Barbezat and Hughes, 2005). Certain fields were shown to have less of gender gap if the demand for the field was high or dominated by women. In either case, all fields proved to have a gender gap regardless the level of higher education (Garcia-Aracil, 2008). Introduction and Literature Review There many are articles that attempt to explore the impact of higher education on the gender pay gap and the reasoning for its existence. The purpose of this study is to measure the impact of receiving a high degree in reducing the ever present gender pay gap. MBA Graduate Wage Gap As Graddy and Pistaferri (2000) have explained, higher education does reduce the pay gap but women still experience less pay than men. The sample was taken from recent business school graduates over the course of 4 years with a respondent rate of 78 percent, 80 percent of women and 76 percent of men. The study focused on those working in the UK and would be paid in sterling. In addition, any perceived characteristics that could influence the pay gap were identified such as marital status and age. Race was also included to consider any non-white women included in the sample. Educational performance, experience and job sector of work were included as well but had no significant impact on the results as most graduates entered the similar job fields. The study showed an 8.6 percent pay difference in outgoing graduate students of London Business School. The evidence that there is still, although less, discrimination against women with higher education. Researchers have tried to

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